Financial Performance - The group's revenue for the year ended March 31, 2023, was approximately HKD 126,400,000, a significant increase of 359% compared to HKD 27,500,000 in the previous year[23]. - Hotel operations generated segment revenue of approximately HKD 44,700,000, up 62.5% from HKD 27,500,000 in the previous year, due to increased room rates and occupancy[23]. - The newly reported segment, building materials trading and renovation construction, generated segment revenue of approximately HKD 81,700,000 from April 8, 2022, to March 31, 2023[23]. - The group's gross profit for the year was approximately HKD 44,300,000, compared to HKD 8,700,000 in the previous year, resulting in a gross profit margin of 35.1%[24]. - The gross profit margin for hotel operations was 54.4%, while the gross profit margin for building materials trading and renovation construction was 24.5%[24]. - The group reported a loss of approximately HKD 23,900,000 for the year, a 46% reduction from HKD 44,600,000 in the previous year, primarily due to increased gross profit[28]. - The financial performance for the year ending March 31, 2023, is detailed in the consolidated income statement and other comprehensive income statement[108]. - Revenue for the year ended March 31, 2023, was HKD 126,362,000, a significant increase from HKD 27,515,000 in the previous year, representing a growth of 358%[166]. - Gross profit for the same period was HKD 44,318,000, compared to HKD 8,659,000, indicating a gross margin improvement[166]. - The company reported a total comprehensive loss of HKD 23,929,000 for the year, a reduction from a loss of HKD 44,603,000 in the prior year, showing a 46% improvement[166]. Assets and Liabilities - The total borrowings as of March 31, 2023, amounted to approximately HKD 143,400,000, an increase from HKD 81,700,000 the previous year, mainly used for business operations[29]. - The group’s asset-liability ratio increased to approximately 35.9% as of March 31, 2023, compared to 19.3% the previous year[29]. - The company's equity decreased to HKD 399,211,000 from HKD 423,140,000, a decline of 5.6%[170]. - Current liabilities increased to HKD 117,068,000 from HKD 98,191,000, resulting in a net current liability position of HKD 10,006,000[168]. - Non-current liabilities rose to HKD 86,077,000 from HKD 14,878,000, primarily due to new bank loans[170]. - The group reported an annual loss of HKD 23,929,000 for the year ended March 31, 2023, with a net current liability of HKD 10,006,000[151]. Cash Flow and Financing - The company's cash and bank balance as of March 31, 2023, was approximately HKD 50,200,000, compared to HKD 21,400,000 in the previous year[29]. - The company raised HKD 133,000,000 through bank loans during the year, significantly higher than HKD 30,000,000 raised in the previous year, marking an increase of 343.3%[176]. - The company experienced a net cash outflow from operating activities of HKD (22,152,000) for the year ended March 31, 2023, compared to HKD (16,460,000) in the previous year, indicating a worsening of cash flow by about 34.1%[174]. - The company has secured new bank financing of HKD 70,000,000 post-reporting period, with unused bank financing totaling HKD 111,500,000 as of the date of the financial statements[198]. Business Operations and Market Conditions - The hotel occupancy rate decreased by 11.8% to 38.3% in 2022 due to a 26% drop in tourist arrivals to 5.7 million[9]. - In the first five months of 2023, the number of visitors to Hong Kong reached 10 million, recovering to over 60% of pre-pandemic levels[10]. - The company aims to expand its business portfolio and diversify revenue sources through potential investments, including acquiring a major stake in Yonglun Haoxiang[14]. - The company remains optimistic about the long-term prospects of the construction materials trade and design and renovation services in Hong Kong[14]. - The global travel industry is expected to recover, with hotel occupancy rates gradually increasing as COVID-19 restrictions are lifted[14]. - The construction materials and renovation projects are expected to see strong demand due to new residential units being completed[13]. - The company continues to focus on expanding its operations and enhancing its service offerings in the hospitality sector, particularly through the management of the 永倫800酒店[178]. - The company acknowledges that the ongoing COVID-19 pandemic has negatively impacted its financial performance, particularly due to reliance on mainland Chinese travelers[195]. Corporate Governance - The board of directors consists of five members, including two executive directors and three independent non-executive directors[50]. - The company has adopted a whistleblowing policy to assist employees and business associates in reporting any suspected misconduct[45]. - The company has established an anti-bribery and corruption policy to help employees identify and avoid unethical business practices[47]. - The board is committed to maintaining high standards of corporate governance and believes that its structure does not affect the effective operation of the group[43]. - The board held 12 meetings during the fiscal year ending March 31, 2023, with all directors receiving at least 14 days' notice for regular meetings[53]. - The board members have diverse backgrounds, including land management, hotel management, and business expertise, contributing to the company's governance[56]. - The company emphasizes the importance of board diversity, considering factors such as gender, age, culture, and professional experience in its board composition[89]. - The company is actively seeking to appoint at least one suitable female director to enhance gender diversity on the board[58]. - The company has established a governance framework that emphasizes integrity, accountability, and transparency to enhance productivity and brand reputation[60]. Risk Management - The board is responsible for evaluating and determining the acceptable level of risk associated with achieving strategic objectives, including ESG risks[98]. - An independent professional was hired to assess the overall risk management system and internal control procedures, with no significant deficiencies reported[101]. - The company has established policies and procedures to identify, assess, manage, monitor, and report risks, including strategic, credit, operational, market, liquidity, legal, regulatory, and ESG risks[99]. - The internal audit function monitors governance and provides assurance on the adequacy and effectiveness of risk management and internal control systems[101]. - The company has prepared cash flow forecasts for an 18-month period post-reporting to assess the appropriateness of the going concern basis for its financial statements[197]. - The company continues to operate under the assumption of going concern despite uncertainties in the economic environment[195]. Audit and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the audited consolidated financial statements for the year ending March 31, 2023[141]. - The company paid HKD 1,320,000 for statutory audit fees for the financial statements for the year ended March 31, 2023[90]. - The independent auditor has confirmed that the consolidated financial statements reflect the group's financial position accurately as of March 31, 2023[149]. - The company has maintained the required public float as per the listing rules as of the report date[143]. - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[160].
茂盛控股(00022) - 2023 - 年度财报