Sales and Revenue Performance - The Group recorded an increase in sales of construction machinery and spare parts, as well as rental income from construction machinery during the Year, with an occupancy rate of approximately 85% for rental machineries [70]. - Revenue from sales of construction machinery and spare parts increased to approximately HK$49 million, up from approximately HK$41 million in 2021, driven by increased demand for bored piling accessories [147]. - Rental income from construction machinery rose to approximately HK$128 million, compared to approximately HK$100 million in 2021, due to an increase in government projects leading to improved utilization rates [147]. - Total revenue for the Year was approximately HK$315 million, representing a decrease of approximately HK$31 million or 9% from HK$346 million in 2021, mainly attributed to a decrease in revenue from money lending [146]. - Revenue from money lending, asset management, securities brokerage, and other financial services decreased by HK$71 million or 55%, primarily due to a decline in loan receivable business [149]. Financial Services and Investments - The Group aims to expand its financial services business with a cautious and positive attitude, confident in the prospects of the financial markets in Hong Kong and Mainland China [72]. - Revenue from the financial services business was approximately HK$16 million, representing about 5% of the total revenue, with a segment profit of approximately HK$10 million [90][91]. - The financial services revenue increased due to a rise in the value and volume of transactions in securities brokerage [90]. - The Group holds licenses for various regulated activities under the Securities and Futures Ordinance, including money lending and asset management [89]. - The Group's money lending business is conducted through subsidiaries, adhering to comprehensive policies for loan management [96]. Fair Value Losses and Financial Performance - The Group recorded a fair value loss of approximately HK$510 million in its investment portfolio during the year, compared to a loss of approximately HK$157 million in 2021 [114]. - The Group incurred a loss of approximately HK$596 million for the Year, compared to a loss of approximately HK$348 million in 2021, primarily due to net fair value losses in financial assets of approximately HK$510 million [145]. - The Group recognized a fair value loss of HK$262 million during the Year, reflecting the financial impact of the crisis faced by China Evergrande Group [131]. - The Group experienced a fair value loss of approximately HK$510 million on financial assets at fair value through profit or loss (FVTPL) during the year, compared to a loss of approximately HK$157 million in the previous year [190]. Loans and Credit Management - As of March 31, 2022, the Group's loans receivable amounted to approximately HK$347 million, down from HK$605 million in 2021, with interest income from loans recorded at approximately HK$41 million compared to HK$117 million in 2021 [98]. - During the year, 20 loans totaling approximately HK$309 million were overdue, with interest rates ranging from 8% to 18% per annum, and subsequent settlements amounted to approximately HK$78 million [99]. - The carrying amount outstanding from the five largest borrowers totaled HK$220 million, representing 63% of the total loans receivable, while the largest borrower accounted for HK$77 million, or approximately 22% of the total [100]. - The expected credit loss (ECL) rates for loans receivable ranged from 4% to 58%, depending on the nature and probability of default of the loans [104]. - The Group's credit policy includes thorough assessments of potential borrowers and their assets, ensuring compliance with applicable laws and regulations [106]. Property Development and Investments - The Group has property development projects in Cambodia and Malaysia, with a special economic zone project in Cambodia covering 17,252,519 square meters approved by the Council of Ministers [137]. - The project in Malaysia is a mixed-use development covering 267,500 square meters, still in the preliminary stage due to COVID-19 impacts [139]. - The Group completed the acquisition of 49% equity interests in Kingdom Future Limited for approximately HK$321 million, settled by the allotment of approximately 867 million shares of Hao Tian International Construction Investment Group Limited [122]. - The Group's investment agreement with China Evergrande Group allows for a repurchase option at 1.15 times the total consideration paid by the relevant investor [129]. Compliance and Regulatory Matters - The Group has maintained strict compliance with all relevant laws and regulations, with no objections or investigations regarding the renewal of its money lenders license during the year [112]. - The Group continues to explore new business opportunities while streamlining existing operations to enhance shareholder returns [73]. - The impact of COVID-19 has led to challenges, but the Group remained resilient and focused on its existing businesses [77][78].
信铭生命科技(00474) - 2022 - 年度财报