Business Overview - Lee Kee Holdings Limited aims to provide high-quality base metals and unique value-added services across over 20 industries in Greater China and Southeast Asia[2]. - Lee Kee is expanding its business in Southeast Asia, leveraging new opportunities and broadening its customer base and revenue streams[13]. - The company is committed to diversifying its product and service offerings, particularly in providing value-added services and specialty alloys to manufacturers[17]. - Lee Kee's subsidiary, Lee Po Metal Testing Limited, has maintained ideal growth in its testing and consulting services while continuously exploring new markets[17]. - The company is focusing on global market promotion and business development strategies, aiming for sustainable growth[81]. Financial Performance - For the fiscal year 2018/2019, the company reported total revenue of HKD 2,276,977, a decrease of 16.1% from HKD 2,711,441 in the previous year[33]. - The company experienced a loss before tax of HKD 81,695 compared to a profit of HKD 95,561 in the previous year, indicating a significant decline in profitability[33]. - The net loss for the year was HKD 86,660, contrasting with a profit of HKD 90,153 in the previous year, reflecting a year-on-year decrease of 196.3%[33]. - Total assets decreased to HKD 1,301,680 from HKD 1,469,564, representing a decline of 11.4%[33]. - The group's revenue for the fiscal year was HKD 2,277,000,000, a decrease of 16% compared to HKD 2,711,000,000 in the previous year[37]. - The sales volume for the fiscal year was 94,250 tons, down from 108,060 tons in the comparative period[37]. - The group recorded a gross profit of HKD 39,000,000 with a gross margin of 1.72%, compared to a gross profit of HKD 212,000,000 in the previous year[37]. - The financing costs increased by 41.8% to HKD 10,000,000 due to higher overall market interest rates[41]. - The group reported unrestricted cash and bank balances of approximately HKD 357 million as of March 31, 2019, compared to HKD 300 million in 2018[66]. - The capital debt ratio was 19.5% as of March 31, 2019, compared to 23.8% in 2018, indicating improved financial stability[66]. - The current ratio stood at 431% as of March 31, 2019, up from 395% in 2018, reflecting strong liquidity[66]. Strategic Initiatives - New measures such as e-commerce and robotics are being implemented to streamline operations and enhance efficiency[17]. - The company aims to invest in new skills to maintain competitiveness in a rapidly changing environment, highlighting a commitment to innovation and adaptability[24]. - The company plans to integrate more data analytics, digitalization, and AI systems to improve business processes and enhance customer service[28]. - The group will continue to focus on Southeast Asia as an important manufacturing base, leveraging labor cost advantages and supporting industry development[56]. - The group plans to invest in R&D and specialized products to meet the demands of high-value industries in China, particularly in electronics and electric vehicles[60]. Risk Management - The major risks identified include commodity price risk, currency risk, volume risk, credit risk, liquidity risk, and cyber risk[110]. - The company employs stress testing to analyze commodity and volume risks, acknowledging that these measures do not provide absolute guarantees[110]. - A dedicated team monitors and reports on currency, credit, and liquidity risks, utilizing hedging strategies to lock in favorable rates[110]. - The company has implemented a risk register to systematically prioritize and manage identified risks, ensuring effective governance[107]. - Cyber risk management is a priority for the board, with ongoing training and expert consultations to address evolving threats[111]. Corporate Governance - The company has implemented various measures to comply with corporate governance codes, ensuring effective accountability and ethical business practices[85]. - The board of directors has adopted a standard code for securities trading, ensuring compliance and transparency among its members[86]. - The company has adopted a diversity policy with measurable targets, including a minimum number of female board members[95]. - The attendance rate for board meetings was 100% for all directors during the fiscal year[100]. - The company has established a comprehensive financial reporting system, ensuring the accuracy and reliability of its financial statements[101]. Environmental and Social Responsibility - The company has established an environmental policy aimed at minimizing operational negative impacts and enhancing environmental awareness among employees and stakeholders[158]. - The company participates in various environmental initiatives, including the "Carbon Footprint Database" and "Carbon Audit • Green Organization" programs since 2015[159]. - The company conducts regular air quality assessments through qualified third-party consultants, achieving favorable test results[159]. - The company has a strong commitment to reducing resource consumption in daily operations through environmental guidelines and measures[159]. - The company’s environmental, social, and governance (ESG) report is available on its website, detailing its sustainable development initiatives and performance[158]. Shareholder Information - The company did not recommend a final dividend for the year ended March 31, 2019, indicating a cautious approach to shareholder returns amid market uncertainties[127]. - The company has adopted a shareholder communication policy to ensure timely and fair access to information for shareholders[120]. - The company’s board of directors and senior management have disclosed their shareholdings, ensuring transparency in ownership[152]. - The group sold approximately 12.1% of its products to its top five customers during the fiscal year[163]. - The largest supplier accounted for 39.2% of the group's procurement, while the top five suppliers combined accounted for 65.0%[163].
利记(00637) - 2019 - 年度财报