Financial Performance - For the year ended March 31, 2019, the Group's revenue was approximately HK$401.6 million, a decrease of 8.7% compared to HK$440.1 million in the previous year[10]. - Profit attributable to owners of the Company was approximately HK$133.0 million, down from HK$276.9 million in 2018, primarily due to decreased revenue and increased finance costs[11]. - Basic earnings per share for the year were HK5 cents, a decrease from HK11 cents in 2018[12]. - The decrease in revenue was mainly attributed to a decline in brokerage commission due to lower turnover during the year[10]. - The broking business reported a profit of approximately HK$17.7 million for the year ended March 31, 2019, a decrease of 75.3% compared to HK$71.6 million in 2018[24]. - Revenue from broking decreased by 43% to approximately HK$59.2 million, down from HK$103.9 million in the previous year[24]. - Total interest income from securities margin financing increased by 1.6% to approximately HK$340.3 million, compared to HK$334.8 million in 2018[25]. - The total outstanding loan of securities margin financing as of March 31, 2019, was approximately HK$3,732.6 million, down from HK$4,091.5 million a year earlier[25]. Market Conditions - The average daily turnover on the Main Board and GEM during the year was approximately HK$96.4 billion, a decrease of 9.2% compared to approximately HK$106.2 billion in the prior financial year[20]. - The Hang Seng Index closed at 29,051 points at the end of March 2019, down from 30,093 points at the end of March 2018[20]. - The average daily trading volume on the main board and GEM decreased by 9.2% to approximately HK$964 billion compared to HK$1,062 billion in the previous fiscal year[22]. Expenses and Costs - The Group recorded imputed interest expenses from convertible bonds of HK$96.7 million during the year, up from HK$57.7 million in 2018[11]. - Loss on redemptions of convertible bonds amounted to HK$38.9 million, with total principal amounts of HK$262.5 million redeemed during the year[11]. - Impairment losses on loans to securities margin clients were HK$20.1 million, compared to HK$Nil in the previous year[11]. - The Group's operating expenses were generally in line with revenue, indicating stable cost management despite revenue fluctuations[10]. Corporate Governance - The company emphasizes good corporate governance practices to enhance transparency and accountability to shareholders, believing it is crucial for maintaining investor confidence[84][90]. - The board of directors is responsible for major company matters, including policy approval, strategy oversight, and financial information management[87][93]. - The company has complied with the Corporate Governance Code provisions during the year ended March 31, 2019, as per the Listing Rules of the Hong Kong Stock Exchange[86][92]. - The company has a structured approach to risk management and internal controls, ensuring all significant transactions require board approval[88][93]. - The company is committed to continuous improvement in corporate governance to foster a responsible organizational culture[84][90]. Management and Leadership - The chairman of the board is Hung Hon Man, who has over 24 years of experience in the securities industry[63]. - Executive Director and CEO Hung Sui Kwan is responsible for corporate strategy and daily operations[60]. - The company has a strong management team with extensive experience in the securities business[60]. - The company is focused on business development and overall management strategies[60]. - The company has appointed independent non-executive directors with extensive experience in the financial and securities industries, including Mr. Cheung Chi Kong and Mr. Chan Ka Kit, both appointed on March 16, 2016[69][70]. Risk Management - The Group will continue to maintain a balanced risk management approach while adjusting business strategies regularly[34]. - The Company ensures that independent non-executive Directors provide unbiased opinions on business strategy and performance[152]. - The Audit Committee is responsible for overseeing the financial reporting process and has independent communication with external auditors[183]. - The company has implemented procedures to monitor compliance with the non-competition undertaking from GN Holdings[200]. Shareholder Information - The Directors recommended a final dividend of HK4 cents per share, totaling HK7 cents per share for the financial year[50]. - The number of issued shares remained at 2,500,000,000 shares as of March 31, 2019[42]. - The Company has adopted a dividend policy to maintain adequate cash reserves for future growth, with final dividends subject to shareholders' approval[157]. Compliance and Reporting - The Company published its annual and interim results within three months and two months, respectively, after the end of the relevant period, ensuring timely financial information for stakeholders[191]. - The Directors confirmed that there were no material uncertainties affecting the Company's ability to continue as a going concern as of March 31, 2019[191]. - The Company adopted HKFRSs, which conform to International Reporting Standards in all material respects for the financial year ended March 31, 2019[191]. - The Audit Committee reviewed the Company's compliance with relevant disclosures and the effectiveness of internal controls during the year[189].
结好金融(01469) - 2019 - 年度财报