Financial Performance - For the fiscal year ending March 31, 2020, the company's revenue increased by 6% to HKD 1,012,000,000 from HKD 952,000,000 in the previous year[12]. - The net profit attributable to shareholders was HKD 8,800,000, a significant recovery from a net loss of HKD 26,200,000 in the prior year[12]. - Total revenue for the year ended March 31, 2020, was HKD 1,011,870,000, representing a 6.2% increase from HKD 952,465,000 in 2019[185]. - Gross profit for the same period was HKD 211,799,000, up from HKD 140,264,000, indicating a significant improvement in profitability[185]. - The company reported a net profit of HKD 7,376,000 for the year, a recovery from a loss of HKD 28,129,000 in the previous year[185]. - Total comprehensive income for the year was HKD 7,606,000, compared to a loss of HKD 24,346,000 in the prior year[189]. - The company declared a dividend of HKD 12,090,000 for the current year, which is a decrease from HKD 18,135,000 in the previous year[200]. Revenue by Division - The toy division saw a revenue surge of 29%, reaching HKD 709,000,000, compared to HKD 548,000,000 the previous year[13]. - The computer products division experienced a 37% decline in revenue, dropping to HKD 109,000,000 due to decreased sales of smart connected devices amid trade uncertainties[14]. - The household products division's revenue fell by 17% to HKD 66,000,000, with an operating loss reduced from HKD 18,700,000 to HKD 9,500,000[15]. - The watch division turned a profit with an operating income of HKD 3,900,000, despite a 16% drop in revenue to HKD 129,000,000[16]. Financial Position - The total assets of the company as of March 31, 2020, were HKD 876,225,000, down from HKD 954,942,000 the previous year[8]. - The total liabilities decreased to HKD 196,370,000 from HKD 236,503,000, indicating improved financial stability[8]. - The company's total liabilities decreased from HKD 214,627,000 to HKD 173,460,000, indicating improved financial stability[193]. - The company's net asset value decreased to HKD 679,855,000 from HKD 718,439,000, reflecting a reduction of about 5.4%[196]. - The total equity attributable to shareholders was HKD 672,436,000, down from HKD 708,751,000, representing a decline of approximately 5.1%[196]. Cash and Dividends - Cash reserves increased to HKD 191,000,000 from HKD 187,000,000, reflecting a stable liquidity position[20]. - The company declared a dividend of HKD 30,225,000, up from HKD 18,135,000 in the previous year, with earnings per share improving to HKD 1.46 from a loss of HKD 4.33[7]. - The total proposed final dividend is HKD 18.1 million, with a total annual dividend of HKD 0.05 per share, resulting in a return rate of 7.4%[30][31]. Shareholding and Management - Dr. Zhang Zengji holds 106,489,893 shares, representing 17.62% of the issued shares[67]. - Mr. Robert Dorfman owns 51,471,000 shares, accounting for 8.51% of the issued shares[67]. - The company has a share option plan in place to incentivize eligible participants to enhance performance and efficiency[73]. - The board of directors consists of 3 executive directors and 3 independent non-executive directors, with independent directors accounting for more than one-third of the board[135]. Environmental and Social Responsibility - The group aims to reduce environmental impact and has set annual reduction targets for resource consumption[108]. - The company has identified three key environmental, social, and governance issues: environment, employment and labor practices, and operational practices[106]. - Charitable donations for the fiscal year amounted to HKD 137,000, an increase from HKD 25,000 in the previous year[51]. - The company encourages employees to participate in charitable activities to support the community[128]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of March 31, 2020, in accordance with Hong Kong Financial Reporting Standards[163]. - The audit committee held three meetings during the fiscal year to review the accounting principles adopted by the group and discuss audit, risk management, internal control, and financial reporting matters, including the review of interim and annual performance[147]. - The company has engaged an independent professional firm to annually review its internal control and risk management systems, which are deemed effective and sufficient by the board[155]. - The board is responsible for maintaining an effective internal control and risk management system, ensuring adequate resources, staff qualifications, and training for financial reporting functions[154].
HERALD HOLD(00114) - 2020 - 年度财报