Financial Performance - The company's revenue for the fiscal year ending March 31, 2022, was approximately HKD 803.4 million, an increase of about 62.79% compared to HKD 493.5 million for the previous fiscal year[10] - The net loss for the fiscal year was approximately HKD 218.5 million, a reduction of about 18.10% from a net loss of HKD 266.8 million in the previous year[10] - The gross profit margin decreased from approximately 18.39% in the previous year to about 15.49% for the fiscal year ending March 31, 2022[10] - The company reported a loss attributable to shareholders of approximately HKD 21.85 million, a decrease from a loss of about HKD 26.68 million in the previous year[19] - The sales revenue from electronic products was approximately HKD 47.28 million, reflecting a year-on-year increase of about 29.77% driven by higher sales of fishing indicators and control boards[17] - The revenue from the food and beverage segment was approximately HKD 24.56 million, representing a significant increase of about 90.05% compared to the previous year[18] - The company's five largest customers contributed approximately HKD 46.21 million to revenue, an increase of about 52.21% from HKD 30.36 million in the previous year[22] - Selling and distribution expenses increased to approximately HKD 1.88 million, a rise of about 57.10% from HKD 1.20 million in the previous year[22] - Administrative and other expenses decreased by approximately 7.03% to about HKD 25.25 million from HKD 27.17 million in the previous year[23] Business Operations - The company is primarily engaged in the manufacturing and trading of electronic products and accessories, with no significant changes in its main business operations during the fiscal year[135] - The manufacturing business in China faced challenges due to fluctuations in raw material prices and increased competition, impacting overall business performance[10] - The group operates primarily in the manufacturing and trading of electronic products and has expanded into the restaurant business in Hong Kong, contributing significantly to operational revenue[193] Corporate Governance - The company is registered in the Cayman Islands and operates primarily in Hong Kong, with its main office located in Tsuen Wan[5] - The company has appointed a new CEO, Ms. Cheng, as of May 20, 2022[5] - The company is listed on the GEM of the Hong Kong Stock Exchange under stock code 8218[7] - The company's board of directors is committed to ensuring the accuracy and completeness of the financial report[3] - The board aims to expand its EMS business to international clients, particularly in the Chinese market, recognizing its significant potential[23] - The board of directors consists of 7 members, with 2 being female, and the company aims to provide comprehensive training for female employees to prepare them for senior management roles[119] - The board is committed to high levels of business ethics and corporate governance, aiming to enhance shareholder value[82] - The company has established a remuneration committee to oversee the compensation structure for directors and senior management[181] - The company confirms compliance with GEM listing rules regarding related party transactions and disclosures[185] Internal Controls and Risk Management - The company will continue to hire independent professionals to review its internal control system and will strengthen internal monitoring as appropriate[49] - The board has reviewed the need for an internal audit function and believes that hiring independent professionals for internal auditing is more cost-effective given the company's business scale and complexity[49] - The company has identified significant deficiencies in internal controls and has outlined actions to address these issues[55] - The company has implemented internal control systems and risk management procedures to identify and manage risks associated with its business activities[113] - The company is committed to addressing any internal control issues and has taken necessary actions to resolve deficiencies[113] Employee and Management Information - Total employee costs, including directors' remuneration, were approximately HKD 26.67 million for the year ended March 31, 2022, up from HKD 21.51 million in 2021[34] - The group employed a total of 158 staff as of March 31, 2022, compared to 155 in 2021[34] - The management team has extensive experience, with key members having over 15 years in accounting, audit, and consultancy[69] - The procurement manager has over 23 years of experience in procurement and material control, focusing on reducing raw material costs and maintaining supplier relationships[71] Environmental, Social, and Governance (ESG) Initiatives - The company has implemented various policies and measures to support environmental sustainability and reduce its environmental impact[140] - The board oversees environmental, social, and governance (ESG) matters to ensure compliance with local laws and regulations, enhancing the company's brand image[199] - The company has initiated stakeholder feedback mechanisms to identify expectations and develop appropriate strategies for sustainable development[195] - The group has established a quantitative approach to disclose key performance indicators related to environmental and social aspects, enhancing data transparency[196] - The company is committed to fair disclosure of both performance and challenges related to sustainable development, providing unbiased information to the public[197] Shareholder Information - The company has established multiple channels for communication with shareholders and stakeholders, ensuring timely dissemination of information[130] - The group did not recommend any dividend for the year ended March 31, 2022, consistent with 2021[29] - The company has established a dividend policy to allow shareholders to share in profits while retaining sufficient reserves for future growth[123] - The board retains the absolute right to update, amend, or cancel the dividend policy at any time without creating a legal obligation for future dividends[123] Audit and Compliance - The audit committee reviewed the company's financial reports for the fiscal year ending March 31, 2022, ensuring compliance with applicable accounting standards[99] - The external auditor's fees for the fiscal year include HKD 600,000 for audit services and HKD 7,000 for non-audit services[116] - The financial statements for the year were audited by Guo Wei CPA Limited, with a resolution to reappoint them for the next fiscal year to be presented at the upcoming annual general meeting[190] Market Position and Customer Relations - The top five customers accounted for approximately 57.52% of the total revenue, with the largest customer contributing about 31.15% of the total revenue[152] - The top five suppliers represented around 26.74% of the total procurement amount, with the largest supplier accounting for approximately 6.43% of the total procurement[152] - The company maintains long-term relationships with business partners as a key objective[152]
毅高国际控股(08218) - 2022 - 年度财报