Financial Performance - For the fiscal year ending March 31, 2024, the total revenue of Novacon Technology Group Limited was approximately HKD 22.8 million, representing a significant decline of about 57% compared to the previous fiscal year[12]. - The net profit turned into a net loss of approximately HKD 23.0 million, compared to a net profit of HKD 5.7 million in the previous year[12]. - As of March 31, 2024, the company's total revenue was HKD 22,791,000, a significant decrease from HKD 52,577,000 in the previous year, representing a decline of approximately 56.7%[27]. - The company's revenue for the year ended March 31, 2024, was approximately HKD 22.8 million, a significant decrease of about 57% compared to approximately HKD 52.6 million for the previous year[31]. - Revenue from licensing and maintenance services dropped approximately 72% to about HKD 11.6 million from approximately HKD 41.5 million in the previous year, primarily due to reduced services provided to existing clients[31]. - Initial setup and customization service revenue decreased by approximately 28% to about HKD 8.0 million from approximately HKD 11.1 million in the previous year[31]. - The company recorded a loss before tax of approximately HKD 23.3 million for the year ended March 31, 2024, compared to a profit of approximately HKD 6.9 million in the previous year, primarily due to a significant revenue decline[47]. - For the fiscal year ending March 31, 2024, the company reported a loss attributable to owners of approximately HKD 23.0 million, compared to a profit of HKD 5.7 million for the fiscal year ending March 31, 2023[49]. Business Strategy and Development - The company is actively reviewing its business options to seek improvements, optimizations, and growth opportunities in response to challenging economic conditions[13]. - The company aims to restructure resources to reduce risks and optimize products to maintain competitiveness[14]. - The acquisition of Maishi Jinwang is expected to enhance the company's gold and silver trading services, contributing to revenue growth[14]. - The company plans to enhance existing trading systems with automated trading and risk management features to better serve clients[30]. - The establishment of Max Online International Limited will expand the company's offerings in forex, precious metals, and contracts for difference trading[30]. - The company is committed to ongoing research and development of financial trading solutions to solidify its market position[18]. - The company started its new precious metals trading service business during the fiscal year ending March 31, 2024[101]. - The company is primarily engaged in developing and providing financial trading solutions, resource allocation, planning, scheduling, and management software and services[101]. Risk Management - The company has identified several key risks, including R&D risk, customer retention risk, and supplier concentration risk, which could significantly impact its business and financial performance[53]. - The company has implemented measures to mitigate risks, such as maintaining close communication with customers and conducting feasibility studies before initiating development projects[54]. - The company has a policy of regularly monitoring current and expected liquidity needs to ensure sufficient cash reserves are maintained[62]. - The company does not engage in speculative activities and has no contracts in place to hedge foreign exchange risks, as its revenues and costs are primarily denominated in USD and HKD[57]. Employee and Operational Insights - Employee benefit expenses rose approximately 14% to about HKD 25.9 million, influenced by a one-time employee bonus of approximately HKD 7.5 million[38]. - The company has maintained strong relationships with key suppliers, ensuring stability in its operations[29]. - The company has not encountered any customer complaints as of March 31, 2024, indicating high customer satisfaction[26]. - The company has emphasized employee training and development, providing regular training to ensure staff are updated on the latest knowledge and market information[170]. - The company has not received any significant personal injury claims from employees under its compensation policy during the fiscal year ending March 31, 2024[170]. - The company has 40 full-time employees as of March 31, 2024, down from 56 in 2023[69]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements and internal controls for the fiscal year ending March 31, 2024[80]. - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[194]. - The board is responsible for overall business management, strategic planning, and financial reporting approval[197]. - Independent non-executive directors make up over one-third of the board, ensuring compliance with GEM listing rules[200]. - The company has purchased liability insurance for directors and senior management since its listing date[199]. - The board proposed a final dividend of HKD 0.002 per share for the fiscal year ending March 31, 2024, compared to HKD 0.001 per share for the previous year[104]. Shareholder Information - As of March 31, 2024, Mr. Wei holds 210,000,000 shares, representing 52.5% of the issued shares of the company[133]. - Mr. Zhong holds 90,000,000 shares, representing 22.5% of the issued shares of the company[134]. - The total number of share options available for grant under the share option scheme as of March 31, 2024, is 12,800,000 shares, which represents 3.2% of the total issued shares[146]. - The share option scheme was adopted on March 29, 2019, to incentivize and reward contributions to the group[141]. - The maximum number of shares to be issued upon the exercise of stock options under the plan shall not exceed 30% of the company's issued share capital, which is 120,000,000 shares as of the report date[150]. Client and Supplier Relations - The company had 20 clients as of March 31, 2024, down from 28 in 2023, with the top five clients accounting for approximately 71.9% of total sales, up from 55.8% in the previous year[172]. - The largest client contributed about 44.5% of total sales for the year ending March 31, 2024, compared to 16.0% in 2023[172]. - The group’s major suppliers accounted for approximately 85.2% of total procurement for the year ending March 31, 2024, up from 82.2% in 2023, with the largest supplier contributing about 36.5%[176]. - The group has not experienced any supply shortages or delays for the year ending March 31, 2024, and can easily identify alternative suppliers as needed[177]. Financial Position - As of March 31, 2024, the company's net current assets were approximately HKD 46.7 million, down from HKD 70.3 million as of March 31, 2023[51]. - The company's current assets as of March 31, 2024, totaled approximately HKD 55.0 million, compared to HKD 77.5 million in the previous year[51]. - The company maintained a net cash position as of March 31, 2024, with no interest-bearing borrowings reported[52]. - The effective tax rate for the fiscal year ending March 31, 2024, was approximately 1.3%, a significant decrease from 17.6% in the previous year[48]. Research and Development - The company's research and development expenses were approximately HKD 17.7 million, with about HKD 6.4 million capitalized as intangible assets[37]. - The company has established a research and development center in May 2022 due to insufficient office space for additional R&D personnel[75]. - The overall strategy includes a commitment to research and development, with a significant portion of funds allocated to this area to drive future growth[79].
连成科技集团(08635) - 2024 - 年度业绩