Financial Performance - The group's revenue for the fiscal year was approximately HKD 1,951,879,000, an increase of 4.7% compared to HKD 1,864,166,000 in the previous period[45]. - Sales volume for the fiscal year reached 96,010 tons, rebounding by 7.3% from 89,460 tons in the prior period[47]. - The gross profit for the fiscal year was HKD 113,000,000, with a gross profit margin of 5.8%, significantly up from a gross profit of HKD 1,900,000 and a margin of 0.10% in the previous period[47]. - The company recorded a profit attributable to equity shareholders of approximately HKD 16,900,000, compared to a loss of HKD 128,000,000 in the previous period, driven by product diversification, stringent cost control, and a rebound in metal prices[48]. - Distribution and sales expenses for the fiscal year were HKD 24,200,000, maintaining similar levels compared to the previous period due to rigorous cost control measures[49]. - Financial costs decreased by 68.0% to approximately HKD 1,900,000, attributed to maintaining lower levels of bank borrowings during the fiscal year[52]. - The company maintained a strong financial position with bank balances and cash on hand of approximately HKD 288,000,000 as of March 31, 2021[53]. - The total assets of the company as of March 31, 2021, were HKD 1,036,062,000, a decrease from HKD 1,056,526,000 in the previous year[45]. - The net asset value of the company increased to HKD 901,938,000 from HKD 862,813,000 in the previous year[45]. - The liquidity ratio as of March 31, 2021, was 712%, an increase from 544% in 2020, reflecting a stronger liquidity position[75]. - The capital debt ratio as of March 31, 2021, was 10.0%, a decrease from 14.1% in 2020, indicating improved financial stability[75]. Strategic Focus - The company is optimistic about future growth opportunities in the post-pandemic world, particularly in green supply chains and sustainable products[21]. - The company emphasized the importance of environmental, social, and governance (ESG) principles in its business model to capture emerging growth opportunities[21]. - The company plans to accelerate technology adoption to gain a competitive advantage in the evolving market[21]. - The company is committed to digital transformation and sustainability as key strategies for overcoming ongoing challenges[21]. - The company is focusing on diversifying its business to provide customized and value-added services, particularly in advanced manufacturing sectors such as consumer electronics and smart electric vehicles[59]. - The company aims to continue its digital transformation to capture opportunities arising from the post-COVID-19 economic recovery in China[33]. - The group plans to expand its technical capabilities and service range in water quality and other testing services, aiming for stable and higher profit revenue[68]. Risk Management - The company has established a structured risk management system to assess and manage significant risks, including commodity price risk, currency risk, and credit risk[114]. - Climate risk has been classified as a significant risk for the first time this fiscal year, with senior management involved in its management[115]. - The company employs a dedicated team to monitor and report on currency risk and has implemented hedging strategies to lock in favorable interest rates[114]. - The risk register is continuously monitored to identify emerging risks and ensure effective governance over major risks[111]. - The company utilizes scenario analysis for risk modeling to reassess operational and risk management measures[111]. - The board and audit committee believe the group’s risk management system is effective and adequate for the fiscal year[119]. Corporate Governance - The board proposed a final dividend of HKD 0.01 per share, amounting to HKD 8.288 million, subject to shareholder approval[72]. - The board emphasizes the importance of business ethics and has implemented measures to comply with the corporate governance code[91]. - The company has adopted a diversity policy with measurable targets, including setting a minimum number of female board members to achieve board diversity[100]. - The nomination committee evaluated the independence of independent non-executive directors and reviewed the nomination policy and procedures during the fiscal year[100]. - The company established a governance committee to review and monitor corporate governance matters, including policies and codes of conduct[101]. - The audit committee reviewed financial matters including annual and interim results, risk management policies, and internal control systems during the fiscal year[103]. - The company has implemented a whistleblowing policy allowing employees to report any misconduct directly to the audit committee[103]. - The independent non-executive directors confirmed their independence from the group, ensuring compliance with governance standards[96]. Sustainability Initiatives - The company is committed to setting quantifiable carbon reduction targets as part of its sustainability initiatives[32]. - The group is committed to sustainable development and plans to introduce eco-friendly packaging while researching measures to reduce plastic usage[71]. - The company has adopted its own environmental policy aimed at minimizing negative operational impacts and enhancing environmental awareness among employees and stakeholders[158]. - The company participates in the Environmental Protection Department's "Carbon Footprint Database" and "Carbon Audit • Green Organization" programs since 2015[158]. - The company has received multiple prestigious international certifications, including GRS (Global Recycled Standard), enhancing its commitment to sustainable development[32]. - The group recognizes the opportunity to extend sustainability considerations throughout its supply chain[161]. Employee and Community Engagement - The company expresses gratitude to its customers, suppliers, and employees for their support during unprecedented times[22]. - The group employed approximately 180 employees as of March 31, 2021, with total employee costs (including directors' remuneration) around HKD 60.2 million, down from HKD 62.6 million in 2020[77]. - The company has established positive relationships with suppliers and customers, responding timely to their concerns and expectations[161]. - Charitable and other donations made by the group during the fiscal year amounted to approximately HKD 129,000[132]. - The company maintains open communication channels between employees and management, encouraging direct communication through various initiatives[159]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2021[171]. - The audit process involves identifying and assessing risks of material misstatement due to fraud or error and designing audit procedures to address these risks[198]. - The auditor assesses the appropriateness of accounting policies adopted by the board and the reasonableness of accounting estimates and related disclosures[199]. - The auditor evaluates the board's use of the going concern basis of accounting and identifies any significant uncertainties that may cast doubt on the group's ability to continue as a going concern[199]. - The auditor's conclusion is based on evidence obtained up to the date of the auditor's report, but future events may affect the group's ability to continue as a going concern[199].
利记(00637) - 2021 - 年度财报