和嘉控股(00704) - 2025 - 年度业绩

Performance Highlights Performance Highlights For the year ended March 31, 2025, the company recorded a loss of HKD 29.49 million, a reduction from HKD 35.74 million in the prior year, with basic loss per share at HKD 0.10; net assets stood at HKD 1.041 billion, and net assets per share at HKD 3.59 at period-end Performance Summary | Metric | For the Year Ended March 31, 2025 | | :--- | :--- | | Annual Loss | HKD 29,487,000 | | Loss Attributable to Owners of the Company | HKD 29,484,000 | | Basic Loss Per Share | HKD 0.10 | | Net Assets (as of March 31, 2025) | HKD 1,041,190,000 | | Net Assets Per Share | HKD 3.59 | Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income This fiscal year, the Group's total revenue significantly increased to HKD 34.23 million from HKD 2.40 million last year, with gross profit at HKD 45 thousand; the annual loss narrowed to HKD 29.49 million from HKD 35.74 million, primarily due to reduced administrative expenses, and basic loss per share improved from HKD 0.12 to HKD 0.10 Financial Performance | Financial Metric (HKD '000) | For the Year Ended March 31, 2025 | For the Year Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | 34,230 | 2,403 | | Gross Profit | 45 | 3 | | Compensation Income | 19,554 | 22,416 | | Administrative Expenses | (17,943) | (27,327) | | Loss Before Tax | (29,487) | (35,739) | | Loss for the Year | (29,487) | (35,739) | | Loss Attributable to Owners of the Company | (29,484) | (35,732) | - Basic loss per share was HKD 0.10, an improvement from HKD 0.12 in the prior year[4] Consolidated Statement of Financial Position As of March 31, 2025, the Group's net assets were HKD 1.041 billion, slightly down from HKD 1.085 billion last year, with net current liabilities expanding to HKD 444.49 million from HKD 337.09 million, indicating increased short-term solvency pressure, and total assets predominantly comprised of property, plant, and equipment Balance Sheet Summary | Balance Sheet Item (HKD '000) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total Non-current Assets | 1,668,142 | 1,688,844 | | Total Current Assets | 142,757 | 138,341 | | Total Current Liabilities | 587,253 | 475,432 | | Net Current Liabilities | (444,496) | (337,091) | | Total Non-current Liabilities | 182,456 | 266,690 | | Net Assets | 1,041,190 | 1,085,063 | | Total Equity | 1,041,190 | 1,085,063 | Notes to the Consolidated Financial Statements Company Information, Basis of Preparation, and Going Concern The Group primarily engages in coke trading, coal-related ancillary businesses, and coke production; while financial statements are prepared on a going concern basis, significant uncertainties exist, including high net current liabilities, statutory demands and winding-up petitions from creditors, and new operating assets not yet generating revenue, with continued viability dependent on new asset commissioning, debt recovery and deferral, and petition withdrawal - The Group's businesses involve (i) coke trading; (ii) coal-related ancillary businesses; and (iii) coke production[7] - Significant uncertainties that may cast substantial doubt on the Group's ability to continue as a going concern include: - As of March 31, 2025, the Group had net current liabilities of approximately HKD 444.49 million - Statutory demands for payment have been received from major creditors, and winding-up petitions are faced - New operating assets have not yet generated revenue, significantly impacting operations[9] - The applicability of the going concern basis for financial reporting depends on the timely commissioning of new assets, successful debt recovery, negotiation of repayment deferrals with creditors, and successful withdrawal of winding-up petitions[9] Segment Information The Group's operations are categorized into coke trading, coal-related ancillary businesses, and coke production; all revenue this fiscal year, totaling HKD 34.23 million with segment results of HKD 45 thousand, originated solely from coke trading, while coal-related ancillary and coke production segments generated no revenue or results, indicating core production business stagnation Segment Performance | Operating Segment | FY2025 Revenue (HKD '000) | FY2025 Segment Results (HKD '000) | | :--- | :--- | :--- | | Coke Trading | 34,230 | 45 | | Coal-related Ancillary | – | – | | Coke Production | – | – | | Total | 34,230 | 45 | - All revenue was derived from external customers in Mainland China[17] - The vast majority of the Group's non-current assets, valued at approximately HKD 1.665 billion, are located in Mainland China[18] Revenue, Expenses, and Other Key Items