Financial Performance - The company recorded a revenue increase of approximately 278.5% to about HKD 31.7 million for the fiscal year ending March 31, 2024, compared to HKD 8.4 million in 2023[16]. - The loss attributable to equity holders of the company was approximately HKD 37.2 million, an increase from HKD 32.2 million in 2023[16]. - The revenue growth was primarily driven by merchant acquiring transaction fee income, foreign exchange discount income, and income from marketing and distribution services[16]. - The company experienced increases in revenue, gross profit, sales and distribution costs, and general administrative expenses during the fiscal year[16]. - The total revenue for the year was approximately HKD 31.7 million, a significant increase from HKD 8.4 million in the previous year, driven by the recovery of Chinese tourists in Thailand[23]. - Merchant acquiring transaction fee revenue reached approximately HKD 28.4 million, up from HKD 6.0 million, reflecting a growth of about 373.3% due to the easing of COVID-19 restrictions[23]. - The gross profit for the year was approximately HKD 9.2 million, an increase of about 1,330.9% from approximately HKD 0.6 million in the previous year, with a gross margin rising from 7.7% to 29.1%[25]. - The company recorded a significant increase in marketing and distribution service revenue, which rose to approximately HKD 2.2 million from HKD 0.2 million, marking a growth of 1,000%[23]. - The cost of services provided increased to approximately HKD 22.5 million, a rise of about 190.9% compared to HKD 7.7 million in the previous year, aligning with revenue growth[24]. - General administrative expenses were approximately HKD 26.0 million, up 17.3% from HKD 22.1 million, primarily due to increased technical support costs related to the bCode business[28]. Business Operations - The company provides integrated payment processing services to merchants in Thailand and the Philippines, catering to Chinese tourists[16]. - The company completed the acquisition of bCode scanner on March 30, 2023, which is expected to enhance its service offerings and market reach[21]. - The company anticipates continued growth in revenue due to the 30-day visa exemption policy for Chinese tourists in Thailand, effective from September 25, 2023[20]. - The company is actively seeking new business partners and distributors to expand its service offerings in the Southeast Asian market[21]. - The company processed UnionPay transactions in Thailand, but spending by Chinese tourists has not returned to pre-COVID levels, impacting business growth[50]. - The company plans to continue evaluating market conditions in Thailand and the Philippines to assess their impact on business operations[51]. - The company aims to maintain operational stability and sustainability amid a challenging business environment, requiring more working capital[50]. Corporate Governance - The report includes compliance with the GEM listing rules and confirms the accuracy and completeness of the information provided[3]. - The board of directors is committed to ensuring the integrity of the financial reporting process and corporate governance[3]. - The company has established a strong corporate governance framework to ensure effective oversight of management[128]. - The company has complied with the corporate governance code, with some deviations noted in the chairman and managing director section[101]. - The board composition has been adjusted to meet GEM listing rules, with the appointment of Mr. Tang as an independent non-executive director who possesses the required professional qualifications[115]. - The company has adopted a policy for obtaining independent opinions and views, enhancing its governance practices[103]. - The board has adopted various policies including a shareholder communication policy and a diversity policy for board members[103]. - The company has emphasized the importance of technology in its business processes[111]. - The board is responsible for overseeing and maintaining an appropriate and effective risk management and internal control system, which is reviewed annually[157]. Financial Management - The financing costs decreased to approximately HKD 2.7 million from HKD 5.6 million, indicating improved financial management[31]. - The net proceeds from the share issuance amounted to approximately HKD 51.1 million, with an unutilized balance of about HKD 5.7 million carried over to the current year[48]. - The company has reallocated approximately HKD 9.8 million and HKD 7.1 million from the original intended uses for improving smart point-of-sale terminals and expanding payment processing services, respectively, to operational funding[51]. - The company has allocated HKD 10.0 million for working capital, ensuring it can meet operational demands[48]. - The company incurred an outstanding debt amounting to $561,142 (approximately HKD 4,388,000) due to service fees related to business development, technology management, and IT support[55]. - The net proceeds from the issuance of the convertible bonds in February 2024 were approximately HKD 4,388,000, which were used to offset the outstanding debt[55]. Environmental, Social, and Governance (ESG) - The group has established an Environmental, Social, and Governance (ESG) working group to manage and monitor sustainable development performance[181]. - The group conducted a comprehensive materiality assessment in 2022/23 to identify significant ESG issues impacting the business and stakeholders[185]. - The group maintains open communication channels with stakeholders, including shareholders, employees, customers, and suppliers, to enhance investor relations[184]. - The group has committed to adhering to all "comply or explain" provisions of the ESG guidelines[179]. - The company emphasizes the importance of sustainability and aims to improve resource efficiency and environmental performance in its operations[196]. - The company strictly complies with all relevant environmental laws and regulations, with no significant violations reported during the reporting period[197]. - The company has established clear emission reduction targets, which will be reviewed and updated by the management and board[196]. - The company advocates for a green and sustainable work environment, emphasizing waste management and adherence to the four "Rs" environmental principles[196]. Board Composition and Diversity - The company has a diverse board with members holding various positions in regulatory and advisory committees, enhancing governance and strategic oversight[84]. - The board's composition reflects a commitment to diversity and expertise, with members holding qualifications from prestigious institutions and professional bodies[88]. - The company emphasizes the importance of employee diversity and aims to maintain a balanced gender ratio through recruitment efforts[124]. - The nomination committee will continue to consider diversity as a key factor in future board appointments[123]. - The board has successfully met measurable diversity goals during the year, including gender diversity[122]. - As of March 31, 2024, the gender ratio among employees, including senior management, is balanced at 50:50[124]. Audit and Compliance - The audit committee held three meetings during the year to review financial reports and internal controls[133]. - The remuneration committee conducted four meetings to assess executive performance and approve compensation terms[137]. - The company has complied with GEM listing rules by appointing at least three independent non-executive directors[131]. - The audit committee's responsibilities include independent reviews of financial reporting and risk management systems[132]. - The company paid a total of HKD 630,000 for audit services and HKD 95,000 for non-audit services during the year[156]. - The company’s auditors provided a report confirming the responsibility for the preparation of the consolidated financial statements[151].
东方支付集团控股(08613) - 2024 - 年度业绩