Revenue and Financial Performance - The group's revenue for the year ended March 31, 2021, was HKD 200 million, an increase of approximately HKD 18 million or 9.9% compared to HKD 182 million for the previous year[9]. - The increase in revenue was primarily driven by the distribution of household and audio-visual products from Emerson, which contributed an additional HKD 8 million, and the trade of household appliances, wires, and cables in China, which added HKD 19 million, representing increases of 16.7% and 15.4% respectively[9]. - The group recorded a loss attributable to shareholders of HKD 86 million, a slight improvement from a loss of HKD 87 million in the previous year[9]. - The group completed the sale of its franchise business, which had generated revenue of HKD 44 million in the previous year, and this revenue is not included in the current year's total[9]. - The group anticipates recognizing revenue from the Ningxiang project upon completion, which is expected to enhance income streams for shareholders[14]. - The company’s revenue from its discontinued franchise business was HKD 44,000,000, down from HKD 58,000,000 in the previous year, primarily due to the impact of COVID-19[34]. - The operating profit from the discontinued franchise business decreased to HKD 24,000,000 from HKD 39,000,000 in the previous year[34]. - Revenue from Emerson's operations increased to HKD 56,000,000, up 16.7% from HKD 48,000,000 in the previous year[19]. - The home appliance business in China generated revenue of HKD 142,000,000, representing a 15.4% increase from HKD 123,000,000 in the previous year[21]. - Revenue from continuing operations for the year ended March 31, 2021, was HKD 200 million, an increase of 9.9% from HKD 182 million in 2020[194]. Property Development and Land Acquisitions - The group acquired seven land parcels across various cities in China for a total consideration of approximately RMB 3.86 billion, with a total area of about 347,986.15 square meters[10]. - The total contracted sales amount for the year was approximately RMB 287 million, with a total contracted sales area of about 59,700 square meters, and an average selling price of RMB 4,800 per square meter[10]. - The group has invested a total of RMB 10,408,200 in the property development sector, marking its entry into this market[23]. - The group successfully acquired land use rights for a residential development project in Gongyi, Henan, at a bid price of RMB 264,300,000 (approximately HKD 296,700,000)[25]. - The company successfully acquired land use rights for eight residential development projects across five provinces in China, increasing total land reserves to 397,489.14 square meters, an increase of 8 times from 49,502.99 square meters as of March 31, 2020[33]. - The total acquisition cost for the eight land parcels amounted to approximately RMB 3,868,300,000[33]. - The projected total gross floor area from the completed developments is approximately 1,252,300 square meters, with a saleable area of about 939,000 square meters[33]. - The company anticipates significant revenue generation from the newly acquired land parcels in the coming years, leveraging its extensive experience in property development in China[36]. - The company plans to continue participating in land auctions organized by local governments to acquire land with substantial development potential[36]. - The group aims to strengthen its domestic property development business by participating in land auctions to increase land reserves[14]. Operational Challenges and Strategic Focus - The group's household appliance business in China saw some growth despite the pandemic, while the information technology services business experienced a significant decline, with no revenue generated during the year[11]. - The management will consider ceasing operations in the information technology services business if conditions do not improve in the coming year[11]. - Emerson's distribution business benefited from reduced competition during the pandemic, and the company will continue to implement cost control measures to navigate the challenging business environment[11]. - The group plans to continue implementing cost control measures to reduce operational costs amid ongoing challenges from the pandemic[38]. - The management is focusing resources on core businesses, particularly property development in China, to enhance shareholder returns in the coming years[38]. - The group has not made any significant new investments during the year, aside from land acquisitions through public auctions[41]. Financial Position and Assets - As of March 31, 2021, the group's net current assets were HKD 2,894,000,000, up from HKD 642,000,000 on March 31, 2020, while the current ratio decreased to approximately 1.82 from 5.49[39]. - The group’s cash and bank balances as of March 31, 2021, were HKD 430,000,000, slightly down from HKD 447,000,000 a year earlier[39]. - The group has a capital commitment of HKD 1,351,000,000 for development properties as of March 31, 2021, compared to HKD 499,000,000 on March 31, 2020[49]. - The group’s debt-to-equity ratio was approximately 3.93 times as of March 31, 2021, indicating a significant increase from the previous year[43]. - The carrying value of development properties