Business Operations and Strategy - WLS Holdings Limited reported a significant focus on enhancing business efficiencies and adhering to safety, quality, and efficiency principles[11]. - The company emphasizes the "Circle and Square" concept, symbolizing flexibility in service and a commitment to perfection in operations[14]. - The Group actively cultivated its gondolas rental business, gaining positive market reputation and securing a stable number of new contracts despite competition[52]. - The Group plans to continue acquiring new contracts in the competitive fitting out services market[51]. - The Group plans to leverage new opportunities from major public projects and the evolving real estate market to adapt to the business environment in Hong Kong[89]. - The Group will continue to focus on operational efficiency, risk management, and strategic adaptation to maintain performance amid a complex market environment[82]. Financial Performance - Total revenue for the year ended April 30, 2025, was approximately HK$79.1 million, a decrease of about 4.0% compared to the previous year[37]. - Net loss attributable to the owners of the Company for the year was approximately HK$6.8 million, a decrease of approximately HK$4.3 million compared to the previous year[37]. - Revenue from scaffolding, fitting out, and other auxiliary services for construction was approximately HK$27.8 million, down by approximately HK$9.0 million from HK$36.8 million in the previous year[39]. - The Group recorded a turnover of approximately HK$79.1 million for the Year, representing a slight decrease of approximately 4.0% compared to the previous year (approximately HK$82.4 million)[87]. - The net loss attributable to owners decreased to approximately HK$6.8 million from approximately HK$11.1 million in the previous year, primarily due to a fair value gain on financial assets of approximately HK$10.3 million[90]. - Gross profit increased by approximately 2.8% to approximately HK$52.2 million, with a gross profit margin rising to approximately 65.9% from 61.6% in the previous year[93]. - Operating and administrative expenses decreased from approximately HK$18.3 million to approximately HK$17.5 million, mainly due to reduced staff costs[96]. - Finance costs increased to approximately HK$9.0 million from approximately HK$8.6 million, attributed to an increase in other borrowings[96]. Money Lending Business - As of April 30, 2025, Gold Medal had 112 customers in its money lending business[60]. - The revenue for the money lending business increased to approximately HK$51.3 million, up from HK$45.6 million in the previous year[69]. - The usual loan tenure ranges from 3 months to 5 years, with interest rates varying from 7% to 15% depending on the loan amount[61]. - Approximately 68% of the outstanding loans and interest receivables as of April 30, 2025, were unsecured[69]. - The largest receivable from a single borrower was approximately HK$28 million, accounting for about 6% of the total receivables[69]. - The Group has implemented stricter loan approval requirements, including the need for borrowers to provide proof of income or assets[69]. - The Group's loan portfolio includes amounts ranging from approximately HK$100,000 to HK$25 million, with interest rates between 7.0% and 22%[69]. - The money lending business recorded a revenue of approximately HK$51.3 million for the Year, an increase from approximately HK$45.6 million last year[71]. - The principal amount of loans as of April 30, 2025, ranged from approximately HK$0.1 million to HK$25.0 million, with interest rates between 7.0% and 22% per annum[71]. - Approximately 68% of the Group's net loan and interest receivables were unsecured as of April 30, 2025[71]. - The net impairment losses from expected credit losses were approximately HK$36.4 million for the Year, compared to approximately HK$24.0 million last year[78]. - The five largest borrowers accounted for 21% of the net loan and interest receivables of the Group[71]. - The money lending business generated stable income despite customer repayment difficulties, with a focus on prudent risk management and compliance with relevant regulations[88]. Corporate Governance and Board Composition - The company has undergone several changes in its board of directors, with key resignations and appointments in 2024 and 2025[20][21]. - The Company has complied with the corporate governance code provisions except for the separation of roles between the Chairman and CEO, which should not be performed by the same individual[157]. - The Company did not engage in any purchase, sale, or redemption of its listed securities during the year[154]. - The Company adopted a Board Diversity Policy effective from 1 September 2013 to enhance diversity at the Board level[198]. - The Nomination Committee's selection of Board candidates is based on various diversity perspectives, achieving a balanced diversity during the Year[199]. - The Board currently has one executive Director, Mr. Li Zhenxing, and three independent non-executive Directors, including Mr. Yang Hui, who resigned on August 1, 2025[189]. - The independent non-executive Directors are responsible for ensuring the interests of all shareholders are considered and for participating in key committees[190]. - The Company complied with GEM Listing Rules 5.05(1), 5.28, and 5.34 following the appointment of Mr. Yang Hui on 5 August 2024[195]. - After Mr. Yang's resignation, the Company failed to meet the requirement of having at least three independent non-executive directors on the Board as per Rule 5.05(1) and an audit committee with a minimum of three members as per Rule 5.28[196]. - The Company Secretary assists in preparing the agenda and ensures compliance with applicable rules and regulations for Board meetings[200]. Market Conditions and Risks - The construction industry in Hong Kong is supported by large-scale infrastructure projects initiated by the government to meet housing demands[43]. - The construction industry in Hong Kong is experiencing a slowdown, influenced by elevated interest rates and global economic uncertainties[83]. - The scaffolding industry is facing challenges due to rising labor costs and a declining productivity trend[84]. - The Group faces significant risks including labor shortages, which could increase staff and subcontracting costs, adversely affecting profitability[134]. - The Group's financial risks include credit, interest rate, currency, liquidity, and other price risks, with a focus on maintaining a balanced capital structure[143][144]. - The Group relies on information technology systems for operations, and any significant disruptions could lead to data loss or operational interruptions[145]. - The Group's success depends on its ability to attract and retain skilled personnel, with the loss of key employees potentially impacting operations[146]. Employee and Operational Metrics - The Group had a total employee cost of approximately HKD 14.8 million for the year, down from HKD 17.1 million in the previous year, with 40 full-time employees as of April 30, 2025, compared to 43 in 2024[148]. - As of April 30, 2025, the total number of full-time employees was 40, a decrease from 43 in 2024, with total staff costs amounting to approximately HK$14.8 million, down from HK$17.1 million in the previous year[153]. - The Group's current assets increased to approximately HK$563.9 million from approximately HK$333.9 million in the previous year[98]. - The Group's bank balances and cash amounted to approximately HK$15.6 million, a decrease from HK$18.5 million in 2024[102]. - The Group's gearing ratio as of April 30, 2025, was approximately 40.4%, up from 38.8% in 2024[102]. - The Group's net loan and interest receivables were approximately HK$461.7 million as of April 30, 2025, compared to HK$456.2 million in 2024[108]. - The allowance for credit losses of loan and interest receivables under the ECL model was approximately HK$300.5 million, an increase from HK$264.1 million in 2024[108]. - The net impairment loss arising from ECL amounted to approximately HK$36.4 million, compared to HK$24.0 million in 2024[108]. Miscellaneous - The Group did not issue any shares or debentures during the year[117]. - The Board does not recommend the payment of a final dividend for the year, consistent with the previous year[118]. - There were no significant acquisitions or disposals during the year[123]. - The Group had no assets pledged as collateral as of April 30, 2025, and April 30, 2024[124]. - There were no significant contingent liabilities as of April 30, 2025, and 2024[147]. - There are no significant events affecting the Group that occurred after April 30, 2025, up to the date of this report[155]. - The Group did not use any financial instruments for hedging purposes during the year and had no outstanding hedging instruments as of April 30, 2025[130].
汇隆控股(08021) - 2025 - 年度财报