Financial Performance - Revenue for the fiscal year ended March 31, 2022, was HKD 525,383,000, representing an increase of 27.9% compared to HKD 410,505,000 in the previous year[13] - Gross profit for the same period was HKD 128,407,000, slightly up from HKD 124,013,000, indicating a gross margin of 24.4%[13] - Profit attributable to owners of the company was HKD 22,789,000, down 34.4% from HKD 34,739,000 in the previous year[13] - The company reported a net cash inflow from operating activities of HKD 19,951,000, a decrease from HKD 34,924,000 in the previous year[20] - Total assets increased to HKD 440,343,000 from HKD 384,871,000, reflecting a growth of 14.4%[16] - The company's current ratio decreased to 1.1 from 1.5, indicating a tighter liquidity position[20] - The debt-to-equity ratio rose to 43.4%, up from 28.1% in the previous year, suggesting increased leverage[20] - The company's cash and cash equivalents were approximately HKD 49.1 million as of the end of fiscal year 2022, down from HKD 73.4 million in the previous year[65] - The company's debt-to-asset ratio increased to approximately 43.4% in fiscal year 2022 from 28.1% in the previous year[65] - The company's net cash generated from operating activities decreased by approximately HKD 15.0 million or 42.9% to HKD 20.0 million in the fiscal year 2022, attributed to a decline in operating profit[61] Business Strategy and Development - The company plans to focus on market expansion and new product development in the upcoming fiscal year[1] - The company is exploring potential mergers and acquisitions to enhance its market position[1] - The company plans to enhance research and development spending in the next fiscal year to strengthen subscription-based service offerings[33] - The company aims to expand its service offerings to a broader customer base through additional security-as-a-service products[33] - The company plans to acquire technology service provider Magic Shield Information Security Technology Limited and IT security solution provider Silverstone Network Limited to enhance its competitive advantage[42] - The company aims to increase market share and enhance competitiveness in its cloud email security platform, grMail, through the recent acquisitions[83] - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the H industry[107] - Market expansion efforts are underway, with plans to enter F new markets by the end of the fiscal year, targeting a G% market share in these regions[107] Cybersecurity Business - The core cybersecurity business revenue increased by approximately 28% compared to the fiscal year ending March 31, 2021[32] - The company’s email security solution doubled the number of protected mailboxes and secured contracts with several well-known multinational corporations[42] - The company maintains a strong gross margin due to the value of its cybersecurity service offerings, which are critical for customer investment protection[40] - The company’s cybersecurity services business has shown resilience despite challenges posed by COVID-19, with strong demand from enterprise and government sectors[40] - The company's revenue increased by approximately HKD 114.9 million or 28.0% from HKD 410.5 million in the fiscal year 2021 to HKD 525.4 million in the fiscal year 2022, primarily driven by strong demand for cybersecurity products and services[50] Expenses and Costs - Distribution and selling expenses increased by approximately HKD 11.4 million or 41.0% to HKD 39.0 million in the fiscal year 2022, mainly due to increased employee costs associated with business expansion[56] - Administrative and other expenses rose by approximately HKD 28.5 million or 53.4% to HKD 81.9 million, driven by increased administrative staff costs and legal and professional fees[57] - The company's financing costs increased by approximately HKD 0.6 million or 45.9% to HKD 2.0 million, primarily due to increased bank borrowings[58] - Employee costs for the fiscal year 2022 were approximately HKD 97.8 million, compared to HKD 69.0 million for fiscal year 2021, representing a year-over-year increase of about 41.5%[88] Corporate Governance - The board of directors emphasizes the importance of sound corporate governance practices to enhance shareholder value and ensure transparency in operations[131] - The company has established a comprehensive internal compliance system to monitor adherence to legal and regulatory requirements[135] - The board is composed of both executive and non-executive directors, ensuring a balanced governance structure[137] - The company has implemented a robust training and professional development program for its directors and senior management[136] - The company has established a nomination committee to recommend candidates for board vacancies and corporate governance policies[146] - The board consists of 4 executive directors, 1 non-executive director, and 4 independent non-executive directors, ensuring a balance of skills and experience[139] - The company has established a board diversity policy, currently comprising 8 male directors and 1 female director, aiming to enhance gender diversity by identifying