Financial Performance - For the year ended March 31, 2020, Elegance Optical International Holdings Limited recorded a loss before tax of approximately HK$102.4 million, with a loss attributable to owners of approximately HK$98.4 million, compared to HK$99.1 million in 2019[13]. - Total revenue for the year was approximately HK$66.2 million, representing a decrease of approximately 63.0% from approximately HK$179.0 million in the previous year[13]. - The largest portion of total revenue came from the sales of optical frames and sunglasses, which decreased by approximately 63.0% or approximately HK$106.7 million, down from HK$169.3 million in 2019[13]. - Rental income from property investment slightly decreased from approximately HK$2.3 million in 2019 to approximately HK$2.1 million in 2020, remaining relatively insignificant to the Group's operations[13]. - The debts and securities investment segment recorded a loss of approximately HK$1.6 million, compared to HK$0.7 million in 2019, with a fair value of securities investment amounting to approximately HK$5.7 million as of March 31, 2020[13]. - The Group's cash and cash equivalents as of March 31, 2020, were approximately HK$28.4 million, up from HK$13.9 million in 2019[23]. - Short-term borrowings increased to approximately HK$30.5 million as of March 31, 2020, compared to HK$20.7 million in 2019[23]. - The debt to equity ratio was approximately 12.1% as of March 31, 2020, compared to 0.9% in 2019[23]. Film Industry Insights - Filmko Culture Limited, a major film distributor in the PRC, in which the Group acquired a 25% interest, recorded a profit after tax of approximately HK$42.8 million, exceeding the profit guarantee[13]. - The box office in the PRC for 2019 was RMB 64,266 million, representing a 5.4% increase compared to 2018, maintaining its position as the world's second-largest film market[17]. - The total number of movie screens in the PRC increased by 9,708 to 69,787, solidifying its leading position globally[17]. - Cinema admissions reached 1,727 million, an increase of 11 million compared to 2018[17]. - The film market in the PRC suffered a loss of over RMB 10 billion in box office revenue due to the COVID-19 outbreak in 2020[18]. Corporate Governance - The company has adopted the Corporate Governance Code as its own code of corporate governance practices, ensuring compliance throughout the year ended 31 March 2020[127]. - The Board did not appoint any Director as its Chairman during the year, which is a deviation from Code provision A.2[128]. - The independent non-executive Director Hui Man Ho, Ivan has been appointed for an initial term of two years, renewable for successive terms of one year, while other independent non-executive Directors do not have specific terms[129]. - The nomination committee did not have any members at a material time due to resignations during the year, which constituted a deviation from Code provision A.5.1[130]. - The company has recognized the importance of transparency and accountability in its corporate governance practices[127]. - The Board will review the current situation regarding the Chairman's appointment in upcoming regular meetings[128]. - The company has complied with the Corporate Governance Code except for specific deviations noted during the year[127]. Environmental Impact - The company reported a 27.0% decrease in direct emissions from its fleet, with emissions of 60.8 tonnes of CO2e in 2020 compared to 83.3 tonnes in 2019[69]. - Indirect emissions from purchased electricity decreased by 41.0%, from 4,750.5 tonnes of CO2e in 2019 to 2,802.4 tonnes in 2020[69]. - Total greenhouse gas emissions decreased from 4,950 tonnes in 2019 to 2,989 tonnes in 2020[69]. - The Group is committed to environmentally-friendly business practices and aims to create a positive impact in the communities[62]. - The total floor area covered by the group remained constant at 479,722 sq.ft., accounting for 100% of emissions from operations in the PRC and Hong Kong[66]. Employee and Workplace Safety - As of March 31, 2020, the Group employed 271 full-time employees, a decrease from 384 in 2019[27]. - The Group maintained a work-related fatality rate of 0 and no work injury cases reported for the period[94]. - There was no lost day due to work injury, reflecting the Group's commitment to occupational health and safety[96]. - The Group complies with employment regulations, ensuring no child or forced labor in its operations[99]. - The Group emphasizes equal opportunities in recruitment, training, and advancement, promoting cultural diversity within the workforce[112]. Risk Management - Economic conditions and market risks are principal uncertainties affecting the Group's sales and revenue, with strategies in place to penetrate different geographical markets[35]. - The Group faces credit and liquidity risks related to its financial instruments, which include trade receivables and bank balances[37]. - Interest rate risk is present due to fluctuations in interest-bearing financial assets and liabilities, with management considering hedging if necessary[39]. - The Group is exposed to commodity price fluctuations, particularly for cellulose acetate and potassium gold cyanide, impacting the cost of goods sold[40]. - Foreign currency risk is monitored closely, with transactions mainly in Hong Kong dollar, Renminbi, and US dollar, minimizing significant exchange risk[41]. Shareholder Engagement - Shareholders holding not less than 10% of the paid-up capital can requisition a special general meeting[192]. - Shareholders can submit a written requisition to move a resolution at a general meeting if they represent not less than 5% of the total voting rights[194]. - A written requisition for a resolution must be signed by at least 5% of the total voting rights or no less than 100 shareholders[198]. - The written requisition must be submitted at least six weeks before the general meeting[198]. - Shareholders can direct inquiries about their shareholdings to the Company's Hong Kong branch share registrar[197].
高雅光学(00907) - 2020 - 年度财报