This year's revenue, totaling HKD 34.23 million, was entirely from the sale of coking coal and coke; the Group also recognized HKD 19.55 million in compensation income related to trade deposits refundable by Energy Technology, while finance costs remained stable at HKD 31.14 million, and the Board recommended no dividend payment - Total revenue for the year was HKD 34,230 thousand, entirely from the sale of coking coal and coke[20] - Compensation income of HKD 19,554 thousand was recognized, related to trade deposits and compensation refundable by Shanxi Jinyan Energy Technology Co Ltd[20] - The Board did not recommend the payment of any dividend for the year ended March 31, 2025[26] Notes to Assets and Liabilities At period-end, the Group's property, plant, and equipment had a carrying value of HKD 1.667 billion, primarily construction in progress; trade receivables significantly decreased to HKD 54 thousand, all over four months old; prepayments, deposits, and other receivables net to HKD 141 million, including amounts due from Energy Technology; and other payables and accruals increased to HKD 192 million, mainly for interest and amounts due to a former subsidiary - The carrying value of property, plant, and equipment was HKD 1,666,634 thousand, with HKD 1,665,374 thousand attributed to construction in progress[27] - Trade receivables decreased from HKD 1.719 million to HKD 54 thousand, with all balances over four months old[28] - Trade deposits and other receivables due from Energy Technology amounted to HKD 174 million, with a net amount of HKD 141 million after impairment provision[29] Management Discussion and Analysis Business Review During the reporting period, the coke industry faced dual pressures of weak downstream demand from real estate and infrastructure markets and upstream cost squeeze; however, the company's 7.1-meter large coke oven represents advanced industry capacity, offering a competitive edge amidst the phasing out of outdated capacity, though the core challenge remains the slow construction of supporting facilities due to partner Energy Technology's funding issues, preventing the company's coke oven assets from commencing production, with Energy Technology anticipating financing by mid-July and production support completion by February next year - The coke industry faces dual pressures from insufficient demand in the downstream steel market and inadequate price reductions in upstream coking coal, challenging profitability[32] - The company's 7.1-meter large coke oven possesses advantages in scale, energy consumption, environmental protection, and quality, positioning it to increase market share amidst industry-wide elimination of outdated capacity[32] - Due to unfulfilled financing by partner Energy Technology, the construction of supporting facilities has been slow, preventing the company's coke oven from commencing production; Energy Technology anticipates completing supporting construction by February next year[34] - The company has made positive progress in loan settlement with China Cinda (Hong Kong), reaching an agreement on the text, pending internal adjustments by the counterparty before signing[35] Financial Review Total revenue for this reporting period was HKD 34.23 million, a significant year-on-year increase, entirely from the coke trading segment, with gross profit margin remaining at a very low 0.1%; administrative expenses decreased to HKD 17.94 million due to reduced exchange losses and professional fees, which was the primary reason for the loss before tax narrowing from HKD 35.74 million to HKD 29.49 million, while the coal-related and coke production segments generated no revenue or results Financial Performance Summary | Financial Performance | FY2025 (HKD '000) | FY2024 (HKD '000) | | :--- | :--- | :--- | | Total Revenue | 34,230 | 2,403 | | Gross Profit | 45 | 3 | | Loss After Tax | (29,487) | (35,739) | | Basic Loss Per Share | 0.10 HKD | 0.12 HKD | - Coke trading segment revenue was HKD 34.23 million, with segment results of HKD 45 thousand[37] - The coal-related ancillary and coke production segments have generated no revenue or results for two consecutive reporting periods[38][39] - Administrative expenses decreased to HKD 17.94 million (from HKD 27.33 million last year), primarily due to reduced exchange losses and professional fees, which was the main reason for the Group's narrowed loss[40][42] Liquidity, Capital Structure, and Risk Management The Group's capital management objective is to ensure continued operation; at period-end, the Group's liquidity position was severe, with net current liabilities expanding to HKD 