Financial Performance - Revenue for FY21 was HK$158,729,000, an increase of 16.85% from HK$135,838,000 in FY20[8] - Gross loss for FY21 was HK$24,278,000 compared to a gross profit of HK$56,421,000 in FY20, representing a decline of 143.03%[8] - Loss before tax for FY21 was HK$514,965,000, a significant increase from a loss of HK$178,041,000 in FY20, marking a 189.24% increase[8] - The loss attributable to owners of the Company rose to HK$521,821,000 in FY21, compared to a loss of HK$202,914,000 in FY20, with total comprehensive expenses amounting to HK$397,998,000[22] - Basic and diluted loss per share increased to HK$1.26 from HK$0.53, a rise of 137.74%[8] - Basic loss per share for FY21 was HK$1.26, compared to HK$0.53 for FY20, with total comprehensive expenses approximately HK$396,025,000[32] - The Group reported a gross loss of HK$24,278,000 for the year, compared to a gross profit of HK$56,421,000 in FY20, primarily due to special discounts on residential apartments and the impact of travel restrictions on serviced apartments in Chongqing[48][49]. Assets and Liabilities - Net assets decreased by 52.34% to HK$189,128,000 from HK$396,804,000 in FY20[8] - Cash and cash equivalents dropped by 88.87% to HK$153,787,000 from HK$1,381,528,000 in FY20[8] - Current ratio decreased to 1.71 from 3.60 in FY20[11] - Gearing ratio increased to 15.38 from 9.76 in FY20[11] - As of 31 March 2021, the Group's total equity decreased by 52.3% to HK$189,128,000 (2020: HK$396,804,000), impacted by the loss attributable to owners and partially offset by an exchange gain of HK$124,084,000[55][56]. - The Group's cash and cash equivalents fell to HK$153,787,000 (2020: HK$1,381,528,000), with current assets at HK$670,556,000 (2020: HK$1,886,328,000) and a current ratio of 1.71 (2020: 3.60)[57][58]. - Total borrowings amounted to HK$2,908,705,000 (2020: HK$3,873,325,000), with a gearing ratio of 15.38 (2020: 9.76), indicating increased financial leverage[57][58]. Revenue Breakdown - The Group's revenue increased to HK$158,729,000 during FY21, up by HK$22,891,000 compared to the previous year, primarily driven by the property management and renovation businesses acquired in March and June 2020[22] - Property management revenue reached HK$26,249,000, up from HK$15,173,000 in FY20[35] - Renovation and decoration revenue was HK$62,394,000, compared to nil in FY20[35] - Hotel operations in Japan generated revenue of HK$8,033,000, down from HK$10,985,000 in FY20[38] - Revenue from the Chongqing Property was HK$62,053,000 in FY21, down from HK$109,680,000 in FY20[32] Impairment and Losses - The impairment loss on property, plant, and equipment was HK$149,920,000, and HK$52,124,000 on right-of-use assets, primarily due to uncertainties arising from COVID-19[22] - The gross loss from the property segment was HK$24,278,000, mainly due to special discounts on residential apartment sales under unfavorable market conditions[22] Strategic Focus and Future Plans - The Group plans to focus on monitoring financial performance and maximizing returns to generate stable income and lower finance costs[26] - Future strategies include continuous investments and acquisitions to enhance overall financial performance and diversify the portfolio[28] - The Group aims to monitor financial performance and improve management standards to generate stable income and lower finance costs[44] - The Group will actively seek more investment opportunities with promising outlooks[46] Corporate Governance - The Company has adopted a corporate governance statement of policy in line with the CG Code, ensuring high standards of corporate governance[112] - The Company has complied with all code provisions set out in the CG Code throughout the year ended 31 March 2021[113] - The Group's board is committed to managing business risks and enhancing transparency to protect stakeholders' interests[110] - The Company recognizes the importance of achieving high standards of corporate governance for the benefit of all stakeholders[110] - The Company has a structured approach to corporate governance, providing a solid foundation for accountability and risk management[112] Board Composition and Meetings - The Board comprises five executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[118] - Fourteen Board meetings were held during the year, facilitating discussions on overall strategy and financial performance[124] - The roles of Chairman and CEO are clearly defined and segregated to ensure independence and proper checks and balances[132] - The Audit Committee held three meetings during the year ended 31 March 2021, reviewing the annual results and interim results before submission to the Board[158] Risk Management - The Board has delegated the responsibility for internal controls and risk management to the management, which has established a process for identifying and managing significant risks[196] - The audit committee reviewed significant internal controls and risk management based on the going concern basis, ensuring adequate resources and employee qualifications in accounting and financial reporting functions[198] - Management has established procedures to identify, assess, and manage significant risks faced by the group under the supervision of the board[198]
民生国际(00938) - 2021 - 年度财报