Financial Performance - For the fiscal year ending March 31, 2019, the company's revenue was HKD 3,392 million, a decrease of 6.9% compared to HKD 3,642 million in 2018[17]. - The net profit attributable to shareholders for 2019 was HKD 31.96 million, a significant recovery from a loss of HKD 71.61 million in 2018[31]. - Basic earnings per share for 2019 were HKD 0.10, compared to a loss per share of HKD 0.22 in the previous year[32]. - The company reported total assets of HKD 670.6 million as of March 31, 2019, compared to HKD 716.1 million in 2018[20]. - The company reported a revenue of HKD 3,687.8 million, a year-on-year decrease of 19.1%[39]. - Gross profit decreased by 17.2% to HKD 327.5 million, while the gross margin slightly increased from 8.7% to 8.9%[40]. - The company recorded a loss attributable to shareholders of HKD 19.0 million for the fiscal year[39]. - The company reported a loss of HKD 19.0 million for the fiscal year 2019, compared to a profit of HKD 112.0 million in fiscal year 2018, primarily due to a foreign exchange loss of HKD 30.7 million[50]. - Sales revenue decreased by 19.1% year-on-year from HKD 4,556.4 million in fiscal year 2018 to HKD 3,687.8 million in fiscal year 2019, attributed to weakened consumer and business confidence amid escalating US-China trade tensions[51]. Revenue Breakdown by Segment - The revenue breakdown by industry application for 2019 showed that telecommunications accounted for 26%, followed by industrial at 18% and automotive electronics at 12%[24]. - The industrial segment generated revenue of HKD 979.3 million, down 10.1% from HKD 1,089.6 million in fiscal year 2018, but the company remains optimistic about its long-term potential due to trends in industrialization and automation[53]. - The telecommunications segment, the second-largest revenue source, contributed HKD 682.7 million, a significant decrease of 39.3% from HKD 1,124.9 million in fiscal year 2018, impacted by the transition from 4G to 5G and a saturated smartphone market[54]. - The home appliances segment reported revenue of HKD 541.7 million for the fiscal year 2019, a decrease of 12.6% compared to fiscal year 2018[55]. - The automotive electronics segment's revenue decreased by 11.6% to HKD 448.1 million in fiscal year 2019, impacted by trade tensions and weak consumer sentiment in China[56]. - The distribution segment's revenue fell by 18.5% to HKD 356.3 million in fiscal year 2019, with distributors becoming cautious and halting inventory accumulation[58]. - The audio-visual segment achieved revenue of HKD 256.8 million, a slight increase of 0.1% year-on-year, supported by demand for high-end and portable products[59]. - The electronic manufacturing services segment's revenue decreased by 20.3% to HKD 216.5 million due to order cancellations amid an uncertain macro environment[61]. - The lighting segment reported revenue of HKD 104.2 million, down 14.9%, with a focus on developing IoT smart lighting products as a growth opportunity[62]. - The other segment, including toys and healthcare, saw revenue decline by 19.5% to HKD 102.3 million due to weak consumer confidence[63]. Market Environment and Strategy - The operating environment was negatively impacted by the ongoing US-China trade tensions, affecting both export and domestic electronic demand[39]. - The company has focused on developing value-added services for key growth segments such as automotive electronics, industrial, and home appliances[40]. - Future strategies include leveraging opportunities from large Taiwanese electronics manufacturers operating in China through a wholly-owned subsidiary in Taipei[2]. - The company plans to continue exploring opportunities in its main growth segments while monitoring developments in other areas[40]. - The future industry outlook remains uncertain due to the unpredictable nature of the US-China trade dispute[41]. - The company is investing in customer value-added services and skill upgrades to differentiate itself in a challenging market environment[44]. - The demand for electronic products is expected to be supported by Chinese government measures aimed at boosting domestic consumption and reducing reliance on export-driven growth[44]. - The arrival of 5G networks is anticipated to create new applications and opportunities for the electronic components industry, including in automotive and smart city sectors[44]. - The company aims to maintain a solid liquidity position to support long-term growth despite the challenging operating environment[44]. Corporate Governance - The board consists of seven members, with four executive directors and three independent non-executive directors[107]. - The company has adhered to the corporate governance codes of both Hong Kong and Singapore since its listing on December 6, 2013[105]. - The company has implemented sufficient measures to ensure adequate corporate governance practices[105]. - The independent non-executive directors have confirmed their independence according to Hong Kong Listing Rules[109]. - The company has a chief independent director appointed to address shareholder concerns when necessary[107]. - The board believes its current size is sufficient for effective decision-making[109]. - The company has maintained compliance with the requirement for independent non-executive directors to constitute at least one-third of the board[109]. - The company has a strong focus on transparency and responsible business operations[105]. - The independent non-executive directors have served for over nine years but are still considered independent[109]. - The company has a diverse management team with extensive industry experience[102]. Risk Management and Internal Controls - The board is committed to identifying significant business risks and implementing appropriate measures to control and mitigate these risks[174]. - The internal audit function has been outsourced to an external consulting firm, which has been reappointed to review the company's risk management system[176]. - The board believes that the internal control and risk management systems are sufficient to effectively address operational, financial, compliance, and IT risks[177]. - The financial records of the group are properly maintained, and the financial statements fairly reflect the group's operations and financial matters[180]. Employee and Compensation - The group employed 467 full-time employees as of March 31, 2019, an increase from 454 employees as of March 31, 2018[87]. - Total compensation for the top five senior management personnel this year amounted to approximately SGD 1,351,000[140]. - The compensation structure for executive directors includes a salary percentage of 62% to 74%, with bonuses ranging from 6% to 19%[140]. - Independent non-executive directors receive a fixed director's fee of 100%[140]. - The total compensation for the chairman's son, who is the Deputy General Manager of IT and Logistics, ranged from SGD 250,000 to SGD 299,999 for the year[142]. - The total compensation for the chairman's second son, who is a Product Manager, ranged from SGD 50,000 to SGD 99,999 for the year[142]. Shareholder Engagement - The company emphasizes fair treatment of all shareholders and ensures timely disclosure of sensitive information through SGXNET and respective websites[160]. - The company has established an investor relations website to provide meaningful and timely information to shareholders and stakeholders[161]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting by sending a written notice to the board[167]. Environmental, Social, and Governance (ESG) - The environmental and social performance of the company is highlighted in the ESG report, following the guidelines set by the Hong Kong Stock Exchange[191]. - The company is committed to improving its ESG performance and disclosures based on stakeholder insights and assessments[200]. - Regular reviews of environmental, social, and governance (ESG) risks are conducted to ensure compliance with relevant laws and regulations[200]. - The company has expanded its office safety guidelines to cover workspaces outside of the office, now referred to as workplace safety guidelines[200]. - The top six significant areas identified include customer service, product quality, customer privacy, anti-corruption, supply chain management, and occupational health and safety[200].