Operations and Market Position - The group operates approximately 1,383 non-franchised public buses and 397 luxury cars as of March 31, 2019[27]. - The group has positioned itself as the largest non-franchised public bus and luxury car operator in Hong Kong[27]. - The acquisition of 100% of the shares of Tai Fung Bus Company and Trade Travel (Hong Kong) Limited in 1997 solidified the group's status in the tourism bus service sector[28]. - The group has developed a network of six 24-hour cross-border shuttle bus routes since 2004, connecting the Huanggang Port with designated locations in Hong Kong[29]. - The group acquired 100% of the shares of Youlian Tourist Bus Company Group and Huikang Tourist Bus Company in 2016 and 2018, respectively, further strengthening its position in the non-franchised bus market[32]. - The group has expanded its operations to include cross-border bus services to Shenzhen Bay and the Hong Kong-Zhuhai-Macao Bridge[28]. - The group has a significant presence in the local and cross-border bus business, enhancing its market share through strategic acquisitions[30]. - The group operates a flagship wholly-owned subsidiary, KCBH, which focuses on various bus services including school buses and employee transport[28]. - The group has established a robust operational framework to support its extensive fleet and service offerings across Hong Kong[27]. Financial Performance - The total revenue for the year ended March 31, 2019, was HKD 2,971,865,000, an increase of 16.8% from HKD 2,543,654,000 in 2018[41]. - The revenue from cross-border services between Mainland China and Hong Kong reached HKD 1,451,653,000, up 21.5% from HKD 1,193,900,000 in the previous year[41]. - The company reported an annual profit of HKD 259,360,000, a decrease of 6.1% compared to HKD 276,349,000 in 2018[41]. - The number of non-franchised buses increased to 1,383 from 1,268 in the previous year, reflecting a growth in operational capacity[41]. - The revenue from the Mainland China business segment was HKD 204,163,000, a slight increase from HKD 198,607,000 in the previous year[41]. - The local luxury car service revenue was HKD 201,934,000, showing a modest increase from HKD 197,270,000 in the previous year[41]. - The consolidated profit for the year was approximately HKD 259 million, a decrease of about 6.1% compared to approximately HKD 276 million in the previous year[71]. - The decrease in profit was primarily due to a significant drop in revenue from the sale of buses and vehicles, which was HKD 13.1 million this year compared to HKD 66.7 million last year[76]. - Financial expenses increased due to rising bank loan interest rates and outstanding loan balances[76]. Strategic Focus and Future Outlook - The company has a strategic focus on the logistics and tourism sectors, which are two of Hong Kong's four pillar industries, supported by national policies like the Greater Bay Area initiative[36]. - The company is optimistic about future growth due to the implementation of significant national policies in Mainland China[36]. - The company anticipates a revenue growth of 10% for the next fiscal year, projecting total revenues to reach approximately $500 million[50]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[51]. - The company is expanding its market presence in mainland China, particularly in the tourism and hotel sectors, with an investment of $30 million planned for the next year[52]. - A strategic acquisition is in progress, aimed at enhancing the company's service offerings and market share, valued at approximately $100 million[53]. - The company plans to continue exploring new business opportunities, which will be detailed in the "Business Review and Future Outlook" section[76]. Corporate Governance and Compliance - The management team emphasized the importance of compliance and governance, with ongoing training programs for staff[55]. - The board of directors includes experienced professionals with over 40 years in the industry, ensuring strong leadership and oversight[57]. - The company has maintained compliance with the corporate governance code as per the listing rules throughout the fiscal year ending March 31, 2019[94]. - The board meets at least four times a year to review the group's business operations and development, ensuring timely access to relevant information[106]. - The company emphasizes high standards of corporate governance and business ethics as a core value, aligning with the long-term interests of stakeholders[94]. - The Audit Committee consists of three independent non-executive directors, with meetings held twice a year to review financial statements and internal controls[109]. - The Nomination Committee held one meeting during the year to review the structure and independence of the board, ensuring a balanced perspective on board diversity[115]. - The company has adopted a board diversity policy, focusing on various aspects such as gender, age, and professional experience to maintain competitive advantage[116]. Environmental and Social Responsibility - The company is committed to corporate social responsibility and integrates sustainable development concepts into its operations[156]. - The company has implemented multiple measures to promote eco-friendly driving habits, including reminders for drivers to turn off engines when parked, which helps reduce emissions and fuel consumption[162]. - The company has procured 2 electric buses for trial operations, with positive feedback from frontline staff regarding their performance[163]. - The group has established a non-profit organization, "Barrier-Free Transport Services," to provide accessible transportation for individuals in need, promoting social inclusion[185]. - The group actively participates in community service, including fundraising and employee involvement in charitable activities, demonstrating corporate social responsibility[183]. - The group sponsors local football development initiatives, contributing resources to enhance community engagement and promote sports[184]. Employee Engagement and Development - The group employs around 4,000 staff members, highlighting its commitment to providing a safe and healthy work environment[172]. - The group offers comprehensive employee benefits, including medical insurance and regular health check-ups for drivers aged 60 and above[177]. - The group conducts regular safety driving training for drivers, covering essential topics such as good driving attitude and emergency procedures[177]. - The group encourages employee development through regular training and participation in relevant seminars and courses[178]. - The group has a transparent and open culture that promotes effective internal communication and employee feedback[175]. Financial Management and Risk - The group adopts a prudent financing and financial management policy to minimize financial risks, relying on internal cash flow and bank credit for major investments[91]. - The company’s financial risk management details are disclosed in the financial statements, ensuring transparency in its operations[188]. - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve strategic goals, ensuring effective risk management and internal control systems are in place[143]. - The internal audit department is independent of daily operations and is tasked with establishing the internal control framework, which includes financial, operational, and compliance controls[143]. - The company maintains a proper governance structure and clearly defines the responsibilities and powers of senior management[140].
冠忠巴士集团(00306) - 2019 - 年度财报