木薯资源(00841) - 2025 - 年度业绩

Performance Summary The company's revenue decreased by 18.0% to HKD 978 million, with a widened loss attributable to shareholders, and no final dividend proposed Core Financial Indicators For the year ended March 31, 2025, the company's revenue decreased by 18.0% to HKD 978 million, primarily due to the contraction of the dry cassava chip business, while loss attributable to shareholders widened from HKD 111 million to HKD 131 million, mainly impacted by fair value losses on investment properties and asset impairments, with the Board recommending no final dividend Core Financial Indicators | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | HKD 978 million | HKD 1,193 million | | Loss Attributable to Shareholders | HKD 131 million | HKD 111 million | | Fair Value Loss on Investment Properties | HKD 53.8 million | HKD 60.1 million | | Impairment of Property, Plant and Equipment | HKD 26.2 million | HKD 25.5 million | | Impairment of Right-of-Use Assets | HKD 8.9 million | Zero | | Final Dividend | Not Distributed | Not Applicable | Consolidated Financial Statements This section presents the company's consolidated financial performance and position, highlighting revenue decline, widened losses, and significant liquidity challenges Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the company's revenue was HKD 978 million, an 18.0% year-on-year decrease, with gross profit significantly declining by 46.6% to HKD 81.15 million, leading to an expanded annual loss from HKD 149 million to HKD 168 million due to a HKD 53.76 million fair value loss on investment properties and increased administrative expenses, resulting in a loss attributable to company owners of HKD 131 million and basic loss per share of HKD 22.36 cents Consolidated Statement of Profit or Loss and Other Comprehensive Income | Item (HKD thousands) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 977,903 | 1,193,032 | -18.0% | | Gross Profit | 81,150 | 152,041 | -46.6% | | Loss Before Tax | (162,045) | (139,790) | +16.0% | | Loss for the Year | (168,021) | (149,019) | +12.8% | | Loss Attributable to Owners of the Company | (130,721) | (111,360) | +17.4% | | Basic Loss Per Share (HK cents) | (22.36) | (19.04) | +17.4% | Consolidated Statement of Financial Position As of March 31, 2025, the company's total assets were HKD 1.697 billion, total liabilities were HKD 1.347 billion, and net assets decreased by 27.8% from HKD 484 million in the prior year to HKD 349 million, notably, the Group's current liabilities (HKD 1.045 billion) significantly exceeded current assets (HKD 712 million), resulting in a net current liability of HKD 332 million, primarily due to certain bank loans being reclassified as current liabilities due to covenant breaches, indicating significant liquidity risk Consolidated Statement of Financial Position | Item (HKD thousands) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 984,372 | 1,050,248 | | Current Assets | 712,354 | 417,291 | | Total Assets | 1,696,726 | 1,467,539 | | Liabilities and Equity | | | | Current Liabilities | 1,044,633 | 285,432 | | Non-current Liabilities | 302,611 | 698,156 | | Total Liabilities | 1,347,244 | 983,588 | | Net Assets | 349,482 | 483,951 | - As of March 31, 2025, the Group's current liabilities exceeded its current assets by HKD 332.3 million, primarily due to HKD 879.4 million in interest-bearing bank loans being reclassified as current liabilities due to breaches of certain loan covenants[10] Notes to the Financial Statements This section provides detailed disclosures on the company's operations, accounting policies, segment information, and key financial items, including significant liquidity challenges and management's mitigation plans Company Information and Basis of Presentation The Group primarily engages in the procurement and sale of dry cassava chips, hotel and serviced apartment operations, and property investment, with financial statements prepared on a going concern basis despite significant uncertainties, including net current liabilities of HKD 332 million mainly due to HKD 879 million in bank loans reclassified as current liabilities due to covenant breaches, for which management has developed a plan including obtaining bank waivers, repaying part of the loans, and securing a new HKD 220 million loan from the controlling shareholder to alleviate liquidity pressure - The Group's principal activities include the procurement of dry cassava chips in Southeast Asian countries, the sale of dry cassava chips in mainland China and Thailand, the operation of hotels and serviced apartments in mainland China and Hong Kong, and property investment[10] - The Group faces severe liquidity pressure with net current liabilities reaching HKD 332 million, and management's countermeasures include: - Obtaining a waiver from the lending bank in June 2025 for covenant breaches on a HKD 404 million term loan[10][11] - Repaying all defaulted invoice financing totaling HKD 351 million[10][11] - Securing a HKD 220 million