Financial Performance - For the year ended June 30, 2023, rental income from car parking spaces was approximately HK$4,236,000, a slight decrease from HK$4,329,000 in 2022[20]. - Revenue from metal recycling decreased marginally to approximately HK$17,417,000 from HK$17,514,000 in 2022[40]. - The motor and motor accessories business revenue declined to approximately HK$60,279,000, down from approximately HK$71,016,000 in 2022[48]. - Loan interest income from the money lending business was approximately HK$298,000, compared to approximately HK$329,000 in 2022, indicating a downward trend[52]. - For the year ended June 30, 2023, the Group's revenue decreased by 9.4% to approximately HK$84,414,000 compared to HK$93,188,000 in 2022[130]. - Gross profit for the same period decreased by 28.8% to approximately HK$15,061,000, down from HK$21,153,000 in 2022[130]. - The loss for the year increased to approximately HK$35,200,000, compared to a loss of approximately HK$14,828,000 in the previous year[130]. - Basic and diluted loss per share for the year was HK2 cent, compared to HK1 cent in 2022[131]. - The Group recorded a net loss on fair value changes in investments at fair value through profit or loss of approximately HK$236,000 for the year ended June 30, 2023, compared to approximately HK$167,000 in 2022[117]. - Revenue from the hotel and related business amounted to approximately HK$2,184,000 for the year ended June 30, 2023, compared to nil in 2022[119]. Investment Properties - The Group holds 80% interest in an investment property in PRC, with a total gross floor area of approximately 28,814.66 sq.m (or about 310,161.00 sq.ft.)[11]. - A resolution was passed on June 8, 2023, for the disposal of the 80% interest in the PRC investment property, with a deposit of HK$11,800,000 received and a balance of HK$47,200,000 to be received upon completion[12]. - The Hong Kong investment property comprises 95 car parking spaces, leased out under a government lease for a term of 999 years[19]. - The Group's investment properties are located in both PRC and Hong Kong, contributing to stable revenue streams[16]. Business Segments - The Group is engaged in various businesses including metal recycling, motor accessories, car parking rental, money lending, and securities trading[8]. - The Group has a hotel business in Nepal, expanding its portfolio beyond environmental resources[8]. - The Group's principal activities include metal recycling, motor and motor accessories, car parking rental, money lending, trading of golden flower tea products, and securities trading[180]. - The Group's operations include five segments: Securities Brokerage, Money Lending, Corporate Finance, Asset Management, and Consultancy[1]. Environmental Commitment - The fair value of biological assets is estimated using a market-based approach, reflecting the Group's commitment to sustainable practices[21]. - The Group maintains green businesses focused on research, development, and application of technologies for environmental markets[8]. - The Group emphasizes environmental protection and sustainable development, implementing measures to promote awareness and compliance with environmental legislation[190]. - The Group's commitment to environmental policies includes the conscientious use of resources and the adoption of best practices across its businesses[190]. - The Group encourages energy-saving practices among employees, such as turning off air-conditioning and using energy-saving light bulbs[196]. - Recycling initiatives have been implemented, including the placement of recycle bins next to printers[196]. - The Group has canceled the distribution of plastic bags in the office to reduce the use of disposable products[196]. Loan Management - The Group maintains a loan register to track repayment schedules and statuses, ensuring proactive management of loan collections[64]. - Key terms of loans are determined based on factors such as borrower credibility, security value, and assessed risk, with corporate borrowers generally considered lower risk than private companies[65]. - The Group conducts internal monitoring procedures for loan extensions, including reviewing the latest financial statements of borrowers and assessing their repayment capabilities[66]. - The management discussion highlights the importance of reassessing credit risk and loan recoverability whenever irregularities are identified[67]. - The Group's approach to loan management emphasizes a structured and risk-aware methodology to ensure financial stability and minimize potential losses[68]. - The Group conducted due diligence and credit risk assessments for each loan, including reviewing financial statements and business developments of borrowers[74]. - The Group's internal control procedures for ongoing monitoring of loan recoverability were deemed effective in identifying significant changes in borrowers' creditworthiness[112]. Employee Relations - The Group offers competitive remuneration packages and various fringe benefits, including medical benefits and bonuses, to enhance employee retention[199]. - Employee relations have been positively impacted by management policies and career prospects, contributing to good employee retention[198]. - The Group had 39 employees as of June 30, 2023, down from 60 in 2022[1]. Financial Position - Total assets of the Group as of June 30, 2023, were approximately HK$718,692,000, down from approximately HK$780,508,000 in 2022[133]. - Cash and bank balances as of June 30, 2023, were approximately HK$5,640,000, compared to approximately HK$6,295,000 in 2022[133]. - The Group's net assets amounted to approximately HK$476,320,000 as of June 30, 2023, down from approximately HK$536,469,000 in 2022[138]. - The Group's total borrowings were approximately HK$74,148,000, an increase from approximately HK$68,215,000 in 2022[138]. - The Group's gearing ratio as of June 30, 2023, was approximately 15.6%, up from approximately 12.7% in 2022[138]. Impairment and Losses - An impairment loss was recognized for the entire outstanding loan receivables associated with Borrower 4 due to bankruptcy proceedings[115]. - The Group recognized the possibility of loan recoverability for Borrower 5 to be remote, leading to an impairment loss for the entire outstanding loan receivables[115]. - The Group assessed various factors for impairment assessment, including significant changes in creditworthiness and financial conditions of borrowers[111]. - The Group determined no impairment was necessary for Borrower 1 and Borrower 3 based on their strong financial positions and lack of adverse changes[115]. Market Conditions - Sourcing metal scrap in Hong Kong is becoming increasingly difficult due to rising competition and limited supply[42]. - The global metal recycling market is expected to grow at a compound annual growth rate of 5.85% to reach about USD384 billion by 2030[41]. - The construction sector in Hong Kong saw a 17.9% increase in total value in the private sector during Q1 2023, indicating potential growth for the metal recycling business[46].
中国环境资源(01130) - 2023 - 年度财报