Financial Performance - The group's revenue decreased by 7% to HKD 217 million for the year ended March 31, 2021, compared to HKD 232 million in the previous year[10]. - The company reported a profit attributable to equity holders of HKD 5 million, a turnaround from a loss of HKD 23 million in the previous year, mainly due to a fair value gain on investment properties of approximately HKD 6 million[10]. - Total revenue for the year ended March 31, 2021, was HKD 217,122,000, a decrease of 6.4% from HKD 232,235,000 in 2020[148]. - Gross profit for the same period was HKD 39,744,000, down from HKD 40,363,000, reflecting a slight decline in profitability[148]. - The company reported a profit attributable to equity holders of HKD 4,747,000, compared to a loss of HKD 23,034,000 in the previous year, indicating a significant turnaround[148]. - The total comprehensive income for the year was HKD 6,570,000, compared to a comprehensive loss of HKD 18,910,000 in 2020[153]. - The company reported a pre-tax profit of HKD 4,515,000 in 2021, a significant improvement from a loss of HKD 22,793,000 in 2020[156]. - The company reported a loss from the fair value of investment properties of HKD 6,353,000 in 2021, compared to a gain of HKD 11,117,000 in 2020[156]. Revenue Segments - The mobile phone sales segment's revenue decreased from HKD 182 million to HKD 169 million, maintaining a profit of HKD 4 million[11]. - The Internet of Things (IoT) solutions segment reported revenue of HKD 46 million, with losses reduced from HKD 16 million to HKD 5 million due to increased profit margins on disinfectant products and cost control measures[12]. - The group recognized revenue of approximately HKD 35,337,000 from smart system construction services for the fiscal year ending March 31, 2021[134]. Cash and Liquidity - As of March 31, 2021, the group's cash and bank balances were approximately HKD 24 million, up from HKD 19 million in the previous year[17]. - Cash and bank balances increased to HKD 21,080,000 from HKD 17,350,000, indicating a 21.5% growth in liquidity[149]. - The net cash outflow from operating activities was HKD 21,476,000 in 2021, compared to a net inflow of HKD 1,143,000 in 2020[156]. - The company’s net cash generated from financing activities was HKD 25,508,000 in 2021, a recovery from a net outflow of HKD 10,216,000 in 2020[158]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules, with some exceptions regarding the roles of the chairman and CEO[38]. - The board consists of six executive directors and three independent non-executive directors, ensuring a diverse range of expertise[40]. - The company has implemented a standard code of conduct for directors' securities trading, confirming compliance throughout the year[39]. - The board held a total of 11 meetings this year, with all executive directors attending at least 10 out of 11 meetings[44]. - The chairman and CEO positions are held by the same individual, providing strong and consistent leadership for long-term business strategy development[45]. - The board is committed to continuously reviewing and improving corporate governance practices to ensure prudent decision-making[56]. - The independent auditor's report confirmed that the financial statements present a true and fair view of the group's financial position as of March 31, 2021[124]. Shareholder Information - The company did not recommend the payment of a final dividend for the year ended March 31, 2021[26]. - The board of directors emphasizes maintaining sufficient cash reserves for operational needs, future growth, and shareholder returns when considering dividend payments[106]. - The distributable reserves of the company as of March 31, 2021, were HKD 148,225,000, a slight decrease from HKD 149,136,000 in 2020[100]. - The company did not recommend any dividend payments for the years ended March 31, 2021, and March 31, 2020[94]. Environmental and Social Responsibility - The company has implemented a 4R policy (Reduce, Reuse, Recycle, Replace) to minimize environmental impact[66]. - The company received multiple environmental certifications, including the Hong Kong Green Organization Certification at the excellence level[67]. - The company has been recognized with the "Caring Company" logo by the Hong Kong Council of Social Service since 2005, reflecting its commitment to corporate social responsibility[88]. - The company made donations totaling HKD 210,000 during the year[103]. Assets and Liabilities - Non-current assets increased to HKD 274,496,000 from HKD 267,493,000, showing a growth of 2.7%[149]. - Current assets rose to HKD 117,233,000, up from HKD 90,195,000, marking a 30% increase[149]. - Total liabilities increased to HKD 110,441,000 from HKD 82,594,000, representing a 33.7% rise[149]. - The company's net asset value stood at HKD 281,146,000, compared to HKD 274,576,000 in the previous year, reflecting a growth of 2.4%[151]. Audit and Compliance - The audit committee reviewed the unaudited interim financial statements for the six months ending September 30, 2020, and the audited consolidated financial statements for the year ending March 31, 2021, holding two meetings in total[52]. - The company’s auditor fees for the year ending March 31, 2021, were HKD 666,000 for audit services and HKD 44,000 for non-audit services, totaling HKD 710,000[57]. - The group’s management is responsible for maintaining internal controls to ensure the financial statements are free from material misstatement due to fraud or error[140]. - The auditor's responsibility includes assessing the appropriateness of accounting policies and the reasonableness of accounting estimates made by management[144]. Investments and Fair Value - The fair value of investment properties as of March 31, 2021, was approximately HKD 212,720,000, with a net fair value increase of HKD 6,353,000 recognized in the comprehensive income statement for the year[128]. - The group has non-listed equity investments valued at approximately HKD 6,800,000, classified as financial assets measured at fair value through other comprehensive income[136]. - The fair value assessment of these investments involves significant judgment and estimation, impacting the financial statements materially[137].
香港通讯国际控股(00248) - 2021 - 年度财报