loan from the controlling shareholder in June 2025[10][13] Changes in Accounting Policies and Disclosures This year, the Group first applied revised Hong Kong Financial Reporting Standards concerning sale and leaseback, classification of liabilities, and supplier finance arrangements, and an assessment concluded that these changes had no significant impact on the Group's financial position or performance - The Group first applied several revised Hong Kong Financial Reporting Standards this year, including HKFRS 16 (Sale and Leaseback), HKAS 1 (Classification of Liabilities), and HKAS 7 (Supplier Finance Arrangements), and an assessment concluded that these revisions had no impact on the Group's financial position or performance[16][19] Segment Information The Group's operations are divided into three segments: dry cassava chip sales, property investment, and hotel and serviced apartment operations, with dry cassava chip sales being the absolute core revenue driver, contributing HKD 960 million in revenue but only HKD 5.96 million in segment results, while both property investment and hotel businesses recorded losses of HKD 49.4 million and HKD 26.95 million respectively, and geographically, 98.5% of revenue originated from mainland Chinese customers Segment Performance | Segment (HKD thousands) | Revenue (2025) | Segment Results (2025) | Revenue (2024) | Segment Results (2024) | | :--- | :--- | :--- | :--- | :--- | | Dry Cassava Chip Procurement and Sales | 960,498 | 5,955 | 1,173,577 | 16,915 | | Property Investment | 4,361 | (49,402) | 4,650 | (57,796) | | Hotel and Serviced Apartment Operations | 13,044 | (26,945) | 14,805 | (26,604) | | Total | 977,903 | (70,392) | 1,193,032 | (67,485) | Revenue by Region | Region (HKD thousands) | Revenue from External Customers (2025) | Revenue from External Customers (2024) | | :--- | :--- | :--- | | Mainland China | 963,618 | 1,177,362 | | Hong Kong | 14,285 | 15,670 | | Total | 977,903 | 1,193,032 | - For the current year, sales to the Group's single largest customer amounted to approximately HKD 304 million, accounting for 31.1% of total revenue[25] Revenue, Other Income and Finance Costs Total revenue was HKD 978 million, with HKD 960 million from sales of dry cassava and other goods, while other income amounted to HKD 20.1 million, primarily including HKD 14.16 million from revised income payable to a non-controlling shareholder of a subsidiary, and finance costs increased from HKD 41.22 million to HKD 44.74 million, mainly due to increased interest payable to a non-controlling shareholder of a subsidiary Revenue Sources | Revenue Source (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Sales of Dry Cassava and Other Goods | 960,498 | 1,173,577 | | Hotel and Serviced Apartments, etc. | 13,044 | 14,805 | | Rental Income | 4,361 | 4,650 | | Total | 977,903 | 1,193,032 | Finance Costs | Finance Costs (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Interest on Bank Loans | 29,123 | 29,503 | | Interest Payable to Non-controlling Shareholder of a Subsidiary | 15,613 | 11,715 | | Total | 44,736 | 41,218 | Taxation and Loss Per Share Income tax expense for the current year was HKD 5.98 million, lower than HKD 9.23 million last year, while basic and diluted loss per share expanded to HKD 22.36 cents from HKD 19.04 cents last year, reflecting the company's increased loss - Basic loss per share expanded from HKD 19.04 cents in the previous year to HKD 22.36 cents in the current year[5][29] Income Tax | Income Tax (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Current Tax | 5,742 | 9,112 | | Deferred Tax | 234 | 117 | | Total | 5,976 | 9,229 | Key Balance Sheet Items At the end of the reporting period, trade and bills receivable significantly increased from HKD 20.08 million to HKD 159 million, with all balances aged within 30 days, concurrently, trade payables also notably increased from HKD 4.13 million to HKD 38.93 million, with payment terms within one month Trade and Bills Receivable | Item (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Trade and Bills Receivable | 159,156 | 20,077 | Trade Payables | Item (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Trade Payables | 38,927 | 4,133 | Events After the Reporting Period To address liquidity pressure, the Group drew down an interest-bearing loan of HKD 220 million from its controlling shareholder and Chairman, Mr. Zhu Mingquan, in June 2025, with repayment linked to the Group's working capital position and the renewal of other loans - In June 2025, the Group drew down a HKD 220 million loan from its controlling shareholder at an annual interest rate of HIBOR plus 1.25%, to alleviate working capital pressure[31] Management Discussion and Analysis This section provides an overview of the company's operational and financial performance, highlighting challenges in core businesses, changes in financial metrics, and future strategic directions Business Review Affected by factors such as slower-than-expected economic recovery in mainland China, a