Economic Environment - The global economic activity has generally slowed down due to multiple factors, including high inflation and geopolitical tensions, with recession risks still present[1] - The restaurant industry in mainland China and Hong Kong has faced significant challenges due to the ongoing COVID-19 pandemic, leading to a sharp decline in demand[1] - As of 2023, the domestic service industry has begun to recover, with the accommodation and restaurant sectors showing strong growth, leading the recovery among various industries[2] Business Development and Strategy - The company has officially entered the Greater Bay Area market, establishing headquarters and offices in Shenzhen and Zhongshan to accelerate business development[7] - The company plans to focus on the live cattle breeding and trading industry, aiming to establish a complete industry chain from breeding to processing and sales in the Greater Bay Area[8] - The company aims to enhance its competitiveness and gradually become a leading green food supplier in the Greater Bay Area, focusing on core businesses such as live cattle breeding and green food supply chains[11] - The company expanded its restaurant business in Zhongshan, targeting young consumers, which enhanced brand recognition and customer base in the Greater Bay Area[113] - The company launched two new businesses in the second half of 2022: green dining and environmental technology, diversifying its operational portfolio[114] - The company aims for dual growth in total revenue and market share by leveraging synergies among its three main business areas[112] Financial Performance - The company's revenue for the year was approximately HKD 202.1 million, an increase of about 58.3% compared to HKD 127.7 million for the year ended March 31, 2022[22] - The green food supply business generated revenue of approximately HKD 196.5 million, representing a 53.9% increase from HKD 127.7 million in the same period last year, primarily due to contributions from newly acquired businesses[22] - Gross profit increased by approximately 91.4% to about HKD 35.9 million, with a gross profit margin rising by 3.1 percentage points to approximately 17.8%[23] - The audited net profit for the year 2023 was approximately RMB 5.7 million, exceeding the target net profit[55] Expenses and Losses - Selling expenses rose to approximately HKD 2.2 million, an increase of about 268.1% from HKD 0.6 million, mainly due to promotional and delivery service costs in the restaurant business[29] - Administrative expenses increased by approximately 116.0% to about HKD 50.2 million, up from HKD 23.2 million, driven by the establishment of a headquarters in the Greater Bay Area and new business expansions[30] - The company recorded a loss of approximately HKD 27.7 million for the year, compared to a loss of about HKD 11.0 million for the year ended March 31, 2022[34] Capital and Financing - The company announced a rights issue on April 11, 2023, issuing 309,504,000 new shares at HKD 0.36 per share, raising approximately HKD 101.7 million for various business developments[10] - The net proceeds from a share subscription amounted to approximately HKD 37.7 million, with about HKD 1.3 million remaining unutilized as of March 31, 2023[35] - The group opened two new retail stores with capital expenditure of HKD 10.0 million during the year[36] - The group incurred operational capital expenditure of HKD 4.5 million for the restaurant business, with HKD 1.3 million utilized in the current year[36] Assets and Liabilities - Total assets increased by approximately 39.2% to about HKD 216.3 million, driven mainly by the fair value consolidation of newly acquired businesses[42] - Total liabilities rose by approximately 195.4% to about HKD 104.6 million, primarily due to the recognition of contingent consideration of approximately HKD 46.1 million[42] - The current ratio decreased to approximately 1.2 from 2.4 as of March 31, 2022, attributed to new lease agreements and the recognition of contingent consideration[42] - The capital debt ratio increased to approximately 32.3% from 23.4% as of March 31, 2022, due to new loans obtained from the intermediate holding company[44] Employee and Operational Costs - The total employee cost for the year was approximately HKD 34.4 million, an increase from HKD 18.4 million as of March 31, 2022, with 146 employees as of March 31, 2023[61] - The group faced credit risk primarily from cash and cash equivalents, trade receivables, and deposits, with trade receivables from the top five debtors accounting for approximately 51.7% of total trade receivables as of March 31, 2023, down from 73% the previous year[63] Corporate Governance and Compliance - The company has committed to maintaining high standards of corporate governance, which is crucial for gaining stakeholder trust and ensuring accountability[134] - The company has adhered to the corporate governance code applicable during the fiscal year ending March 31, 2023[134] - The company has maintained compliance with relevant laws and regulations, reporting no significant violations during the fiscal year ending March 31, 2023[197] Shareholder Information - The company reported that Dr. Xu Guowei and Mr. Zhong Xueyong each hold 59.91% of the shares as members of a concert party[165] - The company has a significant shareholder concentration, with the largest group holding 62.82% of shares, totaling 972,080,000 shares[181] - The company has issued a total of 1,857,024,000 shares following a rights issue that allocated 309,504,000 new shares[200] Future Outlook - The company plans to issue 309,504,000 rights shares to raise approximately HKD 111.4 million, with a net amount of about HKD 101.7 million allocated for various projects including 30% for starting a live cattle farm[144] - The company plans to further expand into the Greater Bay Area market[79] - The 2022/23 year report indicates an expected revenue growth of 10% to 15%[79]
中国万天控股(01854) - 2023 - 年度财报