Financial Performance - For the financial year ended April 30, 2023, the turnover was HK$145,960,000, a decrease of 23.5% from HK$191,027,000 in 2022[25]. - The loss before taxation for the year was HK$105,807,000, compared to a loss of HK$7,519,000 in the previous year[25]. - The attributable loss to the owners of the Company was HK$112,413,000, significantly higher than the loss of HK$10,818,000 in 2022[25]. - The basic and diluted loss per share increased to HK$0.782 from HK$0.075 in the prior year[25]. - The financial highlights indicate a trend of increasing losses over the past four years, with the highest loss recorded in 2023[25]. - The Group recorded a total revenue decrease of approximately HK$146.0 million, representing a decline of about 22.8% compared to the previous year[32]. - Net loss attributable to the owners of the Company from continuing operations was approximately HK$112.4 million, an increase of approximately HK$101.8 million from the last year[32]. - Gross profit decreased by approximately 32.7% to approximately HK$47.8 million, with a gross profit margin dropping to approximately 32.8% from 37.7% in the previous year[103]. - The increase in net loss was primarily due to a rise in net impairment losses of approximately HK$42.8 million related to expected credit losses on loans and interest receivables[101]. Business Operations - The Company emphasizes continuous improvement in "Safety, Quality, and Efficiency" as part of its corporate mission[15]. - The Company aims to enhance business efficiencies and build a solid foundation for future growth[14]. - The report indicates a focus on innovation and breakthroughs as part of the Company's strategy moving forward[27]. - The Group was awarded a total of 2 new construction contracts during the year, down from 13 contracts in the previous year[34]. - The Group provided scaffolding services to 40 ongoing projects, with 25 of these projects completed on schedule[40]. - The Group aims to continue acquiring new contracts in the competitive fitting out services market[46]. - The Group has actively developed the rental business for suspended working platforms, gaining a good reputation in the market[47]. - The Group's construction-related services faced increased competition due to a decrease in new projects approved by the government[80]. Money Lending Business - The Group's money lending business is operated through a wholly-owned subsidiary, with 89 clients as of April 30, 2023[48]. - The money lending business recorded a turnover of approximately HK$42.5 million for the year, a decrease from approximately HK$48.8 million in the previous year[65]. - The usual tenure of loans is between 3 months to 5 years, with interest rates for loans under HK$5,000,000 ranging from 7% to 15%[56]. - Approximately 46% of the Group's net loan and interest receivables were unsecured as of April 30, 2023[65]. - The principal amount of loans in the portfolio ranged from approximately HK$0.1 million to HK$25.0 million, with interest rates from 7.0% to 40.6% per annum[65]. - The net amount of loan and interest receivables due from the largest borrower was approximately HK$20.3 million, representing about 4.6% of the Group's net loan and interest receivables[65]. - The five largest borrowers accounted for less than 21% of the net loan and interest receivables of the Group, all being independent third parties[65]. - The Group's money lending business adjusted its lending criteria to reduce default rates, requiring borrowers to provide asset or income proof[84]. - The money lending business faced challenges, with net impairment losses recognized amounting to approximately HK$84.6 million, up from approximately HK$41.8 million in the previous year[86]. Financial Position - As of April 30, 2023, the Group's equity attributable to the owners was approximately HK$396.1 million, down from approximately HK$509.6 million as of April 30, 2022, representing a decrease of about 22.2%[109]. - The Group's current assets increased to approximately HK$534.5 million as of April 30, 2023, compared to approximately HK$437.2 million as of April 30, 2022, reflecting an increase of about 22.3%[109]. - The total assets of the Group decreased to approximately HK$575.6 million as of April 30, 2023, from approximately HK$703.4 million as of April 30, 2022, indicating a decline of about 18.2%[109]. - The Group had no bank borrowings or overdrafts as of April 30, 2023, compared to approximately HK$8.6 million and HK$10.9 million respectively as of April 30, 2022[110]. - The Group's gearing ratio increased to approximately 31.5% as of April 30, 2023, up from approximately 27.6% as of April 30, 2022[115]. - The net amount of loans and interest receivables was approximately HK$444.4 million as of April 30, 2023, down from approximately HK$486.3 million in 2022, a decrease of about 8.5%[120]. - The allowance for credit losses of loan and interest receivables under the ECL model rose to approximately HK$240.1 million as of April 30, 2023, compared to approximately HK$155.5 million in 2022, an increase of about 54.4%[120]. - The net impairment loss arising from ECL amounted to approximately HK$84.6 million as of April 30, 2023, up from approximately HK$41.8 million in 2022, reflecting an increase of about 102%[120]. Management and Governance - The management team has undergone significant changes in 2022 and 2023, impacting the Group's strategic direction[197]. - Dr. So Yu Shing resigned as Chairman and Executive Director effective May 2, 2023[195]. - Ms. Lai Yuen Mei, Rebecca resigned as Executive Director effective December 19, 2022[196]. - Mr. Kong Kam Wang resigned as Chief Executive Officer and Executive Director effective November 16, 2022[197]. - The Audit Committee held four meetings during the year to review the Group's consolidated financial statements[191]. - The Group employs a prudent treasury policy, financing operations through internally generated resources and flexible fiscal policies to manage assets and liabilities effectively[158]. Risks and Challenges - The Group faces significant risks including labor shortages and competition in the scaffolding and fitting out services sectors, which could adversely affect operations and profitability[164][167]. - The Group is committed to providing a safe and competitive working environment to retain labor and mitigate risks associated with labor shortages[165]. - The Group is exposed to various financial risks, including credit, interest rate, currency, liquidity, and other price risks[171]. - The Group's reliance on information technology systems is critical for operations, inventory management, and financial reporting[173]. Investment and Future Outlook - The Group plans to review its asset structure and business strategies to adapt to economic uncertainties and enhance competitiveness in the scaffolding business[95]. - The Group aims to focus on high-margin business segments, particularly in money lending operations, to improve financial returns for shareholders[95]. - The Directors anticipate that the upward trend in the Hong Kong stock market will continue into 2023 and 2024, potentially enhancing the performance of the Group's securities investments[152]. - The performance of the Group's securities investments will depend on the financial and operational performance of investee companies and market sentiment, influenced by interest rate movements, high inflation, and macroeconomic performance[152].
汇隆控股(08021) - 2023 - 年度财报