Financial Performance - Revenue for the fiscal year ending March 31, 2024, was HKD 89,004,000, an increase of 5% from HKD 84,833,000 in the previous year[154]. - Loss before tax improved to HKD (7,504,000) from HKD (123,327,000) year-over-year, indicating a significant reduction in losses[154]. - Total assets decreased to HKD 84,692,000 from HKD 93,635,000, reflecting a decline of approximately 9%[154]. - Total liabilities were reduced to HKD (66,954,000) from HKD (118,635,000), showing a decrease of about 44%[154]. - The company reported a total comprehensive loss of HKD (8,006,000) compared to HKD (70,734,000) in the previous year, marking a substantial improvement[154]. Corporate Governance - The board has reviewed the company's corporate governance policies and practices, ensuring compliance with legal and regulatory requirements[28]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[33]. - The company has only two independent non-executive directors, which is below the minimum requirement of three as per listing rules[196]. - The company currently has no chairman fulfilling the responsibilities outlined in the corporate governance code, but the board believes it can ensure balanced power distribution through its operations[197]. - The company has not yet fulfilled the composition requirements for its audit, remuneration, and nomination committees due to the resignation of an independent non-executive director[196]. Risk Management - The group faces foreign currency risks primarily from transactions denominated in Renminbi and US dollars, which may adversely affect net asset value and earnings due to exchange rate fluctuations[37]. - The company has no foreign exchange hedging policy currently in place to mitigate currency risks but will monitor these risks closely[37]. - The economic recovery post-pandemic has not been as optimistic as expected, significantly impacting the cash flow and repayment capabilities of small and medium-sized enterprise clients[62]. - Inflationary pressures increased operational costs for both the company and its clients, affecting profitability and disposable income[157]. Business Strategy - The company maintained stable growth despite external uncertainties and intense market competition, focusing on diversifying revenue sources and enhancing synergies across multiple platforms[61]. - The company emphasizes the potential of the leasing industry in contributing sustainable income and supporting economic development[61]. - The company successfully expanded its leasing business to multiple locations in China, enhancing its market presence and diversifying business risks[182]. - The introduction of value-added services such as credit assessment, investigation, and debt collection has generated additional revenue streams, contributing to overall growth[182]. - The company plans to further expand its leasing business and recover overdue receivables to mitigate business risks[183]. Environmental, Social, and Governance (ESG) Initiatives - The group is committed to enhancing its management of "green operations" and addressing climate change in line with China's clearer emission reduction targets[40]. - The company continues to focus on enhancing its ESG initiatives, with senior management overseeing ESG efforts[69]. - The company aims to strengthen climate change management and address potential risks associated with rising temperatures and regulatory compliance[80]. - The company has implemented effective resource utilization measures, including encouraging employees to use reusable items and reducing plastic waste[78]. - The group has established an ESG governance framework, with the board overseeing ESG initiatives and an ESG working group in place[124]. Related Party Transactions - The company reported a related party balance of approximately HKD 32.8 million as of March 31, 2024, compared to HKD 43.2 million in 2023[11]. - The company entered into a supplementary agreement with Shanghai Nanlang to extend the loan facility's maturity date to July 1, 2024, with an annual interest rate of 5.0%[11]. - The trademark licensing agreements and financing lease guarantee agreements were established under favorable terms for the company, with all applicable percentage ratios below 0.10% or 5% and total consideration below HKD 3 million[12]. - The company has established a priority purchase right for any equity interests in restricted businesses acquired by certain covenant parties[17]. Shareholder Relations - The company is committed to creating long-term stable returns for shareholders and providing quality products and services to customers[68]. - The management expressed gratitude to shareholders and stakeholders for their unwavering support during a challenging year[158]. - The board confirmed the adequacy of public float as per Listing Rule 8.08[112]. Audit and Compliance - The audit committee has carefully reviewed the basis for the qualified audit opinion on the consolidated financial statements for the year ended March 31, 2024[67]. - The auditor for the past three years was Hong Kong Lixin Dehao CPA, with a change to Dahua Mashiyun CPA effective April 8, 2022[113].
融众金融(03963) - 2024 - 年度财报