Financial Performance - The company's revenue for the fiscal year ending March 31, 2022, decreased by 10% to HKD 761,776,000, down from HKD 842,631,000 in the previous year[28]. - Net profit for the fiscal year dropped by 61% to HKD 14,983,000, compared to HKD 38,689,000 in the prior year[28]. - The group's total revenue for the fiscal year ended March 31, 2022, decreased by 10% to HKD 761,776,000, compared to HKD 842,631,000 in the previous year, while net profit fell by 61% to HKD 14,983,000 from HKD 38,689,000[39]. - The group recorded a profit attributable to shareholders of HKD 12,758,000 for the fiscal year 2022, down from HKD 33,080,000 in 2021, representing a decrease of approximately 61%[94]. Wood Supply Chain Operations - The wood supply chain operations generated revenue of HKD 734,873,000, a decrease of 9% from HKD 807,830,000 in the previous year, with profit dropping by 45% to HKD 16,831,000[30]. - The volume of wood and wood products traded in the wood supply chain operations exceeded 342,000 cubic meters, a 31% decrease from 493,000 cubic meters in the previous year[30]. - The traditional business model within the wood supply chain generated revenue of HKD 511,739,000, down 7% from HKD 551,002,000, and profit of HKD 12,424,000, down 6% from HKD 13,242,000[44]. - The optimized business model for the timber supply chain generated revenue of HKD 223,134,000, a decrease of 13% from HKD 256,828,000 in 2021, with a profit of HKD 4,407,000, down 75% from HKD 17,377,000 in 2021[49]. - The group completed the acquisition of a panel processing plant in Romania to enhance its panel production capacity to meet orders from Chinese customers[34]. - The group plans to continue expanding its wood supply chain operations by establishing more distribution centers and wood processing projects in strategic locations in Europe[34]. Lending Business - The lending business also saw a decrease in profit due to reduced income and increased impairment losses on receivables[28]. - The group's lending business generated revenue of HKD 26,491,000, a decrease of 22% from HKD 34,001,000 in the previous year, and operating profit of HKD 14,463,000, down 45% from HKD 26,466,000[33]. - The total principal amount of new loans granted in fiscal year 2022 was HKD 55,000,000, with interest rates ranging from 8.5% to 13%[79]. - The loan portfolio's book value as of March 31, 2022, was HKD 182,563,000, a decrease from HKD 283,904,000 in the previous year[79]. - The group recorded an increase in impairment losses on receivables, rising 95% to HKD 6,775,000 from HKD 3,478,000 in the previous year[76]. - The group’s lending operations faced challenges due to a cautious approach in granting new loans amid the current economic conditions in Hong Kong[76]. Costs and Expenses - The decline in profit was attributed to increased transportation and freight costs, a decrease in economic activity due to the COVID-19 pandemic, and foreign exchange losses from the depreciation of the Euro[28]. - Administrative expenses and financing costs increased during the fiscal year[28]. - Transportation and freight costs accounted for approximately 30% of the sales cost of European operations, with an increase of about 25% per cubic meter of timber products shipped compared to the previous fiscal year[49]. - Administrative expenses rose by 49% to HKD 34,809,000 in 2022, primarily due to increased employee costs and legal fees related to the resumption of trading[94]. - The financing costs for the year increased to HKD 7,655,000, up from HKD 5,393,000 in 2021, partly due to higher interest on discounted receivables[99]. Foreign Exchange and Economic Impact - The group recorded a net foreign exchange loss of HKD 5,100,000 due to the ongoing economic slowdown in Europe and the depreciation of the Euro caused by the Russia-Ukraine conflict[49]. - The group maintains a cautious strategy for managing foreign exchange risks, particularly due to fluctuations in the Euro and other currencies[107]. - The group recorded a net exchange loss of HKD 5,100,000 during the fiscal year, mainly due to the depreciation of the Euro amid ongoing economic challenges[108]. Strategic Developments - The company established three distribution centers in Slovenia, Romania, and Croatia, and set up two panel processing projects in Romania and one in Croatia during the fiscal year[29]. - The management team has successfully established three distribution centers and two panel processing projects in Romania, along with one in Croatia, to support business growth in Europe[40]. - The company aims to diversify its customer base, revenue sources, product types, and market coverage through its European operations[69]. - The group is actively seeking investment opportunities in European forest assets to develop its sustainable forest management business[72]. Governance and Compliance - The company has complied with all applicable code provisions of the Corporate Governance Code during the year ended March 31, 2022, except for one deviation regarding the attendance of the chairman at the annual general meeting[184]. - The board of directors consists of six members, including three executive directors and three independent non-executive directors[190]. - The company has established a remuneration policy based on employee capabilities, experience, performance, and current market conditions[174]. - The executive committee consists of three executive directors, overseeing daily operations and implementing board-approved strategies[197]. Shareholder Information - The company sold 46,126,666 shares of its common stock for approximately HKD 962,000 during the fiscal year[147]. - Major shareholders include Ms. Wang, Elite Prosperous, and Champion Alliance, each holding 2,444,359,944 shares, representing approximately 26.82% of the issued shares[169]. - The total issued shares of the company as of March 31, 2022, were 9,112,745,318[169].
信保环球控股(00723) - 2022 - 年度财报