Financial Performance - The company reported a revenue of 4.44 million for the fiscal year 2020/21, indicating a significant performance in its financial results[2]. - The group's revenue for the year was HKD 260,300,000, a decrease of HKD 64,600,000 or 19.9% compared to HKD 324,900,000 in the previous year[35]. - The profit attributable to the company's owners was HKD 6,300,000, a turnaround from a loss of HKD 185,700,000 in the previous year[35]. - The group's operating profit for the year was HKD 29,796,000, compared to an operating loss of HKD 162,713,000 in the previous year[30]. - The property investment, development, and leasing segment recorded a revenue of HKD 16,500,000, a significant decrease of HKD 19,800,000 or 54.5% from HKD 36,300,000 in the previous year[36]. - The hotel operations segment saw a drastic decline in accommodation revenue to HKD 500,000, down HKD 12,100,000 or 95.8% from HKD 12,600,000 in the previous year[39]. - The group recorded a pre-tax profit of HKD 17,323,000, compared to a pre-tax loss of HKD 178,915,000 in the previous year[30]. - The group achieved a one-time gain of HKD 53,407,000 from the sale of a subsidiary[30]. - The rental and rental-related income for the group was HKD 16,000,000, a decrease of HKD 7,700,000 or 32.5% from HKD 23,700,000 in the previous year[38]. - Revenue for the plastic packaging materials segment decreased by HKD 48,400,000 or 17.7% to HKD 224,600,000 for the year ended March 31, 2021, compared to HKD 273,000,000 for the previous year[40]. - Profit increased by HKD 8,900,000 or 37.4% to HKD 32,600,000, attributed to lower sales costs and government relief subsidies[40]. - The group's cash and cash equivalents increased to HKD 159,600,000 from HKD 103,400,000, primarily due to proceeds from the sale of a subsidiary[53]. - The net debt-to-equity ratio significantly decreased to 10.7% from 24.5%, reflecting cash used to repay bank loans from subsidiary sales[54]. - The company reported a final dividend of HKD 0.03 per share for the year ended March 31, 2021, consistent with the previous year[174]. - The company had a total available reserves of HKD 299,707,688 as of March 31, 2021, a slight decrease from HKD 303,412,905 in the previous year[183]. Corporate Governance - The board of directors includes experienced members with over 40 years in finance and property investment, enhancing the company's strategic direction[19]. - The independent non-executive directors bring extensive banking and financial experience, which supports the company's governance and oversight[22]. - The company is committed to enhancing its corporate governance practices, as reflected in its governance report[6]. - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring transparency and accountability[60]. - The board consists of ten members, with a balanced mix of executive and non-executive directors, and held eight meetings during the year[63]. - Attendance records for board meetings show that the chairman attended 8 out of 10 meetings, while other directors had varying attendance rates[64]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific matters[63]. - The company encourages continuous professional development for directors to ensure informed contributions to the board[69]. - The chairman also serves as the CEO, which deviates from the guideline of separating these roles, but the board believes this structure does not harm the balance of power[70]. - No formal meetings were held between the chairman and independent non-executive directors during the year due to scheduling conflicts[72]. - One non-executive director and one independent non-executive director were unable to attend the annual general meeting held on August 28, 2020[73]. - The remuneration committee held one meeting during the year ending March 31, 2021, to review the overall remuneration policy and structure for directors and senior management[75]. - The audit committee conducted four meetings during the year and ensured all members had sufficient experience in reviewing consolidated financial reports[90]. - The external auditor's fees for audit services amounted to HKD 851,599 for the year ending March 31, 2021, compared to HKD 809,260 for the previous year[83]. - The company emphasizes the importance of board diversity as a key element in achieving strategic goals and sustainable development[82]. - The nomination committee reviewed the board's structure, size, and composition to ensure it possesses the necessary expertise and experience[79]. - The remuneration committee's responsibilities include determining specific remuneration for executive directors and senior management based on their roles within the group[75]. - The audit committee is responsible for reviewing the independence and effectiveness of the external auditor's procedures[91]. - The company regularly reviews director remuneration and compares it with other listed companies in Hong Kong[75]. - The nomination committee considers various factors, including integrity, relevant skills, and diversity when evaluating candidates for board positions[80]. - The company has established a written terms of reference for the audit committee to fulfill its corporate governance responsibilities[86]. - The audit committee reviewed the financial reports for the year ending March 31, 2021, and recommended the reappointment of the external auditor, Crowe (HK) CPA Limited, at the upcoming annual general meeting[96]. Risk Management - The company emphasizes the importance of effective risk management for long-term growth and sustainability, integrating it into strategic, operational, and financial management[99]. - The risk management framework includes a "top-down" and "bottom-up" approach to identify and manage significant risks across business units[100]. - The company identified 16 different risk categories affecting financial performance, reputation, health and safety, legal compliance, and achievement of business objectives[107]. - Credit risk management includes establishing a credit committee to formulate policies and approval procedures, ensuring timely actions on overdue accounts[110]. - The company faces liquidity risks due to settlement timing differences and actively manages liquidity to ensure sufficient funds for operations[110]. - The company maintains strict quality control to uphold its reputation built over 60 years, mitigating risks related to product defects[120]. - The company acknowledges the unpredictability of future order amounts from customers due to the nature of one-time purchase orders[121]. - The audit committee is tasked with reviewing the effectiveness of internal controls and risk management systems[99]. - The company has implemented risk mitigation measures, including active collaboration with regulatory bodies and external advisors to stay updated on new laws and regulations[135]. - The company has established a crisis management committee led by executive directors to manage potential reputational risks[145]. - The company has a detailed analysis process for equity investments to mitigate financial losses from price fluctuations[146]. - The company maintains a succession plan for key positions to address potential employee turnover in labor-intensive operations[135]. - The company has set up a robust internal control system to prevent financial losses and reputational damage from operational risks[138]. - The company has developed environmental protection policies to mitigate adverse impacts from daily operations[145]. - The company conducts regular reviews and updates of its policies and procedures to ensure their effectiveness in risk management[151]. - The company has implemented a whistleblowing policy to provide formal reporting channels for misconduct or fraud[152]. Business Development - The company is actively seeking business development opportunities, focusing on market expansion and new product development[19]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its operational capabilities[19]. - The company aims to leverage its experienced management team to navigate future market challenges and opportunities[19]. - The company is closely monitoring market competition and taking appropriate responsive actions to maintain operational performance[127]. - The company actively engages in market promotion to attract customers and strengthen business relationships with current and potential tenants[135]. Employee and Stakeholder Relations - The company employed 291 staff as of March 31, 2021, down from 333 in the previous year[182]. - The company emphasizes the importance of maintaining good relationships with customers and suppliers for overall performance improvement[188]. - The company continues to focus on enhancing its overall performance through strategic relationships with key stakeholders[188]. - The company has a policy in place to closely monitor its customers and suppliers through regulations and policies[188]. - The company's major suppliers and customers accounted for 52% and 38% of total purchases and sales, respectively[187]. - The largest supplier accounts for a significant percentage of the group's purchases, with the top five suppliers collectively representing a substantial portion[188]. - The largest customer contributes a notable percentage to the group's sales, while the top five customers together account for a significant share[188].
华信地产财务(00252) - 2021 - 年度财报