Financial Performance - For the fiscal year 2021, the group recorded a revenue of approximately HKD 637.3 million, an increase of about HKD 31.1 million or 5% compared to the previous fiscal year[30]. - The group achieved a net profit attributable to equity shareholders of approximately HKD 8 million for the fiscal year 2021, a significant decrease from HKD 70.1 million in the previous year[30]. - The fiscal year 2021 saw a pre-tax profit of approximately HKD 22.6 million, down from HKD 83 million in the previous year[30]. - The gross profit for the group in fiscal year 2021 was approximately HKD 110.3 million, a decrease of about 6% from HKD 117.6 million in fiscal year 2020, with the gross profit margin declining from approximately 19% to 17%[44]. - The net profit for the fiscal year 2021 was approximately HKD 16.0 million, a decrease from approximately HKD 77.3 million in 2020[51]. - The income tax for the fiscal year 2021 was approximately HKD 6.6 million, an increase of about HKD 0.9 million or approximately 16% compared to 2020[50]. - General and administrative expenses for the fiscal year 2021 were approximately HKD 76.4 million, a decrease of about HKD 13.5 million or 15% compared to 2020[45]. - Financing costs for the fiscal year 2021 were approximately HKD 0.8 million, a reduction of about HKD 4.4 million or approximately 85% from 2020[49]. Revenue Segments - The increase in revenue was primarily driven by significant growth in the IT application and solution development services segment, as well as the IT maintenance and support services segment[30]. - The revenue from the IT application and solution development services segment was approximately HKD 129.1 million, representing about 20% of the total revenue for the fiscal year 2021, with a significant increase of approximately 160% from HKD 49.7 million in fiscal year 2020[32]. - The revenue from the IT infrastructure solution services segment was approximately HKD 352.9 million, accounting for about 56% of the total revenue for fiscal year 2021, which decreased by approximately 14% from HKD 408.8 million in fiscal year 2020 due to the impact of COVID-19[33]. - The revenue from the IT secondment services segment was approximately HKD 22.0 million, representing about 3% of the total revenue for fiscal year 2021, a decrease of approximately 45% from HKD 39.7 million in fiscal year 2020[34]. - The revenue from the IT maintenance and support services segment was approximately HKD 133.4 million, accounting for about 21% of the total revenue for fiscal year 2021, with an increase of approximately 23% from HKD 108.1 million in fiscal year 2020[36]. - The total revenue for the group in fiscal year 2021 was approximately HKD 637.3 million, an increase of about 5% from HKD 606.3 million in fiscal year 2020, primarily driven by increases in the IT application and solution development services and IT maintenance and support services segments[43]. Investments and Acquisitions - The group completed the acquisition of O2O Limited, which is developing an electronic marketplace project in Malaysia, although the project faced delays due to COVID-19[24]. - The group invested further in Software Technology Limited, which continues to generate profits and improve financial performance despite challenging operating conditions[25]. - The acquisition of a 30% stake in Software Technology, increasing the group's total ownership to 70%, has provided new revenue and profit sources, enriching the business portfolio[39]. - The acquisition of Project CKB was completed on June 2, 2020, but operations have not yet started due to COVID-19; however, it is expected to generate stable rental income post-pandemic[41]. - The group expects stable revenue of over HKD 60 million annually from major IT project contracts continuing until 2027, which will help maintain profitability and provide a solid cash flow for future business expansion[38]. Future Outlook - The management remains optimistic about the future prospects of these investments, anticipating a recovery from the COVID-19 pandemic[26]. - The group anticipates steady improvement in financial performance over the coming years based on the aforementioned factors[42]. - The group plans to leverage internal resources to enhance operational efficiency and maintain strict cost control in response to ongoing challenges[28]. - The company aims to explore suitable investment opportunities both locally and overseas to maintain its competitive edge in the market[28]. Corporate Governance - The board of directors is responsible for the overall management and governance of the company, ensuring high standards of corporate governance and compliance with legal regulations[99]. - The company has adopted a board diversity policy, focusing on measurable criteria such as gender, age, ethnicity, knowledge, and tenure to enhance board performance[104]. - The nomination committee reviews the implementation of the board diversity policy annually to ensure its effectiveness[107]. - The board holds at least four meetings annually to review and approve the company's financial and operational performance, as well as overall strategies and policies[108]. - Independent non-executive directors are invited to serve on the audit, remuneration, and nomination committees, providing valuable business experience and expertise[99]. - The chairman and CEO roles are separated to maintain a balance of power and responsibilities within the board[102]. - The company emphasizes the importance of appointing a suitable candidate for the CEO position in compliance with corporate governance guidelines[102]. - All board meetings require active participation from directors, either in person or through electronic communication[108]. - The company secretary assists in preparing meeting agendas, ensuring that all directors receive relevant documents at least three days prior to meetings[108]. - Attendance records for board meetings and shareholder meetings are maintained to ensure accountability and transparency[111]. - The company held a total of 8 board meetings, 1 annual general meeting, and 3 special general meetings during the reporting period[112]. - The executive directors attended 100% of the board meetings, with specific attendance records for each director noted[117]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to assist the board in fulfilling its functions[123]. - All directors participated in continuous professional development, enhancing their knowledge and skills relevant to their roles[121]. - The company has no corporate governance committee, with the board responsible for governance functions including policy formulation and compliance monitoring[114]. - Independent non-executive directors confirmed their independence status as per the listing rules, ensuring compliance with governance standards[115]. - The company emphasizes the importance of ongoing professional development for all directors, encouraging participation in relevant training[120]. - The attendance records for the committees during the year ending March 31, 2021, were documented, reflecting active engagement[124]. - The company provides new directors with an onboarding document covering their responsibilities and obligations under the listing rules[119]. - The board meetings