high-interest rate environment, and the popularization of electric vehicles, demand for dry cassava chips, a key raw material for alcohol production, remained weak, leading to an 18.2% year-on-year decline in revenue for this core business, while hotel and serviced apartment business revenue also decreased by 12.2% due to unfavorable market conditions - Due to the sluggish economic recovery in mainland China and decreased demand for alcohol products, the Group's core business of procuring and selling dry cassava chips saw its revenue decrease by 18.2% from HKD 1.174 billion to HKD 961 million[33][34] - Revenue from hotel and serviced apartment operations decreased by 12.2% from HKD 14.8 million to HKD 13 million[34] Financial Review This year's revenue decreased by 18.0% to HKD 978 million, with gross profit margin significantly falling from 11.3% to 6.6%, primarily due to a change in customer logistics terms from Cost and Freight (C&F) to Free On Board (FOB), leading to a decrease in average selling price, consequently, sales and distribution costs sharply decreased by 67.7%, while administrative expenses increased by 28.5% due to factors including an HKD 8.9 million impairment of right-of-use assets, ultimately, the annual loss attributable to shareholders expanded to HKD 131 million - The gross profit margin for the procurement and sale of dry cassava chips decreased from 11.3% to approximately 6.6%, mainly due to the change in customer logistics terms from C&F to FOB[35] - Sales and distribution costs significantly decreased from HKD 113 million to HKD 36.7 million, primarily because customer contract terms changed from CIF to FOB, transferring ocean freight costs to customers[36] - Administrative expenses increased from HKD 99.7 million to HKD 128 million, mainly due to the inclusion of impairment of right-of-use assets (HKD 8.9 million), impairment of property, plant and equipment (HKD 26.2 million), and impairment of club memberships (HKD 1.2 million)[37] - The annual loss attributable to owners of the Company was approximately HKD 131 million, an increase from HKD 111 million last year[39] Financial Resources and Liquidity As of the end of the reporting period, the Group's financial position was strained, with net assets decreasing by 27.8% to HKD 350 million, and the capital gearing ratio (borrowings/total assets) sharply rising from 39.0% to 51.8%, reflecting increased debt burden and asset value shrinkage, while inventory turnover days increased from 117.1 days to 124.7 days, indicating greater inventory management pressure, and accounts receivable turnover days slightly improved from 35.1 days to 33.4 days Financial Ratios | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net Assets | HKD 350 million | HKD 484 million | | Capital Gearing Ratio | 51.8% | 39.0% | | Inventory Turnover Days | 124.7 days | 117.1 days | | Accounts Receivable Turnover Days | 33.4 days | 35.1 days | Outlook Looking ahead, the Group plans to continue strengthening its dry cassava chip procurement network in Southeast Asia and expand facilities to achieve economies of scale, and to address downside risks in the Chinese market and diversify its business, the Group has established a joint venture in Laos to enter the higher value-added downstream industry of cassava starch production, with the project expected to commence operations by the end of 2025, aiming to explore export markets beyond China and generate better returns for shareholders - The Group will continue to expand its procurement network in Thailand, Laos, and Cambodia to reduce unit costs and solidify its leading position in the industry[49] - To achieve industrial diversification and reduce reliance on the Chinese market, the Group has established a joint venture in Laos to develop cassava starch production and sales, with operations expected to commence by the end of 2025[50] Other Disclosures This section covers the company's dividend policy and adherence to corporate governance principles, including identified deviations Dividend Policy Considering the loss incurred this year and the company's funding requirements, the Board recommends not distributing a final dividend for the year ended March 31, 2025 - The Board recommends not paying a final dividend for the year ended March 31, 2025[51] Corporate Governance The company generally complied with the Corporate Governance Code during the reporting period, with one deviation: the roles of Chairman and Chief Executive Officer are not segregated, as Mr. Zhu Mingquan serves as Chairman, while the functions of the Chief Executive Officer are jointly performed by the executive directors, and no Chief Executive Officer has been formally appointed by the company - The company has one corporate governance deviation, where the responsibilities of the Chairman and Chief Executive Officer are not performed by different individuals, with Chairman Mr. Zhu Mingquan providing leadership, and the executive directors jointly performing the functions of the Chief Executive Officer[54]