Financial Performance - Revenue decreased by approximately 22% from HK$18,599,000 in the Previous Financial Year to HK$14,580,000 in the Financial Year[16] - Loss attributable to the owners of the Company improved from approximately HK$260,272,000 in the Previous Year to HK$222,462,000 in the Financial Year due to no impairment for the Investment[17] - The Group's revenue for the Financial Year was approximately HK$14,580,000, a decrease of approximately 21.57% compared to HK$18,589,000 in the Previous Financial Year[27] - Loss attributable to the owners of the Company decreased to HK$222,462,000, down HK$37,810,000 from HK$260,272,000 in the Previous Financial Year[27] - Revenue from the trading of beauty equipment and products was approximately HK$14,580,000, reflecting a 21.57% decline due to the adverse impact of the COVID-19 pandemic[27] Business Environment and Strategy - The business environment remains challenging due to ongoing trade conflicts between China and the US and the impact of COVID-19[21] - The Group continues to pursue cooperation, joint ventures, and investments with suitable partners to enhance shareholder returns and sustainable long-term development[22] - The Group's focus is on improving attractiveness and profitability as necessary to enhance shareholder returns[22] - The Company aims to enhance its long-term development and profitability amidst economic uncertainties[21] - The Group's overall strategy includes reviewing and pursuing new partnerships and investments[22] Research and Development - The timetable to commercialize the oral insulin product is adjusted to the fourth quarter of 2022, subject to improvement in the COVID-19 situation[21] - Clinical trials for new technology were disrupted and temporarily suspended due to COVID-19[21] - The Group's 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[32] - The expected future economic benefits from the in-process R&D cover a 10-year period from the commercialization of the product[35] - The timeline for obtaining the Certificate of New Medicine and Pharmaceutical Manufacturing Permit has been adjusted to late Q2 2022 and Q4 2022 respectively[59] Financial Position and Management - As of March 31, 2020, the Group had bank and cash balances of approximately HK$22.9 million, an increase from approximately HK$17.1 million as of March 31, 2019[70] - Total borrowings of the Group were approximately HK$835.7 million as of March 31, 2020, up from approximately HK$755.5 million as of March 31, 2019[71] - The ratio of current assets to current liabilities decreased to 0.60 as of March 31, 2020, compared to 1.37 as of March 31, 2019[72] - The Group's gearing ratio increased to 0.60 as of March 31, 2020, from 0.50 as of March 31, 2019[72] - Total staff costs, including Directors' remuneration, amounted to approximately HK$7.9 million for the Financial Year, compared to approximately HK$6.2 million in the previous Financial Year[78] Corporate Governance - The Company has adopted and complied with all corporate governance code provisions during the financial year, except for specific deviations[90] - The role of Chief Executive Officer remains vacant as no suitable candidate has been identified, and the Company is actively seeking a candidate[91] - Non-executive Directors are not appointed for specific terms but are subject to re-election at least once every three years, which the Company believes meets the purpose of the governance code[93] - The Company has not established a dividend policy, considering it more appropriate to determine dividend payments based on financial performance and market conditions[99] - All Directors confirmed full compliance with the Model Code for Securities Transactions throughout the financial year, with no incidents of non-compliance noted[102] Board Composition and Meetings - The Board comprises nine directors, including three independent non-executive directors, ensuring significant diversity in gender, age, and professional experience[166] - The Company has a diversity policy for the Board, considering factors such as gender, age, and professional experience[170] - The Board held a total of 12 meetings during the Financial Year, with all executive directors attending 100% of the meetings[136] - The Audit Committee held 5 meetings during the financial year to review the Group's audited consolidated financial statements[192] - The Remuneration Committee held 1 meeting during the financial year, with all members attending[160] Audit and Compliance - The auditor expressed a qualified opinion related to comparative figures and disclosures for the opening balances as of April 1, 2018[79] - The directors confirmed that the consolidated financial statements were prepared in accordance with statutory requirements and applicable accounting standards[177] - The Company has a corporate governance framework that includes monitoring compliance with legal and regulatory requirements[183] - The Audit Committee assists the Board by providing independent reviews of accounting policies and practices, and monitoring the effectiveness of internal controls[190] - The external auditor, Elite Partners CPA Limited, received an audit service remuneration of HK$1,100,000 for the financial year[182]
领航医药生物科技(00399) - 2020 - 年度财报