Financial Performance - For the fiscal year ending March 31, 2023, the company reported a loss of approximately HKD 29.2 million, compared to a loss of HKD 5.0 million for the fiscal year ending March 31, 2022[10]. - Revenue from continuing operations decreased by approximately 86.7% to about HKD 12.5 million, down from HKD 93.8 million in the previous year, primarily due to the adverse impact of strict COVID-19 control measures in China[10]. - Gross profit from continuing operations fell by approximately 91.9% to about HKD 2.0 million, compared to HKD 24.6 million in the previous year[10]. - For the year ended March 31, 2023, the group recorded revenue of approximately HKD 12.5 million, a significant decrease of about 86.7% compared to HKD 93.8 million in 2022[19]. - Gross profit decreased by approximately 91.9% to about HKD 2.0 million, down from HKD 24.6 million in 2022[20]. - The group reported a loss of approximately HKD 29.0 million for the year, an increase of about HKD 23.4 million compared to a loss of HKD 5.6 million in 2022[22]. - The group incurred a loss of approximately HKD 0.2 million from discontinued operations, compared to a profit of approximately HKD 0.5 million in the previous year[23]. - The company reported a total comprehensive loss of HKD 27,184,000 for the year, compared to a loss of HKD 3,238,000 in 2022[195]. - The company reported a pre-tax loss from continuing operations of HKD 30,113,000 for the year ended March 31, 2023, compared to a loss of HKD 6,802,000 in the previous year, indicating a significant decline in performance[197]. Cash Flow and Liquidity - As of March 31, 2023, the group's cash and cash equivalents were approximately HKD 0.6 million, down from HKD 8.1 million as of March 31, 2022[24]. - The company's cash and cash equivalents dropped significantly to HKD 644,000 from HKD 8,069,000, a decrease of 91.6%[192]. - The total cash and cash equivalents at the end of the year were HKD 644,000, a decrease from HKD 8,069,000 at the beginning of the year, indicating a cash reduction of approximately 92%[197]. - The net cash generated from operating activities decreased to HKD 5,333,000, down from HKD 9,143,000 in the previous year, reflecting a drop of approximately 41%[197]. - Cash inflow from investing activities increased significantly to HKD 50,197,000, compared to HKD 3,398,000 in the previous year, showing a substantial improvement in investment cash flow[197]. - The cash outflow from financing activities was HKD 64,045,000, a significant increase compared to HKD 14,805,000 in the previous year, indicating a worsening financing position[197]. Debt and Liabilities - The group's total bank borrowings amounted to approximately HKD 169.8 million as of March 31, 2023, compared to HKD 184.0 million as of March 31, 2022[24]. - The group's debt-to-asset ratio was approximately 96.0% as of March 31, 2023, compared to 91.5% as of March 31, 2022[25]. - The group's net current liabilities amounted to approximately HKD 172,399,000 as of March 31, 2023[166]. - Current liabilities increased to HKD 223,159,000 in 2023 from HKD 199,706,000 in 2022, an increase of 11.8%[192]. - The company’s equity totalled HKD 9,314,000 as of March 31, 2023, down from HKD 36,498,000 in 2022, a decrease of 74.5%[192]. Corporate Governance - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[53]. - The company has complied with the corporate governance code provisions as of March 31, 2023[50]. - All directors confirmed full compliance with the standard code of conduct for securities transactions during the fiscal year ending March 31, 2023[51]. - The company is committed to enhancing its internal control systems and corporate governance practices to create shareholder value[49]. - The company has a diverse board with members having extensive experience in finance, management, and law[53]. - The independent non-executive directors play a crucial role in the nomination and audit committees[40][45]. - The company has adopted measures to improve the quality of corporate governance practices in line with local and international standards[49]. - The board is responsible for maintaining an effective internal control and risk management system, which was reviewed during the year[91]. - The company has established a dividend policy that allows for the declaration of dividends based on the company's profits, subject to board recommendations[84]. Business Strategy and Market Focus - The company plans to focus on the domestic market and continue the procurement, manufacturing, and sales of various wooden products, including wooden construction components and other wooden products[12]. - The company aims to enrich its product variety and expand its market in China through collaboration with other panel processing enterprises[12]. - The board believes that business performance will gradually recover as the COVID-19 pandemic eases, providing a competitive advantage over smaller local enterprises[12]. - The company has terminated all export-related businesses due to global political and economic uncertainties and intense competition in the plywood market[17]. Risk Management - The company adopts a three-tier risk management approach to identify, assess, mitigate, and respond to risks[92]. - The company maintains a formal mechanism for risk assessment and management, overseen by the compliance officer[99]. - The board is responsible for ensuring that the financial statements fairly reflect the group's affairs, with no significant uncertainties affecting the company's ability to continue as a going concern[108]. Audit and Compliance - The audit committee reviewed the group's annual performance and financial statements for the year ending March 31, 2023, and made recommendations to the board for approval[68]. - The independent auditor's report confirmed that the consolidated financial statements present a true and fair view of the group's financial position as of March 31, 2023[164]. - The auditor's responsibility includes obtaining reasonable assurance that the financial statements are free from material misstatement and evaluating the appropriateness of accounting policies used by management[185].
骏东控股(08277) - 2023 - 年度财报