Financial Performance - The Group's revenue for the year ended March 31, 2025, was approximately HK$400.9 million, a decrease of about 7.9% from HK$435.1 million for the year ended March 31, 2024[29]. - Revenue from the construction business segment was approximately HK$400.3 million, reflecting a decrease of approximately 7.3% from HK$431.7 million for the previous year[29]. - The securities investment segment recorded a loss of approximately HK$5.0 million, an increase of approximately 238.6% from a loss of HK$1.5 million for the year ended March 31, 2024[29]. - Revenue from the property investment business segment was approximately HK$0.5 million, a decrease of about 9.1% from HK$0.6 million for the previous year[29]. - The money lending business segment reported revenue of approximately HK$5.0 million, an increase of approximately 17.1% from HK$4.2 million for the year ended March 31, 2024[29]. - The Group recorded a net loss attributable to owners of approximately HK$35.3 million for the Reporting Period, compared to a net loss of approximately HK$20.4 million in 2024[29]. - The Group recorded revenue of approximately HK$400,852,000 for the Reporting Period, representing a decrease of approximately 7.9% from HK$435,077,000 for the year ended March 31, 2024[42]. - Revenue from the construction segment was approximately HK$400,327,000, a decrease of approximately 7.3% from HK$431,722,000 for the previous year[42]. - The net loss for the Reporting Period increased by approximately HK$14.9 million to a net loss of approximately HK$35.3 million, compared to HK$20.4 million for the year ended 31 March 2024[57]. - Basic loss per share for the Reporting Period was HK13.24 cents, up from HK8.48 cents in the previous year[57]. - The gross profit margin for the Reporting Period was approximately 6.4%, an increase of 0.8 percentage points from 5.6% in the previous year[63]. Business Segments - The construction segment's revenue from building construction works was approximately HK$188,989,000, a decrease of approximately 13% from HK$217,656,000 in 2024[45]. - Revenue from electrical and mechanical (E&M) works increased by approximately 3.4% to HK$190,114,000 from HK$183,869,000 in 2024[47]. - Revenue from interior fitting-out works decreased by approximately 30% to HK$21,224,000 from HK$30,197,000 in 2024[49]. - The construction segment has faced continuous losses, prompting the company to focus resources on E&M works and interior fitting out works[124]. - The company secured new contracts with an outstanding contract sum of approximately HK$1,626 million, including HK$229 million for building construction, HK$1,202 million for E&M works, and HK$195 million for interior fitting out works[127]. Investment and Financial Management - The Group managed a portfolio of investments with an aggregate fair value of approximately HK$17.9 million as of March 31, 2025, down from HK$26.5 million in 2024[53]. - The Group aims to explore growth opportunities in China, Hong Kong, and other regions to drive long-term financial returns for shareholders[34]. - The Treasury Management Committee has been established to implement investment policies and manage the securities investment business, aiming for additional returns on available funds[132]. - The company will adopt cautious measures to manage its investment portfolio in light of recent stock market volatility, aiming for positive returns[134]. - The Group's investment portfolio includes listed equity investments with unrealized losses of HK$649.8 thousand and a market value of HK$6,174.0 thousand, representing 34.4% of equity investments[141]. - The Group's listed debt investments include the Government of HKSAR's Retail Green Bonds, with a market value of HK$5,991.0 thousand, representing 33.4% of equity investments[141]. - The Group's unlisted debt investments include JPMorgan Asian Total Return Bond with a market value of HK$2,766.5 thousand, representing 15.4% of equity investments[141]. - The Group generated sales proceeds of approximately HK$11,860,000 from the disposal of marketable securities, with a recognized loss of approximately HK$4,859,000[144]. Credit and Loan Management - The Group's loan receivables amounted to HK$55.96 million, an increase from HK$51.43 million in the previous year[74]. - The allowance for expected credit losses (ECL) on loan receivables was HK$4.2 million for the Reporting Period, significantly up from HK$0.96 million in the previous year[75]. - The Group recorded revenue from its money lending segment of approximately HK$4,952,000 for the year, representing an increase of approximately 17.1% compared to HK$4,228,000 in the previous year[87]. - The range of interest rates on the Group's fixed rate loans receivable was between 8% to 12% per annum during the reporting period[87]. - The Group has made provisions for expected credit losses (ECLs) based on a three-stage model, with specific provisions for a borrower classified from stage 1 to stage 3 due to non-repayment[94][85]. - The outstanding amount for Relevant Client 1 was HK$2,823,000, with a provision of the same amount made during the year ended 31 March 2025[84]. - The Group's credit risk assessment policy includes a Credit Committee that oversees all credit-related matters and ensures compliance with credit policies[89]. - All new customers must pass financial background and credit checks before loan approval, which is subject to independent reviews[89]. - The Group's impairment review assessed loans and interest receivables using the general approach under Hong Kong Financial Reporting Standard 9, focusing on expected credit losses[94]. - As of March 31, 2025, the accumulated allowance for expected credit losses was HK$43,273,000 for loans and interest receivables[81]. Corporate Governance - The Company has adopted the Corporate Governance Code as its own governance framework and has generally complied with it during the review period, except for the deviation mentioned above[159]. - The Board comprises five members, including two female directors, ensuring a balance of skills and diversity necessary for independent decision-making[171]. - The Company has implemented anti-fraud and anti-corruption policies to uphold business integrity and provide channels for reporting misconduct[170]. - The Nomination Committee considers various perspectives, including gender and professional experience, to enhance Board diversity in future appointments[173]. - The Company is committed to continuously reviewing and improving its corporate governance practices to meet stakeholder expectations and regulatory requirements[158]. - The Board will adopt cautious measures to manage the Group's investment portfolio in light of recent stock market volatility, aiming for positive returns in the near future[146]. - The Company Secretary has completed not less than 15 hours of relevant professional training during the financial year ended March 31, 2025[190]. - The Board held three regular meetings during the review period, deviating from the Corporate Governance Code's requirement of at least four meetings per year[160]. - The Company has established formal procedures for the appointment and succession planning of directors, ensuring transparency and adherence to GEM Listing Rules[185]. - All directors are required to retire by rotation at least once every three years, subject to re-election by shareholders[186].
智城发展控股(08268) - 2025 - 年度财报