Financial Performance - Revenue for the year ended March 31, 2021, was HK$2,101,573, representing a 30% increase from HK$1,615,183 in 2020[10] - Gross profit increased to HK$286,634, up 39% from HK$206,343 in the previous year[10] - Operating profit rose significantly to HK$102,083, compared to HK$34,534 in 2020, marking a 195% increase[10] - Profit attributable to owners of the Company was HK$79,274, a substantial increase from HK$27,705 in 2020, reflecting a 186% growth[10] - Earnings per share increased to 27.96 HK cents, up from 9.77 HK cents in the prior year, representing a 186% rise[10] - Total equity as of March 31, 2021, was HK$802,168, compared to HK$704,841 in 2020, indicating a 14% increase[10] - The company reported a net cash position of (HK$10,760) as of March 31, 2021, down from HK$60,709 in 2020[10] - Capital expenditure for the year was HK$114,690, significantly higher than HK$35,005 in the previous year, reflecting a 228% increase[10] Revenue Segmentation - Revenue from electronic products was HK$1,695,367, while pet-related products generated HK$406,206, showing growth in both segments[12] - The electronic products segment contributed HK$1,695.4 million, accounting for 80.7% of total sales, with a year-on-year growth of 24.3%[30] - The pet business generated revenue of approximately HK$406.2 million, a 62.0% increase year-on-year, representing 19.3% of total revenue[33] Dividends and Shareholder Returns - The company proposed a final dividend of HK8.0 cents per share and a special dividend of HK3.0 cents per share, totaling HK17.0 cents for the year, up from HK8.0 cents in the previous year[25] Market and Production Expansion - Suga has expanded its production base in Vietnam, which has allowed the company to meet increased demand for certain products during the pandemic[23] - The Chinese market showed a quick rebound, leading to an increase in orders for general consumer electronics, filling production capacity previously vacated in Dongguan[32] - The group plans to expand its customer base in China and enhance market resilience by utilizing production capacity at its Dongguan plant[45][46] - A new plant of over 30,000 sq.m. is being built in Vietnam, expected to commence production in the second half of 2021, to meet increasing demand for cost-effective production[52] Innovation and Product Development - The company maintained its commitment to developing innovative products despite the pandemic, resulting in strong demand for professional audio equipment[31] - The professional audio equipment segment is expected to sustain demand, with plans to grow the R&D team to develop products with strong demand potential[44] Financial Health and Ratios - The debt to equity ratio increased to 17.5% from 9.6% in the previous year, indicating a rise in leverage[10] - The Group's total assets as of March 31, 2021, amounted to approximately HK$1,326.6 million, up from HK$998.0 million as of March 31, 2020[73] - The Group's total liabilities as of March 31, 2021, were approximately HK$524.4 million, compared to HK$293.1 million as of March 31, 2020[73] - The debt ratio was approximately 0.40 times as of March 31, 2021, compared to 0.29 times as of March 31, 2020[73] - The liquidity ratio was 1.68 times as of March 31, 2021, down from 2.19 times as of March 31, 2020[71] Corporate Governance - The Group is committed to high standards of corporate governance, complying with the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[132][133] - The Group's leadership structure currently combines the roles of Chairman and CEO, held by Dr. Ng, which the Board believes provides strong and consistent leadership[134] - The Board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[137] - The Company has complied with the Listing Rules regarding the appointment of at least three independent non-executive directors, ensuring independence and objectivity in Board decisions[142] Risk Management and Internal Controls - The Board is responsible for the risk management and internal control systems, which were reviewed for effectiveness for the year ended March 31, 2021[148] - The Audit Committee held two meetings during the year to review the fiscal year 2019/2020 annual report and the fiscal year 2020/2021 interim report, discussing financial results and risk management[167] Employee and Director Information - The Group employed approximately 2,890 employees as of March 31, 2021, with 73 based in Hong Kong and the remainder primarily in Mainland China and Vietnam[84] - The Group's Chief Financial Officer, Mr. Chow, has over 27 years of experience in corporate finance and accounting, having joined the Group in September 2001[125] - The Chief Executive Officer of WePet Group, Mr. Ng, has been responsible for developing the pet business since joining in 2010, focusing on wholesale and retail operations in Hong Kong and mainland China[125][126]
信佳国际(00912) - 2021 - 年度财报