Financial Performance - The company's revenue for the fiscal year ending March 31, 2021, decreased by 23.13% to HKD 702 million, compared to HKD 913 million in the previous year[21]. - The profit attributable to shareholders for the fiscal year was HKD 10 million, a significant recovery from a loss of HKD 166 million in the previous year[21]. - The ODM business revenue declined by 25.39% to HKD 532 million, accounting for approximately 75.78% of the total revenue[21]. - Revenue from the brand eyewear distribution business decreased by 19.55% to HKD 144 million, representing about 20.51% of total revenue[21]. - The company reported a basic earnings per share of HKD 0.04, compared to a loss per share of HKD 0.63 in the previous year[21]. - The group's brand contact lens business revenue increased by 35.29% to HKD 23,000,000 for the year ended March 31, 2021, compared to HKD 17,000,000 in the previous year, accounting for 3.28% of the group's total revenue[24]. - The company's total operating revenue for the year ended March 31, 2021, was HKD 1,000,000 from the Jill Stuart trademark licensing business, compared to HKD 2,000,000 in the previous year[24]. - The company reported a net profit of HKD 9,508 thousand, a significant recovery from a net loss of HKD 165,819 thousand in the previous year[156]. - The total comprehensive income for the year was HKD 15,099 thousand, compared to a loss of HKD 168,128 thousand in the prior year[156]. - The company plans to continue focusing on market expansion and new product development to drive future growth[156]. Cash Flow and Financial Position - As of March 31, 2021, the group held cash and bank balances of HKD 317,000,000, with outstanding bank borrowings amounting to HKD 42,000,000[24]. - The group's net cash inflow from operating activities was HKD 44,000,000 for the year ended March 31, 2021[24]. - The capital debt ratio as of March 31, 2021, was 5.51%, indicating a stable financial position[24]. - The group maintained a strong liquidity position with net current assets of approximately HKD 404,000,000 and a current ratio of 2.5:1 as of March 31, 2021[24]. - The company reported a significant reduction in property, plant, and equipment depreciation from HKD 51,344,000 to HKD 15,741,000[167]. - The company's cash and cash equivalents at the end of the year stood at HKD 316,981,000, compared to HKD 308,806,000 at the beginning of the year[169]. - The total assets as of March 31, 2021, were HKD 770,600,000, reflecting a decrease from HKD 755,501,000 in the previous year[167]. Operational Efficiency and Strategy - The company experienced a rebound in market demand in the fourth quarter of the fiscal year, which helped improve overall revenue and operational efficiency[21]. - The company aims to streamline operations to effectively reduce fixed costs and improve overall efficiency during challenging market conditions[21]. - The company plans to enhance budget control across business units and streamline organizational structures to reduce costs and improve employee motivation[32]. - The company will continue to explore new sales channels and distribution partners, particularly strengthening its e-commerce network[33]. - A new product line with lower price points will be launched to expand the existing product range and cater to diverse consumer preferences across different regions[33]. - The company is investing in upgrading its production facilities in Henan to alleviate the burden on existing factories in Guangdong[33]. - The company aims to maintain flexible production capacity to respond to potential market demand fluctuations in the fiscal year 2021/22[32]. Governance and Compliance - The board of directors consists of five executive directors and four independent non-executive directors, ensuring a balanced governance structure[44]. - The company has complied with all applicable corporate governance code provisions during the fiscal year ending March 31, 2021[42]. - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code, but the board believes this structure provides effective leadership[49]. - The company has a policy for the rotation and re-election of directors, with specific terms outlined in the company’s articles of association[51]. - The independent non-executive directors possess appropriate professional accounting qualifications and financial management knowledge[44]. - The company has adopted a policy on board diversity, ensuring a balanced and diverse composition of the board to enhance decision-making quality[63]. - The board is responsible for overseeing the company's financial performance and compliance with applicable laws and regulations[47]. Risk Management - The risk management system has a structured framework and employs a top-down approach to identify, assess, and monitor risks, with regular evaluations conducted by various departments[70]. - No significant deficiencies were found in the risk management and internal control systems as of March 31, 2021, and appropriate measures will be taken to address identified areas for improvement[71]. - The group identified key risks including market risk, credit risk, and liquidity risk, detailed in the financial statements[85]. Shareholder Information - The board has proposed a special dividend of HKD 1.5 per share, expected to be paid around September 14, 2021[24]. - The company proposed a final special dividend of HKD 0.015 per share, amounting to approximately HKD 3,942,000[83]. - Major shareholders include United Vision International Limited and Marshvale Investment Limited, each holding 143,033,828 shares, representing 54.43% of the total issued shares[114]. - The company has adopted a new share option plan in 2014, allowing for the issuance of up to 10% of the total issued share capital[107]. - The independent non-executive directors confirmed their independence according to the listing rules[120]. Audit and Financial Reporting - The independent auditor, Deloitte, has audited the consolidated financial statements and found them to be true and fair[135]. - The board of directors is responsible for preparing the consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance, ensuring no material misstatements due to fraud or error[146]. - The auditor identifies and assesses risks of material misstatement in the financial statements and designs audit procedures to address those risks[149]. - The audit report is issued by Deloitte, with the audit partner being a certified public accountant, Hu Jia Ming[154].
新兴光学(00125) - 2021 - 年度财报