Audit and Governance - The total audit fees for the group amounted to approximately HKD 1,609,000, with non-audit service fees around HKD 10,000 for the year ending March 31, 2023[13]. - The audit committee held two meetings during the year ending March 31, 2023, with all members attending both sessions[4]. - The audit committee reviewed the financial statements for the year ending March 31, 2022, and the six months ending September 30, 2022[7]. - The audit committee, established in August 1999, consists of three independent non-executive directors and is responsible for overseeing external auditors and financial controls[53]. - The board of directors conducted a review of the company's corporate governance policies and practices for the fiscal year 2022/2023[11]. - The board of directors is committed to enhancing corporate governance practices suitable for business growth[8]. - The board has three committees: the remuneration committee, audit committee, and nomination committee, to oversee specific company matters[58]. - The company has implemented a suitable directors and officers liability insurance to protect its executives from potential liabilities arising from their duties[179]. Risk Management and Compliance - The board is responsible for maintaining a robust and effective risk management and internal control system, which was reviewed for effectiveness during the year[22]. - The company has established a whistleblowing policy to provide guidance and reporting channels for employees and third parties regarding suspected misconduct[19]. - The board is responsible for setting company strategy, assessing ESG risks, and ensuring effective risk management and internal control systems[51]. - The company has not been aware of any significant legal violations or regulatory breaches that could severely impact its business as of March 31, 2023[175]. Environmental, Social, and Governance (ESG) Practices - The company emphasizes the importance of strong environmental, social, and governance (ESG) practices for sustainable development in the communities where it operates[43]. - The ESG report is prepared according to guidelines that include principles of materiality, quantification, consistency, and balance[44][46]. - The company is committed to enhancing financial performance while actively implementing policies for environmental protection and social responsibility[43]. - The company emphasizes the implementation of appropriate policies and measures to meet stakeholder expectations regarding ESG performance[50]. - The annual ESG report reflects the company's progress in achieving its ESG goals and the efforts made to address stakeholder interests[52]. - The company has identified 18 significant ESG issues, with 7 categorized as very important and 9 as important, based on stakeholder assessments[64]. - The group is committed to environmental sustainability by encouraging employees to maintain a green office environment and reduce resource consumption[103]. - The group has implemented eco-friendly procurement practices, including the use of environmentally friendly tools and furniture[105]. Financial Performance - The group recorded total revenue of HKD 2,059,774,000 and a net profit attributable to shareholders of HKD 128,679,000 for the fiscal year ending March 31, 2023, showing positive growth[167]. - The convenience store business achieved a record revenue of HKD 1,201,811,000, representing a 46% increase from HKD 822,819,000 in the previous year[168]. - The rice business generated revenue of HKD 709,018,000 and a pre-tax profit of HKD 105,607,000 during the fiscal year[169]. - The packaging materials business reported external sales revenue of HKD 144,969,000 but incurred a pre-tax loss of HKD 9,323,000 due to adverse effects from the pandemic[171]. - As of March 31, 2023, the group maintained a cash balance of HKD 540,227,000 and a current ratio of 2.4 times[172]. - The group has a strong financial position, with total current assets of HKD 898,207,000 and total current liabilities of HKD 369,837,000 as of March 31, 2023[172]. Business Strategy and Growth - The group aims to expand its quality brand and innovative platform portfolio through organic growth or acquisitions in various regions[47]. - The company plans to expand its convenience store business in Vietnam, leveraging its retail platform to attract global partners into the market[147]. - The company is investing in a new headquarters in Wan Chai, reflecting confidence in Hong Kong's status as a global business hub[151]. - The group plans to develop a "leisure retail" hub near the center of Niseko, leveraging its experience in fast-moving consumer goods and retail operations[152]. - The company is expanding its retail entertainment business and has invested in the Niseko ski resort in Japan as part of its long-term development strategy[194]. - The group believes that the global economy will accelerate recovery as the impact of the pandemic diminishes, positioning itself for future opportunities and challenges[172]. Community Engagement and Social Responsibility - The company continues to support various charitable organizations and community initiatives, collaborating with institutions like the Hong Kong Parkinson's Disease Foundation[181]. - The company has been recognized for its contributions to the Vietnamese rice industry, with its CEO receiving the Ap Bac medal from the Vietnamese government[195]. Environmental Initiatives - The company aims to reduce total harmless waste density by developing technology to lower it by 5% by 2030, based on 2022 levels[76]. - The company plans to decrease electricity consumption density by 5% and greenhouse gas emissions density by 5% by 2030, compared to 2022[76]. - Water consumption is targeted to decrease by 10% in density by 2030, using 2022 as the baseline[76]. - Total harmless waste generated in 2023 was 192.23 tons, a decrease from 204.97 tons in 2022[76]. - The company introduced Hong Kong's first eco-friendly biodegradable plastic rice bag to reduce plastic pollution[77]. - Water consumption for the rice business in 2023 was 2,465 cubic meters, down from 2,556 cubic meters in 2022[88]. - The company reported a total greenhouse gas emission of 1,876.89 tons in 2023, slightly down from 1,909.84 tons in 2022[96]. - The company’s energy consumption from liquefied petroleum gas in the rice business decreased to 17,846 liters in 2023 from 20,580 liters in 2022[93]. - The company’s purchased electricity for convenience store operations increased significantly to 39,969,380 kWh in 2023 from 21,367,809 kWh in 2022[93]. - The group has reduced plastic bag usage in its rice business from 562.75 tons in 2022 to 486.11 tons in 2023, a decrease of approximately 13.6%[102]. - In the convenience store business, plastic bag usage decreased significantly from 68.43 tons in 2022 to 359.60 tons in 2023, indicating a shift in packaging strategy[102]. - The group prioritizes the procurement of energy-efficient products, such as energy-saving motors and air conditioners, to minimize indirect carbon emissions from electricity consumption[99]. - The packaging materials used in the rice business included 46.70 tons of paper and 486.11 tons of plastic bags in 2023, reflecting ongoing efforts to explore alternative materials[102]. - The company is actively promoting resource efficiency and adopting green technologies, such as installing LED lighting throughout its buildings to reduce energy costs[180]. - The company has launched Hong Kong's first "eco-friendly rice bags" made from materials that comply with EU packaging regulations, which decompose after disposal[180]. Management and Leadership - The company has made changes in its executive leadership, with new appointments effective April 18, 2023[182]. - The company has a strong management team with extensive experience in finance and accounting, including members with backgrounds in wealth management and auditing[198][199]. - The company is focused on asset management and corporate finance, with over 20 years of experience in these areas among its directors[199]. - The independent non-executive director has significant experience in tax auditing and cross-border tax issues, which may benefit the company's strategic decisions[199].
金源发展国际实业(00677) - 2023 - 年度财报