Financial Performance - The group's revenue for the year ended March 31, 2024, was approximately HKD 66,050,000, a decrease of about HKD 2,420,000 or 3.53% compared to HKD 68,470,000 for the previous year[5]. - Revenue from the jewelry design and marketing business was approximately HKD 37,900,000, down from HKD 41,800,000 in the previous year[23]. - The group's loss for the year was approximately HKD 18,510,000, an increase of about HKD 4,050,000 compared to a loss of HKD 14,460,000 in the previous year[21]. - Financial costs increased to approximately HKD 1,650,000 from HKD 1,050,000, reflecting a rise of about HKD 600,000[22]. - The group recorded a fair value loss of approximately HKD 16,140,000 on listed equity securities during the review period, compared to a fair value gain of HKD 1,270,000 in the previous year[49]. - The total principal amount for individual borrowers is approximately HKD 310,140,000, an increase from HKD 276,570,000 last year, with an average interest rate of 10.58% compared to 9.70% last year[44]. - The company reported an audit service fee of HKD 730,000 and a non-audit service fee of HKD 75,000, totaling HKD 805,000 for the fiscal year ending March 31, 2024[157]. Credit Risk and Loan Management - The group experienced an expected credit loss of approximately HKD 30,720,000 for receivables, compared to HKD 21,820,000 in the previous year[6]. - The expected credit loss provision for receivables is approximately HKD 63,100,000, an increase from HKD 31,040,000 in the previous year, with a default provision rate of 20.34% compared to 11.22% last year[48]. - The largest loan amount from a single borrower was HKD 9,000,000, accounting for approximately 2.90% of the total receivables[27]. - The five largest borrowers accounted for a total loan amount of HKD 43,000,000, representing approximately 13.86% of total receivables[27]. - The group aims to monitor loan recoverability quarterly to ensure timely repayments and manage overdue accounts effectively[14]. - The group has established a loan monitoring mechanism to assess credit risk and borrower financial conditions regularly[13]. - The group has not recorded any bad debts or receivable write-offs for the fiscal year ending March 31, 2024[48]. Market Conditions and Business Strategy - The group continues to face uncertainties in the market due to geopolitical tensions and global economic weaknesses[25]. - The group will continue to review its existing business portfolio to enhance operations and seek suitable investment opportunities for revenue diversification[38]. - The company’s operations cover two main segments: jewelry design and marketing, and lending services, with a focus on Hong Kong and mainland China[143]. Corporate Governance - The board of directors has maintained compliance with the corporate governance code throughout the fiscal year ending March 31, 2024[64]. - The company has adopted the corporate governance principles outlined in the Hong Kong Stock Exchange Listing Rules[63]. - The board consists of a diverse group of members, considering measurable goals related to gender, age, culture, and professional experience[69]. - The company has established a written guideline for employees regarding securities trading to prevent insider trading[76]. - The board has reviewed and developed the company's corporate governance policies and practices during the fiscal year[77]. - The company has a total of four board committees: Executive Committee, Remuneration Committee, Audit Committee, and Nomination Committee[79]. - The board is responsible for overseeing the company's business strategies and performance to enhance shareholder value[65]. - The board has the authority to approve and monitor all policy matters, overall strategy, and significant transactions[66]. - The board of directors has confirmed compliance with the corporate governance code throughout the fiscal year ending March 31, 2024[87]. Employee and Diversity Initiatives - As of March 31, 2024, the company had 25 employees, a decrease from 47 employees in 2023[61]. - The company has implemented employee development and training programs to improve employee quality[61]. - Approximately 83% of the board members and 60% of the company's employees are male, indicating a focus on employee diversity[94]. Risk Management and Internal Controls - The board is responsible for risk management and internal control systems to protect the company's assets and stakeholders' interests[110]. - The company has adopted a risk management framework that combines top-down and bottom-up processes to assess overall strategic risks and operational risks[111]. - The company will conduct an annual independent assessment of its risk management and internal control systems to enhance their effectiveness[132]. - The internal control system is deemed effective and complete, with sufficient resources, staff qualifications, training programs, and budget for accounting, internal audit, and financial reporting functions[151]. - The company emphasizes the importance of risk management and internal controls as part of its core responsibilities at all management levels[129]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to reduce greenhouse gas emissions intensity by 3% over three years from the baseline year of 2022, with a revised target to maintain or reduce emissions intensity by the end of fiscal year 2025[169]. - The company plans to maintain or reduce the total harmless waste generation density by the end of fiscal year 2025, with a baseline year revised to 2023[169]. - The company has reported a decrease in total greenhouse gas emissions density in 2024 compared to 2023 due to the sale of one vehicle[172]. - The company integrates environmental, social, and governance considerations into its core business strategy to ensure long-term success[162]. - The company has established a framework for assessing key performance indicators related to environmental, social, and governance issues[164]. - The company has established an Environmental, Social, and Governance (ESG) working group to systematically manage ESG matters, which includes collecting and analyzing relevant data[178]. - The board of directors is responsible for overseeing the company's ESG strategy and performance, meeting at least once a year to discuss related issues[178]. - The company has identified significant ESG issues based on internal assessments, which will guide the focus of its ESG reporting and strategy[184]. - The company aims to reduce emissions by exploring environmentally friendly business operations as part of its commitment to sustainable development[188]. - The company has implemented an Environmental Protection Policy to enhance environmental protection measures and comply with local laws and regulations[188]. - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's listing rules and guidelines, ensuring consistency with previous reports[180]. - The company will continue to conduct materiality assessments to analyze business risks and respond to stakeholder expectations[184]. - The total greenhouse gas emissions for the company in 2024 amounted to 13.58 tons of CO2 equivalent, a decrease of 42.5% from 23.59 tons in 2023[194]. - Direct greenhouse gas emissions from unleaded gasoline combustion (Scope 1) decreased to 8.74 tons of CO2 equivalent in 2024, down from 19.92 tons in 2023, representing a reduction of 56.2%[194]. - The total energy consumption in 2024 was 38.78 MWh, a significant decrease of 50% compared to 77.43 MWh in 2023[200]. - The density of total greenhouse gas emissions per million HKD revenue improved to 0.21 tons of CO2 equivalent in 2024 from 0.34 tons in 2023, indicating a 38.2% enhancement in efficiency[194]. - The total amount of harmless waste generated in 2024 was 387.28 kg, a slight decrease from 390.29 kg in 2023[197]. - The company reported a direct energy consumption of 31.75 MWh in 2024, down from 72.59 MWh in 2023, reflecting a reduction of 56.3%[200]. - The indirect energy consumption increased to 7.03 MWh in 2024 from 4.84 MWh in 2023, marking a rise of 45.3%[200]. - The total amount of office paper used in 2024 was 31.28 kg, an increase from 30.29 kg in 2023, indicating a 3.3% rise[197]. - The company has implemented measures to reduce paper usage and improve resource management as part of its environmental policy[196].
中国环保能源(00986) - 2024 - 年度财报