2022-07-28-港交所-融太集团_二零二二年年报_290页_7mb

2022 Annual Report Summary

Core Content

This summary provides an overview of Magnus Concordia Group Limited (the "Company") and its subsidiaries ("the Group") for the year ended 31 March 2022, focusing on financial performance, board composition, corporate governance, and business operations.

Main Points

1. Financial Performance

• Revenue decreased by 26% to HK$1,587 million from HK$2,141 million in 2021.
• Gross profit dropped by 51% to HK$57 million from HK$118 million in 2021.
• EBIT (Earnings Before Interest and Tax) was HK$-534 million (a loss) compared to HK$13 million (a profit) in 2021.
• EBITDA was HK$-526 million (a loss) compared to HK$23 million (a profit) in 2021.
• Net loss for the year attributable to owners of the Company was HK$270 million, compared to a net profit of HK$3 million in 2021.
• Loss per share was 4.67 HK cents, compared to 0.05 HK cents in 2021.
• Total assets decreased by 51% to HK$1,528 million from HK$3,096 million in 2021.
• Net debt increased to HK$106 million from HK$41 million in 2021.
• Shareholders' funds decreased by 27% to HK$653 million from HK$899 million in 2021.
• Net asset value per share was HK$0.11 compared to HK$0.16 in 2021.
• Basic loss per share was HK$-4.67 compared to HK$0.05 in 2021.
• Current ratio was 1.30 compared to 1.39 in 2021.
• Quick ratio was 0.35 compared to 0.29 in 2021.
• Gearing ratio was 0.27 compared to 0.24 in 2021.
• Net gearing ratio was 0.16 compared to 0.05 in 2021.
• Return on equity was -41% compared to 0.3% in 2021.

2. Cash Flow and Financial Position

• Net cash outflow from operating activities was HK$16 million compared to HK$30 million in 2021.
• Net cash outflow from investing activities was HK$30 million compared to HK$9 million in 2021.
• Net cash outflow from financing activities was HK$51 million compared to HK$169 million in 2021.
• Net decrease in cash and cash equivalents was HK$97 million compared to HK$130 million in 2021.
• Cash and cash equivalents (excluding restricted balances) were HK$54 million as of 31 March 2022, compared to HK$149 million in 2021.

3. Business Segments

• Property development business: Recorded an operating loss of HK$459 million, compared to operating profit of HK$33 million in 2021. The loss was mainly due to HK$418 million in property stock impairment.
• Printing business: Recorded an operating profit of HK$4 million, compared to operating loss of HK$3 million in 2021. Revenue increased to HK$248 million from HK$195 million.
• Property investment business: Recorded an operating loss of HK$39 million, compared to operating profit of HK$5 million in 2021. The loss was due to HK$41 million in unrealised revaluation losses of investment properties.
• Treasury: Recorded a loss of HK$11 million, compared to profit of HK$12 million in 2021.
• Net corporate expenses and other businesses: Recorded a loss of HK$29 million, compared to loss of HK$34 million in 2021.
• Finance costs: Decreased to HK$2 million from HK$3 million in 2021.

4. Dividend Recommendation

• The Board did not recommend a final dividend for the year ended 31 March 2022, as opposed to nil in 2021.

Key Information

Board of Directors

• Executive Directors:

  • Ms. Zeng Zhu (appointed on 26 August 2021)
  • Mr. Liang Fan (appointed on 13 April 2022)
  • Mr. Li Qing (resigned on 2 April 2022)
  • Ms. Au Hoi Lee Janet

• Independent Non-executive Directors:

  • Mr. Ho Man
  • Mr. Xu Jianfeng (appointed on 26 January 2022)
  • Mr. Wang Zhengjun (appointed on 26 January 2022)
  • Mr. Lam Chi Hung Louis (resigned on 26 January 2022)
  • Mr. Hung Kin Man (resigned on 26 January 2022)

Board Committees

• Audit Committee:

  • Mr. Ho Man (Chairman)
  • Mr. Xu Jianfeng (appointed on 26 January 2022)
  • Mr. Wang Zhengjun (appointed on 26 January 2022)
  • Mr. Lam Chi Hung Louis (resigned on 26 January 2022)
  • Mr. Hung Kin Man (resigned on 26 January 2022)

• Nomination Committee:

  • Mr. Wang Zhengjun (Chairman, appointed on 26 January 2022)
  • Mr. Ho Man
  • Mr. Xu Jianfeng (appointed on 26 January 2022)
  • Ms. Zeng Zhu (appointed on 13 April 2022)
  • Mr. Hung Kin Man (resigned on 26 January 2022)

• Remuneration Committee:

  • Mr. Xu Jianfeng (Chairman, appointed on 26 January 2022)
  • Mr. Ho Man
  • Mr. Wang Zhengjun (appointed on 26 January 2022)
  • Ms. Zeng Zhu (appointed on 13 April 2022)
  • Mr. Lam Chi Hung Louis (resigned on 26 January 2022)

Corporate Governance

• The Group continues to implement effective internal controls and comply with corporate governance practices.
• Corporate governance report and ESG report provide details on governance practices and social responsibilities.

Company Secretary and Authorised Representatives

• Company Secretary:

  • Ms. Au Man Wai (appointed on 22 June 2022)
  • Mr. Ng Kit Man (appointed on 10 May 2022, resigned on 22 June 2022)
  • Mr. Ng Kwong Kui (appointed on 25 February 2022, resigned on 10 May 2022)
  • Ms. Ng Yee Man Fiona (resigned on 25 February 2022)

• Authorised Representatives:

  • Ms. Au Man Wai (appointed on 22 June 2022)
  • Ms. Au Hoi Lee Janet
  • Mr. Ng Kit Man (appointed on 10 May 2022, resigned on 22 June 2022)
  • Mr. Ng Kwong Kui (appointed on 25 February 2022, resigned on 10 May 2022)
  • Ms. Ng Yee Man Fiona (resigned on 25 February 2022)

Legal and Financial Entities

• Independent Auditor: Moore Stephens CPA Limited
• Legal Advisers:
  • Conyers Dill & Pearman (Cayman Islands)
  • KCL & Partners
• Registered Office: Grand Cayman, Cayman Islands
• Head Office: Wanchai, Hong Kong
• Other Office in China: Guangdong Boluo Yuzhou Midas Printing Limited, located in Huizhou, Guangdong.
• Stock Code: 1172
• Website: www.mcgrouphk.com

Conclusion

The Group faced significant financial challenges in 2022, primarily due to the impairment provision in the property development segment, which led to an overall net loss of HK$270 million. The printing business showed some improvement, while property investment and treasury activities contributed to losses. Despite the downturn, the Group remains optimistic about the future growth potential in its core business areas, particularly in property development and printing, and continues to focus on effective corporate governance and financial management.