Financial Performance - The group recorded a revenue of HKD 32,300,000 for the fiscal year ending March 31, 2024, a decrease of 33% from HKD 48,200,000 in the previous year[15] - The group's operating profit decreased from HKD 4,700,000 to HKD 2,600,000, consistent with the decline in revenue[15] - The lending business contributed HKD 1,900,000 to the revenue, down from HKD 2,500,000 in the previous year[15] - The group reported a net loss attributable to owners of approximately HKD 30,700,000, an increase of HKD 5,200,000 compared to the previous year's loss of HKD 25,500,000[16] - Operating expenses for the year were HKD 15,500,000, slightly down by 1.3% from HKD 15,700,000 in the previous year[16] - The group did not record any other income for the year, compared to HKD 82,000 in the previous year, primarily due to the absence of government subsidies[15] Business Environment and Strategy - The group anticipates a challenging business environment due to potential global issues and local social events[13] - The group aims to diversify its business by leveraging strong business connections and seizing emerging opportunities[13] - The group continues to focus on the Hong Kong and Asian markets for electronic accessories and fashion products[12] - The group has not engaged in natural resources and commodity trading during the year due to unfavorable macroeconomic conditions[15] - The trading environment for natural resources was unfavorable in 2023, leading to no palm oil trading activities, which previously generated HKD 10,400,000 in 2023[20] - The sales revenue of the consumer goods and fashion apparel segment, managed by Maidis Group, was HKD 30,400,000 for the year ending March 31, 2024, down from HKD 35,300,000 in 2023[21] - Maidis Group is optimistic about its business recovery, driven by positive feedback from potential buyers regarding differentiated products[25] - The lending business recorded revenue of HKD 1,900,000 in 2024, a decrease from HKD 2,500,000 in 2023, but the company sees ongoing market demand for this segment[26] Financial Position and Assets - As of March 31, 2024, the group's net asset value decreased to HKD 10,800,000 from HKD 41,500,000 as of March 31, 2023, primarily due to a provision for impairment losses on financial assets of approximately HKD 15,800,000[37] - The group's non-current assets as of March 31, 2024, were HKD 13,000, a significant drop from HKD 324,000 as of March 31, 2023[38] - The capital debt ratio increased to 36.7% as of March 31, 2024, compared to 13.1% in the previous year, indicating a rise in financial leverage[39] - The current ratio decreased to approximately 1.4 as of March 31, 2024, down from 2.5 in the previous year, reflecting a decline in liquidity[39] - The group had no available bank financing as of March 31, 2024, compared to zero in the previous year[40] - The group held trading investments valued at HKD 300,000 as of March 31, 2024, with significant investments in companies such as HMVOD Video Limited, which accounted for approximately 62.0% of the trading investments' fair value[44] Employee and Compensation Policies - The total employee cost for the year ended March 31, 2024, was approximately HKD 2,100,000, consistent with the previous year[51] - The group has maintained a stable workforce with 38 employees as of March 31, 2024, down from 48 in the previous year[51] - The employee compensation policy is based on performance, qualifications, and capabilities, ensuring fair treatment for all employees[113] - The company has a strong focus on employee welfare, providing competitive compensation and mandatory retirement plans in compliance with local regulations[82] Corporate Governance - The board of directors did not declare an interim dividend and does not recommend a final dividend for the year ending March 31, 2024 (2023: none) [90] - The company has adopted a dividend policy, with any proposed dividends subject to the board's discretion and shareholder approval[86] - The company has complied with the GEM Listing Rules and corporate governance code throughout the fiscal year, with some deviations explained[138] - The board of directors is responsible for policy formulation and monitoring the company's financial performance[144] - The company emphasizes a culture of accountability and sustainability in its business development and management strategies[143] - The board will continue to monitor and review corporate governance principles to ensure compliance[139] Risk Management - The company faces business risks related to loan defaults and insufficient collateral value, which could adversely affect its financial condition and profitability[72] - The company has implemented internal policies to manage risks associated with its lending business, although these may not be fully effective[72] - The company is monitoring the latest developments regarding risks to ensure timely implementation of appropriate measures[74] - The company maintains a liquidity risk management strategy by continuously monitoring cash flow and ensuring sufficient cash and credit lines[80] - The board and audit committee have reviewed and confirmed the effectiveness of the risk management and internal control systems for the year ending March 31, 2024[195] Audit and Compliance - The independent auditor for the financial statements for the year ending March 31, 2024, is KPMG, with a resolution to reappoint them at the upcoming annual general meeting[131] - The total fees paid and payable to the external auditor for the audit and other services for the fiscal year ending March 31, 2024, amounted to HKD 630,000[199] - The company has engaged independent internal control consultants to assess the effectiveness of its internal control systems[194] Board Structure and Diversity - The board of directors consists of 4 members, including 1 executive director and 3 independent non-executive directors, ensuring a balanced composition for effective leadership[150] - The company complies with GEM Listing Rules, maintaining at least one-third of the board as independent non-executive directors, with a minimum of three independent directors[151] - The company adopted a board diversity policy to ensure a balanced mix of skills, experience, and perspectives among board members, with a focus on gender, age, cultural background, and professional experience [166] - The nomination committee reviewed the board diversity policy and found the current board structure reasonable, with no changes necessary [166] Committees and Meetings - The company has established five committees under the board, including the executive committee, investment committee, audit committee, remuneration committee, and nomination committee, to oversee specific areas of the company's affairs [171] - The audit committee, consisting of three independent non-executive directors, held three meetings during the year, including one with external auditors, to review financial statements and reports [177] - The remuneration committee has held one meeting during the year, focusing on the compensation details of directors for the fiscal year ending March 31, 2024[182] - The company has established a formal process for reviewing the performance of executive directors and senior management, including their current compensation[183] Environmental and Social Responsibility - The company is committed to reducing its carbon footprint and resource consumption through various environmental initiatives[83]
富誉控股(08269) - 2024 - 年度财报