Economic Outlook - The global economy is expected to grow by 6% in 2021 and 4.4% in 2022, with China's GDP returning to pre-pandemic levels[9]. - The oil trading business faces significant challenges due to the pandemic and tightening credit financing for trade companies, although demand for commodities in China remains strong[71]. Industry Trends - The printed circuit board (PCB) industry in mainland China is projected to continue growing, driven by the demand for smaller and higher-density PCBs due to the rise of smartphones and wearable devices[10]. - The group specializes in the production of double-sided, multi-layer, and HDI circuit boards, widely used in automotive electronics, communication devices, and medical equipment[136]. Company Acquisitions and Investments - The company completed the acquisition of a printing and packaging business in August 2020, which has a long performance record, but the COVID-19 pandemic has negatively impacted this segment[11]. - The company is exploring opportunities in the healthcare market through a minority investment in a Hong Kong-listed medical group[16]. - The company acquired 100% equity of Tianan Printing and Packaging Group for HKD 35,000,000 on March 23, 2020[60]. - The acquisition of Tianan was completed on August 12, 2020, but the printing business was negatively impacted by the COVID-19 pandemic, resulting in a net profit of approximately HKD 2,720,000 for the year ending March 31, 2021, which is below the guaranteed profit of HKD 7,000,000[62]. - The company agreed to purchase 18,160,000 shares of Songling Elderly Group at a price of HKD 1.647 per share, representing approximately 2.02% of the issued share capital, with the acquisition completed on October 6, 2020[65]. Financial Performance - Total revenue for the group was approximately HKD 89.1 million, a decrease of 92.6% from last year's HKD 1,205.8 million[39]. - The oil trading business recorded no revenue this year, compared to HKD 1,148.4 million last year, resulting in a segment loss of approximately HKD 900,000[39]. - Ship leasing income increased to approximately HKD 21.2 million, a 3.9% increase from last year's HKD 20.4 million[40]. - The printed circuit board business recorded revenue of approximately HKD 31.8 million, a decrease of 14.1% from last year's HKD 37 million[40]. - The group recorded a net loss of approximately HKD 67 million, an improvement from last year's loss of approximately HKD 87.2 million[41]. - The acquisition of Tianan Printing and Packaging Co., Ltd. contributed segment revenue of approximately HKD 36.1 million and segment profit of HKD 4.9 million[40]. - Equity attributable to owners of the company decreased from approximately HKD 133.1 million to approximately HKD 95.1 million[41]. - The group faced segment losses primarily due to impairment losses related to vessels amounting to approximately HKD 32.3 million[40]. - The decrease in net loss was attributed to reduced impairment losses on trade receivables by HKD 19.6 million and decreased financing costs by HKD 10.2 million[41]. - The group suspended its oil trading business due to a banking injunction that restricted its subsidiaries from placing orders or accepting new orders[39]. - For the fiscal year ending March 31, 2021, the group's revenue from continuing operations was HKD 67,886,000, a significant decrease from HKD 1,185,407,000 in the previous year, representing a decline of approximately 94.3%[86]. - The net loss attributable to the company's owners for the year was HKD 66,976,000, compared to a loss of HKD 87,248,000 in the previous year, indicating an improvement of about 23.1%[86]. - The group's total equity decreased to HKD 95,122,000 from HKD 133,086,000 in the previous year, marking a decline of approximately 28.5%[86]. Management and Governance - The company appointed Mr. Li Wenguang as the chairman of the board on October 16, 2020, and he has been an executive director since June 1, 2018[19]. - Mr. Huang Shaoxiong has been the Chief Operating Officer since October 2019, overseeing the overall development of the group's business, particularly in oil product trading and ship leasing[20]. - The company has a strong management team with over 40 years of experience in banking, finance, commodity trading, and project development[20]. - The independent non-executive director, Mr. Liang Jinghui, has over 21 years of experience in accounting, auditing, and finance, and has been with the company since June 9, 2015[26]. - Dr. Chen Youzheng, an independent non-executive director