耀才证券金融(01428) - 2020 - 年度财报

Corporate Information Directors and Committees The report lists the company's executive directors, independent non-executive directors, and members of key committees (Audit, Remuneration, Nomination, Risk Management), with Mr Yip Mau Lam as Chairman and Mr Hui Yuk Pun as Chief Executive Officer - Executive Directors include Mr Yip Mau Lam (Chairman), Mr Hui Yuk Pun (Chief Executive Officer), and Mr Chan Wing Shing[5] - Independent Non-executive Directors include Mr Yu Yan Kong, Mr Szeto Wai Sun, and Mr Ling Kwok Fai[5] - The company has established Audit, Remuneration, Nomination, and Risk Management Committees, chaired by Mr Yu Yan Kong and Mr Yip Mau Lam respectively[5][6] Corporate Offices and Advisors The report provides information on the company's registered office in the Cayman Islands, head office and principal place of business in Hong Kong, and lists key share registrars, principal bankers, and auditor (KPMG) - The company's head office is located at Wing On House, 71 Des Voeux Road Central, Hong Kong[6] - The company's auditor is KPMG[9] Major Accomplishments 2019 Major Accomplishments In 2019, the Group launched two award-winning trading apps, 'Bright Smart Securities (Baby)' and 'Bright Smart Futures (Doudou)', actively engaged in philanthropy, and sponsored the Hong Kong Squash Championships - Launched 'Bright Smart Securities (Baby)' and 'Bright Smart Futures (Doudou)' trading apps, exceeding 30,000 downloads in the first month, and awarded 'Outstanding Stock and Futures Trading App Program Development' by Capital Magazine[11] - Group Chairman Mr Yip Mau Lam donated over HKD 1 million to The Community Chest of Hong Kong and other charitable activities[13] - Received the 'Caring Company' award from The Hong Kong Council of Social Service for nine consecutive years[15] - Awarded 'Hong Kong All-round Securities Brokerage Jun Ding Award' by mainland media Securities Times and Securities China[16] 2020 Major Accomplishments In 2020, the Group declared a special dividend for its tenth anniversary, Chairman Mr Yip Mau Lam personally donated HKD 10 million for COVID-19 relief, and the Group maintained service quality with its backup office while winning three 'Top 3 Most Active' broker awards from HKEX - Declared a one-off special dividend of 80.00 HK cents per share to celebrate the tenth listing anniversary[25] - Group Chairman Mr Yip Mau Lam, through 'Yip Mau Lam Charitable Foundation', donated HKD 10 million to the Hospital Authority for anti-epidemic efforts[27] - The Kowloon backup office, established five years ago, played a crucial role during the pandemic, ensuring service continuity[29] - Awarded three first-place prizes by Hong Kong Exchanges and Clearing Limited (HKEX): 'Top 3 Most Active Stock Futures Brokers', 'Top 3 Most Active Stock Options Brokers', and 'Top 3 Most Active Weekly Index Options Brokers'[31] Branch Network Branch Locations The Group operates an extensive branch network across Hong Kong, Kowloon, and New Territories, totaling 15 business locations (including headquarters), with most branches open seven days a week, and has launched the 'Bright Smart Teaching Vehicle' to provide mobile services across Hong Kong - The company has 15 business outlets across Hong Kong, Kowloon, and New Territories, including Hong Kong Headquarters and Kowloon Headquarters[35][36][37] - Most branches operate seven days a week to provide more convenient customer service[38] - Launched the innovative 'Bright Smart Teaching Vehicle', providing services across Hong Kong[37][38] Awards Awards and Recognitions During the reporting period, the Group received numerous significant industry awards across social responsibility, derivatives trading, mobile application development, and corporate excellence, demonstrating its leading position and comprehensive strength in the industry - Awarded three major prizes by Hong Kong Exchanges and Clearing Limited (HKEX), including 'Top 3 Most Active Weekly Index Options Brokers', 'Top 3 Most Active Stock Options Brokers', and 'Top 3 Most Active Stock Futures Brokers'[43][44] - Received 'Outstanding Securities and Futures Trading Mobile App Award' from Sky Post and 'Outstanding Stock and Futures Trading App Program Development Award' from Capital Magazine for its excellent trading app performance[43][44] - Received 'Hong Kong Outstanding Enterprise Award' from Economic Digest and 'Listed Company Excellence Award' from Hong Kong Economic Journal for consecutive years[43][44] - Received 