Financial Performance - The company recorded a loss of approximately HKD 53 million in 2021, a significant reduction from a loss of HKD 136 million in 2020, primarily due to a fair value gain of HKD 10 million from investment properties[27]. - The total revenue for the year ending June 30, 2021, was approximately HKD 8 million, consistent with the revenue from 2020[28]. - The technology department generated revenue of approximately HKD 11 million during the year, which fell short of expectations due to the negative impacts of COVID-19[30]. - The company anticipates that the technology department will generate USD 100 million in revenue by 2026[30]. - The largest customer accounted for 41% of total revenue, while the top five customers represented 73% of total revenue for the year ending June 30, 2021[168]. - The company reported a cumulative reserve available for distribution to shareholders of HKD 251,952,000 as of June 30, 2021[166]. Investments and Development - The technology department has invested approximately HKD 140 million in collaboration with the Finnish National Technology Innovation Agency, with expectations of significant further investments in the coming years[30]. - Pexray Oy, a subsidiary, reported total sales of approximately HKD 11 million for the year, focusing on security and non-destructive testing applications[31]. - The company is developing a robust stereo camera for heavy industrial applications, with the first two units delivered for trial use in May 2021[32]. - The commercial version of the robust stereo camera is expected to be launched in Q4 2021, after delays in completing key product features[32]. - The development of the 3D sensing and monitoring camera has been postponed, with planning for potential projects to begin in Q4 2021[33]. - IPESSA Tiny, a low-cost positioning module, is currently in prototype testing with selected customers and is expected to begin mass production in early 2022[34]. - The A2K high-performance video sensor is set to launch its first batch to customers in Q4 2021 to Q1 2022, with initial results indicating it will meet industry performance standards in 2022[36]. - The company made significant investments in high-tech products, with ongoing research and development efforts that may not guarantee expected economic benefits[153]. Corporate Governance - The board consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of expertise in management, property market, electronics, accounting, and corporate development[63]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance for the year ended June 30, 2021[62]. - The company has complied with all provisions of the corporate governance code as per the Hong Kong Stock Exchange for the year ended June 30, 2021, with some deviations disclosed[60]. - The chairman and CEO roles are separated, with the current chairman temporarily acting as CEO until a new appointment is made[69]. - The company reviews its corporate governance practices regularly to ensure compliance with the code[61]. - The company has established a nomination committee to review the structure, number, and composition of the board of directors, ensuring members possess the necessary skills and experience for business development and strategy[71]. - The audit committee's responsibilities include reviewing financial information and overseeing the company's financial reporting system and internal controls[80]. - The company has made appropriate insurance arrangements for directors and senior officers against potential legal actions[72]. - The company has not reported any serious violations of labor practices or safety regulations during the reporting period[124][131]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the period from July 1, 2020, to June 30, 2021, assessing related risks and ensuring effective management[100]. - The total greenhouse gas emissions for the reporting period were 128 tons CO2 equivalent, a decrease from 217 tons in the previous year, representing a reduction of approximately 41%[109]. - The company reported a total energy consumption of 10,411 liters of gasoline and 186,891 kWh of purchased electricity in 2021, with a per employee density of 104 liters and 1,869 kWh respectively[115]. - The nitrogen oxides (NOX) emissions increased to 6.2 kg in 2021 from 4.4 kg in 2020, while total emissions rose to 6.9 kg from 4.8 kg, indicating a rise of approximately 43.75%[106]. - The company aims to maintain the same level of emissions and energy consumption through green office initiatives until June 30, 2022[109][118]. - The company has established an environmental policy to address significant environmental issues related to emissions and resource usage[104]. - The company has identified climate change as a relevant risk but does not consider it a major issue due to the nature of its business[121]. Employee and Labor Practices - The company has a total of 100 employees, with 84 males and 16 females, and 87 full-time and 13 part-time/contract employees[125]. - Employee turnover rate is 5% for males and 0% for females, with an overall turnover rate of 4% in Asia, 6% in Europe, and 0% in North America[128][130]. - 30% of male employees and 25% of female employees received training during the reporting period, with an average of 12 hours for males and 9 hours for females[134]. - The company maintains a commitment to providing a safe and healthy work environment, with no work-related safety incidents reported in the past three years[131]. - The company has implemented a transparent and fair supplier selection process, emphasizing environmental and social responsibility[139]. Shareholder and Ownership Structure - As of June 30, 2021, the total number of shares held by major shareholders amounted to 1,176,614,613, representing 83.85% of the company's equity[177]. - The company has a significant concentration of ownership, with the top five shareholders controlling over 83% of the equity[177]. - The beneficial owner, Mr. Ong Tak Ming, holds a total of 537,993,892 shares, which is 38.34% of the total equity[177]. - The ownership structure indicates a high level of control by a few entities, which may impact corporate governance and decision-making[179]. - The report highlights the importance of transparency in shareholder interests and compliance with regulatory requirements[179]. Miscellaneous - The company has not made any changes to its charter documents during the fiscal year ending June 30, 2021[97]. - The company has not reported any significant non-compliance issues with environmental laws during the reporting period[104]. - The company has not received any notifications regarding additional interests or short positions in its shares as of June 30, 2021[179]. - The company has not entered into any management contracts related to significant portions of its business during the year[187]. - The company did not engage in any share-linked agreements other than the convertible bonds and share option plan disclosed in the financial statements[189].
PALADIN(00495) - 2021 - 年度财报