Lending Business Performance - The lending business generated revenue of approximately HK$43.1 million, a decrease of approximately 30.4% from HK$61.9 million in 2022, primarily due to a drop in the loan portfolio[1]. - As of March 31, 2023, the gross loan balance was approximately HK$277.8 million, down from approximately HK$461.3 million in 2022, reflecting a significant reduction in active loan accounts from 51 to 44[1]. - Secured loans accounted for approximately 81.8% of the loan portfolio, while unsecured loans made up approximately 18.2%[1]. - The top 5 customers represented approximately 48.8% of the loan portfolio, a decrease from 53.9% in 2022[1]. - The weighted average interest rate for secured loans was approximately 12.8% per annum, slightly down from 12.9% in 2022, while unsecured loans saw a more significant drop to approximately 13.3% from 16.2%[1]. - The loan-to-value ratio for secured loans was approximately 66.7%, down from 70.3% in 2022, indicating a cautious lending approach[1]. - Impairment losses for the year were approximately HK$2.2 million, a significant decrease from approximately HK$34.3 million in 2022, primarily due to expected credit loss allowances[1]. Asset Management and Revenue - The asset management services generated fee income of approximately HK$17 million, down from approximately HK$30.8 million in 2022, mainly due to a reduction in acquisition fees[3]. - Total revenue for the year ended March 31, 2023, was HK$3,603.5 million, representing a 94.1% increase from HK$1,856.0 million in 2022[53]. - Profit attributable to owners of the parent was HK$12.8 million, a significant recovery from a loss of HK$305.2 million in the previous year[53]. - Basic earnings per share improved to HK$0.09, compared to a loss of HK$2.06 per share in 2022[53]. Financial Position and Assets - Total assets decreased by 8.3% to HK$18.39 billion from HK$20.06 billion in 2022[38]. - Net assets declined by 2.3% to HK$9.38 billion, down from HK$9.60 billion in 2022[38]. - The gearing ratio improved to 49.4%, a decrease of 6.5 percentage points from 55.9% in 2022[38]. - Capital commitments as of March 31, 2023, amounted to approximately HK$1,409.3 million, down from HK$2,412.2 million in 2022[45]. - The Group's share of joint ventures' capital commitments increased to approximately HK$110.9 million from HK$43.3 million in 2022[45]. Dividends and Guarantees - Total dividends declared per share decreased to HK$0.04, a reduction of 60.0% from HK$0.10 in 2022[53]. - The Group provided guarantees for loans amounting to approximately HK$36.1 million to customers, down from HK$45.5 million in 2022[46]. Cash and Liquidity - The total liquidity investments and cash and bank balances as of March 31, 2023, were approximately HK$2,274.3 million, a decrease of approximately 6.4% from HK$2,429.9 million in 2022[9]. - Approximately 47.6% of liquidity investments were in debt securities, 19.4% in equity securities, and 33.0% in funds and other investments[9]. - Total cash and bank balances increased to approximately HK$1,616.3 million from approximately HK$1,489.9 million in 2022[67]. - The Group's cash and short-term realizable investments amounted to approximately HK$1,749.0 million, with cash and bank balances at approximately HK$1,616.3 million[111]. Operational Developments - The group has formed a new joint venture with Angelo, Gordon & Co., L.P. for the acquisition and operation of a property in Kowloon, Hong Kong, which includes a hotel with a gross floor area of approximately 285,000 square feet[61]. - The Group is leveraging its expertise in asset management to secure additional recurring income and explore strategic expansion opportunities[63]. - The Group is actively expanding its e-commerce channels, including its own online platform and selected third-party platforms[76]. - The Group has partnered with several developers and investment institutions for property development projects, with total investments exceeding HK$15 billion[96]. Cost and Expenses - The Group recorded administrative expenses of approximately HK$513.0 million for the year, a slight increase from HK$497.0 million in 2022[150]. - Selling and distribution expenses rose to approximately HK$452.9 million, up from HK$274.6 million in 2022, primarily due to increased property sales support services[150]. - Finance costs increased to approximately HK$288.4 million, compared to HK$207.6 million in 2022, attributed to rising interest rates[150]. - The average borrowing rate for the Group was 5.6%, up from 3.8% in 2022[150]. Product Development and Market Expansion - The company launched new products across five major categories of Chinese medicine, enhancing product diversity[123]. - The Group is planning to expand its retail network in Hong Kong, Mainland China, and Macau, considering both self-operated and franchised stores[165]. - The Group is developing new products, including cordyceps capsules and muscle relief oil, to enhance its product lineup[165]. - The Group's fresh market operations are adapting to challenges from online shopping and home delivery services by improving the shopping experience and exploring new business opportunities[163]. Agricultural and Cold Chain Development - The comprehensive cold chain circulation rate of fresh agricultural produce in Mainland China is only 19%, indicating significant potential for development in the cold storage industry[120]. - The Group plans to increase the development and construction of cold chains, cold storage, and logistics warehouses in existing market cities and the Greater Bay Area[120]. - The Group's subsidiary manages 11 agricultural produce exchange markets in densely populated areas and transportation hubs across Mainland China, enhancing its supply chain capabilities[117]. - The intelligent automatic packaging system developed by WYT can increase packaging efficiency six-fold and reduce material waste[102]. Urban Redevelopment and Market Presence - The company is focused on expanding its land reserves through public tenders and old building acquisitions to support future development projects[185]. - The total attributable gross floor area for ongoing urban redevelopment projects is approximately 65,000 square feet, with over 90% ownership secured[183]. - The company is actively pursuing urban redevelopment projects, holding over 90% ownership in these projects, with a total gross floor area of approximately 65,000 square feet planned for redevelopment[185]. - The Group managed a portfolio of around 600 stalls in the fresh market segment, covering over 150,000 square feet, and aims to enhance customer experience through improved shopping environments[191]. - The company plans to identify high population density areas for establishing new fresh markets and mini fresh markets to expand its market presence[191].
WANG ON GROUP(01222) - 2023 - 年度财报