Financial Performance - The company's revenue increased by 49.6% from approximately HKD 53.8 million in the year ended March 31, 2021, to approximately HKD 80.4 million in the year ended March 31, 2022[18]. - Gross profit rose by 23.5% from approximately HKD 26.4 million to approximately HKD 32.6 million during the same period[18]. - The loss attributable to the company's owners increased from approximately HKD 279.8 million to approximately HKD 382.1 million year-over-year[18]. - Adjusted loss attributable to the company's owners decreased by 19.5% from approximately HKD 38.5 million to approximately HKD 31.0 million[18]. - Basic and diluted loss per share increased from HKD 0.20 to HKD 0.228[19]. - The total revenue for the year ended March 31, 2022, was approximately HKD 80.4 million, representing an increase of about 49.6% compared to HKD 53.8 million for the year ended March 31, 2021[28]. - The gross profit margin decreased from approximately 49.0% for the year ended March 31, 2021, to approximately 40.5% for the year ended March 31, 2022[28]. - Administrative expenses increased by approximately 15.4% to about HKD 29.0 million for the year ended March 31, 2022, compared to approximately HKD 25.2 million for the year ended March 31, 2021[31]. - Financing costs decreased from approximately HKD 55.5 million for the year ended March 31, 2021, to approximately HKD 49.4 million for the year ended March 31, 2022[31]. - The group recognized a loss of approximately HKD 303.5 million from the derecognition of financial liabilities for the year ended March 31, 2022, due to issuing shares at a significant discount to settle debts[35]. - The group’s other expenses decreased to approximately HKD 60.9 million for the year ended March 31, 2022, from approximately HKD 278.2 million for the year ended March 31, 2021[31]. - The group’s impairment loss on financial assets decreased from approximately HKD 156.6 million for the year ended March 31, 2021, to approximately HKD 51.1 million for the year ended March 31, 2022[31]. - The group reported a decrease in sales and distribution costs to approximately HKD 2.7 million for the year ended March 31, 2022, down about 21.8% from approximately HKD 3.4 million for the year ended March 31, 2021[28]. - The group’s consultancy service revenue decreased from approximately HKD 19.1 million for the year ended March 31, 2021, to approximately HKD 9.2 million for the year ended March 31, 2022, due to a reduction in the number of consultancy projects[28]. - The expected credit loss provision decreased from approximately HKD 156.6 million as of March 31, 2021, to approximately HKD 51.1 million as of March 31, 2022, reflecting improved credit conditions[47]. - The expected loss rates for trade receivables showed significant improvement, with the rate for overdue accounts over 365 days decreasing from 60.39% in 2021 to 74.36% in 2022[43]. - The company's attributable loss increased by approximately 36.6%, from a loss of about HKD 279.8 million for the year ended March 31, 2021, to a loss of about HKD 382.1 million for the year ended March 31, 2022[50]. - The EBITDA loss increased from approximately HKD 246.2 million for the year ended March 31, 2021, to a loss of approximately HKD 341.4 million for the year ended March 31, 2022[49]. - The income tax credit recognized was approximately HKD 9.0 million for the year ended March 31, 2022, down from approximately HKD 24.2 million in the previous year[47]. - The expected loss rate for trade receivables that are neither overdue nor impaired decreased from 24.70% in 2021 to 12.72% in 2022[43]. - The expected loss rate for overdue accounts between 1 to 30 days decreased from 27.42% in 2021 to 7.28% in 2022[43]. - The expected loss rate for financing lease receivables within one year was 25.36% in 2022, compared to 28.50% in 2021[43]. - The share of results from associates decreased to approximately HKD 7.4 million for the year ended March 31, 2022, down from approximately HKD 9.6 million in the previous year[48]. - The company reported a loss attributable to shareholders of HKD 382,145,000 for the year ended March 31, 2022, compared to a loss of HKD 279,797,000 in the previous year, representing an increase in loss of approximately 36.5%[53]. - The adjusted loss attributable to shareholders, excluding significant non-recurring or non-operating income and expenses, was HKD 30,997,000, a decrease from HKD 38,496,000 in the prior year, indicating an improvement of approximately 19.0%[53]. Assets and Liabilities - Total assets amounted to HKD 417.8 million, while total liabilities were HKD 272.2 million, resulting in a net asset value of HKD 145.6 million[15]. - As of March 31, 2022, the company's current assets increased by 4.4% to approximately HKD 253.6 million from HKD 242.9 million in the previous year[55]. - The company's current liabilities increased significantly by 167.2% to approximately HKD 145.6 million compared to HKD 54.5 million in the previous year[55]. - The company's net asset value as of March 31, 2022, was not disclosed but is implied to be stable despite the increase in current liabilities[55]. - The group had no significant investments or capital plans other than those disclosed[68]. - The company reported a total borrowings of HKD 33.0 million as of March 31, 2022, compared to HKD 82.4 million as of March 31, 2021, indicating a significant reduction in debt[84]. - The available reserves for distribution as of March 31, 2022, were approximately HKD 148.8 million[84]. Corporate Strategy and Future Outlook - The company plans to rebrand as "Zhixing Group" to reflect its transformation towards sustainable decentralized solutions[23]. - The company continues to invest in innovative green technologies to enhance its service offerings[23]. - The