Financial Performance - The group's total revenue for the year ended March 31, 2023, was approximately HKD 146,392,000, a decrease of about 2% compared to HKD 149,347,000 in 2022[13]. - The group reported a loss attributable to shareholders of approximately HKD 196,544,000, a reduction of about 15.8% from HKD 233,386,000 in the previous year[13]. - The agricultural business revenue increased by 10.3% to approximately HKD 89,749,000, representing 61.3% of the group's total revenue[15]. - The hotel business reported a revenue decrease of 22% to approximately HKD 28,615,000 for the year, down from HKD 36,707,000 in 2022, accounting for 19.6% of the group's total revenue[26]. - The group's revenue for the year ended March 31, 2023, was approximately HKD 146,392,000, a decrease of about 2% compared to HKD 149,347,000 in 2022, primarily due to a 22% decline in hotel business revenue to approximately HKD 28,615,000[51]. - The group recorded a loss of approximately HKD 197,419,000 for the year ended March 31, 2023, compared to a loss of HKD 238,636,000 in 2022[64]. Property and Investment - Rental income from property investment decreased by 10.3% to approximately HKD 28,028,000, accounting for 19.1% of the group's total revenue[6]. - The fair value loss of investment properties for the year was approximately HKD 168,966,000, compared to HKD 50,909,000 in 2022[1]. - The fair value loss on investment properties increased approximately 2.3 times to about HKD 168,966,000, compared to HKD 50,909,000 in 2022[52]. - The group is actively discussing the potential sale of a hotel, with a proposed price of RMB 360,000,000 (approximately HKD 409,091,000)[10]. - The group is actively negotiating with potential buyers to sell hotel properties and/or certain investment properties to enhance liquidity[68]. Operational Metrics - The average occupancy rate of the Shanghai property increased from 43% as of March 31, 2022, to 54% as of March 31, 2023[6]. - The average occupancy rate for the hotel dropped to around 73% during the year, compared to a consistent 95% over the past two years[26]. - The hotel property has a book value of approximately HKD 408,276,000 as of March 31, 2023, down from HKD 460,733,000 a year earlier[27]. Financial Position - As of March 31, 2023, the group's equity was approximately HKD 1,521,716,000, down from HKD 1,846,740,000 in 2022[66]. - The group's cash and bank deposits as of March 31, 2023, were approximately HKD 60,746,000, an increase from HKD 40,926,000 in 2022[66]. - The group's net current liabilities as of March 31, 2023, were approximately HKD 175,202,000, compared to net current assets of approximately HKD 67,003,000 in 2022[66]. - The company has bank and other borrowings of approximately HKD 285,660,000 due within twelve months, and is actively negotiating with lenders for refinancing[81]. Corporate Governance - The company is committed to maintaining good corporate governance practices, adhering to the corporate governance code as set out in the Hong Kong Stock Exchange Listing Rules[97]. - The management team has extensive experience in finance and accounting, with key members holding significant qualifications and positions in various reputable organizations[90][92][95]. - The company is focused on enhancing transparency and accountability to shareholders through good corporate governance practices[97]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[100]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors for the fiscal year ending March 31, 2023[107]. Risk Management and Compliance - The company has established anti-corruption agreements with suppliers in its hotel business, emphasizing integrity and compliance in operations[129]. - The group has established guidelines for cooperation with government officials during unannounced inspections related to anti-corruption measures[148]. - The group plans to organize anti-corruption training for employees in the next reporting period[150]. Shareholder Information - Major shareholders include Rich Monitor Limited with 14.17% ownership, Pengxin Holdings Limited with 9.72%, and AXA Holdings Limited with 8.79%[170]. - The board does not recommend the payment of dividends for the fiscal year ending March 31, 2023, consistent with the previous year[173]. Environmental and Social Responsibility - The company has a comprehensive environmental, social, and governance (ESG) report[187]. - The company has implemented a food safety management system, ensuring compliance with safety guidelines for food procurement and related products[125]. - There were no product recalls due to safety or health reasons during the reporting period, indicating strong product quality management[120].
润中国际控股(00202) - 2023 - 年度财报