Financial Performance - Revenue for the year ended March 31, 2022, was HK$262,229,000, a decrease of 56.4% from HK$601,950,000 in 2021[9] - Gross profit for the year was HK$10,908,000, slightly down from HK$11,066,000 in the previous year[9] - Loss for the year from continuing operations was HK$5,437,000, an improvement compared to a loss of HK$14,990,000 in 2021[9] - Loss per share for the year was HK$0.026, compared to HK$0.180 in 2021, reflecting a reduction in losses[9] - The Group's revenue decreased from HK$601,950,000 for the year ended 31 March 2021 to HK$262,229,000 for the year ended 31 March 2022, representing a decrease of approximately 56.4%[38] - Revenue from the sourcing and sale of metal minerals and related industrial materials dropped significantly by approximately 66.8%, from HK$492,528,000 in the previous year to HK$163,441,000[39] - The segment profit for the sourcing and sale of metal minerals decreased from HK$2,615,000 to HK$360,000, reflecting the decline in revenue[40] - For the production and sale of industrial products, the Group recorded a segment revenue of HK$98,788,000, down approximately 9.7% from HK$109,422,000 in the previous year, while segment profit increased by approximately 26.2% to HK$9,662,000[46] - The Group's administrative expenses decreased by approximately 27.2%, from HK$18,684,000 in the previous year to HK$13,601,000[52] - Other net income for the year ended 31 March 2022 was HK$2,057,000, a slight decrease of approximately 8.1% compared to HK$2,238,000 in the previous year[48] Financial Position - Total equity attributable to owners of the Company increased to HK$531,077,000 from HK$514,171,000 in 2021[9] - Current assets decreased to HK$569,573,000 from HK$917,156,000, while current liabilities decreased significantly from HK$451,921,000 to HK$87,318,000[9] - The current ratio improved to 6.52 from 2.03 in the previous year, indicating better liquidity[9][10] - Non-current assets decreased to HK$55,446,000 from HK$60,610,000, indicating a decline in long-term investments[9] - The total equity increased by 3.4% from the previous year, reflecting a stable financial position despite operational challenges[9] - Trade payables decreased to HK$45,840,000 as of 31 March 2022, down from HK$409,568,000 as of 31 March 2021[68] - Trade receivables also decreased to HK$98,920,000 as of 31 March 2022, compared to HK$519,263,000 as of 31 March 2021[68] - The Group's current assets as of 31 March 2022 were HK$569,573,000, a decrease from HK$917,156,000 as of 31 March 2021[68] - The loss attributable to owners of the Company for the year ended 31 March 2022 was HK$5,452,000, compared to a loss of HK$37,907,000 in the previous year, resulting in a basic loss per share of HK0.026 cent[64] Operational Challenges - The Group's principal business faced significant challenges due to the COVID-19 pandemic, which severely disrupted global supply chains and increased logistic costs[24] - The Group's performance was negatively affected by raw material shortages and increased logistic costs due to supply chain disruptions[21] - The ongoing COVID-19 pandemic continues to create uncertainties in the Group's operating environment, potentially impacting operations and financial position[71] - The management is closely monitoring the impact of the pandemic and will take necessary measures to mitigate its effects on the business[71] - The Group's business model has had to adapt to the "new normal" of changing epidemic control measures, including lockdowns and travel restrictions[21] Strategic Initiatives - The Group implemented asset restructuring and austerity measures, successfully reducing cost burdens and enhancing balance sheet liquidity[25] - Sufficient capital and resources have been reserved to capture business opportunities following the anticipated recovery of economic activities[25] - The overall unit cost of production decreased due to efficiency enhancements, leading to increased profit contributions from the Waste Recycling Company compared to the previous financial year[22] - The management believes the Group is now one step ahead of its peers in terms of preparedness for economic recovery[25] - The management is focused on exploring sustainable business opportunities to enhance shareholder returns[30] - The Group anticipates significant growth in demand for metal minerals, particularly Lithium, Nickel, and Manganese, driven by the increasing demand for electric vehicles[30] Governance and Compliance - The Company is an investment holding entity, indicating a focus on strategic investments in its subsidiaries[106] - The Company has a structured governance framework with various committees overseeing risk management and audit functions[95] - The Company has adhered to the Corporate Governance Code, except for one provision that will be discussed in the Corporate Governance Report[194] - The Group's operations complied with all relevant laws and regulations in the PRC and Hong Kong during the year ended March 31, 2022[184] - The Group has complied with all relevant laws and regulations in Hong Kong and mainland China as of the reporting date[188] Shareholder Information - For the year ended March 31, 2022, the Board does not recommend any dividend payment, consistent with the previous year[108] - The annual general meeting is scheduled for September 16, 2022, with a notice to be dispatched to shareholders as required by the Listing Rules[109] - The Company will hold its Annual General Meeting on September 16, 2022[114] - The Board of Directors reported that no dividends are recommended for the year ended March 31, 2022, similar to the previous year[113] - The Company will close its register of members from September 13, 2022, to September 16, 2022, for the upcoming AGM[122] Employee Information - The Group had a total of about 134 employees as of March 31, 2022, with staff costs amounting to HK$25,489,000, a decrease from HK$26,239,000 in the previous year[185] - The total employee cost, including director remuneration, was HKD 25,489,000 for the year ended March 31, 2022, compared to HKD 26,239,000 for the previous year, reflecting a decrease of approximately 2.85%[189] - The Group is committed to providing comprehensive employee benefits, training, and development opportunities to attract and retain talent[187] - The determination of director emoluments considers their responsibilities and contributions, referencing market conditions[192] - The Group maintains close relationships with employees, customers, and suppliers to enhance service quality and gather feedback[187]
新源万恒控股(02326) - 2022 - 年度财报