company aims to implement the ESG principles advocated by the public through its capabilities and experience[23]. - The management is optimistic about future business opportunities and believes the company will thrive in the coming years[24]. - The group expects the global economic environment to continue improving despite the ongoing impact of the COVID-19 pandemic[71]. - The company completed a new share issuance in January 2022, which alleviated its financial difficulties[71]. - The group is focusing on a project in Malaysia that aims to install approximately 6 million LED lights in 6,000 apartments, projected to save 448 million Malaysian Ringgit annually and reduce CO2 emissions by over 600,000 tons per year[74]. - The company is committed to maintaining its core business while expanding into renewable energy and green property development opportunities[74]. - Management is confident in the successful implementation of a debt restructuring plan, which is expected to be approved in a court hearing scheduled for July 2022[75]. - The company is actively discussing various remedial plans, including debt restructuring and/or creditor financing, to improve cash flow and financial condition[150]. Governance and Compliance - The company has maintained compliance with the listing rules regarding the appointment of independent non-executive directors[91]. - The company’s main business remains investment holding, with no significant changes in the nature of its operations during the fiscal year[84]. - The company has adopted corporate governance practices in line with the relevant codes and standards to enhance shareholder value and accountability[160]. - The board of directors consists of six members, including one executive director and four independent non-executive directors, ensuring a diverse skill set[160]. - The audit committee acknowledged the management's plans to address liquidity issues and emphasized the need for continued execution of rescue plans[79]. - The audit committee was established and consists of three independent non-executive directors, ensuring compliance with relevant corporate governance codes[136]. - The company has complied with the corporate governance code as per the listing rules during the year ended March 31, 2022[138]. - The board regularly reviews its governance policies and is satisfied with their effectiveness[162]. - The independent non-executive directors have confirmed their independence in writing, in accordance with listing rules[166]. - The board will periodically review the management structure and consider separating the roles of chairman and CEO when appropriate[165]. - The nomination committee conducted an annual review of the board's structure, composition, and diversity, finding no significant issues during the process[191]. - The company plans to disclose further developments regarding its financial obligations in subsequent interim and annual reports as required by listing rules[150]. Shareholder Information - The total number of issued shares of the company was 2,385,668,000 shares as of March 31, 2022[97]. - Huang Wenhui holds 1,254,347,204 shares, representing approximately 52.58% of the issued share capital[95]. - The beneficial owner Cai Xinxin has rights to 1,259,847,204 shares, accounting for approximately 52.81% of the issued share capital[103]. - Ancient Wisdom Limited, controlled by Wu Shangdun, holds 1,229,147,920 shares, which is about 51.52% of the issued share capital[103]. - Beyond Ever Limited owns 178,366,000 shares, representing 7.48% of the issued share capital[103]. - The company has adopted a share option scheme aimed at rewarding eligible participants for enhancing shareholder value[108]. - The maximum number of shares that may be issued under the share option scheme is capped at 50,000,000 shares, equivalent to 10% of the issued shares as of the listing date[114]. - The total number of options available under the share option plan as of March 31, 2022, is 24,383,000 shares, representing approximately 1.022% of the total issued shares of 2,385,668,000[125]. - The average closing price per share prior to the exercise of options was HKD 0.76 for the year ending March 31, 2022[125]. - The exercise price for the options granted is set at HKD 0.290[120]. - A total of 11,000,000 options were granted during the year, with 24,728,000 options exercised[123]. - As of March 31, 2022, there were 889,000 options remaining unexercised[123]. - The share option plan is valid for ten years starting from March 5, 2015, with approximately three years remaining[117]. - The options granted in 2020 have an exercise period extending up to April 1, 2022[120]. - The company has a policy that restricts the total number of shares issued under the share option plan to not exceed 1% of the total issued shares within any 12-month period[116]. - The company reported that 5,933,000 options were forfeited or canceled during the year[123]. Supplier and Customer Relations - The top five suppliers accounted for approximately 99.9% of the group's total procurement amount for the year ended March 31, 2022[130]. - The top five customers represented approximately 92.5% of the group's total sales for the year ended March 31, 2022, with the largest customer accounting for about 29.8% of total sales[130]. - The company has maintained good relationships with its customers and suppliers, regularly reviewing their requirements and performance[142]. Risk Management - The group faced various financial risks, which are disclosed in the notes to the consolidated financial statements[142]. - The audit committee reviewed the financial reporting system and the effectiveness of risk management and internal control systems for the year ended March 31, 2022[187].
知行集团控股(01539) - 2022 - 年度财报