Financial Performance - The company's revenue decreased by 8.3% to approximately HKD 145,380,000 in 2021, down from HKD 158,504,000 in 2020[9]. - Profit increased by 385.5% to approximately HKD 12,724,000 in 2021, compared to HKD 2,621,000 in 2020, primarily due to the absence of non-recurring expenses related to the transfer of shares to the main board and government subsidies[9]. - The operating profit decreased by approximately 16.0% from HKD 67.6 million to HKD 56.8 million, consistent with the decline in annual revenue[28]. - The operating profit margin slightly decreased to approximately 39.1% in the year ended March 31, 2021, compared to 42.7% in 2020[29]. - Revenue from video conferencing and multimedia audio-visual solutions decreased by approximately 12.8% from HKD 141.2 million to HKD 123.1 million due to smaller project scales and the impact of COVID-19[26]. - Revenue from video conferencing and multimedia audio-visual maintenance services increased by approximately 8.3% from HKD 17.3 million to HKD 18.8 million, attributed to an increase in maintenance projects after the completion of related services[26]. - The cloud IT+OT management services generated revenue of approximately HKD 3.5 million since its operation began in Q1 2021[27]. - Employee costs decreased by approximately 0.7% from HKD 35,448,000 for the year ended March 31, 2020, to HKD 35,207,000 for the year ended March 31, 2021[30]. - Other operating expenses increased by approximately 3.2% from HKD 6,706,000 for the year ended March 31, 2020, to HKD 6,922,000 for the year ended March 31, 2021[31]. - Financing costs decreased by approximately 49.3% from HKD 1,149,000 for the year ended March 31, 2020, to HKD 582,000 for the year ended March 31, 2021[32]. - Income tax expenses decreased from HKD 3,536,000 for the year ended March 31, 2020, to HKD 1,943,000 for the year ended March 31, 2021[33]. - Annual profit increased from HKD 2,621,000 for the year ended March 31, 2020, to HKD 12,724,000 for the year ended March 31, 2021[34]. Business Expansion and Strategy - The company expanded its business into the Internet of Things (IoT) sector, establishing a joint venture in China with an 85% stake focused on IoT cloud services and digital transformation consulting[12]. - The company acquired a 4% stake in Changzhou Guoyun Green Data Technology Co., which is developing an Internet data center expected to be operational by the end of 2021[12]. - The company established a joint venture, Beijing Nengxing Guoyun, holding 85% equity, focusing on comprehensive IoT cloud services, which began generating revenue in Q1 2021[21]. - The company acquired a 4% stake in Changzhou Guoyun, which is developing a smart and sustainable internet data center expected to commence operations by the end of 2021[22]. - The group plans to enhance its position as a leading provider of video conferencing and multimedia solutions in Hong Kong and increase market share in China[36]. - The group expects cloud IT+OT management services to become a major revenue source starting in 2022 due to increased demand for data security and integrated IT services[37]. - The group aims to develop a comprehensive IoT and internet data center business in China, leveraging its strong management team and existing relationships[38]. Market Trends and Demand - The economic environment in Hong Kong showed signs of recovery with a GDP growth of 7.9% year-on-year in Q1 2021, following a significant contraction in 2020[8]. - The company noted a significant increase in demand for cloud services from educational institutions due to the shift to online education, indicating potential for future revenue growth in this area[10]. - The global public cloud services market grew by 24.1% year-on-year to USD 312.42 billion in 2020, with China's market growing by 49.7% to USD 19.38 billion[19]. - The Chinese internet data center market reached a valuation of RMB 223.87 billion in 2020, growing by 43.3% year-on-year, with a projected CAGR of 10% from 2021 to 2026[20]. Corporate Governance - The board consists of ten directors, including five executive directors and four independent non-executive directors, ensuring a diverse governance structure[88]. - The company has adopted a code of conduct for securities trading that is not less stringent than the standards set out in the listing rules, with no known breaches reported for the fiscal year[87]. - All directors participated in continuous professional development activities to enhance their knowledge and skills, ensuring informed contributions to the board[96]. - The company has complied with the corporate governance code throughout the fiscal year, with no significant deviations reported[85]. - The board's main functions include reviewing and approving financial strategies, assessing risks, and overseeing major acquisitions or disposals[89]. - The chairman and CEO roles are separated, with the chairman responsible for business development and strategy formulation[101]. - The company has established a two-year appointment term for non-executive directors, which can be renewed upon expiration[100]. - Independent non-executive directors have confirmed their independence, meeting the requirements of the listing rules[98]. - The board is responsible for overall corporate governance, ensuring that the interests of shareholders, customers, and employees are balanced[89]. - The Audit Committee held two meetings during the fiscal year ending March 31, 2021, reviewing both the unaudited interim results and the audited annual results[106]. - The Remuneration Committee also conducted two meetings in the fiscal year ending March 31, 2021, reviewing the remuneration of all directors and senior management[108]. - The company’s remuneration policy rewards employees and executives based on performance, qualifications, and market levels[109]. - The Nomination Committee held two meetings in the fiscal year ending March 31, 2021, to discuss the suitability of candidates for board vacancies[115]. - The company emphasizes board diversity as a competitive advantage, considering various factors such as skills, experience, and gender in its nomination process[119]. - The Nomination Committee will annually discuss measurable goals for achieving board diversity and recommend these to the board[121]. - The Audit Committee is responsible for establishing and maintaining risk management and internal control systems[103]. - The Remuneration Committee aims to ensure that the remuneration of senior executives is appropriate and aligned with the company's financial and operational performance[107]. - The company’s remuneration includes salary, commission, retirement benefits contributions, and discretionary bonuses based on profitability[110]. - The Nomination Committee will review and assess the effectiveness of the nomination policy annually, suggesting any necessary amendments to the board[123]. - The company reported an audit fee of HKD 725,000 for audit services and HKD 148,000 for non-audit services, totaling HKD 873,000 for the fiscal year ending March 31, 2021[126]. - The company has established a risk management and internal control system in compliance with corporate governance code C.2, with no significant risks identified during the risk