CENTRAL DEV H(00475) Earnings Summary
Bullish Points:
1. The company's total revenue for the current reporting period increased by approximately 28.4% to about HKD 247.9 million compared to the previous year.
2. The company's energy business revenue increased by 26.8% to HKD 221.2 million, driven by sales of refined oil products and liquefied natural gas (LNG).
3. The company's jewelry business also recorded growth in sales during the current reporting period.
4. The company is focusing on the development and expansion of its energy business, including natural gas and refined oil sales, as well as solar photovoltaic smart technology products.
5. The company is committed to meeting China's growing demand for LNG products and contributing to the country's carbon peak and carbon neutrality goals.
6. Stable business revenue during the pandemic due to the gas station's location near Chengdu International Railway and large logistics park.
7. Overcame challenges such as international energy price fluctuations and pandemic control measures by relying on stable local suppliers and supply chain resources.
8. Strengthened cooperation with upstream and downstream customers and suppliers, resulting in increased revenue for the year.
9. Acquired 35% equity in Chengdu Huahan Energy Co., Ltd., which is expected to enhance the long-term development potential of the energy business.
Bearish Points:
1. The net loss attributable to the company's shareholders for the current reporting period was approximately HKD 11.9 million.
2. Gross profit margin decreased from 4.3% in the previous year to 1.9% in the current reporting period, mainly due to the increase in sales of lower-margin energy business products.
3. Other income decreased by 8.0% from HKD 6.3 million to HKD 5.8 million, mainly due to a decrease in rental income from the Group's investment properties.
4. Administrative expenses increased by 3.2% from HKD 21.4 million to HKD 22.0 million, mainly due to an increase in employee costs.
5. The Group's net current assets and current ratio as of March 31, 2023, were approximately HKD 7.8 million and 1.3, respectively (March 31, 2022: HKD 28.7 million and 1.8).
6. As of March 31, 2023, the Group's bank balance and cash were approximately HKD 13.1 million (March 31, 2022: HKD 20.1 million).
7. No dividend recommended for the current reporting period.
Based on the positive and negative content, the company has shown growth in revenue and expansion in its energy business. However, there are concerns regarding the net loss, decreased gross profit margin, and increased administrative expenses. It is essential to consider both the bullish and bearish points to make an objective and neutral assessment of the company's financial performance.
For more information, you can read the original text of CENTRAL DEV H(00475)'s financial report: https://static.tigerbbs.com/d9b07ee369714e75885ae9a384fde4a3
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