Financial Performance - For the fiscal year 2020, the group recorded a net profit attributable to shareholders of approximately HKD 70 million, driven by significant revenue growth from the IT application and solution development segment [25]. - The fiscal year 2020 was marked by growth in both revenue and gross profit, attributed to management's efforts to improve operational efficiency [24]. - The group reported a revenue of approximately HKD 606.3 million for the fiscal year 2020, an increase of about HKD 10.8 million or 1.8% compared to the fiscal year 2019 [31]. - The pre-tax profit for the fiscal year 2020 was approximately HKD 83.0 million, down from HKD 96.9 million in the previous year [31]. - The net profit for the fiscal year 2020 was approximately HKD 77.3 million, down from HKD 93.2 million in 2019, mainly due to increased general and administrative expenses [48]. - Gross profit increased from approximately HKD 97.4 million in 2019 to about HKD 117.6 million in 2020, with the gross profit margin rising from approximately 16% to 19% [42]. Revenue Breakdown - Revenue from the IT application and solution development segment increased by 107% to approximately HKD 49.7 million, accounting for about 8% of total revenue [32]. - Revenue from the IT infrastructure solutions segment decreased by approximately 4% to HKD 408.8 million, representing about 67% of total revenue, primarily due to a one-time significant income of HKD 75.3 million recorded in the previous year [33]. - Revenue from the secondment services segment decreased by approximately 14% to HKD 39.7 million, accounting for about 7% of total revenue, due to reduced demand from major clients in the banking and financial sectors [35]. - Revenue from maintenance and support services increased by approximately 10% to HKD 108.1 million, representing about 18% of total revenue, attributed to the maintenance phase of large IT projects [36]. Cost Management - The group implemented strict cost control measures, which contributed to the enhancement of its core competitiveness and solidified its market position [24]. - General and administrative expenses rose to approximately HKD 89.9 million in 2020, a 40% increase from HKD 64.2 million in 2019, primarily due to increased employee costs [43]. Business Diversification - The company actively sought opportunities to diversify its business model following instability during the bidding process and past over-reliance on specific revenue sources [25]. - The acquisition of O2O Limited was completed on June 2, 2020, allowing the group to diversify its income sources through stable rental income from physical stores [38]. - The investment in a software technology company, which focuses on developing and managing food and beverage sales systems, has provided stable dividend income and contributed to the group's profit [37]. Financial Position - As of March 31, 2020, the group's shareholders' equity was approximately HKD 442.0 million, up from HKD 327.8 million in 2019 [50]. - The liquidity ratio as of March 31, 2020, was approximately 2.5 times, compared to 2.1 times in 2019 [51]. - The group had no bank loans outstanding as of March 31, 2020, and had unused bank financing of approximately HKD 56.8 million [51]. - The total issued share capital increased to approximately HKD 15,562,000 in 2020 from HKD 11,741,000 in 2019, with the number of issued ordinary shares rising from 4,696,505,221 to 6,225,393,129 [53]. - The group’s asset-liability ratio was approximately 4.2% as of March 31, 2020, down from 18% in 2019 [51]. - The group expects its financial position to steadily improve in the foreseeable future [39]. Corporate Governance - The company is committed to maintaining good corporate governance practices and has complied with the corporate governance code throughout the fiscal year [85]. - The board believes that its current structure supports effective operations and maintains a balance of power between the board and management [94]. - The company has not appointed a CEO since the removal of the previous CEO on April 22, 2020, which deviates from the corporate governance code [94]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to enhance corporate governance [120]. Environmental and Social Responsibility - The company emphasizes the importance of environmental and social sustainability as a foundation for long-term business development and success [160]. - The environmental, social, and governance (ESG) report is prepared in accordance with the Hong Kong Stock Exchange's guidelines, focusing on the group's core business and sustainable development practices [161]. - The total greenhouse gas emissions for the fiscal year ending March 31, 2020, amounted to 147 tons, an increase of 30% from 113 tons in 2019 [172]. - The company has implemented energy-saving measures to reduce greenhouse gas emissions, focusing on employee awareness and resource efficiency [177]. Employee Management - The employee turnover rate was reported at 42% for the fiscal year, indicating challenges in retaining talent [187]. - Employee costs for the fiscal year 2020 were approximately HKD 126.1 million, an increase from approximately HKD 117.3 million in 2019, reflecting a growth of about 6.8% [82]. - The company emphasizes the importance of employee development and regularly provides training to enhance skills and capabilities [192].
扬科集团(01460) - 2020 - 年度财报