444.49 million, current ratio decreasing to 0.24, cash and bank balances at only HKD 1.675 million, and gearing ratio slightly increasing from 45% to 47%, facing primary financial risks of foreign currency, credit, and liquidity Financial Position Indicators | Financial Position Indicators | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net Current Liabilities | Approx. HKD 444,496,000 | Approx. HKD 337,091,000 | | Current Ratio | 0.24 | 0.29 | | Cash and Bank Balances | Approx. HKD 1,675,000 | Approx. HKD 2,448,000 | | Gearing Ratio | 47% | 45% | - The Board is responsible for ensuring the company maintains robust and effective risk management and internal control systems, employing a three-tier risk management approach[50][51] Outlook Looking ahead, the company will focus on three key initiatives: first, vigorously urging the partner to complete supporting construction for early coke oven commissioning and profitability once financing is secured; second, planning to invest in deep processing projects for coke by-product tail gas to open new profit growth points; and third, actively seeking investment opportunities in new and green energy sectors in response to the national 'dual carbon' strategy - Key future initiatives include: - Expediting the construction of supporting facilities to ensure early commissioning of the company's coke oven and generate stable cash flow - Actively investing in and participating in the refined deep processing of by-product tail gas from coking production to enhance product added value - Responding to the national 'dual carbon' strategy by seeking investment opportunities in new and green energy sectors[59] Other Important Information Corporate Governance During the reporting period, the company complied with most provisions of the Corporate Governance Code, with a key deviation being the combined roles of Chairman and Chief Executive Officer held by Mr Zhao Xuguang; the Board believes this arrangement facilitates leadership consistency and decision-making efficiency, and will continue to review it - The company deviated from Corporate Governance Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are not segregated, both held by Mr Zhao Xuguang[62] Events After Reporting Period Subsequent to the reporting period, the company reached a consensus with China Cinda (Hong Kong) regarding the content of a settlement agreement concerning the winding-up petition; however, the petitioner requested formal signing only after adjustments to preferred share terms at their and the company's controlling shareholder level are completed, thus the winding-up petition hearing has been adjourned to August 25, 2025 - The company and petitioner China Cinda (Hong Kong) have reached a consensus on the settlement agreement content, but the signing has been postponed[66] - The winding-up petition hearing has been adjourned to August 25, 2025[67] Independent Auditor's Report Summary The auditor issued a 'Disclaimer of Opinion' on this year's consolidated financial statements, primarily due to significant uncertainties related to going concern, including high net current liabilities, winding-up petitions, and new assets not generating revenue, preventing the auditor from obtaining sufficient evidence to assess the likelihood of management's mitigating actions succeeding; additionally, the auditor could not obtain sufficient evidence regarding the recoverability of approximately HKD 138 million in prepayments, deposits, and other receivables, and the recognition of HKD 19.55 million in compensation income - Disclaimer of Opinion: The auditor did not express an opinion on the Group's consolidated financial statements due to the inability to obtain sufficient appropriate audit evidence[71] - Basis for Disclaimer of Opinion 1 - Going Concern: Significant uncertainties exist (high net current liabilities, winding-up petitions, new assets not generating revenue), preventing the auditor from confirming the appropriateness of management's use of the going concern basis of accounting[72][74] - Basis for Disclaimer of Opinion 2 - Receivables: The auditor could not obtain sufficient appropriate audit evidence regarding the recoverability of approximately HKD 138 million in prepayments, deposits, and other receivables, and the recognition of approximately HKD 19.55 million in compensation income[76][77] - Management's Stance: Management believes that, considering the commissioning timetable for new assets and liquidity improvement measures taken, the Group will have sufficient working capital, and preparing the financial statements on a going concern basis is appropriate[79][80]