'Caring Company' and 'Social Care Enterprise Excellence Award' honors in social responsibility[43][44] Financial Highlights Key Financial Performance For the year ended March 31, 2020, the Group's total revenue increased by 4.1% to HKD 864 million, profit for the year grew by 6.8% to HKD 471 million, basic earnings per share were 27.75 HK cents, and the company declared a special dividend of 80 HK cents per share and increased final dividend by 259% to 28 HK cents per share to celebrate its tenth listing anniversary FY2019/20 Key Financial Data (HKD thousands) | Metric | FY2020 (HKD thousands) | FY2019 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 864,017 | 830,305 | +4.1% | | Operating Profit | 667,089 | 639,785 | +4.3% | | Profit for the Year | 470,978 | 440,928 | +6.8% | | Basic EPS (HK cents) | 27.75 | 25.98 | +6.8% | | Final Dividend per Share (HK cents) | 28.00 | 7.80 | +259.0% | | Special Dividend per Share (HK cents) | 80.00 | — | N/A | Chairman's Statement Performance and Market Environment The Chairman's report highlights that despite severe challenges in FY2019/20 from the US-China trade war, Hong Kong social unrest, and the COVID-19 pandemic, which led to a 4.1% decline in average daily turnover of the Hong Kong stock market, the Group outperformed the market with counter-cyclical growth in total revenue and net profit, attributed to its forward-looking strategy and stable operations - The market faced multiple challenges including the US-China trade war, Hong Kong social unrest, and the COVID-19 pandemic, leading to an approximate 4.1% year-on-year decrease in average daily turnover of Hong Kong stocks[49][52][54] FY2019/20 Performance Overview (HKD millions) | Metric | FY2020 (HKD millions) | FY2019 (HKD millions) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | 864.0 | 830.3 | +4.1% | | Brokerage Commission Income | 516.2 | 496.3 | +4.0% | | Margin Lending Interest | 302.5 | 301.5 | +0.3% | | Profit for the Year | 471.0 | 440.9 | +6.8% | | Basic EPS (HK cents) | 27.75 | 25.98 | +6.8% | - Total client accounts increased by 19.3% to 337,804, but client assets decreased by 9.1% to HKD 41.9 billion due to market conditions[57][59] Competitive Advantages and Operating Strategies The Group's success is attributed to its proactive backup office, popular trading apps, and market-responsive strategies, alongside an integrated online-offline approach with 15 branches and a 'Teaching Vehicle', diverse global financial products, robust cybersecurity, and continuous investor education - Core advantages include: - Forward-looking layout: Established a backup office exceeding 20,000 sq ft as early as 2015, ensuring business continuity during the pandemic, a unique initiative in Hong Kong - Technological innovation: Self-developed 'Baby' and 'Doudou' trading apps performed exceptionally, driving significant growth in online transactions and account openings - Market strategy: Launched attractive offers such as high margin ratios, low interest rates, free shares for new accounts, commission waivers, and platform fee waivers to attract clients[58][60][63][66] - In Q1 2020, 'Baby' trading app's transaction volume surged by 91.7% quarter-on-quarter, account openings increased by 64.4% quarter-on-quarter, and active users grew by over 57.8%[62][63] - Offers comprehensive global financial products, allowing clients to trade Hong Kong stocks, US stocks, A-shares, global futures, and foreign exchange through a single account[65][67] - Prioritizes cybersecurity, implementing measures like 'second password' and 'two-factor authentication (2FA)' to safeguard client assets[72][74] - Actively fulfills social responsibility, supporting charitable activities for consecutive years, with the Chairman personally making significant donations during the pandemic[77][78][79] Outlook Looking ahead, the Chairman identifies the pandemic as key to the global economy, noting the online trading market's strong performance and the Group's unaffected operations due to its leading online platform and backup office, while anticipating new momentum from US-listed Chinese companies' secondary listings in Hong Kong, and committing to an aggressive operating model to explore new markets and products - The pandemic is key to the future economic trend, yet the online trading market stands out, with the Group's online transactions accounting for 95% and app-based account openings nearly 70%[85][86] - The secondary listings of US-listed Chinese companies like JD.com, Baidu, and