Financial Performance - The company recorded an annual loss of approximately HKD 8,379,000 for the year ended March 31, 2021, a decrease of about HKD 1,836,000 compared to a loss of HKD 10,215,000 for the previous year[11]. - Net investment losses for the year were approximately HKD 938,000, compared to HKD 1,104,000 in the previous year, primarily due to unrealized fair value changes of financial assets measured at fair value through profit or loss[11]. - General and administrative expenses amounted to approximately HKD 7,802,000, a decrease of about HKD 1,308,000 from the previous year, mainly due to reduced employee costs and legal and professional fees[11]. - As of March 31, 2021, the company had cash and bank balances of approximately HKD 1,327,000, down from HKD 4,105,000 in 2020[25]. - The company has secured loans from a controlling shareholder, Renown Future Limited, totaling HKD 3,500,000, which must be repaid within one year[23]. - The company's debt-to-asset ratio is approximately 1.5, calculated based on total borrowings against total assets[25]. - The company does not recommend paying dividends for the current year, consistent with the previous year[24]. - The company reported a loss for the fiscal year ending March 31, 2021, with detailed financial performance available on pages 62 to 101 of the financial statements[134]. - No dividends were recommended for the fiscal year, consistent with the previous year[135]. Investment Management - The company held a 2.84% equity interest in the招商和騰科技基金II, L.P, with a fair value of approximately HKD 432,000, representing about 18.8% of the company's total assets[16]. - The company confirmed an unrealized investment loss of approximately HKD 938,000 related to its equity interest in招商和騰 for the year[16]. - No new investments were made during the year, focusing instead on managing existing investments[12]. - The company plans to actively raise funds for its investment management business in the next fiscal year, focusing on post-vaccine recovery and underperforming investment opportunities[13]. - The company has changed its investment manager and signed a new investment management agreement with INV Advisory Limited, effective from June 1, 2020, for an initial term of three years[20]. - The company has entered into a new investment management agreement with INV Advisory Limited, with an annual fee of HKD 1,620,000[163]. - The investment management agreement with EYDA was terminated on June 1, 2020, after an annual fee of HKD 800,000[163]. - The total management fees paid to INV Advisory during the year amounted to HKD 1,350,000[164]. - The custodian fees paid to DBS Bank for the year totaled HKD 46,500[168]. Corporate Governance - The board of directors held four meetings during the year, with a 100% attendance rate for all executive and independent non-executive directors[50]. - The company confirmed that it has sufficient resources to continue its operations for the foreseeable future, adhering to the going concern basis for financial statement preparation[59]. - The board is responsible for establishing and reviewing corporate governance policies and practices to ensure compliance with listing rules[58]. - Independent non-executive directors are tasked with participating in board meetings to make independent judgments on company strategy and performance[55]. - The company has purchased liability insurance for directors and senior officers to provide full indemnity for costs and liabilities incurred during their duties[54]. - The board is accountable for approving and implementing all investment decisions in line with the company's investment objectives and policies[49]. - The company has established an audit committee in accordance with Listing Rule 3.21, comprising non-executive directors and three independent non-executive directors, to review and supervise the financial reporting process and internal control systems[174]. - The company has established a governance structure in place, including various committees led by experienced directors[121][122]. - The roles of the Chairman and CEO are clearly separated to enhance independence and accountability within the company[98]. - The company provides ongoing training to directors on the latest developments in listing rules and corporate governance practices[102]. Risk Management - The company has implemented a continuous risk assessment and management approach to identify and manage significant risks affecting its objectives[95]. - An independent consultant was hired to review the effectiveness of the risk management and internal control systems, with no significant deficiencies found[96]. - The company has established a clear framework for risk management, including defined management structures and reporting methods[92]. - The risk management system aims to protect the company's assets from unauthorized use and ensure compliance with applicable laws and regulations[92]. - The company has a risk rating model to prioritize risk management resources based on the assessed significance and likelihood of risks[95]. ESG (Environmental, Social, and Governance) - The company is committed to enhancing its environmental, social, and governance (ESG) performance and has established a dedicated ESG function to integrate these elements into its business operations[188]. - The board of directors is responsible for formulating the company's ESG management policies, strategies, and objectives, ensuring the effectiveness of the ESG management and internal control systems[190]. - The senior management is tasked with guiding the company's ESG efforts, assessing risks and opportunities, and reporting significant ESG-related issues to the board[193]. - The company aims to improve its ESG performance by enhancing data collection and disclosing more relevant information on sustainable development[188]. - The ESG report covers the fiscal year ending March 31, 2021, and outlines the company's responsibilities and governance structure related to ESG[183]. - The company has adopted the principles and benchmarks set out in the ESG Reporting Guide under Appendix 27 of the Listing Rules to ensure a comprehensive understanding of its ESG efforts[182]. - The company is focused on identifying and verifying significant ESG issues through stakeholder engagement activities[185]. - The company has established a clear ESG governance structure with defined responsibilities to enhance systematic and standardized management of ESG matters[189]. Stakeholder Engagement - Stakeholder communication is crucial for understanding potential risks and opportunities, ensuring alignment with stakeholder needs and expectations[199]. - Key stakeholders include investors, employees, suppliers, government and regulatory bodies, the natural environment, and the community[199]. - The company engages with stakeholders through various channels to provide updates on development and operational direction[199]. - Investor engagement includes financial reports, shareholder meetings, and regular disclosures on business performance and governance[199]. - Employee development initiatives focus on training, career advancement, and improving health and safety standards[199]. - The company is committed to addressing labor rights and enhancing compensation and benefits systems for employees[199].
金石资本集团(01160) - 2021 - 年度财报