Financial Performance - The company reported a revenue increase of 36% to HKD 842,631,000 for the fiscal year ending March 31, 2021, compared to HKD 619,241,000 in the previous year[24]. - Net profit rose by 12% to HKD 38,689,000, up from HKD 34,561,000 in the prior year, with a basic earnings per share of HKD 0.36, slightly down from HKD 0.37[24]. - The overall profit attributable to shareholders was HKD 33,080,000, slightly down from HKD 33,709,000 in the previous year[24]. - The group recorded a profit attributable to the owners of HKD 33,080,000 for the fiscal year 2021, compared to HKD 33,709,000 in 2020, with basic earnings per share of HKD 0.36, down from HKD 0.37[86]. Revenue Sources - The timber supply chain and lending businesses contributed significantly to the profit, generating HKD 30,619,000 and HKD 26,466,000 respectively[24]. - The wood supply chain operations generated revenue of HKD 807,830,000, a 38% increase from HKD 583,584,000, and profit of HKD 30,619,000, up 96% from HKD 15,634,000[35]. - The traditional business model generated revenue of HKD 551,002,000, with a profit of HKD 13,242,000, while the optimized business model produced revenue of HKD 256,828,000 and profit of HKD 17,377,000[37][38]. - The lending business generated revenue of HKD 34,001,000, with operating profit of HKD 26,466,000, although operating profit decreased by 10% due to a 106% increase in loan impairment losses[26]. Timber Operations - The timber supply chain operations in Europe achieved remarkable growth, with revenue increasing by 38% to HKD 807,830,000 and operating profit rising by 96% to HKD 30,619,000[25]. - The volume of timber and wood products traded increased by over 493,000 cubic meters, a 50% rise from 329,000 cubic meters in the previous year[25]. - The company is expanding its wood supply chain operations in Europe, establishing new distribution centers and processing projects in Croatia[28]. - The wood supply chain operations have established distribution centers in Slovenia, Romania, and Croatia, enhancing procurement from various European countries and primarily selling to customers in China and other Asian countries[51]. Management and Strategy - The management team in Europe played a crucial role in the significant business development of the timber supply chain operations[25]. - The company is committed to sustainable forest management and responsible sourcing practices as part of its operational strategy[42]. - The wood supply chain operations are supported by an experienced management team with a robust network of suppliers and customers, driving continuous business growth[34]. - The company plans to continue exploring new business opportunities while managing its wood supply chain and lending operations cautiously due to the unpredictable nature of the pandemic[29]. Financial Position - As of March 31, 2021, the company had current assets of HKD 482,030,000 and cash and cash equivalents of HKD 109,198,000, with a current ratio of approximately 1.9, up from 1.5 in the previous year[76]. - The company’s loan and leasing portfolio had a total book value of HKD 283,904,000 as of March 31, 2021, down from HKD 312,425,000 in 2020, reflecting a focus on maintaining credit quality[57]. - The company’s total borrowings of the group amounted to HKD 112,396,000, a decrease from HKD 116,997,000 in 2020, resulting in a capital-to-debt ratio of 49%, down from 59% in the previous year[78]. - The total assets of the group slightly decreased by HKD 22,658,000 or 4% to HKD 536,414,000 as of March 31, 2021, compared to HKD 559,072,000 in 2020[79]. Corporate Governance - The company has complied with all applicable corporate governance code provisions, except for the absence of the chairman at the annual general meeting[157]. - The board consists of six directors, with three executive directors and three independent non-executive directors, ensuring a diverse skill set and experience[161]. - The company has adopted a nomination policy to ensure the suitability of candidates for the board, considering qualifications, experience, and diversity[178]. - The audit committee is responsible for reviewing the effectiveness of the group's risk management and internal control systems[182]. Environmental and Social Responsibility - The company encourages environmental protection and has implemented green office measures, including reducing waste and minimizing greenhouse gas emissions[96]. - The company is committed to regular reviews of its environmental practices to ensure compliance with applicable regulations and to improve its environmental performance[96]. - The company emphasizes the importance of sustainable business practices, particularly in its forest-related operations[96]. Shareholder Information - The company did not recommend any final dividend for the year ended March 31, 2021, consistent with the previous year[119]. - The company’s total issued share capital as of March 31, 2021, was approximately 9,105,709,503 shares, with a significant shareholder holding 26.84%[138]. - The company’s reserves included a share premium of HKD 67,546,000 and retained earnings of HKD 2,938,375,000 as of March 31, 2021[127]. - The company has established multiple communication channels with shareholders, investors, and other stakeholders, including annual general meetings, annual reports, interim reports, announcements, and the company website[199].
信保环球控股(00723) - 2021 - 年度财报