is approximately HKD 5,769,000,000, accounting for 90% of the group's total assets[186]. - Development properties are presented at the lower of cost and net realizable value, with management believing that no impairment is necessary[186]. - Current assets increased from HKD 785 million in 2020 to HKD 6,415 million in 2021, driven by a substantial rise in inventory from HKD 266 million to HKD 5,769 million[197]. - Current liabilities surged from HKD 143 million in 2020 to HKD 3,521 million in 2021, largely due to an increase in accounts payable from HKD 81 million to HKD 1,598 million[198]. - The total equity increased slightly from HKD 494 million in 2020 to HKD 498 million in 2021[198]. Corporate Governance and Compliance - The company has established compliance procedures to ensure adherence to applicable laws and regulations[60]. - The company has no reserves available for distribution to shareholders as of March 31, 2021, and March 31, 2020[71]. - The company’s major subsidiaries and their business details are outlined in the consolidated financial statements[70]. - The company’s board of directors includes independent non-executive directors with relevant academic and professional backgrounds[73]. - The company has conducted directors' liability insurance to provide appropriate protection against legal actions during the year[84]. - The board believes that Mr. Tan's interests in related companies do not affect his role as a director and do not harm the interests of the group and its shareholders[77]. - The board has reviewed and fulfilled its corporate governance responsibilities, including the development and monitoring of governance policies and compliance with legal and regulatory requirements[145]. - The company has engaged a third-party firm for internal audit functions, which will conduct annual reviews of risk management and internal control procedures[136]. - The company has adopted a dividend policy that allows for the declaration and distribution of dividends, contingent upon sufficient profits for its own development and shareholder returns[144]. Environmental, Social, and Governance (ESG) Initiatives - The group focuses on corporate social responsibility, integrating environmental, social, and governance (ESG) issues into its business operations to align stakeholder interests and promote long-term development[148]. - The board is responsible for ESG strategy and risk management, ensuring effective internal controls are in place to manage ESG-related risks[150]. - The group has identified 16 key ESG issues that impact its operations, focusing on stakeholder communication and long-term development strategies[157]. - Environmental policies include compliance with laws, monitoring emissions, and efficient resource utilization to minimize environmental impact[158]. - The group aims to reduce its environmental footprint through various initiatives and continuous reassessment of its processes[158]. - The report does not disclose all environmental key performance indicators, focusing instead on overall efforts to minimize environmental impact[158]. - The company's greenhouse gas emissions saw a dramatic increase, with carbon dioxide equivalent emissions rising to 236.69 tons from 8.75 tons year-over-year[162]. - The total waste generated by the company increased, with non-hazardous waste rising to 3.51 tons from 0.01 tons, and hazardous waste increasing to 0.13 tons from 0.02 tons[165]. - The company has implemented strict environmental, social, and ethical standards for its suppliers to ensure responsible sourcing and sustainability[175]. - The group emphasizes adherence to environmental, social, and governance principles, including controlling greenhouse gas emissions and reducing waste[177]. Employee and Workforce Management - The company employed a total of 146 employees as of March 31, 2021, an increase of 74.4% from 84 employees in 2020[171]. - The gender breakdown of employees includes 76 males and 70 females, with a significant increase in male employees from 45 in 2020[171]. - The company has 140 permanent employees and 6 contract/other employees, reflecting a shift towards more permanent positions[171]. - The company conducted 100 hours of external training for employees, with 80% participation from male employees[173]. - The company recognizes the importance of training for employee development and supports various training programs[173]. - The company has established health and safety standards as a priority, with annual fire drills and inspections to maintain a safe working environment[172]. - The company has a commitment to preventing child labor and forced labor within its operations and supply chain[174]. Audit and Financial Reporting - The independent auditor confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2021[182]. - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[182]. - Key audit matters were identified based on professional judgment, highlighting the importance of these issues in the overall audit[184]. - The audit fees for the current year are approximately HKD 2,000,000 for audit services and HKD 1,000,000 for non-audit services, which include interim financial reviews and professional services related to land acquisitions and taxes[138].
敏捷控股(00186) - 2021 - 年度财报