NetEase in Hong Kong are expected to be a significant catalyst for the local stock market[88][90] - The Group will continue its aggressive operating model, seeking new breakthroughs based on existing businesses, exploring new markets, and discovering new financial products[89][91] Management Discussion and Analysis Market Review During the reporting period, global stock markets experienced severe volatility due to multiple 'black swan' events, including the US-China trade war and COVID-19, leading to a 4.1% decline in Hong Kong's average daily turnover and the first annual negative GDP growth since 2009, while the pandemic spurred the 'stay-at-home economy' and counter-cyclical growth in online transactions - Affected by multiple negative factors, HKEX's average daily turnover for the year was approximately HKD 92.24 billion, a year-on-year decrease of approximately 4.1%[99][101] - Hong Kong's economy entered a technical recession, with GDP falling by 1.2% in 2019 and 8.9% year-on-year in Q1 2020[100][102] - The pandemic accelerated the rise of the internet economy and 'stay-at-home economy', with online businesses actively expanding online sales; China's online retail sales of physical goods grew by 5.9% year-on-year in the first quarter[118][120] Operational Results Despite declining market turnover, the Group achieved dual growth in revenue and profit through timely strategic adjustments and a robust online trading platform, with its self-developed trading apps attracting nearly 300,000 downloads and effectively increasing mainland client proportion, while total client accounts grew by 19.3% to 337,804, though client assets under management decreased by 9.1% to HKD 41.9 billion FY2019/20 Operating Results | Metric | FY2020 | FY2019 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue (HKD millions) | 864.0 | 830.3 | +4.1% | | Profit for the Year (HKD millions) | 471.0 | 440.9 | +6.8% | | Total Client Accounts | 337,804 | 283,181 | +19.3% | | Client Assets (HKD billions) | 41.9 | 46.1 | -9.1% | - Self-developed 'Baby' and 'Doudou' apps successfully attracted nearly 300,000 downloads, marking a significant step in expanding into the mainland market[127][128] Revenue Analysis This fiscal year's total revenue was HKD 864 million, a 4.1% year-on-year increase, primarily from securities brokerage, margin financing, and Hong Kong and global futures and options brokerage, with strong growth in global futures brokerage, IPO brokerage, and financing revenue, increasing by 17.6% and over 50% respectively, offsetting the slight impact on securities brokerage from declining market turnover Revenue Breakdown by Business Segment (HKD thousands) | Business Segment | FY2020 (HKD thousands) | FY2019 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Securities Brokerage | 258,292 | 262,004 | -1.4% | | Hong Kong Futures and Options Brokerage | 128,358 | 125,158 | +2.6% | | Global Futures Brokerage | 101,424 | 86,240 | +17.6% | | Initial Public Offering (IPO) Brokerage | 15,730 | 10,366 | +51.7% | | IPO Financing Interest Income | 33,474 | 21,411 | +56.3% | | Margin Financing Interest Income | 302,486 | 301,462 | +0.3% | | Total Revenue | 864,017 | 830,305 | +4.1% | Securities Brokerage Affected by a 3.0% year-on-year decrease in total Hong Kong stock market turnover, the Group's securities brokerage commission income was HKD 258 million, a slight 1.4% year-on-year decrease, accounting for 29.9% of total revenue - Securities brokerage commission income was HKD 258.3 million, a 1.4% decrease from HKD 262.0 million in the previous year[137][138] Hong Kong Futures and Options Brokerage Despite a 3.3% decrease in HKEX derivatives contract turnover, the Group's Hong Kong futures and options brokerage commission income grew against the trend by 2.6% to HKD 128 million, driven by increased market volatility and client hedging demand - Hong Kong futures and options brokerage commission income was HKD 128.4 million, a 2.6% increase from HKD 125.2 million in the previous year[143][145] Global Futures Brokerage Driven by increased global market volatility and growing investor interest in diversified investments, global futures brokerage commission income increased by 17.6% year-on-year to HKD 101 million, becoming a significant growth driver - Global futures brokerage commission income was HKD 101.4 million, a significant 17.6% increase from HKD 86.2 million in the previous year[149] Initial Public Offering (IPO) Brokerage and Financing IPO-related business performed