suitable female candidates for senior positions[186] Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of A% and an expected EBITDA margin of B%[107] - New product launches are anticipated to contribute an additional C million in revenue, with a focus on expanding the product line in the D sector[107] - The company is investing in new technology development, allocating E million towards R&D initiatives aimed at enhancing operational efficiency[107] - A new partnership has been established with I company to enhance distribution channels, expected to increase sales by J% over the next year[107] - The management team emphasized a commitment to sustainability, aiming to reduce carbon emissions by K% by 2025 through various initiatives[107] Board Meetings and Committees - The board meets at least four times a year to review financial statements, operational performance, and overall strategy[155] - The audit committee, consisting of three independent non-executive directors, held two meetings during the fiscal year to review financial statements and internal controls[168] - The audit committee's responsibilities include reviewing financial reporting processes and ensuring effective internal control systems are in place[169] - The company has established four board committees to oversee specific areas, ensuring clear governance and accountability[165] - The nomination committee will meet at least once a year to discuss board appointments and ensure adherence to the selection standards[190] Employee Development and Diversity - The group conducts annual performance reviews to determine bonus levels, salary adjustments, and promotions for employees[88] - The company has committed to training and providing career opportunities for senior female employees to prepare them for leadership roles, aiming for gender equality on the board[187] - The nomination committee has reviewed the current structure and composition of the board to ensure a balance of professional knowledge, skills, and experience[175] - The company encourages directors to attend relevant training courses, with costs covered by the company[154]

edvance Edvance International Holdings Limited 安 領 國 際 控 股 有 限 公 司 (於開曼群島註冊成立的有限公司) 股份代號：1410 中 期 報 告 2021/22 安領國際控股有限公司 2021/22中期報告 財務摘要 4 簡明綜合損益及其他全面收益表 5 簡明綜合現金流量表 9 簡明綜合財務報表附註 10 管理層討論與分析 24 其他資料 31 目錄 公司資料 2 簡明綜合財務狀況表 6 簡明綜合權益變動表 8 1 安領國際控股有限公司 2021/22中期報告 公司資料 | --- | --- | |--------------------------------------------|---------------------------| | | | | 董事會 | 合規主任 | | 執行董事 | 黃繼明先生 | | 廖銳霆先生 （主席兼行政總裁） | | | 李崇基先生 | 公司秘書 | | 黃繼明先生 | | | 林德齡先生 | 阮駿暉先生 （註冊會計師） | | 非執行董事 | 授權代表 | | 羅偉浩先生 | 黃繼明先生 | | 鄧聲興博 ...

Financial Performance - Revenue for the fiscal year ended March 31, 2021, was HKD 410.5 million, an increase of 4.0% from HKD 394.3 million in the previous year[12] - Gross profit for the same period was HKD 124.0 million, representing a 18.2% increase compared to HKD 104.8 million in the prior year[12] - Profit before tax increased to HKD 43.2 million, up 39.2% from HKD 31.0 million in the previous year[12] - Net profit attributable to owners of the company was HKD 34.7 million, a significant increase of 48.8% from HKD 23.3 million in the previous year[12] - The company's net profit increased by 48.8% year-on-year for the fiscal year 2021, driven by strong growth in the core cybersecurity business[28] - Cybersecurity business revenue grew approximately 4.1% year-on-year, supported by rising demand for cybersecurity solutions and operational optimization measures[33] - The company's revenue increased from approximately HKD 394.3 million in the fiscal year 2020 to approximately HKD 410.5 million in the fiscal year 2021, representing a growth of about 4.1%[52] - Gross profit rose from approximately HKD 104.8 million in the fiscal year 2020 to approximately HKD 124.0 million in the fiscal year 2021, an increase of about 18.3%[53] - The gross profit margin improved from approximately 26.6% in the fiscal year 2020 to approximately 30.2% in the fiscal year 2021, reflecting the growth of higher-margin cybersecurity services[53] Assets and Liabilities - Non-current assets rose to HKD 144.7 million, an increase of 53.2% from HKD 94.5 million in the previous year[12] - Current assets slightly decreased to HKD 240.2 million from HKD 241.5 million in the previous year[12] - Total liabilities increased to HKD 240.7 million, up from HKD 223.1 million in the previous year[12] - The company reported a net asset value of HKD 144.2 million, an increase of 28.0% from HKD 112.9 million in the previous year[12] Cash Flow and Expenses - The cash flow from operating activities for the fiscal year 2021 was HKD 34,924,000, a decrease from HKD 42,414,000 in 2020[16] - The company's current ratio was 1.5 in 2021, down from 1.6 in 2020, indicating a slight decrease in liquidity[16] - Distribution and sales expenses increased by approximately HKD 2.9 million or 11.6% to approximately HKD 27.7 million in the fiscal year 2021[56] - Administrative and other expenses rose by approximately HKD 4.9 million or 10.2% to approximately HKD 53.4 million in the fiscal year 2021[57] - Financing costs decreased by