Financial Performance - The Group recorded gross proceeds from the disposal of securities of approximately HK$30.4 million, representing a decrease of approximately 78.9% compared to HK$144.3 million in the previous year[6]. - Revenue increased to approximately HK$4.5 million, reflecting a growth of approximately 54.3% from HK$2.9 million in the prior year[6]. - The profit attributable to the owners of the Company for the year amounted to approximately HK$3.6 million, a significant turnaround from a loss of approximately HK$126.4 million in 2020[6]. - The audited consolidated net assets of the Group as of March 31, 2021, were approximately HK$195.5 million, up from approximately HK$182.6 million in 2020[6]. - The net asset per share increased to approximately HK$0.72, compared to approximately HK$0.08 in the previous year[6]. - The Group recorded a net gain on listed investments of approximately HK$20.0 million, a recovery from a net loss of approximately HK$80.1 million in the last year[7]. - Impairment losses reversed to approximately HK$1.3 million in the current year, compared to impairment losses of approximately HK$17.0 million in the previous year[7]. - Administrative expenses increased to approximately HK$8.9 million from approximately HK$7.8 million in the prior year[7]. Investment Portfolio - The Group's portfolio of listed shares amounted to approximately HK$121.2 million across 35 companies[13]. - The Group's total investment portfolio value as of March 31, 2021, is approximately HK$170.7 million[16]. - Direct investments in unlisted equities amount to HK$24.1 million across 3 direct investments[14]. - Debt investments consist of HK$25.4 million in bonds issued by 2 listed companies[15]. - The profit on listed investments was approximately HK$20.0 million, consisting of a net realised loss of approximately HK$6.0 million and a net unrealised gain of approximately HK$26.0 million[42]. - The net realised loss on disposal of listed securities was approximately HK$6.0 million, resulting from a realised gain of approximately HK$6.2 million and realised losses of approximately HK$12.2 million[42]. - The net unrealised gain of listed securities was approximately HK$26.0 million, consisting of an unrealised gain of HK$39.0 million and an unrealised loss of HK$13.0 million[50]. - The Group recorded a valuation loss on unlisted securities of approximately HK$13.2 million during the year, primarily due to the investment in Wingate Holdings Limited[54]. - The Group's unlisted debt investments experienced a valuation loss of approximately HK$0.7 million, with no signs of default on the bonds held[55]. Business Strategy and Operations - WLS is reviewing its existing asset structure and business strategies to consolidate resources amid economic uncertainty[29]. - WLS plans to enhance competitiveness by revitalizing its scaffolding business and focusing on higher profit margin segments like money lending operations[29]. - The management believes that the construction and infrastructure sectors align with the Hong Kong Government's development plans, promising long-term positive returns[31]. - Power Financial aims to expand its money lending business into retail lending and project financing by establishing a new wholly-owned subsidiary[36]. - A new loan management system will be upgraded to enhance monitoring and management of loan portfolios, improving overall efficiency in loan operations[36]. - The company is committed to pursuing viable investment opportunities to develop existing business segments and expand its customer base[36]. - Management believes that Power Financial will spur revenue growth and create more value in the long term[36]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the year ended March 31, 2021, with some deviations noted[156]. - The Company has arranged appropriate insurance cover for directors' and officers' liabilities[149]. - The Company emphasizes the importance of anti-corruption practices and has policies in place to uphold honesty and integrity among employees[179]. - The Group has initiated paper recycling in offices to promote environmental protection and efficient resource utilization[178]. - The Company encourages employee participation in community volunteer work to support sustainable development[189]. - The Company has complied with the public float requirement of the Listing Rules for the year ended 31 March 2021[175]. Staff and Employment - The Group's total staff costs for the year ended March 31, 2021, amounted to approximately HK$2.9 million, up from approximately HK$1.0 million in 2020[84]. - The group employed eleven staff members as of March 31, 2021, an increase from nine in the previous year[88]. Dividend Policy - The Company has resolved not to recommend a payment of final dividend for the year[66]. - The Directors do not recommend the payment of a dividend for the year ended March 31, 2021, compared to HK$Nil for 2020[110]. - The company does not have a pre-determined dividend distribution ratio, and past dividend distribution records do not guarantee future dividends[138]. - The Board reserves the right to update, amend, modify, or cancel the Dividend Policy at any time[143]. Financial Position - As of March 31, 2021, the Group's bank balances and cash on hand were approximately HK$2.8 million, an increase from approximately HK$1.6 million in 2020[67]. - The gearing ratio was 2.2% as of March 31, 2021, down from 2.8% in 2020, indicating a very low leverage level[68]. - The Company completed a placing on September 25, 2020, raising approximately HK$6.8 million before expenses, with net proceeds of approximately HK$6.6 million[82]. - The company aims to utilize the net proceeds from the placement for general working capital and future investments[86]. Share Options - The existing share option scheme was approved on August 29, 2013, and has approximately 2 years and 5 months remaining as of March 31, 2021[117]. - The maximum number of shares issued under the Option Scheme cannot exceed 10% of the shares of the Company as of the date of shareholders' approval[120]. - The maximum number of shares that can be issued to each Participant under the Option Scheme in any 12-month period shall not exceed 1% of the shares of the Company[123]. - The company granted a total of 22,500,000 share options during the year, with an exercise price of HK$0.316[129]. - The fair value of the options granted was approximately HK$2,620,000, calculated using a binomial option pricing model[129]. - The exercise period for the granted options is three years from the grant date of August 7, 2020[129]. - The expected volatility of the options is 81.311%[129]. - The risk-free rate used in the option valuation was 0.092%[129]. Related Party Transactions - The Company had no material transactions with related parties during the year[166]. - There were no significant transactions or contracts involving directors with material interests during the year[147]. - The Group did not purchase, sell, or redeem any of the Company's listed securities for the year ended 31 March 2021[176].
中国投融资(01226) - 2021 - 年度财报