Financial Performance - The company reported a revenue decrease of approximately 24.8%, from HKD 66.4 million for the year ended March 31, 2023, to HKD 50 million for the year ended March 31, 2024[9]. - The group reported no charitable donations during the year, maintaining a total of zero Hong Kong dollars[123]. - Revenue for the year ended March 31, 2024, was HKD 49,960,000, a decrease of 24.8% from HKD 66,397,000 in 2023[152]. - Gross profit increased to HKD 15,477,000, up 66.5% from HKD 9,316,000 in the previous year[152]. - The company reported a net profit of HKD 1,960,000 compared to a net loss of HKD 26,448,000 in 2023, marking a significant turnaround[152]. - Total comprehensive income for the year was HKD 3,252,000, compared to a loss of HKD 32,113,000 in 2023[152]. - The company reported a pre-tax profit of HKD 2,923,000 for the year ended March 31, 2024, compared to a loss of HKD 26,374,000 in the previous year, indicating a significant turnaround in performance[161]. - The company experienced a decrease in inventory by HKD 948,000, compared to a reduction of HKD 12,709,000 in the previous year, indicating a tightening of inventory management[164]. Debt and Assets - The company successfully reversed its net debt situation, recording a net asset value of HKD 6.3 million as of March 31, 2024[9]. - The group's current liabilities net value decreased from approximately HKD 22,000,000 to about HKD 10,200,000, primarily due to revenue recognition related to contract liabilities[30]. - The group's debt-to-equity ratio improved to approximately 151.1% from a negative 231.9% in the previous year, indicating a shift from negative net liabilities to positive net assets[31]. - The company's equity attributable to owners increased to HKD 6,395,000 from a deficit of HKD 5,618,000 in 2023[156]. - The company issued new shares, raising HKD 52,841,000 during the year, contributing to the increase in equity[159]. Revenue Sources and Product Development - The company aims to diversify its revenue sources and improve profitability by introducing new product categories and providing design services[12]. - Revenue from two-way radios decreased by approximately 33.1% from about HKD 60,200,000 to about HKD 40,300,000 due to a reduction in procurement orders from customers[17]. - Revenue from baby monitors significantly increased from approximately HKD 47,000 to about HKD 5,900,000, driven by increased demand for these products[17]. - Revenue from plastic products rose by approximately 33.4% from about HKD 2,800,000 to about HKD 3,800,000[17]. - The company is focused on expanding its market presence and enhancing product offerings, particularly in the two-way radio and communication device sectors[166]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and business ethics[45]. - The board of directors is responsible for strategy formulation, performance monitoring, and risk management, supported by three committees: Audit, Remuneration, and Nomination[47]. - The company has adhered to the GEM Listing Rules and the Corporate Governance Code throughout the fiscal year ending March 31, 2024[46]. - The board consists of six members, including three executive directors and three independent non-executive directors[49]. - The company has confirmed compliance with the trading code for directors during the fiscal year ending March 31, 2024[48]. - The board has adopted a written terms of reference for its corporate governance functions, which include reviewing and monitoring compliance with legal and regulatory requirements[61]. - The board is committed to balancing the long-term value creation for shareholders with the interests of broader stakeholders[51]. - The company has established a policy for regular training and continuous professional development for directors and senior management[61]. Financial Reporting and Audit - The company adheres to Hong Kong Financial Reporting Standards and believes it has selected and applied appropriate accounting policies[77]. - The audit aimed to provide reasonable assurance that the consolidated financial statements are free from material misstatement[146]. - The auditor's report is based on evidence obtained up to the date of the report, but future events may affect the group's ability to continue as a going concern[151]. - The overall presentation, structure, and content of the consolidated financial statements, including disclosures, were evaluated for fairness[151]. - The company must ensure that the consolidated financial statements reflect a true and fair view in accordance with the Hong Kong Financial Reporting Standards[144]. Going Concern and Liquidity - As of March 31, 2024, the group's current liabilities exceeded current assets by HKD 10,225,000, with total cash and cash equivalents amounting to HKD 4,848,000, raising significant doubts about the group's ability to continue as a going concern[136]. - The validity of the going concern assumption depends on the successful outcome of measures taken by the company's directors, which are yet to be completed or implemented[178]. - Management is closely monitoring the group's financial performance and liquidity, implementing cost control measures including rent negotiations and management salary reductions[181]. Shareholder Engagement - The company conducted 4 shareholder meetings during the year, ensuring active engagement with shareholders[52]. - The company maintains a communication strategy with shareholders through various channels, including annual general meetings and reports[86]. - The company is committed to timely, fair, accurate, and complete disclosure of information to enable informed decision-making by shareholders and the public[93].
善裕集团控股(08245) - 2024 - 年度财报