are scheduled with at least 14 days' notice to ensure adequate preparation time for all directors[114]. - The audit committee held three meetings during the year ending March 31, 2021, to review the external audit scope and financial statements compliance[130]. - The audit committee reviewed the consolidated financial statements for the year ending March 31, 2021, and confirmed they were prepared in accordance with applicable accounting standards and listing rules[130]. - The remuneration committee is composed of one executive director and two independent non-executive directors, ensuring no director participates in determining their own remuneration[132]. - The nomination committee has established a nomination policy outlining the criteria and procedures for selecting and recommending director candidates[138]. - The nomination committee considers various criteria, including character, integrity, and relevant qualifications when evaluating director candidates[139]. - The company has adopted a diversity policy for the board, focusing on skills, knowledge, and experience to align with corporate strategy[136]. - The audit committee's main functions include reviewing the effectiveness of internal controls and risk management systems[128]. - The remuneration committee is responsible for setting guidelines for the remuneration of directors and senior management[133]. - The company has not encountered any disagreements with the audit committee regarding the selection and appointment of external auditors[131]. - The audit committee chairman possesses appropriate professional qualifications and experience in accounting[127]. - The board of directors confirmed that there are no significant uncertainties affecting the group's ability to continue as a going concern as of March 31, 2021[143]. - The external auditor's fees for audit services amounted to HKD 880,000, while non-audit services totaled HKD 88,000 for the year ending March 31, 2021[150]. - The company has adopted a dividend policy aimed at balancing returns to shareholders with the need for long-term sustainable development, and no dividends were recommended for the year ending March 31, 2021[149]. - The board has established a risk management framework to identify, assess, and manage significant risks, with annual reviews conducted to ensure effectiveness[145]. - An independent consultant was engaged to conduct a risk assessment and internal control review, concluding that the internal control system was effective and adequate as of March 31, 2021[148]. - The company secretary confirmed attendance of at least 15 hours of relevant professional training during the year ending March 31, 2021[151]. - The board is responsible for presenting a comprehensive and understandable assessment of the group's financial position and prospects[143]. - The internal control system aims to minimize risks and ensure effective operations, providing reasonable but not absolute assurance against misstatements or losses[145]. - The nomination committee is responsible for evaluating candidates for the board and ensuring compliance with relevant qualifications[142]. - The company will issue a circular to shareholders containing details of nominated candidates for election or re-election at the annual general meeting[142]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report outlines the company's commitment to sustainable development and stakeholder engagement[162]. - The company emphasizes the importance of maintaining communication with stakeholders, including investors, employees, and regulatory bodies[169]. - The board oversees the implementation of the company's ESG strategies and ensures effective risk management and internal controls[163]. - The report covers the company's core business operations and its performance in sustainable development for the fiscal year ending March 31, 2021[164]. - The company has established various communication channels to keep shareholders and investors informed about its latest developments[159]. - The company has not made significant changes to its articles of association as of March 31, 2021[160]. - The company allows qualified shareholders to request a special general meeting under specific procedures[154]. - The company has a structured approach to identifying and addressing ESG issues through designated personnel[163]. - The company encourages shareholders to submit detailed contact information when raising inquiries to facilitate timely responses[158]. - The total greenhouse gas emissions decreased from 147 tons CO2 equivalent in 2020 to 87 tons CO2 equivalent in 2021, representing a reduction of approximately 40.8%[186]. - Scope 1 direct greenhouse gas emissions were recorded at 2 tons CO2 equivalent, while Scope 2 indirect emissions from purchased electricity were 81 tons CO2 equivalent, down from 108 tons in the previous year[186]. - The company has implemented measures to reduce gasoline consumption, including route planning and engine shutdown when vehicles are not in use[180]. - The density of greenhouse gas emissions per square meter decreased from 0.15 tons CO2 equivalent to 0.07 tons CO2 equivalent[186]. - The company reported no significant hazardous waste generated during the reporting period, focusing on the management of non-hazardous office waste[187]. - The company continues to promote the reduction of paper usage, encouraging electronic communication and reusing paper[185]. - Business air travel emissions were significantly reduced, contributing to the overall decrease in greenhouse gas emissions during the COVID-19 pandemic[185]. - The company is committed to complying with local environmental laws and regulations, with no significant violations reported[177]. - The office area as of March 31, 2021, was 1,216.8 square meters, which is used for calculating density metrics[190]. - The company actively engages stakeholders to improve environmental, social, and governance performance through various communication channels[170]. - Total energy consumption increased by approximately 4.6% in 2021 compared to 2020, reaching 226,488 kWh, primarily due to expanded operations and increased gasoline usage[196]. - Direct energy consumption from gasoline was recorded at 6,784 kWh, while indirect energy consumption from electricity was 219,704 kWh[197]. - Total harmless waste generated was 0.72 tons, with a density of 0.0006 tons per square meter[194]. - The company has implemented measures to reduce water usage and plans to install water purifiers to replace purchased distilled water in the near future[199]. - Employee awareness of energy conservation has improved due to the implementation of energy-saving measures[196]. - The company regularly checks faucets for leaks and promotes the importance of water conservation among employees[199]. - The density of energy consumption per building area decreased from 226 kWh/m² in 2020 to 186 kWh/m² in 2021[197]. - The company has not faced issues in obtaining suitable water sources due to the nature of its business[200]. - The total harmless waste disposal performance summary indicates that all waste was office paper[194]. - The company is committed to further reducing energy consumption through ongoing employee training and awareness initiatives[196].
扬科集团(01460) - 2021 - 年度财报