Financial Performance - The company recorded revenue of RMB 616.8 million for the fiscal year ending June 30, 2023, an increase of 13.9% from RMB 541.7 million in the previous fiscal year[9]. - Operating profit for the fiscal year was RMB 0.9 million, a decrease of 98.0% compared to the previous year, leading to a net loss of RMB 233.8 million[10]. - The company experienced a fair value loss of RMB 168.4 million on investment properties due to a downturn in the Chinese property market[9]. - Other losses increased by 108.2% from RMB 6.55 million in the fiscal year 2022 to RMB 13.65 million, primarily due to losses from the sale of investment properties[21]. - Operating profit decreased by 98.0% to RMB 0.90 million from RMB 45.96 million in the fiscal year 2022, mainly due to losses from the sale of investment properties and fair value losses on investment properties[26]. - Net loss amounted to RMB 23.38 million, compared to a net profit of RMB 5.95 million in the fiscal year 2022, primarily due to losses from the sale of investment properties and fair value losses on investment properties[31]. - EBITDA decreased by 22.9% to RMB 18.19 million from RMB 23.58 million in the fiscal year 2022, mainly due to losses from the sale of investment properties and losses from equity accounted investments[32]. - The fair value of investment properties decreased by RMB 168.4 million in the fiscal year 2023, compared to an increase of RMB 227.8 million in the fiscal year 2022[74]. Cost Management - Employee costs decreased by 15.5% to RMB 49.2 million, primarily due to adjustments in the workforce during the second half of the previous fiscal year[15]. - Maintenance and repair expenses increased by 137.8% to RMB 13.8 million, mainly due to repairs at the Oriental University City campus[18]. - Legal and consulting fees decreased by 38.0% to RMB 24.1 million due to fewer professional fees incurred in corporate activities[19]. - Property tax and land use tax increased by 10.1% to RMB 121.5 million, aligned with the recognition of more rental income[17]. - Interest expenses decreased by 24.1% to RMB 14.91 million from RMB 19.65 million in the fiscal year 2022, due to gradual repayment of loan principal[28]. Business Strategy and Future Outlook - The company plans to focus on rebuilding its business in the fiscal year 2024, emphasizing cost control and expanding its revenue base[10]. - The company is cautiously optimistic about achieving better performance for the fiscal year ending June 30, 2024, despite potential risks from economic recession[40]. - The company has invested RMB 32.71 million in purchasing investment properties in Ulaanbaatar, Mongolia, with RMB 26.94 million already paid as of June 30, 2023[43]. - The company has entered into an agreement to sell certain investment properties, which will provide cash for debt repayment and fund upgrades of other properties in the Eastern University City campus[39]. Management and Governance - Liu Yingchun has been the CEO since June 2010, responsible for overall operations of the group[58]. - The company has a strong management team with extensive experience in finance and operations, including CFO Li Jingyan who has 23 years of experience in finance and accounting[64]. - The management team includes independent non-executive directors with diverse backgrounds, enhancing corporate governance and strategic oversight[59][61]. - The company is committed to risk management, with a dedicated risk management committee in place[58]. - The board includes members with significant experience in corporate banking and investment, which may benefit the company's financial strategies[59]. Shareholder and Dividend Information - The board has proposed not to pay any dividends for the fiscal year 2023, consistent with the previous fiscal year[53]. - The company reported that as of June 30, 2023, the total issued shares were 180,000,000, with a significant shareholder, Mr. Zhou, holding 135,000,000 shares, representing 75% ownership[117]. - The company did not declare any final dividend for the fiscal year 2023, consistent with the previous fiscal year[70]. Compliance and Risk Management - The company has complied with the GEM listing rules regarding continuous related party transactions and has received confirmation from its independent auditor[107]. - The company has outlined the main risks and uncertainties faced in the annual report, specifically in the "Risk Factors" section[114]. - The company has established a risk framework to identify and assess risks related to its operations and business[194]. - The board continues to adopt the going concern basis in preparing financial statements, with no significant uncertainties affecting the group's ability to continue as a going concern[193]. Environmental, Social, and Governance (ESG) Initiatives - The company has complied with the GEM listing rules regarding environmental, social, and governance (ESG) reporting for the fiscal year 2023[136]. - The company has implemented energy-saving measures, including automatic lighting controls and promoting recycling among students and staff[137]. Customer and Supplier Relationships - The largest customer accounted for 28.8% of total sales, while the top five customers combined represented 77.0% of total sales[86]. - The largest supplier accounted for 36.8% of total purchases, with the top five suppliers together making up 72.2% of total purchases[86]. - In the fiscal year 2023, the top five customers, primarily educational institutions, accounted for 70.1% of the company's total revenue[140]. Contracts and Agreements - The company has established long-term relationships with its main suppliers, averaging over five years, ensuring stable service supply for campus management and maintenance[139]. - The company has adopted a share option scheme to incentivize directors and eligible employees, reflecting its commitment to aligning interests[89]. - The company has no significant management or administrative contracts related to its business during the fiscal year 2023[100].
东方大学城控股(08067) - 2023 - 年度财报