Financial Performance - The group's revenue increased by 4% to HKD 176 million for the year ended March 31, 2024, compared to HKD 170 million in the previous year[12]. - The sales of mobile phones decreased significantly from HKD 75 million to HKD 29 million, resulting in a loss of HKD 6 million[13]. - Revenue from IoT solutions rose from HKD 93 million to HKD 146 million, with a profit of HKD 5 million compared to a loss of HKD 7 million in the previous year[14]. - Rental income from property investments decreased from HKD 1.9 million to HKD 1.2 million, leading to a loss of HKD 3 million[15]. - The company reported a pre-tax loss of HKD 21,992,000, compared to a loss of HKD 19,568,000 in 2023, indicating a deterioration in performance[159]. - The company reported a loss attributable to owners of HKD 21,968,000 for the year ending March 31, 2024, compared to a loss of HKD 19,568,000 in the previous year, representing an increase in loss of approximately 7.1%[166]. - Total comprehensive income for the year was HKD (22,024,000), which includes other comprehensive expenses of HKD (56,000) compared to HKD (18,304,000) in the previous year[166]. - The company experienced a pre-tax loss of HKD 21,992,000, which is an increase from HKD 19,568,000 in the prior year, indicating a worsening operational performance[168]. Cash Flow and Liquidity - As of March 31, 2024, the group's cash and bank balances were approximately HKD 25 million, down from HKD 38 million the previous year, with bank borrowings increasing to HKD 159 million[17]. - Cash and bank balances decreased to HKD 22,699,000 from HKD 35,463,000, indicating a decline in liquidity[161]. - The company reported a decrease in cash and cash equivalents at year-end to HKD 1,510,000 from HKD 14,426,000 in the previous year, reflecting liquidity challenges[171]. - Cash flow from operating activities showed a net outflow of HKD 34,926,000, an improvement from the previous year's outflow of HKD 45,861,000[171]. - The company generated a net cash inflow from investing activities of HKD 20,191,000, a significant recovery from a net outflow of HKD 6,424,000 in the previous year[171]. - New bank loans obtained amounted to HKD 144,973,000, compared to HKD 92,400,000 in the previous year, indicating increased financing activity[171]. Corporate Governance - The board consists of six executive directors and four independent non-executive directors, ensuring a diverse governance structure[42]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, with some exceptions noted[40]. - The company is committed to improving corporate governance practices and ensuring proper oversight of business activities and decision-making processes[40]. - The company secretary ensures accurate communication of information within the board and provides necessary support for compliance with applicable laws and regulations[45]. - The company has implemented a standard code of conduct for securities trading by directors, confirming compliance throughout the fiscal year[41]. - The board will provide training for newly appointed directors to ensure they are well-versed in the company's policies and relevant regulations[42]. - The board held a total of 11 meetings this year, with all executive directors attending at least 8 out of 11 meetings[46]. - The audit committee held 2 meetings during the year, with all members attending both sessions[59]. - The remuneration committee met once this year to assess the performance of executive directors and determine their compensation policies[51]. - The nomination committee, consisting of three independent non-executive directors, also held one meeting this year[57]. - The company has established a whistleblowing policy for employees to report suspected violations and concerns related to operations or finances[92]. - The board of directors includes a mix of executive and independent non-executive members, ensuring governance and oversight[116]. Employee and Talent Management - The group employed 100 staff members, with total employee compensation amounting to HKD 18 million, up from HKD 17 million the previous year[22]. - The company is focused on talent development and employee engagement, with dedicated efforts in human resources management[38]. - Employee turnover rate rose to 5% in 2024, compared to 3% in 2023[83]. - The company provided an average of 5 hours of training per employee during the reporting period[85]. Environmental and Social Responsibility - The company achieved Hong Kong Green Organization certification at the excellent level for waste reduction and good level for energy saving[74]. - The company has maintained a commitment to corporate social responsibility, receiving the "15 Years Plus Caring Company" logo from the Hong Kong Council of Social Service[96]. - The company has been a corporate sponsor of the "30 Hour Famine" event organized by World Vision Hong Kong since 2010[97]. - The company has no significant impact on the environment and natural resources from its operations[77]. - There were no fatal or work-related injury cases reported during the reporting period[84]. - The company made donations totaling HKD 250,000 during the review year[113]. Financial Position and Assets - Total assets decreased to HKD 433,185,000 from HKD 428,496,000 in the previous year, reflecting a slight decline[161]. - Current liabilities increased to HKD 172,685,000 from HKD 164,118,000, indicating a rise in short-term obligations[161]. - The net asset value decreased to HKD 242,361,000 from HKD 263,328,000, showing a reduction in equity[163]. - The company recognized a fair value loss on investment properties of HKD 18,090,000, compared to HKD 9,621,000 in 2023, highlighting increased market challenges[159]. - The total fair value of the group's investment properties as of March 31, 2024, is approximately HKD 165,200,000, with a fair value impairment recognized in the comprehensive income statement amounting to HKD 18,090,000 for the fiscal year[141]. Accounting and Financial Reporting - The financial statements are prepared based on historical cost, except for investment properties and financial instruments measured at fair value[184]. - The company confirms the recognition of right-of-use assets and corresponding lease liabilities for all leases, excluding short-term leases and low-value asset leases[193]. - The company assesses whether contracts are leases at the commencement date, ensuring compliance with the Hong Kong Financial Reporting Standards[192]. - The company will recognize lease liabilities at the present value of unpaid lease payments at the lease commencement date[196]. - Lease liabilities are presented as a separate item in the consolidated statement of financial position, reflecting interest and lease payments[197]. - The company applies HKAS 36 to determine if right-of-use assets are impaired and to account for any identified impairment losses[200].
香港通讯国际控股(00248) - 2024 - 年度财报