Financial Performance - The Group's revenue for the Financial Year decreased to approximately HK$8.1 million, representing a decline of about 27.5% compared to HK$11.1 million in the Previous Financial Year[12][24]. - The loss attributable to the owners of the Company for the Financial Year amounted to approximately HK$245.7 million, compared to a profit of approximately HK$45.8 million in the Previous Financial Year[13][24]. - The decrease in revenue was primarily due to reduced business in the trading of beauty equipment and products segment during the Financial Year[24]. - Revenue from trading beauty equipment and products decreased by approximately 27.5% to HK$8,075,000 from HK$11,145,000 due to the ongoing impact of the COVID-19 pandemic[26]. - The Group recorded no gain on modification of convertible bonds for the Financial Year, contrasting with a gain of approximately HK$250.7 million in the Previous Financial Year[13][24]. Clinical Trials and Product Development - The launch of the oral insulin product has been postponed to the first quarter of 2025 due to disruptions caused by COVID-19 lockdowns in certain areas of China[12]. - The management team is actively working with contract research organizations to expedite the clinical trial progress and commercialization schedule of the product[18]. - Approximately 300 patients have been enrolled in the Clinical Trial as of the end of the Financial Year, with patient recruitment being an ongoing process[32]. - The clinical trial faced significant disruptions due to the pandemic, including a decrease in physician participation and patient dropouts[42]. - The clinical trial's progress has been delayed due to various pandemic-related challenges, including difficulties in patient recruitment and sample drug production[42]. - The commercialization of the oral insulin product is expected to launch in the market by the first quarter of 2025, subject to the development of the COVID-19 epidemic[44]. - The company plans to obtain the manufacturing permit by mid fourth quarter of 2024, with the product expected to be available for sale shortly thereafter[49]. - The company will submit the clinical trial report to the NMPA by the end of the second quarter of 2024[48]. - The product launch is anticipated to generate a stable source of revenue and profit due to the increasing demand for innovative insulin products in China, driven by a growing diabetic population[50]. Financial Position and Borrowings - As of March 31, 2023, the Group had bank and cash balances of approximately HK$1.3 million, down from approximately HK$4.1 million as of March 31, 2022[80]. - Total borrowings of the Group were approximately HK$1,236.5 million as of March 31, 2023, compared to approximately HK$987.6 million as of March 31, 2022[81]. - The current assets to current liabilities ratio was 0.01 as of March 31, 2023, down from 0.19 as of March 31, 2022[82]. - The gearing ratio increased to 0.90 as of March 31, 2023, from 0.72 as of March 31, 2022, based on total liabilities of approximately HK$1,243.5 million and total assets of approximately HK$1,384.0 million[82]. - The company has issued convertible bonds amounting to HK$715,000,000 with a 3.5% annual interest rate, originally set to mature on July 28, 2023, now extended to July 28, 2025[66]. - The interest rate on convertible bonds increased from 3.5% to 4.5% per annum starting from July 28, 2023[69]. Corporate Governance - The company has a strong commitment to corporate governance, ensuring operations align with shareholders' best interests[135]. - The board of directors includes independent non-executive directors with extensive experience in finance and administration, enhancing governance and oversight[141]. - The company has complied with all code provisions of the Corporate Governance Code during the financial year, ensuring high governance standards[140]. - The independent non-executive directors play a crucial role in the audit and remuneration committees, ensuring transparency and accountability[140]. - The Board held 4 meetings during the financial year, with all executive directors attending all meetings[154]. - Independent non-executive directors represent at least one-third of the Board, ensuring a strong element of independence[147]. - The company has established a Nomination Committee to oversee the nomination process for directors[167]. - The chairman of the Board meets annually with independent non-executive directors to discuss issues and concerns[148]. - The roles of chairman and chief executive are separated, as stipulated by Code provision C.2.1[156]. Employee and Staff Information - The total staff costs, including Directors' remuneration, for the Financial Year amounted to approximately HK$6.3 million, a decrease from approximately HK$7.2 million in the previous Financial Year[94][97]. - As of March 31, 2023, the Group had 22 full-time employees, down from 25 on March 31, 2022[93][103]. - The Group's employee benefits include medical insurance, retirement schemes, training programs, and education subsidies[93][103]. Risk Management - The Group maintains a prudent strategy in foreign exchange risk management, balancing foreign currency assets against liabilities[90]. - The Group will enhance its risk management policy to balance risk and return in the long term[73]. - The Group will continue to closely monitor foreign currency risks and consider hedging when necessary[92].
领航医药生物科技(00399) - 2023 - 年度财报