Financial Performance - For the year ended March 31, 2021, the Group's revenue decreased by 7.5% to HK$909.5 million from HK$982.8 million in 2020[9]. - The consolidated net profit for the year was HK$46.4 million, a significant improvement from a loss of HK$18.2 million in 2020, representing a 355.5% increase[9]. - Basic earnings per share increased to HK13.8 cents from a loss of HK5.4 cents in the previous year, marking a 355.6% improvement[11]. - The total dividend for the year was HK25 cents per share, up 177.8% from HK9 cents per share in 2020, including a special dividend of HK15 cents[11]. - Gross profit increased by 6.4% to HK$153.1 million, with a gross profit margin improvement to 16.8% from 14.6%[9]. - Net profit for the year was HK$46.4 million, improving from a loss of HK$18.2 million the previous year, with net profit margin improving from -1.8% to 5.1%[26]. - For the year ended March 31, 2021, the Group's retained profit was HK$340,608,000, an increase from HK$329,107,000 in 2020[122]. Operational Challenges - The Group faced operational challenges due to COVID-19, impacting material supply and causing order cancellations in key markets[13][14]. - The management emphasized employee health and safety during the pandemic, implementing strict safety measures in workplaces[13]. Inventory and Receivables - Inventory turnover days increased to 36 days from 29 days, while trade receivables turnover days rose significantly to 97 days from 50 days[9]. - Inventory balance increased from HK$56.3 million to HK$93.9 million, with inventory turnover rising from 29 days to 36 days[37]. - Trade receivables increased from HK$133.7 million to HK$240.6 million, with turnover extending from 50 days to 97 days[37]. - Trade payables rose from HK$92.0 million to HK$147.7 million, with turnover increasing from 40 days to 71 days[37]. Financial Position - Total assets as of 31 March 2021 were HK$1,583.9 million, financed by current liabilities of HK$320.3 million, long-term liabilities of HK$58.6 million, and shareholders' equity of HK$1,205.0 million[32]. - Cash and bank deposits amounted to HK$616.3 million, with a net cash outflow from operating activities of HK$16.7 million for the year[33]. - The gearing ratio improved slightly to 2.2% from 2.7%, indicating a reduction in financial leverage[9]. - The Group anticipates a downturn in profit margin for the current financial year due to material cost increases and global shortages in electronic components[27]. Strategic Focus - The company plans to focus on stringent cost control, productivity efficiency improvements, and seek growth opportunities through new customers and product categories[30]. - The group will continue to seek growth opportunities through new customers, product categories, and online sales channels[34]. Corporate Governance - The Company aims to comply with all code provisions as set out in the Corporate Governance Code[194]. - The Board comprises four Executive Directors and three Independent Non-Executive Directors[197]. - All independent non-executive directors confirmed their independence as per the Listing Rules[150]. - The Company has adopted the Model Code for Securities Transactions by Directors and confirmed full compliance by all directors[196]. Employee Relations - The Group provides competitive remuneration packages and training for employees, emphasizing their value as assets[101]. - The Group has been recognized for its commitment to employee development and has been nominated for business care awards since 2007[106]. Environmental Commitment - The Group is committed to environmental sustainability, with manufacturing sites certified under ISO 14001:2004 for environmental management[103]. - The Group's environmental policies incorporate the principles of Reduce, Reuse, and Recycle to enhance resource efficiency[103]. - The Group's environmental management system has achieved ISO 14001:2004 certification, emphasizing sustainability and resource efficiency[108]. Shareholding Structure - As of March 31, 2021, Mr. Cheung Shu Wan holds 49,695,335 ordinary shares, representing approximately 61.43% of the issued share capital of the Company[140]. - Ms. Cheung Lai Chun, Maggie holds 600,000 ordinary shares, totaling 156,949,960 shares including trust interests, which is approximately 46.79% of the issued share capital[140]. - Ms. Cheung Lai See, Sophie holds 1,258,000 ordinary shares, totaling 157,607,960 shares including trust interests, which is approximately 46.99% of the issued share capital[140]. - Dr. Cheung Shu Sang, William holds 900,000 ordinary shares, totaling 157,249,960 shares including trust interests, which is approximately 46.88% of the issued share capital[140]. Customer and Supplier Relations - The Group's major customers are companies selling household electrical appliances under well-known brand names, maintaining long-term relationships with them[92]. - The Group maintains long-term relationships with suppliers, selecting them based on cost, quality, and sustainability criteria[93]. - The largest supplier accounted for 8% of purchases, while the five largest suppliers combined accounted for 30%[116]. - The largest customer represented 34% of sales, and the five largest customers combined accounted for 94%[116].
亚伦国际(00684) - 2021 - 年度财报