利记(00637) - 2025 - 年度财报

Corporate Overview Corporate Information This section provides core corporate information for Lee Kee Holdings Limited, including lists of executive and independent non-executive directors, committee members, company secretary, registered office, principal place of business, share registrar, legal advisors, auditors, and principal bankers - The company's board of directors comprises executive directors Chan Pak Chung (Chairman), Chan Yuen Shan (Vice Chairman and CEO), Chan Ka Chun, Chan Pui Shan, and independent non-executive directors Ho Kwai Ching, Tai Lun, and Wong Kam Fai[7] - The company's auditor is KPMG, and its principal bankers include The Hongkong and Shanghai Banking Corporation Limited, Hang Seng Bank Limited, Standard Chartered Bank (Hong Kong) Limited, and Bank of China (Hong Kong) Limited[8] Corporate Structure This section illustrates the Group's operational corporate structure as of March 31, 2025, listing its various subsidiaries in Hong Kong, mainland China, Singapore, Malaysia, Taiwan, and Thailand - The Group's operating entities are spread across Greater China and Southeast Asia, including several Lee Kee-related companies in Hong Kong, trading companies in Guangzhou and Shenzhen, an alloy manufacturing company in Ningbo, and business entities in Singapore, Malaysia, Taiwan, and Thailand[10] - The Group holds a 75% equity interest in its Malaysian subsidiary, LKG (Malaysia) Sdn Bhd[11] Chairman's Statement Chairman's Statement Chairman Chan Pak Chung's report highlights the Group's proactive efforts to consolidate long-term growth foundations amidst macroeconomic uncertainties, focusing on digital transformation, sustainable development, enhanced R&D, and market diversification while maintaining cautious optimism for the future - Facing macroeconomic uncertainties, global economic downturns, and geopolitical tensions, the Group has taken proactive measures to consolidate its foundation for sustainable long-term growth[17] - The Group successfully increased production capacity by 29.8% by applying Industry 4.0 solutions to its Hong Kong production lines[18] - Future strategies will focus on strengthening market presence in mainland China and Southeast Asia, leveraging value-added solutions to capture emerging industry trends, and continuously investing in R&D to develop more high-quality metal products[19] Financial and Operational Review Financial Summary This section provides a five-year consolidated performance and financial position summary, showing the Group incurred consecutive losses from FY2023 to FY2025 after profits in FY2021 and FY2022, with total assets and net assets declining over the past three years Five-Year Consolidated Results Summary (Year Ended March 31) | Metric (HKD thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,049,385 | 1,699,491 | 2,204,673 | 2,549,679 | 1,951,879 | | (Loss)/Profit Before Income Tax | (34,168) | (45,806) | (35,148) | 26,398 | 22,308 | | (Loss)/Profit for the Year | (36,223) | (49,850) | (44,593) | 18,539 | 16,842 | Five-Year Consolidated Assets and Liabilities Summary (As of March 31) | Metric (HKD thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 823,316 | 864,162 | 925,736 | 1,117,151 | 1,036,062 | | Total Liabilities | 51,720 | 51,564 | 52,312 | 193,922 | 134,124 | | Net Assets | 771,596 | 812,598 | 873,424 | 923,229 | 901,938 | Management Discussion and Analysis This fiscal year, the Group achieved 20.6% revenue growth driven by increased industrial demand in mainland China, yet recorded a HKD 36.1 million loss attributable to equity holders due to property revaluation losses and increased expenses, while maintaining a sound financial position and pursuing diversified strategies including sustainable manufacturing, technological innovation, and regional expansion Financial Review During the fiscal year, Group revenue increased by 20.6% to HKD 2.049 billion, with total sales volume growing by 10.8% to approximately 85,100 tonnes, reflecting stronger demand in mainland China, while gross profit margin remained at 4.0%, and loss attributable to equity holders narrowed to HKD 36.1 million from HKD 49.7 million last year, with the Group maintaining a sound financial position holding HKD 219.7 million in cash FY2025 Key Financial Indicators | Metric | FY2025 | FY2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 2.049 billion | HKD 1.699 billion | +20.6% | | Total