Financial Performance - The total revenue for the year was approximately RMB 99,700,000, a decrease of 59.9% compared to RMB 248,399,000 for the previous year[11]. - The loss attributable to the owners of the company for the year was RMB 852,224,000, compared to a loss of RMB 489,482,000 in the previous year, with basic and diluted loss per share at RMB 0.5999[12]. - Property sales revenue was approximately RMB 99,123,000, a decrease of 60.0% from RMB 247,785,000 in the previous year, primarily from projects in Hunan and Fujian provinces[13][14]. - Rental income for the year was approximately RMB 577,000, down from RMB 614,000 in the previous year, with a fair value loss of approximately RMB 500,000 on the investment property portfolio[15]. - The group reported a loss of approximately RMB 39,476,000 from the deemed disposal of a subsidiary in China, with no losses recorded in previous years[19]. - The group recorded a net loss of RMB 1.0376 billion for the year ending December 31, 2024[147]. - The total comprehensive loss for the year was RMB 1,045,493,000, compared to RMB 690,999,000 in 2023, reflecting a worsening financial position[161]. - The company reported a basic and diluted loss per share of RMB 59.99 for 2024, an improvement from RMB 71.67 in 2023[161]. - The company reported a pre-tax loss of RMB 1,047,890,000 for the year ending December 31, 2024, compared to a loss of RMB 675,593,000 in 2023, indicating a significant increase in losses[168]. Operating Expenses and Financial Management - Operating expenses included sales and distribution costs of approximately RMB 1,981,000, with a cost-to-revenue ratio of 2.0%, and administrative expenses of approximately RMB 28,461,000, with a cost-to-revenue ratio of 28.5%[16]. - The company recognized an expected credit loss provision of approximately RMB 1,192,774,000, significantly higher than RMB 607,950,000 in the previous year, mainly due to guarantees provided for a former subsidiary[17]. - Financing costs for the year amounted to approximately RMB 213,484,000, a significant decrease from RMB 492,057,000 in the previous year, primarily due to the cancellation of subsidiary consolidations[21]. - The company has taken multiple measures to improve liquidity and financial conditions, with plans to remove the disclaimer of opinion from the auditor's report if these measures are effective[121]. - The management has implemented plans to enhance the group's liquidity and financial position[175]. Strategic Focus and Future Plans - The company aims to focus on high-potential real estate and land development projects in China and Japan, including undervalued urban redevelopment projects and logistics hubs[8]. - The company plans to optimize its investment portfolio by seeking investment opportunities in stable revenue environments in China, Japan, and other countries[8]. - The group plans to prioritize investments in high-potential real estate and land development projects in China while seeking strategic opportunities in Japan, particularly in the tourism and hotel sectors[24]. - The group continues to evaluate complementary opportunities in high-potential markets, including Malaysia and France, as part of its global growth strategy[25]. Governance and Compliance - The company has implemented various governance policies and systems to ensure high standards of business conduct and ethical behavior[93]. - The board of directors is responsible for ensuring compliance with corporate governance codes and maintaining high standards of business ethics and governance[117]. - The company has established reporting channels for stakeholders to raise concerns about potential misconduct confidentially or anonymously[93]. - The company has adopted a board diversity policy to enhance diversity across various dimensions, including gender, age, cultural and educational background, and professional experience[105]. - The company has not entered into any management or administrative contracts concerning the overall business or any significant part of the business during the year[56]. Shareholder Information - As of December 31, 2024, the total number of issued shares was 1,420,673,262, with major shareholders holding approximately 69.97% of the issued share capital[64]. - The top five customers accounted for approximately 11.39% of the group's total revenue, an increase from 9.14% in the previous year[42]. - The company maintains a shareholder communication policy to ensure that shareholder opinions and concerns are properly addressed[140]. - The company’s website serves as an effective communication platform for shareholders and the public[141]. Risk Management - The company has established procedures to identify, assess, and manage significant risks, including risk identification and prioritization based on potential impact and likelihood[127]. - The board has engaged Riskory Consultancy Limited for an annual review of the risk management and internal control systems, with no significant deficiencies reported[131]. - The internal audit function within the finance department is responsible for reviewing the effectiveness of internal controls, providing reasonable assurance against significant misstatements or losses[131]. Tax and Liabilities - The group has incurred tax liabilities of RMB 1.840 billion and RMB 2.406 billion as of December 31, 2024, related to property sales and profits in China[152]. - As of December 31, 2024, the total liabilities exceeded current assets by RMB 1.8178 billion[147]. - The group is facing overdue borrowings totaling approximately RMB 1.515 billion and interest payable of about RMB 30.2 million[149]. Changes in Corporate Structure - The company changed its name from "Fullsun International Holdings Group Co., Limited" to "Japan Kyosei Group Company Limited" effective November 30, 2023[79]. - The company’s shares abbreviation changed from "FULLSUN INT'L" to "JAPAN KYOSEI" effective January 23, 2024[79].
福晟国际(00627) - 2024 - 年度财报