approximately HKD 0.1 million or 7.7% to approximately HKD 1.4 million in the fiscal year 2021 due to lower interest rates[60] - Tax expenses increased by approximately HKD 1.2 million or 16.3% to approximately HKD 8.9 million in the fiscal year 2021, primarily due to an increase in taxable profits[61] Strategic Plans and Outlook - The company plans to continue expanding its market presence and invest in new product development[12] - The management indicated a positive outlook for the upcoming fiscal year, expecting further growth in revenue and profitability[12] - The company plans to continue investing in infrastructure and artificial intelligence capabilities to expand cybersecurity access for a broader customer base, particularly small and medium-sized enterprises[29] - The company aims to capitalize on long-term growth opportunities in the emerging digital asset ecosystem through strategic investments and innovation[29] - The company is optimistic about launching a virtual asset fund in the fiscal year 2022, following the acquisition of Lion Global[47] - The company plans to accelerate the adoption of cybersecurity solutions, leveraging its global partnerships and experience in email security[40] Research and Development - The company established a research and development department under the Lion Global Digital brand to drive innovation in its core business pillars[29] - The company invested approximately HKD 35 million in additional investments to support the growth of its financial services and investment business[35] - The establishment of the Lion Global Innovation Center aims to develop core auxiliary technologies for financial services and investment, indicating a commitment to innovation[38] - Research and development expenses increased by 10%, totaling $30 million, to support new technology initiatives[102] - The company is investing HKD 50 million in research and development for new technologies aimed at enhancing user experience[123] Corporate Governance - The board of directors emphasized the importance of sustainability initiatives, with a goal to reduce carbon emissions by 25% over the next five years[102] - The board has approved a dividend payout of HKD 0.05 per share, reflecting a commitment to returning value to shareholders[123] - The board of directors is committed to establishing sound corporate governance practices, believing that reasonable and robust governance is crucial for the group's development and the protection of shareholder interests[136] - The company complies with the corporate governance code and has adhered to its principles during the fiscal year, except for a specific deviation disclosed[136] - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee, each with clear written terms of reference[170] Board Composition and Meetings - The board consists of four executive directors, one non-executive director, and four independent non-executive directors, ensuring a balance of skills and experience[145] - The company’s nomination committee ensures that the board's composition maintains a balance of skills, experience, and diverse perspectives necessary for the company's business and development[145] - The board believes that the dual role of Chairman and CEO enhances the efficiency of overall business planning and decision-making[173] - The board has delegated daily operational responsibilities to the management team, with functions and responsibilities regularly reviewed[141] - The board of directors held a total of 6 meetings in the fiscal year, with all executive directors attending 100% of the meetings[165] Employee and Operational Insights - As of March 31, 2021, the company had 128 employees, an increase from 90 employees the previous year[94] - Employee costs for the fiscal year 2021 were approximately HKD 69.0 million, compared to HKD 59.4 million in the previous fiscal year[94] - The company has adopted share option and share incentive plans to provide motivation and rewards to employees[94]

Financial Performance - For the six months ended September 30, 2020, the group recorded revenue of approximately HKD 200.5 million, an increase of about 3.9% compared to HKD 193.0 million for the same period in 2019[10]. - Gross profit for the same period was approximately HKD 56.3 million, reflecting a growth of about 5.2% from HKD 53.5 million in the previous year[10]. - The net profit after tax increased to approximately HKD 15.0 million, representing a significant increase of about 44.2% compared to HKD 10.4 million in the prior year[10]. - The total comprehensive income for the period was HKD 15.1 million, compared to HKD 9.8 million for the same period in 2019[15]. - Basic and diluted earnings per share were HKD 1.49, up from HKD 1.04 in the previous year[15]. - The operating profit before tax for the six months ended September 30, 2020, was HKD 18,973,000, compared to HKD 14,321,000 for the same period in 2019, showing a growth of about 32.5%[57]. - Profit attributable to owners increased from approximately HKD 10.4 million to approximately HKD 15.0 million for the first half of the 2021 fiscal year[127]. Cash Flow and Liquidity - The group's cash