Financial Performance - The company reported a significant increase in revenue, achieving a total of $150 million for the fiscal year, representing a 20% growth compared to the previous year[1]. - In 2023, the company's revenue was $18.233 million, a decrease of 15.5% compared to $21.562 million in 2022[13]. - The company reported a gross profit of $2.046 million in 2023, down from $10.574 million in 2022, reflecting a significant decline[13]. - The net loss attributable to shareholders was $17.093 million in 2023, compared to a profit of $24.722 million in 2022[13]. - The EBITDA margin improved to 35%, up from 30% in the previous year, reflecting better cost management[1]. - EBITDA decreased from $12,300,000 for the year ended March 31, 2022, to $8,900,000 for the year ended March 31, 2023, due to a decline in average daily charter income[53]. - The group reported a net loss of approximately $17,100,000 for the year ended March 31, 2023, compared to a net profit of approximately $24,700,000 for the year ended March 31, 2022[52]. - The company did not recommend any final dividend for the year ended March 31, 2023, consistent with the previous year[177]. Market and Operational Strategy - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming for $187.5 million[1]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share within the next two years[1]. - The company plans to continue a cautious operational strategy to manage daily operations and control costs amid market uncertainties[17]. - The outlook for 2023 suggests a cautious optimism with expectations of gradual recovery in dry bulk shipping rates due to anticipated economic recovery in China[26]. - The company plans to implement a new digital platform aimed at improving customer engagement and retention, with an estimated investment of $2 million[1]. - The company anticipates that 2023 will remain a challenging year due to economic recession, inflation, weak global demand, and monetary tightening policies[77]. - The ongoing impacts of the COVID-19 pandemic and the Russia-Ukraine war are expected to continue affecting the dry bulk shipping market and global supply chain[77]. Investments and Acquisitions - A strategic acquisition of a local competitor was completed, valued at $5 million, which is anticipated to enhance operational efficiency[1]. - The company is in discussions for potential investments in online accommodation services and real estate agency services in Hainan, which are still in the feasibility study and negotiation stages[41]. - The company plans to develop a cultural and tourism real estate project on a 132,880.56 square meter land in Hainan, with a total construction area of about 130,000 square meters[34]. Shipping and Fleet Performance - The average daily charter rate for the fleet was approximately $13,160, a decrease of 13.39% from the previous year[29]. - The fleet maintained a high utilization rate of 95.91% throughout the year[29]. - The fleet maintained a high operational rate due to effective planning and minimal downtime, with only one vessel undergoing dry dock repairs for 31 days[30]. - The total global dry bulk shipping volume was 5.252 billion tons in 2022, a decrease of 2.7% from the previous year[24]. - In 2023, global dry bulk shipping demand is expected to reach 5.328 billion tons, a year-on-year increase of 1.4%, recovering from a decline of 2.7% in 2022[31]. - The global coal shipping volume is projected to recover to 1.25 billion tons in 2023, an increase of 2.1% compared to the previous year[32]. Governance and Corporate Structure - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[91]. - The company has adopted the corporate governance code as per the listing rules, with a commitment to maintaining high standards of corporate governance[88]. - The board is responsible for overall strategy, investment plans, and significant financial matters, ensuring alignment with shareholder interests[93]. - The company has established a nomination committee to identify and recommend suitable candidates for board membership[95]. - The board has adopted a dividend policy that requires maintaining sufficient cash reserves to meet operational funding needs and future growth[101]. - The company has established a whistleblowing policy to ensure high levels of transparency and accountability, with no significant fraud or misconduct reported during the review year[100]. Risk Management and Financial Health - The group reported a current liability exceeding current assets by approximately $70,383,000, including borrowings and loans of $10,913,000 and convertible bonds due within one year of $52,739,000[158]. - The group has cash and cash equivalents of $2,041,000 as of March 31, 2023[158]. - The board believes that based on financing plans and other measures, the group will have sufficient working capital to meet its operational needs and financial obligations due within the next twelve months[158]. - The external auditor did not identify any significant internal control weaknesses during the audit period ending March 31, 2023[153]. - The group’s risk management procedures are integrated into strategy development, business planning, capital allocation, investment decisions, internal controls, and daily operations[145]. Employee and Compensation Information - As of March 31, 2023, the group had a total of 103 employees, an increase from 88 employees as of March 31, 2022[75]. - Total salary and related costs for the year ended March 31, 2023, were approximately $6,000,000, compared to $4,800,000 for the year ended March 31, 2022, reflecting a 25% increase[75]. - The annual remuneration for senior management was categorized as follows: 1 person earned between HKD 0-500,000 and 1 person earned between HKD 500,001-1,000,000[130]. Shareholding and Equity Structure - As of March 31, 2023, Mr. Yin held 615,365,000 shares, representing approximately 64.60% of the company[193]. - Lin Qun held 645,557,500 shares, accounting for approximately 67.77% of the company[193]. - The total issued shares as of March 31, 2023, is 952,613,513[199]. - The shareholding structure indicates that Lin holds 50% of Wan Nian, while Yin and Lin together control 51% of Yao Feng[197]. Corporate Social Responsibility - The company is committed to corporate social responsibility, focusing on environmental protection and community engagement[178]. - The board's diversity policy has been in place since August 2013, focusing on various aspects including gender, age, cultural background, and professional experience[107].
荣丰亿控股(03683) - 2023 - 年度财报