Financial Performance - Total revenue decreased by approximately HKD 124.4 million or 16.5% to about HKD 628.1 million for the fiscal year ending March 31, 2024, compared to approximately HKD 752.5 million in the previous year[9]. - Revenue from the distribution business was approximately HKD 413.7 million, a decrease of about HKD 91.3 million or 18.1% from approximately HKD 505 million in the previous year[12]. - Revenue from the system integration solutions business was approximately HKD 214.4 million, down about HKD 33.1 million or 13.4% from approximately HKD 247.5 million in the previous year[12]. - Sales from content delivery network licensing dropped significantly from approximately HKD 290.4 million to about HKD 150 million, a decrease of approximately HKD 140.4 million[12]. - Gross profit fell by approximately HKD 55.7 million or 44.0% to about HKD 71.0 million, with the overall gross margin declining from 16.8% to 11.3%[18]. - Other income and net gains decreased by approximately HKD 3.5 million or 77.8% to about HKD 1.0 million, primarily due to the absence of government subsidies received in the previous year[20]. - The net loss for the year was approximately HKD 15.0 million, compared to a net profit of approximately HKD 43.7 million in the previous year[27]. - Net debt increased from approximately HKD 42.1 million to about HKD 57.3 million, reflecting a significant decrease in cash and cash equivalents by approximately HKD 17.8 million or 62.5%[28]. - The total equity decreased from approximately HKD 209.2 million to about HKD 193.9 million, resulting in an increase in the net capital debt ratio from approximately 20.1% to 29.6%[28]. Operational Challenges - The company faces a significant challenge of talent shortage, which is impacting the entire industry due to rapid technological advancements[9]. - The economic environment has led to a decrease in project numbers, affecting overall demand for system integration solutions[9]. - The company is focused on strategic adjustments to navigate through the current uncertainties in the market[10]. - The company emphasizes its resilience and adaptability in overcoming challenges and maintaining its commitment to providing high-quality solutions[10]. Employee and Management - The group employed approximately 180 staff as of March 31, 2024, an increase from 135 staff in the previous year[44]. - Employee costs for the year included performance-related bonuses and director remuneration of approximately HKD 57,800,000, slightly down from HKD 58,800,000 in the previous year[44]. - The company emphasizes the importance of employee development and has adopted a new share option plan to recognize and incentivize contributions from eligible participants, including employees[55]. Corporate Governance - The company is committed to high standards of corporate governance to ensure long-term shareholder returns and stakeholder benefits[129]. - The board consists of seven members, including two executive directors, two non-executive directors, and four independent non-executive directors[133]. - The audit committee consists of three independent non-executive directors, ensuring oversight of accounting principles and policies[124]. - The company has established a robust internal control and risk management system to monitor operational and financial performance[140]. - The board has maintained compliance with the corporate governance code, except for a specific provision regarding the roles of the chairman and CEO[129]. Shareholder Relations - The company has established multiple channels for ongoing communication with shareholders, including annual general meetings and the company website[196]. - The company encourages shareholder participation in meetings and supports proxy voting for those unable to attend[199]. - The company will publish voting results from general meetings on its website and the stock exchange after each meeting[193]. Capital Management - The group reached a preliminary settlement agreement with the Competition Commission, agreeing to pay approximately HKD 1,345,000, which includes a fine of HKD 1,190,000 and investigation costs of HKD 155,000[34]. - The company has allocated HKD 5.1 million for IT maintenance and support services, with all funds already utilized[77]. - The company plans to fully utilize HKD 36.5 million for expanding its IT distribution business by March 31, 2025, with HKD 10.6 million already utilized[77]. Legal and Compliance - The company has complied with relevant laws and regulations that significantly impact its business and operations during the year[52]. - There were no significant disputes between the company and its employees, suppliers, or customers during the year[56]. - The company has not engaged in any arrangements that would allow directors or their associates to benefit from the purchase of shares or debt securities[97]. Future Outlook - The company remains optimistic about the long-term development of the IT industry in Hong Kong despite the challenging macroeconomic environment and increasing market competition[13]. - The company anticipates delays in the utilization of funds for system integration solutions due to labor supply issues, affecting the original timeline[84].
数科集团(02350) - 2024 - 年度财报