Financial Performance - The total revenue for the fiscal year ending June 30, 2021, was approximately HKD 433,049,000, an increase of 50.2% compared to HKD 288,271,000 in the previous year[7]. - The profit attributable to owners for the fiscal year was approximately HKD 156,346,000, compared to a loss of HKD 142,259,000 in the previous year, resulting in earnings per share of HKD 0.066[7]. - The wire and cable segment generated revenue of approximately HKD 278,995,000, a 56.6% increase from HKD 178,209,000 in the previous year, accounting for 64.4% of total revenue[8]. - The copper rod business reported revenue of approximately HKD 140,300,000, up 43.1% from HKD 98,045,000, representing 32.4% of total revenue[8]. - Rental income from investment properties was approximately HKD 13,754,000, an increase of 14.5% from HKD 12,017,000 in the previous year[14]. - Revenue from the Americas market increased by 100.2% to approximately HKD 38,843,000, accounting for 9.0% of total revenue[9]. - Revenue from mainland China and Hong Kong rose by 41.6% to approximately HKD 305,932,000, making up 70.7% of total revenue[9]. Market Conditions and Strategy - The average copper price increased from approximately USD 6,300 per ton at the beginning of the year to approximately USD 9,400 per ton by the end of the year[13]. - The company noted a historical high copper price of USD 10,720 per ton during the fiscal year, driven by strong demand from China and supply constraints[15]. - The company plans to monitor market conditions closely and adjust its strategies accordingly in response to potential oversupply in the copper market[16]. - The company has adopted a new assumption for copper price calculations to avoid significant impairment or loss due to price fluctuations, moving away from using past end-of-period spot prices[17]. - The pandemic has severely impacted Mongolia, limiting travel and complicating investment decisions for the company, particularly in establishing processing plants and purchasing mining equipment[17]. - The company did not record any revenue from its mining resources in Mongolia during the review year, as no production activities were conducted[17]. - The advertising market in China has significantly declined due to clients cutting budgets in response to the ongoing COVID-19 pandemic, affecting traditional advertising companies more severely[18]. - The company anticipates a gradual recovery in the global economy next year, driven by vaccine distribution and government stimulus policies, which will improve the operating environment for its wire, cable, and copper rod businesses[19]. - Construction of a new factory in Dongguan, China, is ongoing, with plans to optimize land resources for modern facilities to generate new revenue streams[19]. - The company has paused construction projects due to uncertainties caused by the pandemic and is reassessing the development prospects of these projects while seeking potential partners[19]. - The company aims to identify potential business partners and new growth opportunities to diversify and sustain its revenue sources, thereby enhancing shareholder value[19]. Financial Position and Investments - The group's cash and cash equivalents as of June 30, 2021, were approximately HKD 67 million, an increase from HKD 64 million as of June 30, 2020[55]. - The net current assets as of June 30, 2021, were approximately HKD 68 million, down from HKD 121 million as of June 30, 2020[55]. - The group's capital debt ratio as of June 30, 2021, was 0.23, compared to 0.18 as of June 30, 2020, with total borrowings of approximately HKD 270 million[55]. - The group has pledged investment properties with a net book value of approximately HKD 364 million as of June 30, 2021, up from HKD 310 million as of June 30, 2020[56]. - The group did not make any significant investments during the review year and has no plans for major investments or capital assets as of the board report date[38]. - The group did not recommend the payment of a final dividend for the year ended June 30, 2021[47]. Governance and Compliance - The group has identified several risks and uncertainties that may impact its financial condition and operational performance[32]. - The group has not engaged in any related party transactions that constitute connected transactions under the listing rules for the year ended June 30, 2021[54]. - The group has maintained compliance with all relevant laws and regulations without any significant violations during the review year[41]. - The group has adopted green initiatives, including waste paper recycling and energy conservation measures[43]. - The group incurred a net loss of approximately HKD 507,000 from derivative financial instruments during the review year, compared to a net loss of HKD 134,000 in the previous year[59]. - The total number of shares available for issuance under the share option plan is 237,453,234 shares, representing 10% of the issued shares as of the report date[70]. - The company decided to grant options to eligible participants to subscribe for a total of 162,260,000 shares on March 20, 2019, depending on acceptance by the grantees[76]. - The company also decided to grant options to eligible participants to subscribe for a total of 53,800,000 shares on July 25, 2019, subject to acceptance by the grantees[77]. - The share option plan is valid for a period of 10 years from the date it becomes unconditional[76]. - The group aims to manage financial risks through derivative financial instruments rather than for speculative purposes[59]. - The board of directors includes executive and independent non-executive members, with some directors eligible for re-election at the upcoming annual general meeting[61]. - The company is closely monitoring ongoing legal proceedings involving its directors and will provide updates to shareholders and potential investors as necessary[65]. - The share option plan is designed to encourage and reward contributions to the group and to attract and retain capable employees[68]. - The exercise price for any specific option will be determined by the board but cannot be lower than the higher of the closing price on the grant date or the average closing price over the five trading days preceding the grant date[76]. - As of June 30, 2021, there were a total of 53,800,000 unexercised stock options, representing approximately 2.27% of the company's issued shares of 2,374,532,340[82]. - During the year, a total of 138,220,000 stock options expired, with no options exercised or canceled[83]. - The company has not adopted any new stock option plans for the year ending June 30, 2021[84]. - The top five customers accounted for approximately 38.6% of the total revenue for the year, while the top five suppliers accounted for about 52.1% of total purchases[93]. - The largest customer contributed approximately 12.6% to the total revenue, and the largest supplier accounted for about 27.3% of total purchases[93]. - As of June 30, 2021, the beneficial ownership of directors included 39,380,000 shares (1.66%) held by one director[85]. - The company has the authority to grant up to 237,453,234 stock options, which is 10% of the issued shares, as approved by shareholders[82]. - No directors or senior executives had any interests in businesses that directly or indirectly compete with the company[89]. - There were no significant transactions or contracts involving directors or their related entities during the year[90]. - The independent