Financial Performance - Revenue for the year ended June 30, 2021, was HK$237,473,000, a decrease of 42.1% from HK$410,668,000 in 2020[3] - Adjusted loss for the year was HK$55,882,000 compared to an adjusted loss of HK$34,727,000 in 2020, representing a 60.5% increase in loss[3] - Attributable loss for the year was HK$59,822,000, up from HK$39,521,000 in 2020, indicating a 51.5% increase in loss[3] - The Group reported total revenue of approximately HK$237 million for the year, a decrease of approximately 42% compared to HK$411 million in 2020, primarily due to reduced trading volume in gasoil and charter income from oil tankers[47] - Loss attributable to owners of the Company was approximately HK$60 million, compared to approximately HK$40 million in 2020, with a loss per share of HK8.75 cents, up from HK5.78 cents in the previous year[48] - Other income decreased to approximately HK$7 million from HK$17 million in 2020, mainly due to a fair value loss on financial assets of approximately HK$15 million, compared to a gain of approximately HK$17 million in 2020[49][56] Assets and Liabilities - Cash and cash equivalents as of June 30, 2021, were HK$135,567,000, an increase of 26.6% from HK$107,051,000 in 2020[3] - Total assets as of June 30, 2021, were HK$414,892,000, down from HK$458,766,000 in 2020, reflecting a decrease of 9.5%[3] - The current assets to current liabilities ratio improved to 2.84 from 2.33 in 2020, indicating better liquidity[3] - The Group recognized an inventory of HK$5.8 million as of June 30, 2021, and implemented measures to manage risks associated with gasoil trading[64] - The decision to dispose of the oil tanker was made to avoid further losses due to COVID-19, with proceeds used to reduce interest-bearing loans, saving approximately HK$1.95 million in annual interest costs[62] Corporate Actions and Strategies - The company proposed to raise gross proceeds of approximately HK$205 million by issuing 2,051,492,544 rights shares at a subscription price of HK$0.1 per share[17] - The company aims to achieve a debt-free position through these corporate actions, significantly enhancing its financial strength[17] - The management has focused on improving the company's financial situation through debt reduction and increased investment in renewable energy and system products[16] - The company is focused on strengthening its cash flow through rights issues and disposal exercises to enhance working capital for trading and technology business expansion[73] - The management is optimistic that the gasoil market will recover as the negative impacts of COVID-19 subside, allowing for higher profit margins with increased turnover[74] Business Operations and Market Adaptation - The company has taken proactive measures to adapt to the challenges posed by COVID-19 and is working on optimizing its business and asset restructuring[15] - The management has temporarily suspended the shipping business to assess the gasoil and oil tanker markets due to the adverse impacts of COVID-19[24] - The company is actively monitoring market conditions to potentially restart its shipping business when the impact of COVID-19 subsides[25] - The company has resumed most of its business plans since June 2021, contributing to revenue growth[18] - The company has taken proactive measures to adapt to challenges posed by the pandemic and economic disruptions[18] Renewable Energy and Technology Development - The renewable energy business is expected to enter a harvesting phase by June 30, 2021, as the company continues to optimize its asset portfolio[26] - The company is focused on expanding its renewable energy and technology businesses with the remaining funds from the corporate actions[22] - The company has successfully redeployed resources towards large scale solar photovoltaic (SPV) projects on vacant lands, leading to new substantial contracts and letters of intent[29] - A tender was awarded to the company by a renowned property developer for the supply and installation of an SPV system in Sai Sha, covering over 680 square meters and consisting of more than 1,340 solar panels[29] - The Group's renewable energy business is expected to enter its harvesting period, with many customers responding positively to the designs after studying the Group's engineering examples[84] Cultural Products and Market Strategy - The company continues to adopt a cautious approach in handling cultural products, acquiring new items while monitoring market conditions for optimal resale opportunities[38] - The company has displayed its cultural products on its website to enhance public awareness[38] - As of June 30, 2021, the value of cultural products held for trading and resale amounted to HK$12,758,000, an increase from HK$11,583,000 as of June 30, 2020, representing a growth of approximately 10.1%[122][124] - The Group holds a total of 368 pieces of cultural products, which are stored in a secured warehouse managed by a world-renowned security company[122][123] Investment and Market Conditions - The negative impact of global market conditions, including fears of a worldwide economic recession and tensions between the USA and China, significantly affected the investment market during the reporting period[130] - The Group's cautious approach to handling cultural products continues, with ongoing acquisitions and market monitoring to optimize inventory realization[121] - The investment portfolio included 6 equity securities listed on the Stock Exchange of Hong Kong, down from 10 in 2020, with 3 on the Main Board and 3 on the GEM[131] Future Outlook and Confidence - The company remains confident about its future prospects following the strengthening of its financial structure after recent corporate actions[38] - The company is committed to creating greater benefits and a better future for its shareholders[39] - The management believes that the trading business will revive once COVID-19 is substantially under control, contributing to the company's normal operational levels[71] - The company expresses gratitude to customers, suppliers, business partners, and shareholders for their support during challenging times[38]
冠军科技集团(00092) - 2021 - 年度财报