Revenue Performance - Revenue decreased by approximately 49.7%, from HKD 250.6 million for the year ended March 31, 2021, to HKD 126.2 million for the year ended March 31, 2022[8]. - The company's revenue decreased from approximately HKD 250.6 million for the year ended March 31, 2021, to approximately HKD 126.2 million for the year ended March 31, 2022, representing a decline of about 49.7%[17]. - Revenue from two-way radios dropped by approximately 50.4%, from about HKD 187.4 million to approximately HKD 92.9 million, primarily due to a decrease in procurement orders from customers[17]. - Revenue from baby monitors decreased by approximately 69.0%, from about HKD 3.3 million to approximately HKD 1.0 million, mainly due to reduced demand for audio baby monitor products[17]. - The company's service business revenue fell to zero from approximately HKD 7.7 million, as no electronic manufacturing services were provided during the year[17]. - Total revenue for the year ended March 31, 2022, was HKD 126,181,000, a decrease of 49.6% compared to HKD 250,599,000 in 2021[169]. Financial Losses - The company recorded a loss of HKD 60.4 million for the year ended March 31, 2022, compared to a loss of HKD 34.6 million for the previous year, with the increase in loss attributed to reduced profit margins and inventory write-downs[26]. - The net loss for the year was HKD 60,447,000, which is an increase of 74.8% from a net loss of HKD 34,586,000 in 2021[169]. - Basic and diluted loss per share was HKD 10.10, compared to HKD 5.78 in the previous year[169]. - The gross loss for the year was HKD 21,756,000, compared to a gross profit of HKD 5,813,000 in the previous year[169]. - The company recorded a pre-tax loss of HKD 60,447,000 for the year ended March 31, 2022, compared to a loss of HKD 34,417,000 in the previous year, representing an increase in losses of approximately 75.8%[185]. Cost Management - The cost of sales decreased by approximately 39.6%, from about HKD 244.8 million to approximately HKD 147.9 million, while the gross margin dropped from approximately 2.3% to about -17.2%[23]. - The company intends to seek opportunities to convert fixed costs into variable costs to improve operational flexibility[9]. Strategic Plans - The company plans to mitigate the impact of the trade war by outsourcing some production processes from China to Vietnam and Malaysia[8]. - The company aims to gradually shift most of its production back to China in the future to reduce the impact of trade tariffs[8]. - The company will continue to evaluate its current business strategies to enhance operational efficiency and overall performance[9]. - Focus will remain on product research and development to strengthen the product portfolio and enhance information management systems[9]. - The company plans to continue investing in R&D for new product lines and exploring new customer and sales channels to diversify revenue sources[10]. - The company plans to continue its focus on the design, trade, and manufacturing of two-way radios and other communication devices, aiming for market expansion[193]. Corporate Governance - The management emphasized the importance of maintaining high corporate governance standards, ensuring compliance with GEM listing rules throughout the fiscal year[61]. - The board of directors is committed to maximizing long-term shareholder value while balancing the interests of broader stakeholders[67]. - The company has adopted a robust framework for risk management and performance monitoring to support strategic decision-making[62]. - The board has been actively involved in discussions regarding the group's strategy, performance, and management processes[75]. - The company has committed to reviewing and monitoring compliance with legal and regulatory requirements as part of its corporate governance responsibilities[77]. - The company aims to ensure that all directors are aware of their responsibilities and act in the best interests of the company[71]. - The company will continue to strive for compliance with corporate governance codes and regulations[74]. Shareholder Information - The board presented the audited consolidated financial statements for the year ending March 31, 2022, highlighting the company's financial performance[114]. - The company reported a reserve available for distribution of approximately zero HKD as of March 31, 2022, compared to approximately 16,581,000 HKD in 2021[120]. - The company did not recommend the payment of dividends for the year ended March 31, 2022, consistent with the previous year[117]. - Major shareholders include Solution Smart Holdings Limited with 112,589,600 shares (18.81%) and SMK Investment Company Limited with 90,997,600 shares (15.20%) as of March 31, 2022[136]. - The company has confirmed that at least 25% of its issued shares are held by the public, complying with GEM listing rules[148]. Cash Flow and Liquidity - As of March 31, 2022, the company had a cash balance of approximately HKD 7.9 million, down from about HKD 11.8 million the previous year[33]. - The company’s cash flow from operating activities was HKD 3,311,000, a decrease from HKD 12,799,000 in the previous year, indicating a decline in operational efficiency[185]. - The company’s financing activities resulted in a net cash outflow of HKD 7,165,000, significantly improved from HKD 40,227,000 in the previous year[188]. - The company has taken measures to improve its liquidity and financial position, as detailed in the financial statements[157]. Acquisitions and Investments - The company completed the acquisition of 100% of the issued shares of Fook Cheung Overseas Limited for HKD 15,000,000 on June 24, 2022, to expand its current business and diversify its product offerings[48]. - The company raised approximately HKD 19,950,000 through a rights issue, with around 79.2% of the net proceeds allocated for business expansion and potential acquisitions, and 20.8% for general working capital[45]. - The company has no significant investments or acquisitions during the year ended March 31, 2022[28]. Risk and Uncertainties - There are significant uncertainties regarding the company's ability to continue as a going concern due to financial conditions[156]. - The company has no significant contingent liabilities other than those disclosed, and the management believes that the outcome of the ongoing litigation will not have a material adverse effect on the group's consolidated financial position[37][38].
善裕集团控股(08245) - 2022 - 年度财报