strongly, with brokerage commission income surging by 51.7% to HKD 15.7 million, and financing interest income sharply rising by 56.3% to HKD 33.5 million - IPO brokerage commission income increased by 51.7% year-on-year to HKD 15.7 million; IPO financing interest income increased by 56.3% year-on-year to HKD 33.5 million[151][154] Margin Financing Despite a 15.3% decrease in average daily margin lending to HKD 5.85 billion, margin financing interest income still saw a slight 0.3% increase to HKD 302.5 million, accounting for 35.0% of total revenue, driven by rising HIBOR - Margin financing interest income was HKD 302.5 million, a slight 0.3% increase from HKD 301.5 million in the previous year[152][155] Operating Expenses and Net Profit Margin This year, the Group's operating expenses were HKD 554 million, a 2.9% year-on-year increase; despite increased expenses, the Group's net profit margin improved from 53.1% to 54.5% due to faster revenue growth, with the increase primarily driven by a significant rise in amortization and depreciation, while staff costs and finance costs decreased - Net profit margin increased from 53.1% in the previous year to 54.5%, an improvement of 1.4 percentage points[159][161] Operating Expense Details (HKD thousands) | Item | FY2020 (HKD thousands) | FY2019 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Staff Costs | 127,472 | 136,333 | -6.5% | | Amortization and Depreciation | 89,635 | 18,839 | +375.8% | | Finance Costs | 138,178 | 140,600 | -1.7% | | Advertising and Promotion | 15,595 | 7,983 | +95.4% | | Rent, Rates and Management Fees | 5,733 | 71,116 | -91.9% | | Total Operating Expenses | 554,339 | 538,876 | +2.9% | Future Plans and Strategies The Group will continue its aggressive expansion strategy, planning to identify new branch locations and continuously recruit talent, with future focus on four key areas: 1) developing diversified global financial products; 2) promoting digitalization and intelligence in trading services; 3) continuously enhancing online transaction security; and 4) actively expanding its mainland business footprint to enhance brand recognition - Continue to identify prime locations for new branches and regularly hold recruitment fairs to attract talent[165][166] - Strategic priorities include: - Product diversification: Continuously developing more global financial products to meet market demand - Service intelligence: Combining online and offline strategies, leveraging FinTech to enhance customer experience and core competitiveness - Security first: Continuously investing resources to improve trading system speed, capacity, and cybersecurity levels - Mainland expansion: Actively expanding into the domestic market to build brand recognition[169][174][179][182] Capital Structure, Liquidity and Financial Resources The Group funds its operations through shareholders' equity, operating cash, and bank borrowings, maintaining ample liquidity; as of the reporting period end, bank balances and cash were HKD 478 million, bank borrowings were HKD 2.859 billion, the debt-to-equity ratio (total bank borrowings/total shareholders' equity) increased to 150.3% from 117.9% in the previous year, and the current ratio was 1.4 times Capital and Liquidity Position (As of March 31) | Metric | FY2020 | FY2019 | | :--- | :--- | :--- | | Bank Balances and Cash (HKD millions) | 477.7 | 401.3 | | Bank Borrowings (HKD millions) | 2,858.8 | 3,445.5 | | Unutilized Bank Facilities (HKD millions) | 18,049.6 | 17,277.3 | | Debt-to-Equity Ratio | 150.3% | 117.9% | | Current Ratio | 1.4 times | 1.6 times | Risk Management The Group systematically manages various risks, controlling credit risk primarily through strict credit policies, collateral management, and continuous monitoring, managing liquidity risk by regularly monitoring liquidity needs and maintaining sufficient cash reserves and financing facilities, while interest rate and foreign exchange risks are less significant due to business model and hedging measures, and price risk from listed equity investments and client collateral is managed through regular monitoring - Credit Risk: Primarily arises from receivables from clients, brokers, and clearing houses, managed through individual client assessments, requiring collateral (such as securities or cash deposits), and daily monitoring of margin levels[205][206] - Liquidity Risk: Managed by regularly monitoring liquidity requirements and ensuring sufficient cash reserves and committed financing facilities from major