Financial Performance - The Group's total revenue for FY2023 was approximately HK$82.5 million, a decrease of 81.3% compared to FY2022's revenue of approximately HK$441.3 million[13]. - Revenue from the renewable energy segment, specifically trading and processing of recyclable oil/biodiesel, was approximately HK$73.1 million in FY2023, down from approximately HK$424.2 million in FY2022, reflecting a drop of 82.8%[15]. - The revenue from the waste construction materials and processing service segment was approximately HK$4.1 million for FY2023, down from approximately HK$5.2 million in FY2022, reflecting a decrease of 21.2% due to a lack of incoming materials and intense regional competition[24]. - The plastic recycling and metal scrap business recorded revenue of approximately HK$2.6 million for FY2023, down from approximately HK$4.2 million in FY2022, indicating a decline of 38.1% due to market uncertainties and high price volatility[27]. - The healthcare business generated revenue of approximately HK$2.5 million for FY2023, significantly lower than approximately HK$7.6 million in FY2022, marking a decrease of 67.1% before the subsidiary was sold in June 2023[31]. - The money lending business reported revenue of approximately HK$0.2 million for FY2023, a new revenue stream compared to nil in FY2022, amid tighter financing conditions and anticipated credit risks[30]. - The net loss attributable to owners of the Company for FY2023 was approximately HK$9.0 million, a 67.5% year-on-year reduction from HK$27.7 million in FY2022[122]. - Total revenue for FY2023 was approximately HK$82.5 million, representing an 81.3% decrease compared to HK$441.3 million in FY2022[121]. - Revenue from the renewable energy segment was approximately HK$73.1 million, down 82.8% from HK$424.2 million in FY2022, while net profit for this segment increased by 35.9% to HK$5.3 million[124]. - The healthcare business recorded a revenue of approximately HK$2.5 million for FY2023, down from HK$7.6 million in FY2022, with a net loss of approximately HK$4.8 million, a 42.2% reduction year-on-year[133]. - Revenue from the plastic recycling/metal scrap sector was approximately HK$2.6 million, a 38.1% decrease from HK$4.2 million in FY2022, with a net loss of approximately HK$4.9 million[130]. - The waste construction materials and processing service segment reported revenue of approximately HK$4.1 million, down from HK$5.2 million in FY2022, with a net profit of approximately HK$0.3 million[125]. Strategic Initiatives - The strategic shift to processing and sales of used cooking oils resulted in a net profit of HK$5.3 million for FY2023, compared to HK$3.9 million in FY2022[23]. - The Group established its own storage and processing factory for used cooking oils in 2022, enhancing its local supplier network in Hong Kong[22]. - The Group's focus on the sales of palm oil mill effluent methyl ester in FY2022 was a response to the adverse impacts of the coronavirus pandemic, despite lower profit margins[22]. - The Group's strategic focus on local collection and processing of used cooking oil aims to improve profitability amidst challenging market conditions[22]. - The Group has established its own storage and processing facility for used cooking oil, aiming to enhance revenue sources despite challenging economic conditions[25]. - The Group has built a local supplier network and secured exclusive rights to collect used cooking oils from food and beverage providers in Hong Kong[93]. - The Group has expanded its operational team by hiring additional staff with relevant experience in the collection and trading of used cooking oils[90]. - The Group's renewable energy business is expected to see increased gross margins as it shifts its strategy towards collecting and processing used cooking oil[41]. - The Group may take necessary actions to minimize losses in certain business segments to preserve funding for renewable energy development and potential new projects[46]. Market Conditions - Oil prices experienced significant volatility in 2022, impacting profit margins in the renewable energy segment due to reduced prices of used cooking oil[21]. - The global economy is gradually recovering from the pandemic, but significant downside risks remain, with signs of low growth amid stubborn inflation and rising interest rates[37]. - The European market for recycled plastic is under severe pressure, with demand for mechanically recycled polymers at its lowest in several years, impacting producer margins[28]. - The ongoing geopolitical tensions, particularly between the U.S. and China, could impede trade and investments, affecting the Group's operations[43]. - The global economic recovery remains weak, with signs indicating a loss of momentum in global activity due to ongoing high inflation and tightening monetary policy[40]. - Demand for used cooking oil (UCO) for biodiesel production is expected to increase, particularly from the European Union, due to changes in climate legislation and new proposals[38]. - The market for used cooking oil (UCO) is expected to grow due to increased demand from the European Union, driven by revised climate legislation and new proposals[41]. - The plastic recyclables market is facing severe pressure, with prices declining due to low demand and cheaper virgin material prices, impacting consumption and demand significantly[42]. Operational Efficiency - The Group has engaged in renewable energy, waste construction materials, plastic recycling, money lending, and discontinued healthcare business after June 2023[75][79]. - The Group has been actively involved in the waste construction materials and processing service since 2007, establishing stable operations and long-term relationships in Germany[94]. - The Group has ceased its high-grade plastic recycling operations in Japan since April 2022 due to a shortage of feedstock supply[104]. - Legal and professional fees were reduced by approximately HK$4.5 million due to stringent cost control measures[122]. - The closure of the Japanese plastic recycling plant resulted in savings of approximately HK$1.5 million, while the discontinued healthcare operations saved approximately HK$5.0 million in expenditures[139]. - Total expenditures for FY2023 were approximately HK$50.9 million, slightly down from approximately HK$52.6 million in FY2022, with transportation costs increasing to approximately HK$12.0 million from approximately HK$1.4 million[138]. - The Group has adopted a cautious approach in assessing and approving new loans to mitigate credit risk amid economic uncertainties[119]. Governance and Compliance - The Group maintains high standards of operating practices and complies with relevant laws and regulations, ensuring quality control and responsible business practices[171]. - The Group's financial risk management objectives and policies are detailed in the consolidated financial statements[168]. - The Group's compliance procedures ensure adherence to applicable laws, rules, and regulations, with relevant changes communicated to employees[171]. - The company has received annual confirmations of independence from all independent non-executive directors, who are considered independent[188]. - The Directors do not recommend the payment of any dividend for the years ended June 30, 2023, and 2022, indicating a focus on retaining earnings for future growth[159]. Leadership and Human Resources - Mr. Luo Xian Ping has over 17 years of experience in asset restructuring and corporate finance[58]. - Mr. Ho Wai Hung has extensive experience in accounting and finance, particularly in the money lending business[59]. - Mr. Tam Chun Wa has more than 30 years of experience in auditing, accounting, tax, investment banking, and company secretarial works[63]. - Mr. Man Kwok Leung has over 20 years of financial and compliance experience related to listed companies in Hong Kong[65]. - The company has a diverse board with members holding various advanced degrees and certifications in finance and accounting[57][64][66]. - The Group had 37 employees as of June 30, 2023, down from 57 employees as of June 30, 2022, reflecting a strategic move to streamline operations[150].
绿色能源科技集团(00979) - 2023 - 年度财报