Financial Performance - The company's revenue for the year ended March 31, 2021, was HKD 1,012,000,000, remaining relatively stable compared to the previous year[13]. - Shareholders' net profit surged from HKD 8,800,000 in the previous year to HKD 33,900,000, including a net gain of approximately HKD 5,600,000 from the sale of a property[13]. - Revenue for the year ended March 31, 2021, was HKD 927,775,000, a decrease of 1.5% from HKD 946,242,000 in the previous year[184]. - Gross profit for the same period was HKD 194,059,000, down from HKD 200,000,000, reflecting a decline of 3.0%[184]. - Operating profit decreased to HKD 24,493,000 from HKD 33,336,000, representing a decline of 26.5%[184]. - Profit before tax was HKD 23,698,000, down from HKD 31,220,000, a decrease of 24.2%[184]. - Net profit from continuing operations increased to HKD 19,745,000 from HKD 18,333,000, an increase of 7.8%[184]. - Total comprehensive income for the year was HKD 75,000,000, compared to HKD (7,606,000) in the previous year, indicating a significant recovery[193]. - Basic earnings per share from continuing operations was HKD 3.40, up from HKD 3.14, an increase of 8.3%[188]. - The company reported a profit from discontinued operations of HKD 14,002,000, compared to a loss of HKD 10,957,000 in the previous year[184]. - The total profit for the year was HKD 33,747,000, significantly higher than HKD 7,376,000 in the previous year, marking a substantial improvement[184]. Division Performance - The toy division's revenue decreased by 3% to HKD 686,000,000, with operating profit dropping from HKD 38,100,000 to HKD 16,700,000[14]. - The computer products division's revenue fell by 16% to HKD 91,000,000, resulting in an operating loss increasing from HKD 6,600,000 to HKD 11,300,000[15]. - The watch division's revenue increased by 17% to HKD 151,000,000, with operating profit rising significantly from HKD 3,900,000 to HKD 11,100,000[16]. - The household goods division, which has ceased operations, saw revenue rise by 28% to HKD 84,000,000, with an operating profit of HKD 14,300,000 compared to a loss of HKD 9,500,000 in the previous year[18]. Assets and Liabilities - The total assets of the group as of March 31, 2021, were HKD 948,000,000, an increase from HKD 876,000,000 in the previous year[20]. - The total liabilities increased to HKD 229,761,000 from HKD 196,370,000 in the previous year[10]. - As of March 31, 2021, the group's current liabilities increased from HKD 173 million to HKD 188 million[22]. - The group's bank loan balance was HKD 1 million, down from HKD 4 million in the previous year[22]. - The asset-liability ratio as of March 31, 2021, was 24%, compared to 22% in the previous year[22]. - The current ratio was 3.05 times, slightly down from 3.06 times in the previous year[22]. - The quick ratio decreased from 1.64 times to 1.52 times[22]. Dividends - The company declared a dividend of HKD 36,270,000, compared to HKD 30,225,000 in the previous year[10]. - The board proposed a final dividend of HKD 0.03 per share, maintaining the same as the previous year, resulting in a total annual dividend of HKD 0.06 per share, up from HKD 0.05[27][28]. - The total dividend payout for the year is HKD 18.1 million based on the number of shares issued as of June 28, 2021[28]. - The total proposed final dividend of HKD 18,135,000 remains unchanged from the previous year[46]. Environmental Impact - The group aims to reduce its environmental impact and sets annual reduction targets for resource consumption[106]. - Total greenhouse gas emissions decreased to 17,872.1 tons CO2 equivalent in the year ending March 31, 2021, from 17,939.4 tons in the previous year, representing a reduction of approximately 0.4%[107]. - The total industrial wastewater discharge was 564.0 cubic meters, down from 933.0 cubic meters, indicating a reduction of about 39.5%[107]. - Hazardous waste increased to 21.6 tons in the year ending March 31, 2021, compared to 6.2 tons in the previous year, reflecting a significant increase of 248.4%[107]. - Total electricity consumption rose to 20,023,890 kWh, up from 19,948,740 kWh, marking an increase of approximately 0.4%[113]. - Total water consumption was 305,803 cubic meters, an increase from 277,015 cubic meters, representing a rise of about 10.4%[113]. - The total packaging material consumption decreased to 4,204 tons from 3,824 tons, indicating a reduction of approximately 9.0%[113]. - The company implemented energy-saving measures, including the use of energy-efficient lighting and reporting water leaks for timely repairs[114]. - Employee awareness of energy conservation and resource reduction was enhanced through training programs[115]. Corporate Governance - The company emphasizes high levels of corporate governance, ensuring transparency, accountability, and independence[129]. - The board has delegated responsibilities to various committees to oversee the company's business, strategic direction, and performance[133]. - The company has three independent non-executive directors, constituting more than one-third of the board[133]. - The remuneration policy aims to provide a fair and competitive compensation package to attract and retain top talent, based on company performance and industry standards[138]. - The company maintained the required public float as per listing rules as of the report date[87]. - The company has arranged for directors and senior officers liability insurance to cover potential claims arising from their duties[88]. - The company has adopted a set of guidelines for directors' securities trading that meet or exceed the standards set by the listing rules[131]. - All directors confirmed compliance with the established code of conduct for securities trading[132]. Audit and Financial Reporting - 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 performance[143]. - The total fees paid to the auditors for audit services amounted to HKD 3,323,000 for continuing operations and HKD 285,000 for discontinued operations, totaling HKD 3,608,000[145]. - The board of directors is responsible for maintaining an effective internal control and risk management system, ensuring adequate resources and staff qualifications for financial reporting functions[150]. - The company has engaged an independent professional firm annually to review its internal control and risk management systems, confirming their effectiveness and sufficiency[151]. - The independent auditor's report provides reasonable assurance that the financial statements are free from material misstatement due to fraud or error[174]. - The company is responsible for preparing financial statements that are true and fair, assessing its ability to continue as a going concern, and disclosing relevant matters[172]. - The audit identified inventory provisions as a key audit matter due to inherent risks of obsolescence and management's judgment in determining adequate inventory provisions[167].
HERALD HOLD(00114) - 2021 - 年度财报