Financial Performance - Revenue for the year ended 31 March 2022 was RMB 112.1 million, a decrease of 26.9% from RMB 153.3 million in 2021[10]. - Gross profit for the year was RMB 31.8 million, compared to a gross loss of RMB 84.5 million in the previous year[10]. - The basic loss per share improved to RMB (0.84) from RMB (8.94), reflecting a reduction in loss of 90.6%[10]. - Total assets decreased by 9.2% to RMB 2,072.0 million from RMB 2,281.3 million in 2021[10]. - Total equity increased by 26.8% to RMB 44.5 million from RMB 35.1 million in the previous year[10]. - The gross profit margin improved to 28.4% from a negative margin of 55.1%[10]. - Net loss for the year was approximately RMB 57.0 million, a significant reduction in loss by approximately RMB 458.2 million compared to a net loss of approximately RMB 515.2 million for the year ended 31 March 2021[22]. - The Group recorded a decrease in property sales by approximately RMB 42.1 million or 39.3%, from approximately RMB 107.1 million for the year ended 31 March 2021 to approximately RMB 65.0 million for the year ended 31 March 2022[27]. - Rental income increased by 24.6% for the year ended March 31, 2022, attributed to the end of rent-free periods offered during the COVID-19 pandemic and an increase in average occupancy rates[41][45]. - The average occupancy rate of the Group's investment properties rose to 77% for the year ended March 31, 2022, compared to 75% in the previous year[31][33]. Business Strategy and Opportunities - The company plans to explore opportunities in other industries to diversify investment and business risks[14]. - The local governments' issuance of bonds to support industrial development presents new opportunities for the company in cultural tourism[14]. - The company is focusing on leveraging advantages in Changbaishan in line with its strategic objectives[14]. - The ongoing economic stimulus policies in China are expected to provide support for the real estate sector, which may benefit the company indirectly[13]. - The Group aims to diversify its business risk from property development by exploring opportunities in cultural, health, education, and tourism-related sectors[20]. - The Group's strategic goal includes finding opportunities in other industries to mitigate investment and business risks[16]. - The management is focused on developing a sustainable business model and enriching the Group's business portfolio through new business opportunities[23]. Financial Position and Liabilities - The Group's total liabilities as of March 31, 2022, were RMB 481.9 million, a decrease from RMB 507.2 million as of March 31, 2021, reflecting effective management of financial obligations[81]. - The Group's bank and other borrowings decreased by RMB 88.5 million to RMB 711.6 million as of March 31, 2022, with both current and non-current portions decreasing due to repayments made during the year[91]. - The total liabilities, including bank and other borrowings, were RMB 1,327.5 million as of March 31, 2022, compared to RMB 1,253.3 million in the previous year[98]. - Contract liabilities from deposits for property sales increased significantly from RMB 216.7 million as of March 31, 2021, to RMB 371.9 million as of March 31, 2022, driven by cash received from pre-sales[86]. - Interest payable decreased from approximately RMB 94.6 million as of March 31, 2021, to approximately RMB 61.0 million as of March 31, 2022, due to interest payments settled during the year[82]. Management and Governance - The company has appointed several new directors to enhance governance and strategic oversight, including independent non-executive directors[167]. - The board includes members with significant experience in architecture, finance, and corporate governance, ensuring a well-rounded leadership team[168]. - The management team is committed to continuous evaluation and improvement of business performance metrics[162]. - The Group's principal activity is investment holding, primarily engaged in property development and management, including planning, designing, budgeting, licensing, contract tendering, and property investment[186]. Employee and Stakeholder Relations - The Group emphasizes the importance of employees as valuable assets and aims to provide competitive remuneration and career development opportunities[194]. - The Group aims to maintain strong relationships with stakeholders, including employees, customers, and suppliers, which are crucial for its success[192]. - The Group maintains strong relationships with customers, focusing on excellent customer service and long-term profitability[197]. - The Group has developed long-standing relationships with key suppliers to ensure cost-effectiveness and quality commitment[198]. Cash Flow and Investments - The Group recorded a net cash outflow of RMB 2.1 million from investing activities for the year ended March 31, 2022, compared to an inflow of RMB 121.9 million for the year ended March 31, 2021[101]. - The net operating cash outflow for the year ended March 31, 2022, was not less than RMB 94.7 million, compared to an outflow of RMB 152.8 million for the year ended March 31, 2021[101]. - The Group's cash flow from operating activities was impacted by the settlement of PRC corporate income tax of RMB 12 million and interest expenses of not less than RMB 66.3 million during the year[102]. Risk Management - The Group does not currently have a foreign currency hedging policy but will monitor foreign currency exposure closely[120]. - The management has established credit approvals and monitoring procedures to minimize credit risk related to trade and other receivables[132]. - The Group's policy includes regular monitoring of liquidity requirements to ensure sufficient cash reserves and funding lines from financial institutions[133].
华音国际控股(00989) - 2022 - 年度财报