Financial Performance - For the fiscal year ending March 31, 2021, the group recorded revenue of approximately HKD 23.8 million, a significant increase from HKD 5.1 million in the previous year, primarily driven by vehicle sales[14] - Gross profit for the same period was approximately HKD 6.9 million, with a gross margin of 28.9%, compared to 13.4% in the previous year, attributed to increased sales orders and better economies of scale[14] - The group reported a loss of approximately HKD 787.3 million, up from a loss of HKD 162 million in the previous year, mainly due to increased non-cash expenses including impairment losses on mineral assets of HKD 690 million[15] - The loss attributable to owners of the company was approximately HKD 780.5 million, with basic and diluted loss per share of HKD 0.1, compared to HKD 0.02 in the previous year[16] - The company's revenue for the year ended March 31, 2021, was HKD 23,800,000, a significant increase from HKD 5,100,000 in the previous year, representing a growth of approximately 366%[76] - The loss attributable to the company's owners for the year was HKD (780,500,000), compared to a loss of HKD (146,900,000) in the previous year, indicating a deterioration in performance[76] - The current ratio decreased to 1.9 times from 2.3 times in the previous year, reflecting a decline in liquidity[76] - The total assets of the company as of March 31, 2021, were HKD 2,243,525,000, down from HKD 2,755,389,000 in the previous year, a decrease of approximately 18.5%[88] - The total liabilities increased to HKD (172,073,000) from HKD (147,674,000) in the previous year, indicating a rise in financial obligations[88] Business Development - The company has diversified its business into overseas markets, completing sales orders for two smart electric buses in Hong Kong and negotiating additional orders[20] - The company launched a fully electric 19-seat low-floor minibus, with a trial order already secured, targeting a market demand exceeding 4,000 units in Hong Kong[20] - The group has developed a city bus named COMET for emerging markets in Southeast Asia, with initial orders delivered during the review period and further orders expected in the next 24 months[22] - The company is optimistic about the recovery of the tourism industry post-pandemic, which is expected to drive demand for electric buses[20] - The company has developed a 12-meter "power chassis" for the South American market, fulfilling B2B demands from local bus manufacturers lacking technical development capabilities[23] - A significant order for 12-meter electric chassis and another for 12-meter city buses in Latin America have been secured, expected to positively impact overall financial performance[23] - The company has invested in Quantron AG, acquiring a 4.98% stake, which is anticipated to enhance European business expansion opportunities[23] - Strong demand for electric buses in Europe is expected to maintain stable order volumes following the delivery of 12-meter electric and hydrogen-powered buses in Q3 and Q4 of 2021[23] - The company has received trial orders for logistics vehicles in the European market, with expectations for further orders post-trial[27] - The company confirmed several orders from Central and South American countries, with deliveries expected before the end of 2021[28] Cost Management and Financial Strategy - The group is implementing a cost optimization plan to ensure maximum efficiency and value addition to its final products[14] - The company is exploring various fundraising methods, considering subscription and placement of shares as attractive opportunities to raise capital[40] - The company issued 268,000,000 new shares at a subscription price of HKD 0.145 per share, raising approximately HKD 38,860,000 after expenses[47] - The company issued 367,660,000 new shares at a placement price of HKD 0.15, raising approximately HKD 53,500,000 for general operating funds and electric vehicle business development[60] - The company has not entered into any metal ore sales contracts during the year due to a weak market and low gross margins[39] - The company has not entered into any foreign exchange forward contracts for RMB hedging during the year[45] - The construction costs for the Chongqing automotive manufacturing plant increased, contributing to the rise in other payables and accrued expenses[43] - Other payables and accrued expenses increased by 17.2% to HKD 142,000,000 as of March 31, 2021, compared to HKD 121,200,000 in 2020[43] - The company has completed the purchase of land use rights covering 63,118 square meters at a cost of RMB 7.6 million[31] Corporate Governance - The company is in the process of changing its name from China Power (Holdings) Limited to Kexuan Power (Holdings) Limited[63] - The company has adopted the corporate governance code as per the listing rules, with compliance noted except for specific clauses A.2.1, A.4.1, and A.6.7[163] - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced structure with diverse expertise[167] - The company emphasizes the importance of maintaining a balance of power and safeguards within its governance structure[176] - The company has established a share award scheme to incentivize and retain qualified participants, with a maximum of 688,604,680 shares available for the plan[118] - The company has maintained sufficient public float as per listing rules during the reporting period[156] - The company ensures that one-third of the directors retire by rotation at each annual general meeting, with all directors required to retire at least once every three years[179] - The company has a policy that mandates non-executive directors to retire at least every three years, ensuring regular re-election[173] - Continuous professional development for directors is emphasized, with training records provided for the fiscal year ending March 31, 2021[174] - The company is committed to maintaining high standards of corporate governance and has established best practices tailored to its needs[162] Shareholder Information - The company's net asset value as of March 31, 2021, is approximately HKD 2,071,500,000, a decrease from HKD 2,607,700,000 in 2020[40] - The net asset value per share decreased to HKD 0.25 from HKD 0.38 in the previous year, reflecting a decline in shareholder equity[76] - The company reported a retained earnings of HKD 87,109,000 as of March 31, 2021, unchanged from the previous year[96] - The largest customer accounted for 37.3% of total sales, while the top five customers collectively represented 100% of sales[97] - The largest supplier contributed 25.7% to total procurement, with the top five suppliers making up 70.6% of procurement[97] - Zhang Ren holds 724,324,959 shares, representing approximately 8.74% of the total shareholding[127] - Entrust Limited holds 982,727,510 shares, accounting for approximately 11.85% of the total shareholding[137] - Faith Profit Holding Limited owns 222,586,400 shares, which is about 2.68% of the total shareholding[137] - The company has no significant contingent liabilities or asset pledges as of March 31, 2021[53] - The company has no knowledge of any tax relief available to shareholders for holding its securities[104] Risk Management - The company is closely monitoring government policies and subsidies related to its new energy business, which may impact product pricing and receivable amounts[79] - The concentration of credit risk from the company's largest customer was 34%, down from 39% in the previous year, indicating improved diversification[79] - The company reported a foreign exchange gain due to a 7.8% appreciation of the Renminbi against the Hong Kong Dollar during the year, positively impacting financial results[77] - The discount rate used for the mine's valuation increased to 21.96% due to uncertainties and fluctuations in global demand caused by the pandemic[31] - The Audit Committee assessed the effectiveness of the internal control and risk management systems, including financial, operational, and compliance monitoring[194]
科轩动力控股(00476) - 2021 - 年度财报