financial institutions[214][217] - Interest Rate Risk: The Group's revenue and operating cash flows are not significantly affected by interest rate risk, as financial assets and liabilities are primarily floating-rate, and margin interest is linked to funding costs[215][218] - Foreign Exchange Risk: Primarily arises from foreign currency financial instruments other than USD, managed by keeping net exposure at acceptable levels through spot foreign currency transactions when necessary[216][219] Biographies of Directors and Senior Management Executive Directors This section introduces the backgrounds of three Executive Directors: founder Mr Yip Mau Lam serves as Chairman, responsible for corporate strategy; Mr Hui Yuk Pun is Chief Executive Officer, overseeing overall business development and operations with over 20 years of industry experience; and Mr Chan Wing Shing is Trading Director, responsible for daily trading operations - Mr Yip Mau Lam: Aged 68, founder, Chairman, and controlling shareholder of the Group, responsible for formulating corporate strategy and overseeing overall management[225][226] - Mr Hui Yuk Pun: Aged 46, Chief Executive Officer, responsible for the Group's overall business development, operations, and management, with over 20 years of experience in the securities and futures industry[228][229] - Mr Chan Wing Shing: Aged 55, Trading Director, responsible for daily trading operations of securities and futures businesses, with over 20 years of industry experience[231][233] Independent Non-executive Directors This section introduces the backgrounds of three Independent Non-executive Directors: Mr Yu Yan Kong, a practicing accountant, chairs the Audit and Remuneration Committees; Mr Szeto Wai Sun, a practicing solicitor and international notary public; and Mr Ling Kwok Fai, with over 20 years of experience in accounting, finance, and administration - Mr Yu Yan Kong: Aged 54, a practicing accountant, serving as Chairman of the Audit Committee, Remuneration Committee, and Risk Management Committee[233][234] - Mr Szeto Wai Sun: Aged 61, a practicing solicitor and international notary public, also serving as an Independent Non-executive Director of Taiping Insurance (Holdings) Company Limited[236][237] - Mr Ling Kwok Fai: Aged 64, with extensive experience in accounting, finance, and administration, holding dual qualifications as a Chartered Secretary and Chartered Governance Professional[240][241] Senior Management This section introduces Senior Management members other than directors: Ms Yip Wing Yan serves as Assistant to Chairman, assisting in overseeing daily internal operations; Ms Li Wan Mei is Financial Controller, responsible for the Group's overall financial and accounting management; and Mr Chan Kwan Pak is Company Secretary - Ms Yip Wing Yan: Aged 39, Assistant to Chairman, responsible for assisting the Chairman in overseeing daily internal operations and formulating development strategies[245][246] - Ms Li Wan Mei: Aged 36, Financial Controller, with over 10 years of accounting experience, responsible for the Group's overall financial and accounting management[249][252][253] Environmental, Social and Governance Report Environmental Aspects The Group is committed to environmental protection and energy conservation, with primary resource consumption being office electricity, water, and paper; during the reporting period, total greenhouse gas emissions were 1,363.9 tonnes of CO2 equivalent, with 90.4% from purchased electricity, and the Group has implemented various energy-saving and emission reduction measures, such as using energy-efficient equipment, promoting paperless operations (e-statements, mobile account opening), and recycling waste paper and printing consumables Greenhouse Gas Emissions Overview | Scope | Source | Emissions (tonnes CO2e) | Percentage | | :--- | :--- | :--- | :--- | | Scope 1 (Direct Emissions) | Group Vehicle Fleet Gasoline Consumption | 73.8 | 5.4% | | Scope 2 (Indirect Emissions) | Purchased Electricity | 1,232.6 | 90.4% | | Scope 3 (Other Indirect) | Paper Consumption | 57.5 | 4.2% | | Total | | 1,363.9 | 100.0% | - Actively fostering a paperless work environment by implementing electronic services such as e-statements, mobile app account opening, and online account opening, as well as digitalizing internal information dissemination[274][279] Social Aspects In terms of social responsibility, the Group prioritizes employee well-being, health and safety, and career development, offering comprehensive