Financial Performance - For the year ended March 31, 2021, the Group's revenue decreased by 7% to approximately HK$1,057 million, compared to the previous year's profit of approximately HK$8 million, resulting in a loss of approximately HK$99 million[11][12]. - The decline in performance was primarily due to the COVID-19 pandemic, which shrank global packaging market demand, negatively impacting various operating units[12][13]. - The appreciation of Renminbi by approximately 8% and recorded exchange losses, along with soaring prices of major commodities and shipping costs, affected profit levels[12][13]. - The operating loss for the year was HK$98,713,000, compared to an operating profit of HK$27,056,000 in the previous year[92]. - The loss attributable to the owners of the company for the year was HK$98,525,000, a significant decline from a profit of HK$8,499,000 in 2020[92]. - Basic loss per share attributable to the owners of the company was HK(18.76) cents, compared to earnings of HK1.62 cents per share in the previous year[92]. Operational Developments - Approximately HK$90 million in severance payments and related expenditures were incurred due to the transfer of operations from the Shenzhen plant to the Shaoguan plant[12][13]. - The performance of the four plants in the PRC varied, with the Shenzhen plant turning profitable excluding one-off expenses, while the Suzhou plant recorded losses due to higher raw material costs[14][15]. - The Group plans to invest over US$14 million to expand factory operations, developing 89,600 square meters of the Shaoguan site within one year[16]. - The Group actively promoted lean manufacturing and business process optimization to effectively control operating costs during the adverse period[32]. - The Guangzhou plant was in the process of integrating its internal operations, which temporarily affected operating costs and profitability[32]. - The eastern China operation experienced rapid growth in the second half of the year, although it incurred losses due to additional outsourcing expenses related to labor shortages[33]. - The Group's business rebounded significantly in the second half of the year, offsetting part of the negative impact of the pandemic and operational difficulties[31]. Market and Customer Focus - The Group focused on expanding and optimizing its customer structure by exploring emerging and domestic markets[20]. - The Group capitalized on the gradual market recovery in the second half of the year to accelerate the rollout of new production capacity[20]. - The southern China operation remained stable, with a focus on flexible deployment and value chain integration despite a weakened global retail market due to COVID-19[41]. - The eastern China operation rebounded strongly in the second half of the year, with a slight increase in revenue driven by product innovation and market development in the Yangtze River Delta Economic Circle[47]. - The Group's innovative brand TEAM GREEN® faced a decline in sales due to a sluggish retail market, but new product series and brand promotions were actively developed[44]. Investments and Innovations - The Group introduced a new KBA 10-colour UV offset press to enhance production capacity and support the printing and innovation industries in eastern China[48]. - The Shaoguan plant commenced operations of a new smart logistics facility, contributing to the Group's expansion in the Guangdong-Hong Kong-Macao Greater Bay Area[39]. - The Group's investment in smart manufacturing included the introduction of advanced Heidelberg and Manroland six-colour offset presses to prepare for post-pandemic economic conditions[43]. Financial Position and Capital Management - The Group's cash and bank balances and short-term bank deposits amounted to approximately HK$275 million as of March 31, 2021[54]. - The Group's interest expense for the year was approximately HK$11 million, an increase from approximately HK$8 million recorded last year[55]. - As of March 31, 2021, the Group had a working capital surplus of approximately HK$84 million, down from approximately HK$125 million as of March 31, 2020[56]. - The Group's net gearing ratio as of March 31, 2021 was 33%, compared to a net cash position in 2020[56]. - The Group's gearing ratio as of March 31, 2021 was 111%, up from 29% in 2020[56]. - Certain assets with an aggregate book carrying value of approximately HK$53 million were pledged to secure banking facilities as of March 31, 2021[60]. Corporate Governance and Compliance - The Group has established compliance procedures to ensure adherence to applicable laws and regulations, with regular reviews conducted[101]. - The Company has complied with the Corporate Governance Code, except for certain deviations mentioned in the report[195]. - The Company has adopted the Model Code for Securities Transactions by Directors and all Directors confirmed compliance for the year ended March 31, 2021[197]. - The Company is committed to maintaining high standards of corporate governance to protect the interests of shareholders and stakeholders[194]. Social Responsibility and Community Engagement - The Group has committed to social responsibility by participating in social welfare and environmental protection activities[67]. - The Group has allocated significant resources to energy conservation and environmental protection, as well as providing training opportunities for young people[68]. - The Group provided financial and other support to various organizations, including the Scout Association of Hong Kong and the Hong Kong Seagulls Scholarship Scheme[70]. - The Group made charitable contributions of approximately HK$119,000 in the year, down from HK$242,000 in 2020, representing a decrease of 50.8%[119]. Shareholder Information - The Group's retained profit available for distribution to shareholders was approximately HK$101,558,000 as of 31st March 2021[110]. - No interim dividend was paid for the six months ended 30th September 2020, and no final dividend is recommended for the year ended 31st March 2021[110]. - The Company’s retained profit available for distribution was approximately HK$27,698,000 as of 31st March 2021[118].
星光集团(00403) - 2021 - 年度财报