Financial Performance - The company reported a revenue of approximately HKD 96.4 million for the year, a significant increase of 404.0% compared to HKD 19.1 million in the previous year[7] - The garment business generated revenue of approximately HKD 90.8 million, reflecting a growth of 575.7%, while the property investment business recorded revenue of approximately HKD 5.7 million, a slight decrease of 0.53%[7] - The loss attributable to equity holders was HKD 28.2 million, compared to a profit of HKD 13.3 million in the previous year[7] - The group recorded a revenue of approximately HKD 96.4 million for the year ending March 31, 2019, a significant increase of approximately 404.0% compared to HKD 19.1 million for the year ending March 31, 2018[22] - Revenue from the garment business increased from approximately HKD 13.4 million for the year ending March 31, 2018, to approximately HKD 90.8 million for the year ending March 31, 2019, representing an increase of approximately 575.7%[22] - The gross profit for the garment business was approximately HKD 9.3 million for the year ending March 31, 2019, up approximately 1,181.5% from approximately HKD 0.7 million for the year ending March 31, 2018[25] - The gross profit margin for the garment business improved to approximately 10.3% for the year ending March 31, 2019, compared to approximately 5.4% for the year ending March 31, 2018[25] - The group maintained stable revenue from property investment at approximately HKD 5.7 million for both the year ending March 31, 2019, and the year ending March 31, 2018[24] Expenses and Liabilities - Administrative expenses decreased by approximately 25.4% from approximately HKD 44.2 million for the year ending March 31, 2018, to approximately HKD 33.0 million for the year ending March 31, 2019[27] - Financial expenses increased by approximately 32.0% from approximately HKD 5.9 million for the year ending March 31, 2018, to approximately HKD 7.8 million for the year ending March 31, 2019[32] - As of March 31, 2019, the group's cash and bank balances totaled approximately HKD 4,500,000, a decrease from HKD 22,300,000 as of March 31, 2018[41] - Total bank and other borrowings amounted to approximately HKD 198,600,000 as of March 31, 2019, compared to HKD 131,500,000 as of March 31, 2018, indicating an increase of approximately 50.9%[42] - The current ratio decreased to approximately 0.40 as of March 31, 2019, down from 0.46 as of March 31, 2018, due to increased payables and borrowings[43] - The asset-to-liability ratio increased to approximately 680.0% as of March 31, 2019, compared to 243.4% as of March 31, 2018, reflecting a significant rise in borrowings[43] - Trade receivables and payables as of March 31, 2019, were approximately HKD 39,400,000 and HKD 1,800,000, respectively, compared to HKD 6,300,000 and HKD 4,700,000 as of March 31, 2018[47] Business Strategy and Future Plans - The company aims to develop sustainable business plans and strategies following the acquisition of Always Profit Development Limited as the new controlling shareholder[7] - The group plans to continue exploring new business opportunities and diversifying its operations to generate better returns for shareholders[33] - The group has expanded its garment business into the Australian market and is actively seeking to develop higher-margin products and expand distribution channels[33] Shareholder and Governance Matters - The company did not recommend any dividend payment for the year ending March 31, 2019, consistent with the previous year where no dividend was paid[72] - The largest customer accounted for 55% of sales in 2019, down from 68% in 2018, while the top five customers collectively represented 94% of sales[69] - The largest supplier accounted for 45% of procurement in 2019, a decrease from 52% in 2018, with the top five suppliers making up 100% of procurement[69] - The company has complied with the listing rules regarding the number of independent non-executive directors after appointing Mr. Chen as the chairman of the audit committee[93] - The company has adopted the standard code of conduct for securities transactions as per the listing rules and confirmed compliance by all directors for the year ended March 31, 2019[126] - The company has established measurable goals for board member diversity, focusing on various criteria[145] - The board held 15 meetings in the fiscal year ending March 31, 2019, with attendance rates for directors detailed in the report[149] Audit and Compliance - The financial statements were audited by Zheng Zheng CPA Limited, which is willing to be reappointed at the upcoming annual general meeting[117] - The audit committee held two meetings during the fiscal year, reviewing interim and annual performance, and ensuring the independence of external auditors[158] - The auditor's report emphasizes the responsibility to ensure that the consolidated financial statements are free from material misstatement due to fraud or error[197] - The audit process involves assessing the risk of material misstatement and designing appropriate audit procedures to obtain sufficient and appropriate audit evidence[198] - The overall presentation, structure, and content of the consolidated financial statements are assessed to ensure they fairly reflect relevant transactions and matters[199] Employee and Management Information - The total employee cost for the year ending March 31, 2019, was approximately HKD 16.3 million, down from approximately HKD 21 million for the previous year[61] - The group had a total of 26 employees as of March 31, 2019, a decrease from 38 employees the previous year[61] - The company has no outstanding share options granted to directors or employees as of March 31, 2019[61] - The remuneration committee aims to maintain competitive compensation levels to attract and retain directors and key executives[159]
龙翼航空科技(00918) - 2019 - 年度财报