Sales Volume | 85,100 tonnes | 76,800 tonnes | +10.8% | | Gross Profit | HKD 81.3 million | HKD 67.7 million | +20.1% | | Gross Profit Margin | 4.0% | 4.0% | Stable | | Loss Attributable to Equity Holders | HKD 36.1 million | HKD 49.7 million | Loss narrowed | | Distribution and Selling Expenses | HKD 25 million | HKD 23.3 million | +7.3% | | Administrative Expenses | HKD 92.1 million | HKD 86.4 million | +6.6% | - As of March 31, 2025, the Group maintained a sound financial position with bank balances and cash of HKD 219.7 million[30] Business Review This fiscal year, the Group enhanced business resilience by focusing on sustainable manufacturing, responsible supply chain management, and innovative product services, expanding from traditional metal trading to consulting and value-added solutions, accelerating digital transformation, and achieving an EcoVadis Bronze medal and a 66% reduction in emissions since 2018/19 - The Group expanded its business to professional consulting services and invested in R&D for sustainable solutions to help clients achieve environmentally friendly products and processes[32] - The Group accelerated digital transformation, utilizing advanced R&D technologies to optimize simulation analysis and production efficiency, and deploying automated tracking systems to enhance product traceability[33] - In ESG, the Group received an EcoVadis Bronze medal, ranking among the top 35% of all rated companies, and has reduced its emissions by 66% compared to the baseline year of 2018/19[38][39] Outlook Looking ahead, the Group will remain prudent amidst ongoing global economic volatility, focusing on promoting green supply chain transformation, increasing carbon emission transparency, expanding into Southeast Asia to capitalize on Belt and Road Initiative opportunities, and actively seeking technological advancements to support industry progress and social well-being - The Group will continue to promote eco-friendly and sustainable business practices and enhance carbon emission transparency to meet societal expectations[41] - The Group plans to intensify its expansion in Southeast Asia, leveraging its R&D capabilities to develop high-value special metals, explore new applications, and seize growth opportunities from the Belt and Road Initiative[42] Liquidity, Financial Resources, and Risks The Group primarily funds operations through internal resources and bank borrowings, maintaining a sound financial position with a low gearing ratio at fiscal year-end, managing metal price risks through operational strategies and inventory control, monitoring exchange rate fluctuations between HKD, USD, and RMB, and experiencing a slight increase in employee headcount Liquidity and Financial Resources (As of March 31, 2025) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Cash and Bank Balances | Approximately HKD 220 million | Approximately HKD 265 million | | Bank Borrowings | Approximately HKD 7.71 million | Approximately HKD 5.48 million | | Gearing Ratio | 1.88% | 1.70% | | Current Ratio | 1,984% | 2,144% | - The Group's exchange rate risk primarily stems from fluctuations between HKD, USD, and RMB[47] - As of March 31, 2025, the Group employed approximately 190 employees, with staff costs totaling approximately HKD 66.5 million[48] Directors and Corporate Governance Directors, Senior Management and Advisors This section details the backgrounds and qualifications of the company's board members, senior management, and advisors, highlighting the executive directors' deep industry experience and the independent non-executive directors, senior management, and advisors' extensive professional knowledge in finance, accounting, corporate development, and commodity risk management - The core executive director team comprises Mr. Chan Pak Chung (Chairman), Ms. Chan Yuen Shan (Vice Chairman and CEO), Mr. Chan Ka Chun, and Ms. Chan Pui Shan, all possessing decades of experience in the non-ferrous metals and related industries[49][50][51][52] - Independent non-executive directors Mr. Ho Kwai Ching, Mr. Tai Lun, and Mr. Wong Kam Fai possess professional backgrounds in commodity markets, corporate development and finance, and engineering and technology innovation, respectively[53][54] Corporate Governance Report This report outlines the company's corporate governance practices, confirming compliance with the Corporate Governance Code throughout the fiscal