Financial Performance - The company reported a consolidated annual loss of HKD 11,567,000 for the year ended March 31, 2020, a decline of 114% compared to a profit of HKD 92,672,000 in the previous year, primarily due to decreased revenue from the printing media business and a drop in the fair value of investment properties in Hong Kong and Australia [7]. - The group’s main revenue source, advertising and circulation income from the "Oriental Daily," decreased to HKD 659,734,000, down HKD 75,228,000 or approximately 10.2% compared to the previous year [16]. - Digital media business revenues, including news content licensing and advertising, saw a decline, with advertising revenue at HKD 117,248,000, down HKD 5,145,000 or about 4.2% year-on-year [16]. - Total revenue from newspaper and advertising income was HKD 776,982,000, accounting for 94% of the group's total revenue, a decrease from HKD 857,355,000 in 2019 [144]. - The company reported a significant decrease in operating profit, with a loss of HKD 12,041 compared to a profit of HKD 94,973 in 2019 [189]. - The company reported a loss before tax of HKD 12,296,000 for the year ended March 31, 2020, compared to a profit of HKD 94,698,000 in 2019, indicating a significant decline in performance [197]. Assets and Liabilities - As of March 31, 2020, the company's net current assets were approximately HKD 875,103,000, an increase from HKD 821,337,000 in 2019, with cash and bank balances amounting to HKD 594,108,000 compared to HKD 524,039,000 in the previous year [8]. - Total assets decreased from HKD 1,896,544,000 in 2019 to HKD 1,803,690,000 in 2020, reflecting a reduction of approximately 4.9% [194]. - The company's total equity decreased from HKD 1,825,521,000 in 2019 to HKD 1,748,695,000 in 2020, a decline of approximately 4.2% [194]. - The group had significant receivables and interest amounting to HKD 223,922,000 as of March 31, 2020, which was about 12% of total assets [171]. - The group's accounts receivable amounted to approximately HKD 77,632,000, down from HKD 102,818,000 in 2019, with an expected credit loss provision of about HKD 3,700,000 [148]. Cash Flow - The company's net cash generated from operating activities was HKD 121,095,000 in 2020, a turnaround from a cash outflow of HKD 2,026,000 in 2019 [197]. - The company experienced a net cash inflow from investing activities of HKD 1,628,000 in 2020, compared to a cash outflow of HKD 458,000 in 2019 [197]. - Cash and cash equivalents increased to HKD 594,108,000 in 2020 from HKD 524,039,000 in 2019, representing a growth of about 13.3% [200]. Dividends - The company did not recommend the payment of a final dividend for the reporting year, compared to a final dividend of HKD 0.02 per share in 2019 [11]. - The company paid dividends of HKD 47,958,000 in 2020, a significant decrease from HKD 719,375,000 in 2019, indicating a reduction in shareholder returns [200]. Employee and Operational Metrics - As of March 31, 2020, the group employed 1,197 staff, down from 1,375 in the previous year [24]. - The employee turnover rate for the reporting year was approximately 12.2% of the total workforce [50]. - The company has implemented short-term measures to address revenue declines, including workforce reduction and cost control, while also distributing special bonuses totaling HKD 5,600,000 to frontline reporters [16]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance performance [91]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure [92]. - The company has adopted a set of corporate governance policies in compliance with the Hong Kong Stock Exchange's listing rules [91]. - The company has established a corporate social responsibility committee to address social and environmental issues [87]. Risk Management - The company has established a comprehensive risk management policy and system to effectively identify, assess, analyze, and mitigate risks [122]. - The board and audit committee conducted an annual review of the effectiveness of the risk management and internal control systems, confirming compliance with the relevant codes [128]. - The company has established a risk management committee to oversee the reporting and disclosure of inside information [122]. Digital Media and User Engagement - The website and mobile platform of on.cc recorded over 830 million total page views per month, indicating a strong user base globally [14]. - The digital media business has diversified, with the mobile application "Horse Racing Boss" becoming one of the most popular horse racing information apps in Hong Kong [14]. - "on.cc Money18" has become one of the most popular financial information platforms in Hong Kong, with a significant increase in reader numbers during the reporting year [15]. - The company has focused on enhancing video quality and live broadcasting capabilities for its online television platform, leading to a noticeable increase in new readers [15]. Environmental Policies - The company has implemented various environmental policies aimed at reducing waste and pollution, achieving expected targets in pollution reduction and resource utilization during the reporting year [42].
东方企控集团(00018) - 2020 - 年度财报