Financial Performance - For the year ended June 30, 2022, the Group recorded a revenue of approximately HK$41.1 million, an increase from approximately HK$24.1 million in 2021[24]. - The net loss for the year was approximately HK$135.8 million, compared to a net loss of approximately HK$36.9 million in 2021, representing an increase of 267%[24]. - The basic loss per share was approximately 0.87 HK cent, up from approximately 0.23 HK cent in 2021[24]. - The Group's revenue from continuing operations for the year ended June 30, 2022, was approximately HK$41.1 million, an increase from HK$24.1 million in 2021[25]. - The net loss for the year was approximately HK$135.8 million, compared to a net loss of approximately HK$36.9 million in 2021, with a basic loss per share of approximately HK$0.87[25]. Business Segments - The liquor and wine business generated revenue of approximately HK$18.9 million, a significant increase from approximately HK$0.4 million in 2021[18]. - The segment loss for the liquor and wine business was approximately HK$26.9 million, compared to a loss of approximately HK$0.8 million in 2021[18]. - The hotel hospitality business recorded revenue of approximately HK$15.9 million, down from approximately HK$18.8 million in 2021, with a segment loss of approximately HK$9.1 million[13]. - The money lending business recorded a segment loss of approximately HK$10.9 million, a decline from a segment profit of approximately HK$13.3 million in 2021[17]. - The hotel hospitality business contributed approximately 39% of the Group's total revenue for the year ended June 30, 2022[28][29]. Impairment and Losses - The increase in net loss was attributed to a gross loss of approximately HK$27 million from the liquor and wine business, a fair value loss of approximately HK$70 million on financial assets, and an impairment loss of approximately HK$13 million on loans receivable[10]. - Impairment loss on freehold land and building was recognized due to the recoverable amount being lower than its carrying amount as a result of decreased visitors to Japan during the COVID-19 pandemic[33][37]. - The fair value less cost of disposal method was adopted for assessing the recoverable amount of the hotel hospitality business, based on recent sales of similar transactions in the market[31][32]. - The Group's significant unrealized losses included HK$36,847,000 from Zhong Ji Longevity Science Group Limited[69]. Loans and Credit Risk - Loans receivable amounted to approximately HK$162.7 million, down from approximately HK$200.6 million in 2021, with related gross interest receivables of approximately HK$51.6 million[14]. - The expected credit loss (ECL) rate ranged from 10.52% to 100% in 2022, compared to 0% to 100% in 2021, reflecting increased default risk[46]. - The loan portfolio comprises loans to independent third-party borrowers with terms ranging from eight months to forty months and interest rates between 5.5% and 20% per annum[43]. - Credit risk assessments are performed before granting loans by reviewing financial information and assessing the financial condition of potential borrowers[50]. - The Group engaged independent qualified valuers to determine the expected credit losses of loans receivable, ensuring a prudent approach to valuation[44]. Investments - As of June 30, 2022, the Group had loans receivable with a gross principal amount of approximately HK$162.7 million, down from approximately HK$200.6 million in 2021[42]. - The Group's investment in a fund was valued at approximately HK$75.8 million, representing about 10.5% of the Group's total assets, with an average return of approximately 26.73% for the year ended June 30, 2022[57]. - The average return of the TAR Fund was approximately 26.73% for the year ended June 30, 2022, compared to 0.95% for the previous year[57]. - The Group managed a portfolio of listed securities, with significant investments including CLP Holdings Limited and Tencent Holdings Limited, contributing to the overall asset value[60]. Corporate Governance - The company has complied with the Corporate Governance Code except for deviations regarding the separation of roles between the chairman and chief executive officer[132]. - The board consists of five directors, including two executive directors and three independent non-executive directors[139]. - The company has adopted sound corporate governance principles emphasizing effective internal control and accountability to shareholders[131]. - The independent non-executive directors are subject to retirement by rotation and re-election at the annual general meeting[134]. - The company has a commitment to high standards of corporate governance to enhance shareholder value[131]. Management and Leadership - Mr. Cheng Chi Kin has over 28 years of experience in various industries including mergers and acquisitions, finance, and asset management[117]. - Mr. Wong Siu Keung Joe was appointed as an executive director and chief financial officer on January 10, 2022, bringing extensive experience in taxation and accounting[120]. - The Company will review the current situation regarding executive leadership and make necessary arrangements when deemed appropriate by the Board[157]. - The Company Secretary ensures that all Board procedures, rules, and regulations are followed, with full minutes of Board meetings kept for inspection[150]. Future Outlook - The Group is optimistic about the long-term prospects of the hotel hospitality business in Japan, particularly with the resumption of visa-free entry for travelers starting October 11, 2022[73]. - The Group plans to diversify its business and control costs to maintain stable returns to shareholders[75]. - The Group's investment strategy includes seizing opportunities to enhance its business portfolio despite the challenges posed by the COVID-19 pandemic[74].
德泰新能源集团(00559) - 2022 - 年度财报