year, detailing the board's composition and responsibilities, the distinct roles of Chairman and CEO, the structure and work of specialized committees (Audit, Remuneration, Nomination, Corporate Governance), and the operation of risk management and internal control systems, while emphasizing the company's unique corporate culture and adopted diversity policy - The company confirms compliance with the code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules for the fiscal year[57] - The Board has established Audit, Remuneration, Nomination, and Corporate Governance Committees, each with clear terms of reference and regular fulfillment of duties[65][66][71][72] - The Group has established risk management and internal control systems, reviewed annually for effectiveness, identifying significant risks such as commodity price risk, currency risk, cyber risk, and climate risk, with corresponding management measures in place[76][80] Report of the Directors The Directors' Report outlines the Group's principal activities, financial performance, dividend policy, and share capital, noting the Group's primary engagement in metal product trading, testing, and production, with no final dividend recommended for the fiscal year, and discloses directors' interests in company shares, including the Chan family trust's 72.40% holding, while also mentioning key supplier and customer concentration and compliance with environmental regulations - The Group's principal activities include trading zinc, zinc alloy, nickel, aluminum, stainless steel, and other products in Hong Kong and mainland China, along with providing metal testing, consulting, and alloy production services[93] - The Board does not recommend the payment of a final dividend for the year ended March 31, 2025[95] Procurement Concentration from Major Suppliers | Supplier | Percentage of Procurement | | :--- | :--- | | Largest Supplier | 17.5% | | Top Five Suppliers Combined | 42.6% | - Mr. Chan Pak Chung and his family members, through the Chan Pak Chung Family Trust, are deemed to have interests in 600 million shares, representing approximately 72.40% of the issued shares[111][114] Financial Statements and Auditor's Report Independent Auditor's Report KPMG issued an unmodified opinion on the Group's consolidated financial statements, affirming they present a true and fair view of the Group's financial position as of March 31, 2025, and its financial performance and cash flows for the year, prepared in compliance with Hong Kong Financial Reporting Standards and the Companies Ordinance, with 'Valuation of Inventories' highlighted as a key audit matter - KPMG, the auditor, issued an unmodified opinion on the consolidated financial statements[127] - The key audit matter identified was 'Valuation of Inventories' due to the Group's significant inventory holdings and the substantial management judgment and estimation involved in assessing inventory provisions, particularly regarding future selling prices[130] Consolidated Financial Statements This section contains the Group's core financial statements for the year ended March 31, 2025, with the consolidated statement of profit or loss showing an annual loss of HKD 36.223 million, the consolidated statement of financial position indicating total assets of HKD 823 million and net assets of HKD 772 million, and the consolidated statement of cash flows reporting a net cash outflow from operating activities of HKD 36.066 million, with cash and cash equivalents at year-end of HKD 220 million Consolidated Statement of Profit or Loss For the year ended March 31, 2025, the Group recorded revenue of HKD 2.049 billion, an increase from the previous year, but due to cost of sales and various expenses, the annual loss was HKD 36.223 million, with basic loss per share at HKD 4.36 cents Consolidated Statement of Profit or Loss Summary (Year Ended March 31) | Metric (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 2,049,385 | 1,699,491 | | Gross Profit | 81,259 | 67,672 | | Operating Loss | (35,081) | (48,063) | | Loss for the Year | (36,223) | (49,850) | | Loss Attributable to Equity Holders of the Company | (36,121) | (49,694) | | Basic Loss Per Share (HK cents) | (4.36) | (6.00) | Consolidated Statement of Profit or Loss and Other Comprehensive Income This fiscal year, the Group's loss for the year was HKD 36.223 million, and after accounting for other comprehensive income items