Financial Performance - For the fiscal year ending March 31, 2024, the company reported total revenue of HKD 1,699,491, a decrease of 22.8% compared to HKD 2,204,673 in the previous year[22]. - The company experienced a pre-tax loss of HKD 45,806, compared to a loss of HKD 35,148 in the prior year[22]. - The net loss attributable to equity shareholders for the year was HKD 49,850, compared to a loss of HKD 44,593 in the previous year[22]. - Total revenue for the fiscal year ended March 31, 2024, was approximately HKD 1,699,000,000, a decrease of 22.9% compared to HKD 2,205,000,000 in the previous year[24]. - Total sales volume for the fiscal year was about 76,800 tons, down 4.0% from 80,000 tons in the previous year, reflecting weak demand[24]. - Gross profit for the fiscal year was HKD 67,700,000, with a gross margin of 4.0%, compared to a gross profit of HKD 77,300,000 and a gross margin of 3.5% in the previous year[24]. - The company recorded a loss attributable to equity shareholders of approximately HKD 49,700,000 for the fiscal year, compared to a loss of HKD 44,400,000 in the previous year[24]. - The company reported a total comprehensive loss of HKD 60,826, compared to a loss of HKD 41,517 in the previous year, reflecting a significant increase in losses[158]. - The company reported a net loss of HKD 49,694,000 for the year ending March 31, 2024, compared to a net loss of HKD 44,469,000 for the previous year, indicating an increase in losses of approximately 5.5%[164]. - Cash generated from operating activities decreased significantly to HKD 52,832,000 from HKD 185,545,000 in the previous year, representing a decline of approximately 71.5%[166]. Strategic Focus and Development - The company is focusing on innovation and sustainable development, establishing a strategic partnership with a university in Ningbo to create an advanced metal new materials application technology research institute[17]. - The company aims to expand its operations in mainland China and Southeast Asia, leveraging opportunities from the Belt and Road Initiative[17]. - Despite a weak recovery momentum in Q4 and a bleak economic growth outlook, the company remains cautiously optimistic about future prospects[17]. - The company is committed to enhancing its production capacity in Hong Kong to meet the growing demand for sustainable manufacturing[17]. - The company is focused on developing high-value products and exploring new metal applications to capitalize on the "Belt and Road" initiative[40]. - The company is committed to enhancing its green supply chain and disclosing carbon emission data to support clients' green transformation goals[39]. - The company has established a strategic partnership with a university to develop advanced metal materials, promoting innovation and technology advancement[33]. Governance and Compliance - The company emphasizes the importance of strict governance policies and professional integrity as the foundation for long-term success[17]. - The company emphasizes the importance of business ethics and has implemented measures to comply with the corporate governance code as per the Stock Exchange Listing Rules[60]. - The board believes that the company has complied with the corporate governance code during the fiscal year, with no known breaches[60]. - The corporate governance committee has reviewed the overall corporate governance practices, including policies and codes of conduct, to ensure compliance with the latest listing rule amendments[76]. - The board of directors has adopted the standard code of conduct for securities trading as per Appendix C3 of the listing rules, with no violations reported during the fiscal year[63]. - The company has implemented training programs to enhance employee awareness of corporate governance and compliance importance, contributing to continuous improvement[76]. - The board is composed of independent non-executive directors who have confirmed their independence, ensuring effective oversight and governance[65]. Risk Management - The company has identified significant risks including commodity price risk, currency risk, and liquidity risk, which are actively monitored and managed[88]. - The company employs a structured approach to risk management, utilizing scenario analysis and risk registers to prioritize and address potential risks[86]. - The company has established a whistleblowing policy to report any misconduct, enhancing internal control and governance[78]. - The board is responsible for overseeing the effectiveness of risk management and internal control systems, which are reviewed annually[84]. - The company is committed to continuous improvement of its risk management policies and procedures to enhance effectiveness[85]. - The audit committee and board found no significant deficiencies in internal controls during the fiscal year, affirming the robustness of the internal control system[85]. - The group has established a risk register to monitor commodity market, financial market, and economic indicators, ensuring effective risk management[90]. - Climate risk is classified as a significant risk, with management actively involved in mitigating its impact[93]. Financial Position and Assets - The company maintained a strong financial position with bank balances and cash of HKD 265,000,000 as of March 31, 2024[26]. - As of March 31, 2024, the company had cash and bank balances of approximately HKD 265 million, an increase from HKD 221 million in 2023[45]. - The company's capital debt ratio was 1.70% as of March 31, 2024, compared to 1.21% in 2023[45]. - The company’s total equity as of March 31, 2024, was HKD 812,912,000, down from HKD 873,582,000 the previous year, reflecting a decrease of approximately 7%[164]. - Total assets decreased to HKD 832,321 from HKD 894,206, indicating a reduction of 6.9%[160]. - Cash and cash equivalents increased to HKD 264,579 from HKD 221,000, showing a growth of 19.7%[160]. - Non-current assets decreased to HKD 181,605 from HKD 201,040, a decline of 9.7%[160]. Employee and Management - The company employed approximately 180 employees as of March 31, 2024, down from 190 in 2023[47]. - Employee costs, including director remuneration, were approximately HKD 64.6 million for the fiscal year, compared to HKD 67.8 million in 2023[47]. - The management team has extensive experience, with key members having over 30 years in finance, operations, and industry-specific roles[57][58]. - The management team is actively involved in strategic direction and future development, particularly in advanced manufacturing and technological innovation[51]. Environmental and Social Responsibility - The company has adopted its own environmental policy to mitigate negative operational impacts and enhance environmental awareness among employees and stakeholders[128]. - The group has been participating in the Environmental Protection Department's "Carbon Footprint Database" and "Carbon Audit - Green Organization" programs since 2015[128]. - The company produced approximately 237,240 kWh of renewable energy through a 200 kW solar power system during the fiscal year[30]. - The group has received multiple awards and certifications for its commitment to community service and environmental protection[127]. Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2024[139]. - The total audit fees for the fiscal year amounted to HKD 2,663,000, which includes HKD 2,120,000 for audit services and HKD 543,000 for non-audit services[80]. - The audit committee reviewed financial matters including annual and interim results, and internal controls, ensuring compliance with governance standards[78]. - The independent auditor communicates significant audit findings and any material weaknesses in internal controls to the audit committee[153]. Inventory Management - The total inventory value held by the company in Hong Kong and mainland China as of March 31, 2024, is HKD 179,000,000, including a provision of HKD 5,000,000[144]. - Inventory is valued at the lower of cost and net realizable value, with management assessing the required provision levels based on current commodity prices[144]. - The company identifies inventory valuation as a key audit matter due to the significant amount of inventory held and the management's substantial judgments involved in estimating future selling prices[144]. - The company maintains its inventory levels based on expected demand and anticipated future metal prices[144].
利记(00637) - 2024 - 年度财报