Financial Performance - The company's revenue for the fiscal year ended March 31, 2019, was HKD 952 million, a decrease of 25% from HKD 1,272 million in the previous year[9]. - The net loss attributable to shareholders for the year was HKD 26.2 million, compared to a net loss of HKD 26.8 million in the previous year[9]. - Total revenue for the year 2019 was HKD 952,465,000, a decrease of 25.1% compared to HKD 1,271,606,000 in 2018[151]. - Gross profit for 2019 was HKD 140,264,000, down 44.8% from HKD 254,223,000 in the previous year[151]. - The company reported a net loss of HKD 28,129,000 for 2019, slightly improved from a loss of HKD 29,892,000 in 2018[153]. - Basic and diluted loss per share for 2019 was HKD 4.33, compared to HKD 4.43 in 2018[151]. Division Performance - The toy division's revenue decreased by 29% to HKD 548 million, down from HKD 775 million in the previous year, resulting in an operating loss of HKD 100,000[10]. - The computer products division's revenue fell by 8% to HKD 173 million, down from HKD 189 million, with an operating loss of HKD 12.7 million[11]. - The household products division's revenue decreased by 35% to HKD 79 million, down from HKD 122 million, with an operating loss of HKD 18.7 million[12]. - The watch division's revenue declined by 17% to HKD 153 million, down from HKD 185 million, but managed to reduce its operating loss to HKD 5.2 million from HKD 23.6 million[13]. Assets and Liabilities - The total assets as of March 31, 2019, were HKD 955 million, down from HKD 1,079 million in the previous year[16]. - The total liabilities decreased to HKD 236.5 million from HKD 311.9 million, while the net asset value was HKD 718.4 million, down from HKD 766.9 million[6]. - As of March 31, 2019, the group's current liabilities decreased from HKD 302 million to HKD 215 million[18]. - The group's debt-to-asset ratio improved to 25% from 29% year-on-year, while the current ratio increased to 2.67 times from 2.24 times[19]. Cash Flow - Cash and cash equivalents increased to HKD 187 million from HKD 142 million in the previous year[17]. - The company reported a net cash outflow from operating activities of HKD 4,902,000 compared to an outflow of HKD 31,038,000 in the previous year, indicating an improvement[164]. - Cash generated from investing activities was HKD 129,449,000, a significant increase from a cash outflow of HKD 21,032,000 in the prior year[164]. - The company experienced a net cash decrease of HKD 87,505,000 from financing activities, compared to a net cash inflow of HKD 10,059,000 in the previous year[164]. Shareholder Information - The board proposed a final dividend of HKD 0.03 per share, with a total payout of HKD 18.1 million, resulting in an annual return rate of 3.4%[25][26]. - The largest customer accounted for 40% of total sales, while the top five customers combined represented 59% of total sales[38]. - The largest supplier contributed 5% to total procurement, with the top five suppliers together accounting for 17%[38]. - The company did not declare an interim dividend for the year, but recommended a final dividend of HKD 0.03 per share, consistent with the previous year[39]. Governance and Management - The board of directors includes Robert Dorfman, who has been with the company since 1983, and other experienced members with extensive backgrounds in finance and management[46][49][50][51][52][53]. - The company has maintained a consistent approach to governance, with independent non-executive directors serving without specific term appointments[45]. - The board of directors held four regular meetings during the fiscal year, with full attendance from all executive directors[110]. - The remuneration committee, consisting of two independent non-executive directors and one executive director, met once to discuss the company's remuneration policies[115]. Environmental Impact - Greenhouse gas emissions decreased to 16,363.3 tons CO2 equivalent in 2019 from 23,475.2 tons in 2018, representing a reduction of approximately 30%[89]. - Industrial wastewater emissions significantly dropped to 398.0 cubic meters in 2019 from 18,472.4 cubic meters in 2018, indicating a reduction of over 97%[89]. - Electricity consumption decreased to 18,264,612 kWh in 2019 from 26,202,926 kWh in 2018, reflecting a reduction of approximately 30%[92]. - The group utilized 3,340.0 tons of packaging materials in 2019, down from 4,863.8 tons in 2018, marking a decrease of about 31%[92]. Internal Controls and Audit - The audit committee held three meetings during the fiscal year to review the group's accounting principles and practices, discussing audit, risk management, internal control, and financial reporting matters, including the review of interim and annual results[120]. - The company plans to continue evaluating its internal controls and accounting policies to address any significant deficiencies identified during the audit[148]. - The board has established a dividend policy that requires board approval and considers factors such as past and expected financial performance, retained earnings, cash flow, and operational needs before declaring dividends[130]. Accounts Receivable - As of March 31, 2019, the total accounts receivable for the group amounted to HKD 146,841,000, with a provision for losses of HKD 55,741,000[139]. - The management calculates the loss provision based on the expected loss rate for each category of accounts receivable, which reflects the expected credit losses over the entire duration[139]. - The assessment of the loss provision involves significant management judgment and estimation, identifying it as a key audit matter due to inherent uncertainties[140].
HERALD HOLD(00114) - 2019 - 年度财报