benefits and training; in operations, it emphasizes supply chain management, product responsibility, and customer privacy protection, establishing strict anti-corruption and anti-money laundering policies; the Group actively contributes to the community, with significant donations from both the Chairman personally and the company, and continuous support for various charitable activities - Employment and Labor: Provides employees with benefits including life insurance, medical benefits, paid annual leave, and study allowances, along with a safe and healthy work environment and professional development training[282][286][287] - Operating Practices: Established comprehensive internal controls, product responsibility, customer complaint handling, personal data privacy protection, and anti-corruption/anti-money laundering procedures[293][294][300][303] - Community Investment: Chairman Mr Yip Mau Lam personally donated HKD 10 million for anti-epidemic efforts during the pandemic; the Group donated over HKD 1 million to The Community Chest of Hong Kong, HKD 1 million to Caritas Hong Kong, and has sponsored the 'Mindset Charity Run' for 11 consecutive years[314][317][318] Corporate Governance Report Board of Directors and Committees The company maintains high corporate governance standards, fully complying with the Corporate Governance Code, with a six-member Board (three executive, three independent non-executive) and separate Chairman and CEO roles, supported by Audit, Risk Management, Nomination, and Remuneration Committees, whose composition, duties, and annual work are detailed to ensure effective oversight and decision-making - The company fully complied with the Corporate Governance Code as set out in Appendix 14 of the Listing Rules during the year[323] - The Board of Directors comprises three Executive Directors and three Independent Non-executive Directors, achieving a balance between management and non-executive directors[325] - The roles of Chairman (Mr Yip Mau Lam) and Chief Executive Officer (Mr Hui Yuk Pun) are held by different individuals to ensure a balance of power and authority[361][362] - Both the Audit Committee and Risk Management Committee are chaired by Independent Non-executive Director Mr Yu Yan Kong, responsible for overseeing financial reporting, internal controls, and risk management[368][375] Accountability, Audit, and Shareholder Rights The Board oversees financial statement preparation for truth and fairness, with an external company secretary appointed; the report details audit and non-audit fees from KPMG; the company has robust risk management and internal controls, an inside information handling manual, and a dividend policy, clearly outlining shareholder rights and procedures for EGMs, director nominations, and Board inquiries - The Board is responsible for ensuring the truth and fairness of financial statements and their preparation on a going concern basis[404] - The company has established risk management and internal control systems, including an internal audit function, which are annually reviewed by the Board and deemed effective and adequate[411][415][421] - Shareholder rights are clearly defined, including the right of shareholders holding not less than 10% of the paid-up share capital to request an extraordinary general meeting, and specific procedures for nominating director candidates[432][433] Directors' Report Business and Financial Review The Directors' Report outlines the Group's principal business as providing financial services including securities, futures brokerage, and margin financing; during the reporting period, the Group declared a special dividend of 80 HK cents per share and proposed a final dividend of 28 HK cents per share, with total charitable donations amounting to HKD 2.28 million for the year, and no purchases, sales, or redemptions of company shares - The Group's principal business is providing financial services, including securities brokerage, margin financing, commodities and futures brokerage, precious metals trading, and leveraged foreign exchange trading[445] - Declared a one-off special dividend of 80.00 HK cents per share and proposed a final dividend of 28.00 HK cents per share[459][460] - Total charitable donations for the year amounted to HKD 2.28 million[478][479] Connected Transactions The report details several continuing connected transactions between the Group and connected persons (primarily Chairman Mr Yip Mau Lam and his associates), mainly involving office property