Financial Performance - The group's revenue for the fiscal year ending March 31, 2024, was approximately HKD 11,767,000, a decrease of 22.1% compared to HKD 15,105,000 in the previous year[8]. - Gross profit decreased from approximately HKD 5,983,000 in the previous year to approximately HKD 4,012,000, representing a decline of about 32.9%[8]. - The group recorded a loss of approximately HKD 13,209,000 for the year, an improvement from a loss of approximately HKD 16,349,000 in the previous year, reflecting a reduction of about HKD 3,140,000[8]. - Revenue decreased by approximately 22.1% to about HKD 11,767,000 compared to the previous year, primarily due to reduced sales[22]. - Revenue from the Southeast Asian market dropped from approximately HKD 957,000 to about HKD 507,000[17]. - Gross profit fell by approximately 32.9% to about HKD 4,012,000 from approximately HKD 5,983,000 in the previous year[24]. - Net loss for the year was approximately HKD 13,209,000, an improvement from a net loss of about HKD 16,349,000 in the previous year[29]. - Total assets as of March 31, 2024, were approximately HKD 15,257,000, down from about HKD 25,920,000 in the previous year[31]. - The company reported a foreign currency translation gain of HKD 991,000, compared to HKD 542,000 in the previous year[195]. - Basic and diluted loss per share remained at HKD 0.07, unchanged from the previous year[195]. Revenue Sources - Approximately 71.8% of the group's revenue came from Hong Kong clients, down from 73.0% in the previous year, while revenue from Taiwan clients increased to approximately 23.9% from 20.6%[14]. - Revenue from Hong Kong decreased from approximately HKD 11,034,000 to approximately HKD 8,450,000, a decline of about 23.4%[15]. Strategic Initiatives - The group plans to implement new strategies focusing on more face-to-face meetings with peers and clients, and to enhance sales of online advertising solutions to major media agencies[9]. - New online advertising services, including new affiliate advertising services, have been launched to maintain market leadership[9]. - The group aims to explore new business opportunities and adjust its service portfolio to better meet client needs in response to changing consumer patterns and economic challenges[15]. - The company plans to enhance brand awareness and sales support to revitalize sales amid a challenging advertising market[19]. - The company is focusing on expanding its client base by engaging more directly with clients to mitigate risks associated with reliance on advertising agencies[45]. - The company plans to implement new reward programs for members and maintain good relationships to prevent customer attrition due to changing preferences in social media[46]. - The company is adapting its service packages to attract advertising agencies amid increasing competition from micro-influencers[48]. Competition and Market Challenges - The group continues to face challenges due to increased competition from other online advertising service providers and cautious advertising spending from advertisers[9]. Corporate Governance - The board includes independent non-executive directors who provide oversight and strategic guidance, ensuring compliance and governance[58]. - The company has adopted the corporate governance code as per GEM Listing Rules Appendix C1, ensuring compliance throughout the relevant year[124]. - The board consists of seven members, including four executive directors and three independent non-executive directors, maintaining compliance with GEM Listing Rules[129]. - Independent non-executive directors provide practical independent opinions and judgments, enhancing the board's decision-making process[132]. - The board is responsible for leading and controlling the company, ensuring effective internal controls and risk management systems[137]. - The audit committee held four meetings to review financial performance and discuss significant issues related to financial reporting and internal controls[146]. Risk Management - The board acknowledges its responsibility to maintain a robust and effective risk management and internal control system to safeguard the group's assets and shareholders' interests[167]. - The group has established procedures to identify, assess, and manage significant risks, ensuring the effectiveness and adequacy of the risk management and internal control system for the year ending March 31, 2024[167]. Shareholder Information - The board does not recommend any dividend payment for the fiscal year[8]. - The company reported no final dividend for the year ending March 31, 2024, compared to zero in 2023[70]. - The company has adopted a dividend policy that allows for cash or stock dividends, subject to board discretion and compliance with legal regulations[115]. Management and Personnel - The company has a strong management team with diverse backgrounds in marketing, IT, and finance, enhancing its operational capabilities[58]. - The employee cost for the group was approximately HKD 11,475,000 for the year, down from HKD 12,737,000 in the previous year, reflecting a reduction in the number of employees from 33 to 25[102]. - The company has established a competitive salary policy for employees, which includes salary and bonuses, as well as benefits such as retirement and medical insurance[102]. Audit and Financial Reporting - The financial statements for the year ending March 31, 2024, were audited by Zhongzhu Global CPA Limited, which is willing to be reappointed at the annual general meeting[120]. - The auditors concluded on the appropriateness of the going concern basis of accounting used by the directors, assessing any significant uncertainties that may cast doubt on the group's ability to continue as a going concern[194]. - The independent auditor's report was issued by Kwan Kai Chun, a practicing accountant, on June 20, 2024[194].
源想集团(08401) - 2024 - 年度财报