Financial Performance - The company recorded an annual loss of approximately HKD 10,215,000 for the year ended March 31, 2020, an increase of about HKD 797,000 compared to a loss of HKD 9,418,000 in the previous year[9]. - Net investment loss for the year was approximately HKD 1,104,000, significantly higher than the previous year's loss of about HKD 137,000, primarily due to unrealized fair value changes of financial assets[9]. - The company reported a loss attributable to equity shareholders of approximately HKD 10,215,000 for the year ended March 31, 2020, compared to a loss of HKD 9,418,000 in 2019[25]. - As of March 31, 2020, the company's cash and bank balance was approximately HKD 4,105,000, a decrease from HKD 12,848,000 in 2019[24]. - The company's net asset value as of March 31, 2020, was approximately HKD 5,156,000, down from HKD 15,371,000 in 2019[25]. - Employee compensation for the year was approximately HKD 3,310,000, a decrease from HKD 3,963,000 in 2019, with four employees as of March 31, 2020[30]. - The company did not recommend any dividend payment for the year, consistent with the previous year[23]. - The company has adopted a dividend policy allowing for the declaration and distribution of dividends to shareholders, contingent upon financial performance and other factors[117]. - The board will consider various factors, including financial performance and capital needs, when deciding on dividend declarations[117]. - The company emphasizes that the dividend policy does not constitute a legal commitment to pay any specific amount[117]. Investment Strategy - The company did not make any new investments during the year and continued to manage its existing portfolio[10]. - The global economic outlook remains uncertain due to the ongoing US-China trade tensions and the impact of the COVID-19 pandemic, prompting the company to adopt a cautious investment management approach[11]. - The company will continue to focus on equity investments in the domestic Chinese market while closely monitoring market conditions[11]. - The company has no plans or agreements for significant investments or capital assets as of the report date, but will consider future opportunities[17]. - The board is considering various fundraising activities to strengthen the company's capital base, including private placements and public offerings[25]. Corporate Governance - The company has established policies and practices regarding corporate governance, including regular reviews of compliance with listing rules[62]. - The board consists of six directors, three of whom are female, reflecting a commitment to diversity[78]. - The company has adopted a board diversity policy, considering various measurable factors such as gender and professional background[83]. - The roles of the Chairman and CEO are clearly separated to enhance independence and accountability, with the current Chairman and CEO being different individuals[101]. - The company has established an audit committee to review and oversee its financial reporting processes and internal control systems[181]. - The independent non-executive directors confirmed that the ongoing related party transactions were conducted in the ordinary course of business and on normal commercial terms[178]. - The auditor issued an unqualified opinion regarding the company's ongoing related party transactions as disclosed in the annual report[179]. Risk Management - The company has implemented a continuous risk assessment and management approach to identify and manage significant risks affecting its objectives[98]. - An independent consultant was hired to review the effectiveness of the risk management and internal control systems, with no significant deficiencies found[99]. - The company ensures compliance with applicable laws and regulations through its risk management and internal control systems[95]. - The company has established a risk register for ongoing assessment and management of identified risks, prioritizing resources based on risk ratings[98]. Management and Operations - The company appointed a new executive director, Ms. Chan Mei Sin, on June 1, 2020[18]. - The company has entered into a new investment management agreement with INV Advisory Limited, with a maximum annual fee of HKD 1,620,000, effective from June 1, 2020[19]. - The previous investment management agreement with 安永達投資管理有限公司 had an annual fee of HKD 800,000 and was terminated on June 1, 2020[173]. - The company has maintained appropriate directors and officers liability insurance for potential legal actions[164]. - The company has no significant contracts with directors that cannot be terminated within one year without compensation[162]. Stakeholder Engagement and ESG - The company is committed to enhancing its environmental, social, and governance (ESG) performance and reporting[192]. - Stakeholder engagement is considered crucial for the company to understand potential risks and opportunities[193]. - The company aims to balance shareholder interests with social responsibilities in its ESG strategy[192]. - The company will continue to strengthen data collection efforts to improve ESG performance and disclose more relevant information[192]. - The company has complied with all relevant environmental and social policies during the fiscal year[140]. Shareholder Matters - Shareholders holding at least 5% of total voting rights or 100 shareholders can submit written requests for resolutions to be considered at the annual general meeting[116]. - Written requests must be signed and submitted at least six weeks prior to the annual general meeting[116]. - If a written request is valid, the board will include the resolution in the agenda or circulate the statement, subject to reasonable costs being covered by the requesting shareholders[116]. - The company’s governance practices include provisions for special meetings when necessary, ensuring shareholder engagement[115]. - The annual general meeting is scheduled for August 27, 2020[143].
金石资本集团(01160) - 2020 - 年度财报