and cash equivalents increased to HKD 89.3 million from HKD 73.6 million at the end of the previous fiscal year[18]. - The net cash generated from operating activities for the six months ended September 30, 2020, was HKD 37,115,000, a significant improvement from a net cash outflow of HKD 3,035,000 in the same period of 2019[27]. - The company reported a net increase in cash and cash equivalents of HKD 15,395,000 for the six months ended September 30, 2020, compared to a decrease of HKD 39,833,000 in the prior year[27]. - The company’s cash and cash equivalents at the end of the period were HKD 89,282,000, compared to HKD 33,393,000 at the end of the same period in 2019, indicating a strong liquidity position[27]. - The group's debt-to-equity ratio was approximately 29.9% as of September 30, 2021, down from 31.0% as of March 31, 2021, indicating strong liquidity[130]. Assets and Liabilities - Non-current assets as of September 30, 2020, amounted to HKD 100.1 million, an increase from HKD 94.5 million as of March 31, 2020[18]. - Current liabilities totaled HKD 171.0 million, compared to HKD 154.6 million as of March 31, 2020[20]. - The total equity of the company increased to HKD 120.1 million from HKD 112.9 million as of March 31, 2020[20]. - The company’s accumulated profits increased to HKD 38,237,000 as of September 30, 2020, from HKD 39,547,000 as of April 1, 2020[23]. - The company’s total liabilities decreased from HKD 112,914,000 as of April 1, 2020, to HKD 120,113,000 as of September 30, 2020, reflecting improved financial health[23]. Revenue Breakdown - Revenue from information technology security products was HKD 110,233,000, compared to HKD 106,023,000 in the previous year, reflecting a growth of about 3.1%[53]. - Revenue from information technology security services was HKD 90,265,000, up from HKD 86,996,000, indicating an increase of approximately 3.0%[53]. - Revenue from the Hong Kong market was HKD 170,770,000, an increase from HKD 153,739,000, representing a growth of about 11.1%[64]. - Revenue from Macau decreased to HKD 14,382,000 from HKD 22,489,000, reflecting a decline of approximately 36.0%[64]. Expenses and Costs - The company incurred total employee costs of HKD 33,413,000 for the six months ended September 30, 2020, compared to HKD 31,801,000 in the previous year, which is an increase of about 5.0%[68]. - Distribution and selling expenses increased by approximately HKD 0.9 million or about 7.0% to approximately HKD 13.7 million, primarily due to increased employee costs from the group's expansion[125]. - Administrative and other expenses decreased by approximately HKD 2.6 million or about 10.1% to approximately HKD 23.2 million, mainly due to prior year listing expenses[126]. - The total income tax expense for the six months ended September 30, 2020, was HKD 3,995,000, compared to HKD 3,874,000 in the previous year, reflecting an increase of about 3.1%[72]. Dividends - The company did not recommend the distribution of dividends for the six months ended September 30, 2020[11]. - The company paid dividends totaling HKD 10,014,000 during the six months ended September 30, 2020, down from HKD 30,043,000 in the same period of 2019[27]. - The company declared a final dividend of HKD 0.01 per share for the year ended March 31, 2020, totaling approximately HKD 10,014,000, down from HKD 0.03 per share totaling approximately HKD 30,043,000 for the previous year[82]. Corporate Governance and Management - The audit committee consists of three independent non-executive directors who reviewed the group's accounting principles and financial reporting matters[182]. - The company confirmed that all directors complied with the standard code during the first half of the fiscal year 2021[183]. - The controlling shareholders have confirmed compliance with the non-competition agreement since the listing date[181]. - The company is committed to establishing good corporate governance and has adopted sound corporate governance practices[187]. - The board believes that the current phase is critical for the company's development, and the CEO is responsible for additional duties to oversee new business areas beyond the main business of distributing IT security products and services[188]. Strategic Initiatives - The company continues to see positive growth in its core business of IT security products and services, driven by the demand for network security solutions[113]. - The company has established distribution relationships for new products, BlackBerry Security and NeuVector, to enhance its solution offerings in remote work and DevSecOps[113]. - The company announced the acquisition of Rui Sheng Financial Group Limited to enter the financial services sector, enhancing its regulatory activities in securities trading and asset management[115]. - The company plans to diversify its business and investment portfolio through the establishment of Axion Global, aiming to become a significant player in the digital asset trading market[116]. - The company aims to create an ecosystem in the cybersecurity field by integrating Axion Global and the newly acquired Rui Bao 180 Group Limited[120].

