Financial Performance - For the year ended March 31, 2021, the Group recorded revenue of approximately HK$130,521,000, representing an increase of 1.2% compared to HK$127,989,000 in 2020[12]. - Gross profit for the year was approximately HK$54,607,000, up from HK$52,214,000 in the previous year, indicating a growth of 4.6%[12]. - The net loss for the year was approximately HK$2,208,000, a significant improvement of approximately HK$22,396,000 compared to a loss of HK$24,604,000 in 2020[12]. - The Group achieved an exchange gain of approximately HK$7,979,000 in 2021, compared to an exchange loss of approximately HK$4,672,000 in 2020[12]. - The overall performance improvement is attributed to effective cost management and favorable exchange rate movements[12]. - Gross profit increased by approximately HK$2,393,000[14]. - Other revenue increased by approximately HK$2,828,000[14]. - The Group recorded a revenue of approximately HK$130,521,000 for the Year, representing an increase of approximately HK$2,532,000 or approximately 1.98% compared to the previous year[29]. - The coal mining business generated revenue of approximately HK$100,688,000, an increase of approximately HK$26,778,000 or approximately 36.23% compared to approximately HK$73,910,000 last year, with coal sales volume increasing by approximately 38.64%[30]. - The renewable energy business recorded a turnover of approximately HK$1,285,000, up from approximately HK$775,000 in the previous year, primarily due to enhanced production capacity[31]. - The IT Services business revenue decreased to approximately HK$28,548,000, a decline of approximately HK$24,756,000 or approximately 46.44% compared to the previous year, mainly due to prolonged social unrest and COVID-19 impacts[30]. Cost Management and Expenses - The Group's administrative and other operating expenses were approximately HK$34,505,000 for the year, compared to HK$49,411,000 in the previous year, reflecting a decrease of 30.1%[12]. - The reduction in loss was primarily due to savings on supplemental resources fees, which were approximately HK$85,688,000 in 2020[12]. - Administrative and other operating expenses decreased by approximately HK$14,906,000[14]. - The cost of services and goods sold in the IT services business for the year was approximately HK$21,484,000, a decrease from HK$43,704,000 in 2020[40]. - The Group's total staff costs (excluding directors' emoluments) for the year were approximately HK$33,406,000, down from approximately HK$50,609,000 in 2020, indicating a significant reduction in manpower[86]. Acquisitions and Business Segments - The Group is engaged in three business segments: coal mining, renewable energy, and IT services[16]. - The acquisition of NEFIN Group focused on renewable energy solutions in Malaysia[16]. - The Group aims to grow into a diversified business enterprise[16]. - The acquisition of the New Mining Right for the Enlarged Kaiyuan Mine was completed for a consideration of RMB 160,978,000, covering an area of 4.1123 km² for a mining life of 30 years[18]. - The Group's subsidiaries are primarily engaged in coal mining and sales, renewable energy solutions, and IT outsourcing services[175]. Impairment and Financial Adjustments - The impairment loss on goodwill for the year was approximately HK$24,857,000, compared to HK$71,443,000 in 2020, indicating a reduction of 65.2%[12]. - Impairment loss on goodwill was approximately HK$14,503,000, compared to approximately HK$3,831,000 in the previous year[45]. - The recoverable amount of the IT Services cash-generating unit was approximately HK$18,772,000, which fell below its carrying amount, leading to an impairment of approximately HK$14,503,000[63]. Shareholder and Governance Matters - The Board does not recommend the payment of any dividend for the year, consistent with the previous year[12]. - The Company aims to maintain a balance between meeting shareholders' expectations and prudent capital management with a sustainable dividend policy[169]. - The Company has complied with the Corporate Governance Code throughout the year, with a noted deviation from code provision A.2.1[103]. - The independent non-executive directors are responsible for ensuring high standards of financial and management reporting[105]. - The Company has adopted a board diversity policy since June 2014, revised in January 2019, to align with its business model and specific needs[113]. Risk Management and Compliance - The Group has established appropriate and effective risk management and internal control systems, complying with code provision C.2 of the Code[158]. - The risk management system includes phases of identification, evaluation, and management of risks associated with business operations[158]. - The Company has reviewed and monitored its policies and practices on compliance with legal and regulatory requirements during the year[153]. - The internal audit function is independent and consists of professional staff, conducting semi-annual reviews of risk management and internal control systems[163]. Future Outlook and Strategic Plans - The Group plans to invest in capital assets for environmental protection and safety improvements, funded primarily by coal sales revenue and external banking facilities[26]. - The Group aims to diversify its business portfolio into sectors with higher growth momentum, including renewable energy, following acquisitions in recent years[26]. - The Group expects that the measures taken by the HKSAR government to promote the IT industry will aid in the recovery once COVID-19 is contained[64].
南南资源(01229) - 2021 - 年度财报