non-executive directors confirmed their independence as per the listing rules[92]. - The group employed approximately 500 employees as of June 30, 2021, consistent with the previous year[96]. - The group has adopted a share option scheme to reward eligible individuals, including directors and qualified employees, for their contributions[98]. - The group contributes 5% of employees' relevant income to the Mandatory Provident Fund (MPF) plan, with a monthly income cap of HKD 30,000[98]. - The company has maintained the minimum public float as required under the listing rules[102]. - There were no significant events occurring after the reporting period[105]. - The independent non-executive director has served for over 18 years and will be subject to re-election at the upcoming annual general meeting[115]. - The company has maintained compliance with the listing rules, appointing at least three independent non-executive directors, who constitute at least one-third of the board[126]. - The board held a total of seven meetings during the year ending June 30, 2021, with all directors participating actively[128]. - Independent non-executive directors have served for over nine years, ensuring their independence as per the guidelines[126]. - The chairman and managing director was unable to attend the 2020 annual general meeting due to COVID-19 restrictions, with the vice-chairman presiding instead[118]. - The company has implemented a standard code of conduct for securities trading among directors, confirming compliance for the year ending June 30, 2021[120]. - The board is responsible for setting strategic policies and overseeing management, including approving significant transactions and financial disclosures[122]. - The company has secured appropriate liability insurance for its directors and senior management against legal claims arising from corporate activities[127]. - The nomination committee and board have confirmed the independence of all independent non-executive directors according to the listing rules[126]. - The company has not held any special general meetings during the year ending June 30, 2021[128]. - The board has ensured that all directors have sufficient time to fulfill their responsibilities[130]. - The remuneration committee held one meeting during the year ending June 30, 2021, with all members present, reviewing the compensation packages for all executive directors and senior management[135]. - The auditor's fees for the year ending June 30, 2021, amounted to HKD 1,900,000 for audit services and HKD 250,000 for non-audit services, consistent with the previous year[148]. - The nomination committee also held one meeting during the year, determining the nomination policy for directors and senior management candidates[144]. - The board diversity policy was adopted effective January 1, 2019, aiming to achieve diversity in the board's composition, considering various factors such as skills, experience, and gender[145]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[133]. - The remuneration committee's responsibilities include determining the specific compensation packages for all executive directors and senior management, considering factors such as industry standards and performance-based bonuses[135]. - The company has implemented a board member diversity policy to ensure a balanced representation of talents and backgrounds[145]. - The nomination committee's role includes reviewing the structure and composition of the board to align with the company's strategy and diversity policy[138]. - The company aims to maintain a balanced board diversity vision to support its business development[145]. - The board has adopted a policy for the re-election of directors at the annual general meeting, ensuring compliance with the company's articles of association[144]. - The audit committee held four meetings during the year ended June 30, 2021, with full attendance from all members[150]. - The audit committee reviewed the financial statements for the year ended June 30, 2021, confirming compliance with applicable accounting standards and legal requirements[150]. - The company has adopted a dividend policy effective from January 1, 2019, which emphasizes maintaining sufficient cash reserves for operational needs and future development[152]. - The board of directors is responsible for reviewing and monitoring compliance with legal and regulatory requirements, as well as corporate governance practices[155]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to become a leading manufacturer and quality supplier of cables, wires, copper rods, and copper wires in China and globally[180]. - The company has established a risk management framework involving the board, audit committee, and senior management to monitor the effectiveness of risk management and internal controls[167]. - An external independent consultant was hired to review the effectiveness of the risk management and internal control systems, concluding that the systems are adequate and effective[169]. - The company focuses on optimizing its business and concentrating on core activities, including the manufacturing and trading of cables and wires, trading of copper products, and property investment[177]. - The environmental, social, and governance (ESG) report for the year ending June 30, 2021, was prepared in accordance with the guidelines set out in the listing rules[176]. - The company has been ISO 9001:2000 certified since 2003, indicating effective management in environmental, social, and governance aspects[183]. - The board is responsible for approving and updating strategies and policies related to environmental and social issues as per the ESG report guidelines[182]. - The company is committed to providing a safe, healthy, and pleasant working environment for employees while ensuring sustainable development[180]. - The report period for the ESG report covers from July 1, 2020, to June 30, 2021[179]. - The company emphasizes compliance with relevant laws and regulations, sustainable development principles, and maximizing benefits for investors and stakeholders[182]. - Indirect greenhouse gas emissions from electricity consumption totaled 8,281 tons, a 119% increase compared to the previous reporting period's 3,774 tons[194]. - The company aims for zero growth in greenhouse gas emissions through stricter electricity consumption controls[194]. - The main source of wastewater discharge is cooling water used in the production process, with a closed-loop system implemented to minimize wastewater[196]. - The company continues to adhere to the 3-R principle (Reduce, Reuse, Recycle) in its operations to minimize waste generation[197]. - No confirmed violations of environmental laws were reported during the reporting period[190]. - The company has not received any complaints or warnings regarding direct harmful gas emissions from environmental authorities or local communities[195]. - The total amount of non-hazardous waste generated remains low and is expected to be properly managed in the coming year[199]. - The company has complied with all national and local environmental laws and regulations, maintaining its pollution discharge permit since November 2017[190]. - The company actively engages with stakeholders through various communication channels, including annual meetings and direct emails[187]. - Key environmental performance indicators are monitored and managed through an approved management framework[188].
星凯控股(01166) - 2021 - 年度财报