Financial Performance - Revenue for the fiscal year ended March 31, 2020, was HKD 394.33 million, an increase of 6.4% from HKD 369.41 million in 2019[17] - Gross profit for the same period was HKD 104.84 million, up from HKD 98.50 million, reflecting a gross margin improvement[17] - Profit attributable to owners of the company was HKD 23.34 million, a decrease of 10.5% compared to HKD 26.17 million in the previous year[17] - The company reported a pre-tax profit of HKD 31.02 million, down from HKD 33.03 million in 2019, indicating a decline of 6.1%[17] - The company achieved a stable year-on-year growth of 6.7% despite a challenging economic environment[29] - The company's revenue increased by approximately HKD 24.9 million or 6.7% to about HKD 394.3 million for the fiscal year 2020, driven by increased demand for cybersecurity services[38] - Gross profit rose by approximately HKD 6.3 million or 6.4% to about HKD 104.8 million, with a stable gross margin of 26.6%[39] - Operating cash flow increased by HKD 18.6 million to approximately HKD 42.4 million, representing a growth of 78.2% due to higher revenue and improved receivables management[49] - The company reported a significant increase in user data, with a growth of 25% year-over-year in active users[94] - The revenue for the fiscal year ending March 31, 2020, was reported at HKD 1.2 billion, reflecting a 15% increase compared to the previous year[110] Assets and Liabilities - Non-current assets increased to HKD 94.49 million from HKD 81.05 million, showing a growth of 16.1%[19] - Current assets rose to HKD 241.51 million, compared to HKD 234.30 million, marking a 3.0% increase[19] - Total liabilities increased to HKD 223.09 million, up from HKD 195.50 million, indicating a rise of 14.1%[19] - The company's cash and cash equivalents were approximately HKD 73.6 million as of March 31, 2020, compared to HKD 73.7 million in the previous year, with a debt-to-asset ratio of about 31.0%[51] Strategic Focus and Growth Initiatives - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming fiscal year[17] - Research and development efforts are being prioritized to innovate new products and technologies[17] - The company aims to improve operational efficiency and explore potential mergers and acquisitions to drive growth[17] - The company expects strong business demand to continue in the coming year, driven by the ongoing need for cybersecurity solutions[35] - The company plans to continue developing new segments and enhancing overall security threat detection and feedback capabilities[34] - The company is actively pursuing new product development and market expansion strategies to drive future growth[90] - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[94] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[110] Operational Efficiency and Management - Operating cash flow for the year was HKD 42,414,000, a significant increase from HKD 23,798,000 in the previous year[22] - The average inventory turnover days improved to 10.2 days, down from 12 days in the previous year[22] - The management team highlighted a 30% increase in operational efficiency due to recent process optimizations[94] - The company aims to enhance its operational efficiency and service delivery through strategic management and technological innovation[84] - The company has implemented a new compliance manual to ensure adherence to regulatory requirements, which is expected to reduce compliance risks by 40%[110] Corporate Governance - The board consists of 4 executive directors, 2 non-executive directors, and 4 independent non-executive directors, ensuring a balanced composition for effective independent judgment[125] - The board has maintained compliance with listing rules, having at least 3 independent non-executive directors with appropriate professional qualifications and financial management expertise[125] - The company has established a nomination committee to recommend candidates for board vacancies and corporate governance policies[132] - The board meets at least four times a year to review and approve financial statements, operational performance, and overall strategies[141] - The company has a clear governance structure and reporting mechanisms to manage risks across its business areas[192] Employee and Workforce Development - The group had 90 employees as of March 31, 2020, compared to 86 employees as of March 31, 2019, with employee costs amounting to approximately HKD 59.4 million and HKD 55.8 million for the fiscal years 2020 and 2019, respectively[64]. - The company has established a training program for senior management to enhance professional development, with a budget of HKD 2 million allocated for this initiative[110] Dividend and Shareholder Returns - The company proposed a final dividend of HKD 0.01 per share for the fiscal year 2020, down from HKD 0.03 per share in the previous year[50] - The board has approved a dividend increase of 5% per share, reflecting the company's strong financial performance[94] - The board has adopted a dividend policy, allowing the company to declare and distribute dividends subject to shareholder approval, considering financial status, cash flow, and other relevant factors[181] Risk Management - The company has established a risk management framework involving the board, audit committee, and risk management team to identify, assess, and manage significant risks[192] - The effectiveness of the risk management and internal control systems was reviewed for the year ending March 31, 2020, and the board deemed the systems sufficient and effective[196] - The company has implemented a policy for handling and disclosing inside information to ensure compliance with listing rules and securities regulations[197]