Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM. CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which higher in ...

Financial Performance - The Group recorded a revenue of approximately HK$240.1 million for the year ended 31 March 2021, representing a decrease of approximately HK$111.0 million or 31.6% compared to HK$351.1 million for the year ended 31 March 2020[14]. - Loss attributable to the owners of the Company was approximately HK$7.5 million for the year ended 31 March 2021, a decrease of approximately HK$9.2 million from a profit of approximately HK$1.7 million for the year ended 31 March 2020[14]. - Revenue from the sale of diesel oil accounted for approximately HK$239.4 million, representing approximately 99.7% of the Group's total revenue for the year ended 31 March 2021[36]. - The sales quantity of diesel oil increased by approximately 7.5% from 81.0 million litres for the year ended 31 March 2020 to 87.1 million litres for the year ended 31 March 2021[38]. - The average selling price of diesel oil decreased by approximately 36.0% from HK$4.30 per litre for the year ended 31 March 2020 to HK$2.75 per litre for the year ended 31 March 2021[42]. - The Group's cost of sales was approximately HK$238.0 million for the year ended 31 March 2021, representing a decrease of 29.7% from HK$338.5 million for the year ended 31 March 2020[44]. - The average unit purchase cost of diesel oil decreased by 35.0% from approximately HK$4.08 per litre for the year ended 31 March 2020 to approximately HK$2.65 per litre for the year ended 31 March 2021[45]. - The Group's gross profit decreased by approximately HK$10.5 million or approximately 83.3%, from HK$12.6 million for the year ended 31 March 2020 to HK$2.1 million for the year ended 31 March 2021[52]. - The net profit margin for the year ended 31 March 2021 was negative 3.12%, compared to a positive 0.48% for the year ended 31 March 2020[58]. - The Group's current ratio was approximately 5.9 as at 31 March 2021, calculated by current assets of approximately HK$55.2 million over current liabilities of approximately HK$9.4 million[60]. - The Group recorded net current assets of approximately HK$45.7 million as at 31 March 2021[59]. - The gearing ratio of the Group as at 31 March 2021 was 2.3%, compared to nil in 2020[66]. Operational Challenges - The Company acknowledges the challenges faced in 2020 due to the COVID-19 pandemic, which disrupted business activities and affected market conditions[14]. - The uncertainty regarding the containment of the COVID-19 pandemic has made the Group's operating environment extremely challenging, prompting a focus on cash flow management and business plan adjustments[29]. - The market demand for diesel oil from the logistics sector was reduced due to the impact of COVID-19 and related anti-epidemic measures[23]. Business Strategy and Future Plans - The Company aims to maintain a steady business scale and improve operational efficiency while adapting to new challenges[17]. - The Group plans to implement business strategies step by step to strengthen its position as an established diesel oil provider in Hong Kong[17]. - The Company is committed to creating long-term shareholder value through its strategic initiatives[17]. - The report emphasizes the importance of operational flexibility in response to market volatility[17]. - The Group has no future plans for material investments or capital assets as of the date of this report[84]. Corporate Governance - The Company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the year ended March 31, 2021[115]. - The Group's corporate governance practices are based on the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules, emphasizing the importance of sound governance for growth and shareholder interests[114]. - The Board comprises five Directors, including two executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[122]. - The Board has established three committees: the Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the Company's affairs[132]. - The Company has a strong corporate governance structure to ensure effective oversight of management[158]. - The roles of Chairman and Chief Executive Officer are separated to ensure effective corporate governance[158]. Employee and Manpower Management - The Group has expanded its manpower, with total staff costs for the year ended 31 March 2021 amounting to approximately HK$7.3 million, up from HK$6.6 million in the previous year[108]. - The Group hired one senior accountant and one administrative staff member to support its expanding business[101]. - As of 31 March 2021, the Group engaged a total of 27 employees, an increase from 24 employees as of 31 March 2020[108]. - Total employee costs for the year ended March 31, 2021, were approximately HK$7.3 million, compared to approximately HK$6.6 million for the year ended March 31, 2020, reflecting an increase of about 10.61%[111]. Financial Management and Capital Expenditure - The Group maintained a healthy liquidity position throughout the year ended March 31, 2021, by adopting prudent financial management approaches[75]. - Capital expenditure for the Group decreased by approximately HK$2.6 million or 45.6% to approximately HK$3.1 million compared to the previous year, primarily related to the purchase of diesel tank wagons[83]. - The total actual use of net proceeds up to 31 March 2021 was HK$26.1 million, leaving an unutilized amount of HK$8.7 million[104]. - The net proceeds from the share offer amounted to approximately HK$34.8 million after deducting underwriting commissions and other listing expenses[102]. - As of 31 March 2021, the actual use of net proceeds included HK$11.3 million for the purchase of diesel tank wagons, with an unutilized amount of HK$3.7 million expected to be fully utilized by 31 March 2023[104]. Risk Management - The Group's reliance on a single oil supplier in Hong Kong poses a risk of disruption to diesel oil transportation services[72]. - The Group's earnings and financial condition may be adversely affected by incorrect oil and gas price assumptions used to evaluate projects[72].