assessment for the fiscal year[125]. - The internal control system aligns with the COSO 2013 framework, ensuring operational effectiveness, reliability of financial reporting, and compliance with applicable laws and regulations[129]. - The board of directors is responsible for the effectiveness of the risk management and internal control systems, which are reviewed annually, and the systems are deemed effective and sufficient[138]. - The company has a dividend policy that requires board discretion, considering factors such as financial performance, shareholder equity, and capital requirements[139]. - The company encourages shareholder engagement through various communication channels, including interim and annual reports, and ensures transparency in financial disclosures[141]. - The internal audit function operates independently from daily operations and assesses the risk management and internal control systems through interviews and performance testing[137]. - The company has implemented measures to prevent insider trading and ensure the accuracy and timeliness of disclosures related to insider information[134]. - The board continues to review and update the dividend policy in accordance with the Cayman Islands Companies Law[140]. - The company has not identified any significant internal control deficiencies during the internal control review conducted for the fiscal year[133]. Environmental, Social, and Governance (ESG) Initiatives - The company reported a significant focus on environmental, social, and governance (ESG) initiatives, emphasizing the importance of sustainable development and stakeholder engagement[147]. - The ESG report highlighted key performance indicators related to the company's core business in providing video conferencing and multimedia solutions in Hong Kong[148]. - The company conducted a stakeholder engagement process, collecting feedback through 115 valid questionnaires to identify significant ESG issues[154]. - The board is responsible for overseeing ESG governance and risk management, ensuring the implementation of appropriate measures[150]. - The company aims to enhance communication with stakeholders, including regular updates and meetings with regulatory bodies and shareholders[152]. - The company has committed to energy-saving and emission reduction efforts as part of its environmental responsibilities[152]. - The company has identified 10 key ESG issues and disclosed relevant information in corresponding sections of the report[158]. - The company strictly adheres to environmental regulations, including the Air Pollution Control Ordinance, and does not engage in manufacturing processes that produce water pollutants[160]. - Measures taken to reduce vehicle emissions include proper fleet management, regular inspections, and ensuring engines are turned off when vehicles are parked[161]. - The company encourages employees to use public transportation and promotes teleconferencing to reduce unnecessary travel[162]. - The company has implemented waste management practices in compliance with relevant laws, ensuring that both hazardous and non-hazardous waste are collected and processed by qualified units[163]. - The company aims to minimize energy and water consumption, with energy primarily sourced from purchased electricity and minimal water usage[164]. - The company promotes green operations by utilizing office automation systems to reduce paper usage and encouraging recycling and reusing materials[168]. - The company has established guidelines in the employee handbook for work arrangements during extreme weather events, reflecting its commitment to employee safety[169]. - The company adheres to local employment laws and promotes a diverse workforce to enhance creativity and competitiveness[170]. - The company strictly adheres to employee welfare laws, providing retirement benefits and mandatory provident fund plans, ensuring all employees are entitled to paid statutory holidays and various types of leave[172]. - The company has implemented a comprehensive training program for employees, including internal courses and external seminars, to enhance their skills and knowledge[173]. - The company has maintained a safe working environment, with no reported work-related injuries or fatalities in the past three years[176]. - The company has adopted flexible working arrangements and installed air purification systems to mitigate the risk of COVID-19 transmission among employees[177]. - The company emphasizes quality control, with strict monitoring of operational procedures and a standardized inventory management system to ensure compliance with quality standards[180]. - The company has not had any product recalls due to safety or health reasons during the year[181]. - The company has developed a customer-centric service model to ensure timely and professional service delivery, including feasibility assessments and ongoing maintenance[182]. - The company evaluates potential suppliers based on product quality, reputation, pricing, and delivery capabilities to maintain high service standards[178]. - The company incorporates environmental considerations into its procurement processes, prioritizing products with minimal environmental impact[179]. - The company distributed user manuals detailing equipment functions and operations to clients after installation[183]. - The company provided one to three free training sessions on equipment operation based on client needs[183]. - The total greenhouse gas emissions decreased from 91 tons CO2 equivalent in 2020 to 70 tons CO2 equivalent in 2021, a reduction of approximately 23.1%[191]. - The greenhouse gas emissions density per employee improved from 1.36 tons CO2 equivalent in 2020 to 0.95 tons CO2 equivalent in 2021, a decrease of about 30.1%[191]. - The total harmless waste generated increased from 1,635 kg in 2020 to 1,875 kg in 2021, an increase of approximately 14.7%[191]. - The total energy consumption rose from 171 MWh in 2020 to 187 MWh in 2021, an increase of about 9.4%[191]. - The company recorded no violations of advertising and labeling laws during the year[186]. - The company maintained a zero-tolerance policy towards corruption and bribery, with no recorded cases during the year[189]. - The company established a computerized information management system for project management and resource allocation[183]. - The company actively encourages employee participation in community service and volunteer activities[190]. Future Outlook - Future outlook indicates a projected revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion strategies[81]. - The company is investing in research and development for new technologies, with a budget allocation of $10 million for the upcoming year[81]. - Market expansion plans include entering two new international markets by Q3 2022, aiming for a 30% increase in market share[81]. - The company is exploring potential acquisitions to enhance its product offerings, with a focus on companies in the tech sector[81]. - A new product line is set to launch in Q2 2022, expected to contribute an additional $5 million in revenue[81]. - The company has established strategic partnerships with key industry players to enhance its competitive edge[81].
超智能控股(01402) - 2021 - 年度财报