Financial Performance - The audited revenue for the year ended March 31, 2022, was HKD 479,596,000, with a gross loss of HKD 430,808,000[7]. - The annual loss before tax was HKD 5,071,509,000, which represents an increase of HKD 3,807,393,000 compared to the unaudited results[7]. - The total comprehensive loss for the year was HKD 5,261,002,000, reflecting an increase of HKD 3,832,141,000 from the unaudited figures[8]. - The company's total assets as of March 31, 2022, were HKD 13,625,484,000, showing a decrease of HKD 3,916,759,000 compared to the unaudited results[10]. - Non-current assets, including intangible assets, were reported at HKD 12,717,822,000, down HKD 3,916,759,000 from the unaudited figures[10]. - The company's equity attributable to owners was HKD (13,060,465,000), a decline of HKD 3,324,940,000 compared to the unaudited results[15]. - The basic loss per share was HKD (0.48), which is a decrease of HKD 0.36 from the unaudited results[7]. - The company reported a net loss attributable to owners of HKD 4,521,535,000, which is an increase of HKD 3,326,670,000 compared to the unaudited results[8]. - The company experienced a significant impairment loss on intangible assets amounting to HKD 3,782,162,000, unchanged from the unaudited results[7]. - The group recorded total revenue of approximately HKD 479.60 million for the year ending March 31, 2022, a decrease of about 19.82% from HKD 598.12 million in the previous fiscal year[47]. - The group’s gross loss for the year was approximately HKD 430.81 million, an increase of about 119.70% compared to HKD 196.06 million in 2021[49]. - Adjusted EBITDA for the year was approximately HKD 231.48 million, a decrease of about 51.59% from HKD 478.12 million in the previous fiscal year[50]. - The net loss for the year ended March 31, 2022, was approximately HKD 5,071.51 million, an increase of about 237.89% compared to HKD 1,500.93 million in the previous year[61]. - The adjusted EBITDA for the year was HKD 231.48 million, down from HKD 478.12 million in 2021[52]. - The impairment loss on property, plant, and equipment was approximately HKD 98.80 million, up from HKD 1.35 million in the previous year[61]. - Financial costs for the year were approximately HKD 1,328.73 million, compared to HKD 1,282.01 million in 2021[61]. Revenue Sources and Operations - The majority of the group's revenue is contributed by the toll income from the 265 km long heavy-load toll highway operated by Inner Mongolia Junxing Heavy Load Highway Co., Ltd., in which the company holds an 86.87% stake[34]. - As of March 31, 2022, the total toll revenue from the Zhunxing Expressway was approximately HKD 475.08 million (RMB 391.03 million), a decrease of about 19.08% compared to the previous year’s revenue of HKD 587.07 million (RMB 511.92 million)[39]. - The average daily toll revenue for the Zhunxing Expressway in 2022 was RMB 1.07 million, down 30.97% from RMB 1.55 million in 2021[40]. - The decrease in toll revenue was influenced by several factors, including the shift from road to rail transport for coal, which reduced truck traffic on the expressway[41]. - The group is involved in highway operations, compressed natural gas station operations, and the cultivation and sale of forage and agricultural products[37]. Debt and Financial Position - The financial liabilities, including borrowings, totaled HKD 24,107,404,000, with no change from the unaudited figures[13]. - As of March 31, 2022, the group's net debt position was approximately HKD 14,398.68 million, an increase from HKD 9,188.50 million as of March 31, 2021, reflecting a significant rise in leverage[63]. - The group's total liabilities to total assets ratio was approximately 248.31% as of March 31, 2022, compared to 166.28% in the previous year, indicating a deterioration in financial stability[63]. - The outstanding borrowings amounted to approximately HKD 11,991.20 million as of March 31, 2022, accounting for about 49.7% of total liabilities, a slight decrease from 51.56% in 2021[66]. - The total amount of outstanding non-convertible bonds and borrowings due for repayment, including accrued default interest, was approximately HKD 20,996,935,000[192]. - The company has HKD 4,032.00 million in outstanding non-convertible bonds, with a default interest rate of 5.000%[87]. - The company is negotiating with creditors regarding the potential suspension or restructuring of debt repayments, with no agreements reached as of the report date[87]. - The company has issued shares to settle debts totaling HKD 149.18 million and HKD 173.51 million through debt capitalization agreements[96]. Corporate Governance and Management - The independent auditor issued a disclaimer of opinion regarding the group's financial statements for the year ended March 31, 2022, due to uncertainties affecting the group's ability to continue as a going concern[72]. - The company has established an audit committee, a remuneration committee, and a nomination committee, all involving independent non-executive directors[187]. - The board consists of six executive directors and four independent non-executive directors, with independent directors accounting for over one-third of the board[170]. - The board is responsible for setting long-term strategies and reviewing the group's internal controls and risk management policies[174]. - The company has adhered to all corporate governance code provisions except for specific deviations noted in the report[173]. - The board regularly reviews its composition and structure to ensure professionalism and independence align with the company's business needs[175]. - The company has engaged external service providers to assist the board, ensuring effective governance practices[178]. Future Outlook and Strategic Initiatives - The company is implementing measures to stabilize coal prices and adjust coal import rhythms, which are expected to bring opportunities for the transportation industry[34]. - The future development of the Junxing Highway is anticipated to increase traffic volume and toll income[34]. - The group plans to implement several measures to stimulate traffic volume and toll revenue growth on the Zhunxing Expressway, including a comprehensive road maintenance plan and 24-hour patrol services[43]. - The company is exploring various channels to raise funds, including rights issues, public offerings, and asset sales, to meet urgent financial obligations[95]. - The company is considering strategic acquisitions to enhance its service offerings, targeting a deal valued at approximately 300 million[143]. Risks and Challenges - The company faces significant financial risks, including interest rate risk, foreign currency risk, credit risk, liquidity risk, and equity price risk, which could impact its financial performance[101]. - Economic fluctuations may affect traffic volume and toll revenue from highway operations, with potential challenges arising from trade tensions and COVID-19[102]. - The company's highway operations are sensitive to government policies regarding tolls and transportation regulations, which could adversely affect traffic volume and toll revenue[103]. - Natural disasters or outbreaks of infectious diseases could disrupt highway operations and negatively impact traffic volume and toll revenue[104]. Shareholder Information - As of March 31, 2022, the company had a total of 10,644,093,185 shares issued, with a share price of HKD 0.20[149]. - Major shareholder 麥少嫻 holds 1,816,330,000 shares, representing approximately 17.06% of the total issued shares[155]. - VMS Investment Group Limited holds 974,215,000 shares, accounting for about 9.15% of the total issued shares[155]. - The company has a stock option plan that allows for the issuance of up to 135,249,419 shares, which is 10% of the issued shares at the time of adoption[159]. - As of March 31, 2022, there were no stock options issued or unexercised under the stock option plan[160]. Employee and Auditor Information - The group employed approximately 374 employees as of March 31, 2022, with a compensation policy based on performance[162]. - The new auditor, Long Win (Hong Kong) CPA Limited, was appointed effective April 29, 2021, and will serve until the conclusion of the next annual general meeting[164]. - There were no changes in the auditor for the past three years, with Long Win auditing the financial statements for the years ending March 31, 2021, and 2022[165].
中国资源交通(00269) - 2022 Q4 - 年度财报