such as revaluation losses on financial assets and exchange differences, the total comprehensive loss for the year amounted to HKD 41.002 million Total Comprehensive Income Summary (Year Ended March 31) | Metric (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the Year | (36,223) | (49,850) | | Other Comprehensive Income | (4,779) | (10,976) | | Total Comprehensive Income for the Year | (41,002) | (60,826) | Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets were HKD 823 million, total liabilities were HKD 51.72 million, and net assets were HKD 772 million, with key assets including inventories (HKD 228 million), cash and cash equivalents (HKD 220 million), and trade receivables (HKD 209 million) Consolidated Statement of Financial Position Summary (As of March 31) | Metric (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total Non-Current Assets | 165,241 | 181,605 | | Total Current Assets | 658,075 | 682,557 | | Total Assets | 823,316 | 864,162 | | Total Current Liabilities | 33,167 | 31,841 | | Total Non-Current Liabilities | 18,553 | 19,723 | | Total Liabilities | 51,720 | 51,564 | | Net Assets | 771,596 | 812,598 | Consolidated Statement of Changes in Equity This fiscal year, the Group's total equity decreased by approximately HKD 41 million from HKD 813 million at the beginning of the year to HKD 772 million at year-end, primarily due to the total comprehensive loss recorded for the year - Total equity attributable to equity holders of the Company decreased from HKD 812,912 thousand at the beginning of the year to HKD 772,012 thousand at year-end, primarily due to the total comprehensive loss of HKD 40,900 thousand for the year[147] Consolidated Statement of Cash Flows For the year ended March 31, 2025, the Group reported a net cash outflow of HKD 36.066 million from operating activities, a net cash outflow of HKD 7.575 million from investing activities, and a net cash outflow of HKD 0.25 million from financing activities, resulting in a net decrease in cash and cash equivalents of HKD 43.891 million, with a year-end balance of HKD 220 million Consolidated Statement of Cash Flows Summary (Year Ended March 31) | Metric (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash (Used in)/From Operating Activities | (36,066) | 52,832 | | Net Cash Used in Investing Activities | (7,575) | (6,058) | | Net Cash (Used in)/From Financing Activities | (250) | 61 | | (Decrease)/Increase in Cash and Cash Equivalents | (43,891) | 46,835 | Notes to the Consolidated Financial Statements This section provides detailed explanations and supplementary information to the consolidated financial statements, covering significant accounting policies, financial risk management, segment reporting, and detailed analyses of various assets and liabilities, including the Group's two operating segments (Hong Kong and mainland China), primary financial risks (market, credit, liquidity), and specifics on investment properties, inventories, receivables, bank borrowings, and related party transactions - Segment reporting (Note 5): The Group has two operating segments: Hong Kong and mainland China; mainland China's revenue (HKD 1.25 billion) exceeded Hong Kong's (HKD 799 million), but Hong Kong recorded a loss (HKD 38.72 million) while mainland China achieved a profit (HKD 2.88 million)[257] - Financial risk management (Note 3): The Group's primary financial risks include foreign exchange risk (especially RMB and NTD), commodity price risk, credit risk, and liquidity risk, which are managed through various strategies[230][231][234][235] - Inventories (Note 16): The carrying amount of the Group's finished goods inventories increased from HKD 179 million to HKD 228 million[286] - Related party transactions (Note 27): Total remuneration for key management personnel was HKD 16.3 million; the Group paid HKD 0.6 million in rent to a company controlled by Director Ms. Chan Yuen Shan for director's accommodation[322][323] Particulars of Investment Properties This section lists details of the Group's investment properties, including shops, offices, and warehouses in Kowloon and New Territories, Hong Kong, specifying their current use, lease terms (all medium-term), and the Group's 100% ownership interest - The Group holds three investment properties, all located in Hong Kong, used for leasing as shops, offices, and warehouses, all under medium-term leases with 100% Group ownership[337]