Corporate Governance - The Board is responsible for the overall management of the Group, overseeing strategic decisions and performance[16]. - The Company has complied with all code provisions in the Corporate Governance Code during the period, except for a deviation regarding the separation of roles between the Chairman and CEO[14]. - The Board consists of four executive directors and three independent non-executive directors, ensuring a diverse leadership structure[18]. - The Audit Committee is composed of three independent non-executive directors, with Mr. Wong Kwan Kit serving as the chairman[31]. - Directors have acknowledged their responsibility for preparing all information in the consolidated financial statements for the year ended 31 March 2023[23]. - Each independent non-executive director has a service agreement for a term of three years, subject to rotational retirement provisions[27]. - The management team is delegated authority for day-to-day operations, with major corporate matters reviewed periodically by the Board[16]. - The Company emphasizes high standards of corporate governance to manage business risks and enhance transparency[13]. - The Board meets regularly to discuss overall strategy and financial performance, with six meetings held during the year[19]. Financial Performance - Revenue for the year ended March 31, 2023, was HK$50,185,000, an increase from HK$40,329,000 in the previous fiscal year, representing a growth of approximately 24%[62]. - The company's revenue for FY23 increased to HK$137,137,000, representing a growth of 17.56% compared to HK$116,656,000 in FY22[73]. - Gross profit for FY23 was HK$10,435,000, a significant recovery from a gross loss of HK$8,394,000 in FY22, marking a change of 224.31%[73]. - Loss before tax increased to HK$481,271,000 in FY23, up 28.26% from a loss of HK$375,244,000 in FY22[73]. - The total comprehensive expenses attributable to equity holders for FY23 were HK$587,601,000, compared to HK$323,153,000 in FY22, primarily due to a decrease in the fair value of investment properties[78]. - The company's net assets decreased to HK$(397,764,000) in FY23 from HK$190,159,000 in FY22, reflecting a change of 309.17%[73]. - Cash and cash equivalents increased slightly to HK$32,869,000 in FY23 from HK$31,770,000 in FY22, a growth of 3.46%[73]. - The gross profit margin improved to 7.61% in FY23 from a negative margin of (7.20)% in FY22, indicating a significant turnaround[75]. - The return on equity for FY23 was 121.85%, a recovery from (194.35)% in FY22, showing a positive shift in financial performance[75]. - The current ratio decreased to 1.01 times in FY23 from 1.49 times in FY22, indicating a decline in short-term liquidity[75]. Business Operations - The hotel business achieved an average occupancy rate of over 80%, outperforming surrounding hotels of the same category[64]. - The Group's rental income from serviced apartments and shopping malls in the Chongqing Property is expected to remain a stable income source in the long run[64]. - The Group is studying to enhance its business model to boost sales in response to the cautious behavior of real estate investors[64]. - The Group's performance and prospects are assessed clearly and comprehensively, with results announced within two months and three months after the relevant periods[37]. - The Group continues to diversify its revenue streams through four main business segments, including property development and hotel operations in Japan[87]. - The Group's serviced apartments and hotel operations in Hokkaido, Japan, are anticipated to further improve as travel restrictions ease[101]. - The Group's property management segment and renovation services are expected to continue providing stable income moving forward[101]. - The Group's hotel operations in Japan are expected to leverage the unique integrated facilities of hotel, golf course, and restaurant to enhance profitability[146]. - The Group is actively optimizing and restructuring its shopping mall operations, which are in the nurturing stage, showing improvement post-pandemic[123]. - The Group's serviced apartments in Chongqing have generated positive returns and are expected to provide stable income, while the shopping mall operation is in the nurturing stage[172]. Remuneration and Committees - The Group's remuneration policy aims to retain and motivate executive Directors and employees by linking compensation to the Company's performance[35]. - The Remuneration Committee held one meeting during the year to approve the remuneration packages for Directors and senior management[54]. - The Remuneration Committee comprises three independent non-executive Directors and two executive Directors, with Ms. Pau Yee Ling as the chairman[33]. Investment and Financial Strategy - The Group plans to focus on reducing operating expenses and improving asset profitability to generate stable income and cash flow[101]. - The Group aims to identify investment and merger opportunities to enhance overall financial performance and diversify its investment portfolio[101]. - The Group plans to seek more investment opportunities with promising outlooks to create value for shareholders[149]. - The Group is considering refining its investment strategy and optimizing its asset portfolio to alleviate financial burdens[185]. - The Group will continue to comply with financial covenants related to secured bank borrowings, including timely repayment of principal and interest[184]. - The Group is assessing various feasible solutions to improve operations, including obtaining additional financing to reduce debt burden[159]. Liabilities and Equity - As of March 31, 2023, the Group had no material contingent liabilities[1]. - As of March 31, 2023, the Group's current liabilities were HK$463,797,000, an increase from HK$364,548,000 in 2022, while total borrowings amounted to HK$2,851,056,000, up from HK$2,802,264,000 in 2022[183]. - The gearing ratio was negative 7.17 as of March 31, 2023, compared to 14.74 in 2022, indicating negative total equity[183]. - Approximately HK$123,047,000 of total borrowings will be due within the next twelve months from the reporting date, compared to HK$47,714,000 in 2022[183]. - The Group had capital commitments of HK$7,351,000 as of March 31, 2023, significantly higher than HK$1,963,000 in 2022[183]. - The Group's net current assets were HK$4,704,000, a decrease from HK$179,466,000 in 2022, while cash and cash equivalents were HK$32,869,000, slightly up from HK$31,770,000 in 2022[183]. - As of March 31, 2023, the Group's total equity was negative HK$397,764,000, a decrease of HK$587,923,000 from the previous year, primarily due to exchange losses and the loss for the year[182]. Market and Economic Conditions - The Group expects occupancy rates and room rates for serviced apartments in Chongqing to reach new post-COVID highs[101]. - Average occupancy rate for hotels in Hokkaido exceeded 80%, significantly higher than similar hotels in the area, benefiting from the recovery of the tourism industry post-pandemic[135]. - The Chongqing Property is strategically located near Jiefangbei Walking Street, a well-known retail area, which is expected to attract more customers[130].
民生国际(00938) - 2023 - 年度财报