lease agreements, provision of financial services such as margin and IPO financing to connected persons, and brokerage services, all conducted in the ordinary course of business on normal commercial terms, confirmed by independent non-executive directors, and supported by an unqualified opinion letter from the auditor - The Group entered into multiple office property lease agreements with companies connected to Chairman Mr Yip Mau Lam, with total payments amounting to approximately HKD 51.9 million for the year[546][547][551] - The Group provides margin and IPO financing services to directors and their associates, with annual caps of HKD 4 billion for IPO financing and HKD 1 billion for margin financing provided to Mr Yip's group[556] - All continuing connected transactions have been reviewed by Independent Non-executive Directors, who confirmed they were conducted on normal commercial terms, fair and reasonable, and in the overall interest of shareholders[567][569] Directors' and Major Shareholders' Interests The report discloses the interests of directors and major shareholders in the company's shares as of March 31, 2020; Chairman Mr Yip Mau Lam is the controlling shareholder, holding approximately 68.67% of the company's shares through his wholly-owned companies and personal beneficial ownership; no other major shareholder interests or short positions are disclosed beyond the information provided; the company maintained sufficient public float Shareholding of Directors and Major Shareholders | Shareholder Name | Nature of Interest | Number of Shares Held | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr Yip Mau Lam | Interest in Controlled Corporation | 900,000,000 | 53.02% | | | Beneficial Owner | 265,746,280 | 15.65% | | Total | | 1,165,746,280 | 68.67% | | New Charming Holdings Limited | Beneficial Owner | 900,000,000 | 53.02% | - The company confirmed that as of the reporting date, it maintained a public float of over 25%, complying with Listing Rules requirements[590] Financial Statements Consolidated Statement of Comprehensive Income For the year ended March 31, 2020, the Group achieved total revenue of HKD 864 million, a 4.1% year-on-year increase; after deducting various costs and expenses, profit before tax was HKD 529 million, and profit for the year was HKD 471 million, a 6.8% year-on-year increase Consolidated Statement of Comprehensive Income Summary (HKD thousands) | Item | FY2020 (HKD thousands) | FY2019 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 864,017 | 830,305 | | Other Income | 239,503 | 212,440 | | Operating Profit | 667,089 | 639,785 | | Profit Before Tax | 528,911 | 499,185 | | Profit for the Year | 470,978 | 440,928 | | Total Comprehensive Income | 471,211 | 441,178 | Consolidated Statement of Financial Position As of March 31, 2020, the Group's total assets were HKD 6.459 billion, total liabilities were HKD 4.557 billion, and net assets were HKD 1.902 billion; key assets included accounts receivable (HKD 5.645 billion), while major liabilities were bank loans (HKD 2.859 billion) and accounts payable (HKD 1.301 billion), with total equity decreasing from HKD 2.923 billion to HKD 1.902 billion due to the large special dividend payout Consolidated Statement of Financial Position Summary (HKD thousands) | Item | March 31, 2020 (HKD thousands) | March 31, 2019 (HKD thousands) | | :--- | :--- | :--- | | Total Assets | 6,459,135 | 7,851,341 | | Of which: Accounts Receivable | 5,644,787 | 7,276,782 | | Total Liabilities | 4,556,829 | 4,928,051 | | Of which: Bank Loans | 2,858,789 | 3,445,515 | | Net Assets/Total Equity | 1,902,306 | 2,923,290 | Consolidated Cash Flow Statement This year, the Group generated HKD 2.253 billion in net cash from operating activities and HKD 121 million in net cash from investing activities; financing activities resulted in a net cash outflow of HKD 2.281 billion due to loan repayments and dividend payouts (including special dividends); ultimately, cash and cash equivalents increased by HKD 92.74 million, with an ending balance of HKD 478 million Consolidated Cash Flow Statement Summary (HKD thousands) | Item | FY2020 (HKD thousands) | FY2019 (HKD thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 2,252,796 | 4,538,171 | | Net Cash from Investing Activities | 120,739 | 149,944 | | Net Cash Used in Financing Activities | (2,280,792) | (4,800,272) | | Net Increase in Cash and Cash Equivalents | 92,743 | (112,157) | | Cash and Cash Equivalents at End of Period | 477,657 | 401,254 |