Revenue Performance - Total revenue decreased by approximately HK$69.8 million, or 26.1%, from approximately HK$267.7 million for the previous year to approximately HK$197.9 million for the year[19]. - The reduction in revenue was mainly due to a decrease of HK$33.6 million in leasing-related revenue, HK$20.0 million in sales of machinery and spare parts, and HK$16.5 million in retail indoor arcade revenue[19]. - Revenue from leasing of construction machinery decreased by approximately HK$35.8 million, or 42.5%, from approximately HK$84.4 million to approximately HK$48.5 million due to sluggish real estate market conditions[22]. - Revenue from trading of construction machinery decreased by approximately HK$20.0 million, or 89.1%, from approximately HK$22.4 million to approximately HK$2.4 million, primarily due to a lack of market trading opportunities[23]. - Revenue from property management services increased by approximately HK$6.3 million, or 8.1%, from approximately HK$78.4 million to approximately HK$84.7 million, attributed to an increase in overall area under management[24]. - Revenue from property leasing, subletting services, and retail businesses decreased by approximately HK$21.4 million, or 27.2%, from approximately HK$78.8 million to approximately HK$57.4 million, mainly due to lower income from the indoor amusement arcade business[25]. Financial Performance - Gross profit decreased by approximately HK$20.3 million, or 49.1%, from approximately HK$41.3 million to approximately HK$21.0 million, with gross profit margin declining from approximately 15.4% to approximately 10.6%[32]. - Other losses increased by approximately HK$29.6 million, from approximately HK$13.7 million to approximately HK$43.3 million, primarily due to impairment losses on property, plant, and equipment[33]. - Expected credit losses on financial assets increased by approximately HK$2.2 million, or 12.7%, from approximately HK$17.5 million to approximately HK$19.7 million, due to a larger amount of longer aged receivables[34]. - Administrative expenses increased by approximately HK$6.0 million, or 15.6%, from approximately HK$38.6 million to approximately HK$44.6 million, mainly due to higher staff costs and depreciation[40]. - Net loss increased by approximately HK$49.8 million, from approximately HK$28.0 million to approximately HK$77.8 million[44]. Market Conditions - The real estate market in the PRC and Hong Kong remained sluggish, impacting cash flow for many developers and leading to slow demand for construction equipment leasing[14]. - A significant percentage of residential property owners delayed payments, resulting in cost overruns for the property management business[14]. - There is a market trend towards electric storage solutions, which may render traditional diesel generators and related equipment obsolete[14]. Business Strategy - The company plans to maintain a low leverage position and explore potential business opportunities to create long-term value for shareholders[14]. - The company aims to adapt to market challenges and explore new business strategies to enhance its operational resilience[14]. - The company will continue to monitor market trends and adjust its business model accordingly to meet evolving customer needs[14]. Corporate Governance - The company has adopted the Corporate Governance Code as set out in Appendix C1 to the Listing Rules and has complied with applicable code provisions for the year[107]. - The Board is responsible for the overall leadership of the Group and has established four Board committees: Audit Committee, Nomination Committee, Remuneration Committee, and Investment Committee[108]. - All Directors have carried out their duties in good faith and in compliance with applicable laws and regulations, acting in the interests of the Company and the Shareholders[109]. - The Group is committed to maintaining high standards of corporate governance to safeguard the interests of Shareholders and enhance corporate value and accountability[107]. - The Board has delegated authority for day-to-day management and operation of the Group to senior management[108]. Board Composition and Diversity - The Board comprises several directors, including Mr. Xu Zhicong as Chairman and Ms. Zeng Yue Ying appointed effective January 22, 2025[115][116]. - The Company has complied with Listing Rules requiring at least three independent non-executive Directors, with one possessing appropriate professional qualifications[118][120]. - The Company has adopted a Board diversity policy to enhance performance by considering factors such as age, cultural background, and professional experience[121][126]. - All independent non-executive Directors have confirmed their independence, and the Company considers them to be independent[122]. - The Company has ensured that the roles of Chairman and Chief Executive are separate, with Mr. Xu Zhicong serving as Chairman since the resignation of Mr. Yin Ying Cai on October 30, 2024[132]. Committees and Responsibilities - The Audit Committee reviewed the accuracy and fairness of the annual financial statements for the year ended March 31, 2024, and the interim financial report for the six months ended September 30, 2024[158]. - The Audit Committee approved the internal audit plan for the year and the internal audit report for the year ended March 31, 2024[164]. - The Company has complied with the Listing Rules regarding the composition of the Audit Committee, which must include at least three members, all of whom are independent non-executive Directors[157]. - The Nomination Committee assessed candidates based on integrity, experience, skill, and ability to commit time and effort to their responsibilities[166]. - The Remuneration Committee was established on January 23, 2017, and comprises three members, including two independent non-executive Directors and one non-executive Director[179]. Remuneration Policies - The Remuneration Committee is responsible for formulating remuneration policy, considering factors such as salaries paid by comparable companies and individual performance of Directors and senior management[181]. - Compensation arrangements for executive Directors and senior management will be reviewed to ensure they are consistent with contractual terms and fair[181]. - The Remuneration Committee reviewed and approved compensation arrangements for Directors and senior management, ensuring consistency with contractual terms and fairness[183]. - The Committee assessed the performance of executive Directors and recommended remuneration packages, including discretionary bonuses, based on market norms[184].
七元投资(01660) - 2025 - 年度财报