Financial Performance - For the year ended March 31, 2022, the Group recorded revenue of approximately HK$300,241,000, representing an increase of 130% compared to HK$130,521,000 in 2021[14] - Gross profit for the year was approximately HK$162,596,000, up from HK$54,607,000 in the previous year, indicating a significant improvement in profitability[14] - The Group achieved a net profit of approximately HK$66,000,000 for the year, a turnaround of approximately HK$68,208,000 compared to a net loss of HK$2,208,000 in 2021[15] - The Group's profit before tax was approximately HK$88,940,000, compared to a loss of HK$16,534,000 in the previous year, showcasing a strong operational recovery[14] - The gross profit margin increased by approximately 12.32% to approximately 54.16% for the Year compared with the previous year[62] - The Group reported a profit for the year of approximately HK$66,000,000, a turnaround from a loss of approximately HK$2,208,000 in the previous year, representing an improvement of approximately HK$68,208,000[70] Revenue Breakdown - The coal mining business generated revenue of approximately HK$275,463,000, an increase of approximately HK$174,775,000 or approximately 173.58% compared to approximately HK$100,688,000 in the previous year[49] - The Group sold approximately 1,988,282 tonnes of coal during the Year, which is an increase of approximately 38.23% in volume compared to the previous year[49] - The renewable energy business recorded a turnover of approximately HK$3,781,000, an increase of approximately HK$2,496,000 compared to approximately HK$1,285,000 in the previous year[50] - The IT Services business contributed a revenue of approximately HK$20,997,000, representing a decrease of approximately HK$7,551,000 or approximately 26.45% due to the ongoing COVID-19 situation[51] Expenses and Costs - Administrative and other operating expenses increased to HK$42,084,000 from HK$34,505,000 in 2021, reflecting higher operational costs[14] - Selling and distribution expenses rose to HK$1,376,000, compared to HK$642,000 in the previous year, indicating increased marketing efforts[14] - The total cost of services and goods sold was HK$137,645,000, up from HK$75,914,000 in the previous year, reflecting increased sales volume[14] - The cost of sales for the coal mining business was approximately HK$117,557,000, which increased in line with the increase in sales volume and selling price during the Year[52] Acquisitions and Business Segments - The Group is engaged in three business segments: coal mining, renewable energy, and IT services[19] - The acquisition of NEFIN Group focused on renewable energy solutions in Malaysia[19] - The acquisition of Harbour Group Holdings expanded IT services into the UK, Malaysia, and Singapore[19] - The acquisition of the New Mining Right for the Enlarged Kaiyuan Mine was completed for a consideration of RMB 160,978,000, covering an enlarged mining area of 4.1123 km² for a term of 30 years from August 2019 to August 2049[22] - The Group's coal resources were expanded through the acquisition, aligning with its strategy to enhance coal mining operations[43] Financial Position and Liabilities - As of March 31, 2022, the Group had net current liabilities of approximately HK$32,068,000, a decrease from net current assets of approximately HK$87,610,000 in 2021[121] - Cash and cash equivalents amounted to approximately HK$260,753,000, up from approximately HK$204,079,000 in 2021, contributing to total current assets of approximately HK$274,922,000[121] - Current liabilities increased to approximately HK$306,990,000 from approximately HK$152,732,000 in 2021, primarily due to trade and other payables and the current portion of Convertible Bonds[121] - The Group's gearing ratio improved to approximately 1.37 from 2.16 in 2021, indicating a stronger financial position[121] - The Group's interest-bearing borrowings were approximately HK$37,254,000, down from approximately HK$60,636,000 in 2021, indicating a reduction in debt[125] Governance and Corporate Structure - The Company is committed to maintaining statutory and regulatory standards and adherence to corporate governance principles emphasizing transparency, independence, accountability, responsibility, and fairness[147] - The Board currently comprises three executive directors and three independent non-executive directors, ensuring a balance of skills, knowledge, and experience[156] - The Company has complied with the Corporate Governance Code throughout the Year, with a noted deviation from code provision A.2.1[148] - The independent non-executive directors are responsible for ensuring high standards of financial and management reporting to the Board and shareholders[150] - The company provides appropriate insurance coverage for directors and officers against potential legal actions[175] Risk Management and Internal Controls - The Audit Committee reviewed the effectiveness of risk management and internal control systems during the year[194] - Each member of the Audit Committee has unrestricted access to the auditor and all senior management of the Group[194] - The Audit Committee considered major internal audit issues for the year ended March 31, 2021[194] - The Audit Committee reviewed significant issues on operational and compliance controls[191] Future Outlook and Strategy - The Group aims to grow into a diversified business in the long run[19] - Future capital expenditures are anticipated for new plants and machines for environmental protection and safety improvements[44] - Funding for future expenditures is expected to primarily come from coal sales revenue and external banking facilities[44] - The Group expects existing customers in the IT and communication industry to gradually recover post-pandemic, supported by government measures in Hong Kong[94]
南南资源(01229) - 2022 - 年度财报