Financial Performance - For the financial year ended March 31, 2019, the Group recorded revenue of approximately HK$18,589,000, an increase of approximately 17.57% from HK$15,811,000 in the previous financial year[10] - The loss attributable to the owners of the Company for the financial year was approximately HK$260,272,000, representing an increase of approximately 12.7% from the loss of HK$231,048,000 in the previous financial year[10] - The Group's revenue for the Financial Year was approximately HK$18,589,000, representing an increase of approximately 17.57% compared to HK$15,811,000 in the Previous Financial Year[15] - Loss attributable to the owners of the Company increased to HK$260,272,000, up HK$29,224,000 from HK$231,048,000 in the Previous Financial Year, primarily due to increased interest expenses[15] - Total comprehensive expense for the year was HK$273,527,000, up from HK$231,500,000 in 2018, representing an increase of 18.1%[190] - The company reported a loss for the year of HK$260,272,000, compared to a loss of HK$231,048,000 in the previous year, indicating a worsening of approximately 12.7%[197] Business Development - The Group is continuing to develop its trading of beauty equipment and products business, allocating more resources to boost this segment despite keen market competition[13] - The Group is engaged in the development of a technology for oral insulin administration, currently in Phase III clinical trials, with plans to commercialize the product in early 2022[13] - The Group expects the Product to start generating revenue around January 2022[34] - The Group commenced Part B of phase III clinical trials for the Product, with revenue generation timelines adjusted to mid-2021 and January 2022[36] - The Group remains open to fundraising and partnership activities to further develop its portfolio and R&D efforts[24] Financial Position - The Group's bank and cash balances as of 31 March 2019 were approximately HK$17.1 million, down from approximately HK$20.2 million as of 31 March 2018[39] - Total borrowings of the Group as of 31 March 2019 were approximately HK$755.5 million, an increase from approximately HK$628.1 million as of 31 March 2018[39] - The current assets to current liabilities ratio was 1.37 as of 31 March 2019, compared to 1.92 as of 31 March 2018[39] - The Group's gearing ratio as of 31 March 2019 was 0.50, up from 0.38 as of 31 March 2018, with total liabilities of approximately HK$783.9 million and total assets of approximately HK$1,578.8 million[39] Research and Development - The in-process research and development project for an oral insulin product has a carrying value of HK$1,373,224,000 recorded as an intangible asset[24] - The expected future economic benefits from the in-process R&D cover a 10-year period from the commercialization of the product[26] - Significant judgments and assumptions are necessary for management in assessing the recoverable amounts of intangible assets, including revenue growth rates and discount rates[173] - Management engaged an independent qualified professional valuer to prepare a valuation report for the assessment of the recoverable amount of intangible assets[176] Corporate Governance - The role of chief executive officer remains vacant, with the company actively seeking a suitable candidate[43] - Non-executive Directors are subject to retirement by rotation and re-election at least once every three years, deviating from the Code provision A.4.1[43] - The company has adopted and complied with all code provisions set out in Appendix 14 to the Listing Rules during the financial year, except for the deviations discussed[43] - The board composition includes 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, ensuring a balance to safeguard shareholders' interests[66] - The Company has deviated from Code provision A.4.1, as non-executive directors are not appointed for a specific term but are subject to retirement by rotation and re-election at least once every three years[79] Audit and Compliance - The Group's external auditor, Elite Partners CPA Limited, received HK$1,100,000 for audit services during the financial year[101] - The Audit Committee held 5 meetings during the financial year, with all members attending at least 4 out of 5 meetings[107] - The Board has reviewed the internal control procedures and considers the risk management and internal control systems to be adequate and effective[109] - The directors confirm that they are not aware of any material uncertainties that may cast significant doubts on the Company's ability to continue as a going concern[98] Shareholder Information - The Group's financial results for the year ended March 31, 2019, are detailed in the consolidated statement of profit and loss, with no final dividend recommended for the financial year[125] - The Group reported no distributable reserves as of March 31, 2019, compared to Nil on March 31, 2018[125] - The interests of directors and substantial shareholders are recorded under the Securities and Futures Ordinance[139] Market and Strategic Initiatives - The company is actively involved in market expansion and product development in the pharmaceutical and biotechnology sectors[48] - The company is exploring strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[118] - A new marketing strategy is set to increase brand awareness, targeting a 30% growth in customer engagement[119] Environmental and Social Responsibility - The Group emphasizes environmental protection and sustainable development, implementing several measures to promote environmental management[158] - The Company will publish a separate Environmental, Social and Governance Report within three months after the annual report[158]
领航医药生物科技(00399) - 2019 - 年度财报