since September 3, 2018, holds a PhD in finance and has extensive experience in strategic investment projects and asset management[29]. - The company has been focusing on expanding its market presence and enhancing its operational capabilities through strategic appointments in its management team[20][29]. - The management team includes members with qualifications from prestigious institutions, enhancing the company's governance and strategic direction[21][25]. - The company is committed to maintaining high standards of corporate governance and compliance, as evidenced by the qualifications of its board members[21][26]. - The company has a diverse board with expertise in various sectors, which supports its strategic decision-making processes[20][29]. - The company aims to leverage its management's extensive experience to drive growth and improve operational efficiency in the coming years[20][29]. Corporate Social Responsibility and ESG - The company emphasizes corporate social responsibility (CSR) as a key factor for long-term business success[136]. - The CSR committee is responsible for setting CSR strategies and overseeing the implementation of CSR initiatives[137]. - The company has engaged a third-party consultant for its Environmental, Social, and Governance (ESG) reporting, ensuring transparency in its ESG matters[133]. - The ESG report covers the group's operations in Huizhou, Guangdong Province, China, including newly acquired printing and circuit board businesses[139]. - The report period for the ESG activities spans from April 1, 2020, to March 31, 2021[142]. - The company values stakeholder feedback and incorporates it into its business operations and ESG strategies[145]. - The total greenhouse gas emissions for the reporting period amounted to 1,474.62 tons of CO2 equivalent, with a density of 0.10 tons of CO2 equivalent per square meter[162]. - The company reported direct emissions (Scope 1) of 110.50 tons of CO2 equivalent, primarily from gasoline and diesel combustion, and refrigerant emissions[162]. - The energy indirect emissions (Scope 2) from purchased electricity were 1,346.21 tons of CO2 equivalent[162]. - Air pollutant emissions included 6.03 kg of nitrogen oxides (NOx), 0.13 kg of sulfur oxides (SOx), and 0.44 kg of particulate matter (PM) for the year 2021[157]. - The company has implemented measures to reduce carbon footprint, encouraging employees to use public transport and video conferencing to minimize travel[159]. - The company has adhered to all relevant environmental laws and regulations, with no reported non-compliance regarding air and greenhouse gas emissions[154]. - The company’s wastewater is treated to meet Chinese standards before discharge, monitoring parameters such as chemical oxygen demand and heavy metal content[168]. - The company follows ISO 14001 environmental management standards to manage its operational impacts on the environment[154]. - The total hazardous waste generated by the group during the reporting period was 1.50 tons, with a density of 0.0001 tons per square meter[170]. - The total non-hazardous waste generated was 42.85 tons, with a density of 0.003 tons per square meter[174]. - The total energy consumption for the group was 2,730 MWh, with a density of 0.18 MWh per square meter[179]. - The total water consumption during the reporting period was 27,550 cubic meters, with a density of 1.82 cubic meters per square meter[182]. - The group has taken measures to reduce environmental impact, including wastewater treatment and air filtration[187]. Employee and Workplace Policies - The group employed a total of 262 full-time employees, with 261 from China and 1 from other regions[192]. - The employee composition by gender was 35% male and 65% female[191]. - The group has a competitive compensation and benefits system to attract and retain talent[194]. - The group has a transparent recruitment process to select qualified candidates based on their skills and potential to meet current and future business needs[197]. - Employee performance is regularly reviewed, influencing salary adjustments, bonus distribution, and promotions[198]. - The group adheres to a 40-hour work week, with overtime compensated by time off[198]. - Equal opportunities are provided in hiring, promotion, compensation, and training, with zero tolerance for discrimination[199]. - Open communication is encouraged to foster a positive work environment, including monthly birthday celebrations to enhance employee engagement[200].
大昌微线集团(00567) - 2021 - 年度财报