Financial Performance - For the year ended March 31, 2020, the Group's revenue was approximately HK$369.4 million, a decrease of 8.0% compared to HK$401.6 million in the previous year[22]. - Profit attributable to owners of the Company was approximately HK$139.7 million, an increase from HK$133.0 million in 2019, mainly due to reduced finance costs and no loss on redemptions of convertible bonds during the year[23]. - Basic earnings per share increased to HK6 cents from HK5 cents in 2019, reflecting the increase in profit[24]. - The Group recorded net impairment losses on accounts receivable from margin clients of HK$110.9 million, significantly higher than HK$20.1 million in the previous year[23]. - The decrease in revenue was primarily due to a reduction in brokerage commission resulting from lower turnover during the year[22]. - Total interest income from securities margin financing dropped by 4.4% to approximately HK$325.2 million, with total gross accounts receivable from margin clients at approximately HK$3,692.3 million[36]. - The broking business reported a profit of approximately HK$4.0 million for the year, a decrease of 77.4% from HK$17.7 million in 2019, with revenue from broking decreasing by 25.8% to approximately HK$43.9 million[36]. - The corporate finance business completed 2 financial advisory transactions during the year, down from 5 in 2019, reporting a segment profit of approximately HK$0.2 million[39]. Market Conditions - The Hong Kong stock market experienced volatility, with the Hang Seng Index reaching a high of 30,280 points in April 2019 before a sharp decline due to trade negotiation breakdowns[29]. - The Hang Seng Index closed at 23,603 points at the end of March 2020, a decrease of 18.8% compared to 29,051 points at the end of March 2019[36]. - Average daily turnover on the Main Board and GEM during the year ended 31 March 2020 was approximately HK$92.2 billion, a decrease of 4.4% from approximately HK$96.4 billion for the prior financial year[36]. - The management expects the overall economy and stock market in Hong Kong to remain weak due to disruptions from COVID-19 and potential US-China trade war[40]. Cost Management and Strategy - Operating expenses were generally in line with revenue, indicating effective cost management despite the revenue decline[22]. - The Group's strategic focus remains on managing finance costs and improving asset quality to enhance profitability in the future[23]. - The Group plans to regularly review and adjust business strategies with a prudent risk management approach[42]. - The Group is positioned to expand its services to affluent and high-net-worth clients to maximize returns and value for shareholders[42]. Financial Position - As of March 31, 2020, equity attributable to owners of the Company was approximately HK$3,931.5 million, a decrease of approximately HK$34.3 million or 0.9% from the previous year[46]. - The Group's net current assets amounted to HK$3,810.7 million, with a current ratio of 8.88 times, significantly up from 3.67 times in 2019[46]. - Bank balances and cash on hand decreased to HK$260.9 million, primarily due to cash outflows of HK$262.5 million for the redemption of convertible bonds[46]. - The Group had no bank borrowings as of March 31, 2020, and its gearing ratio was zero, compared to 0.06 in the previous year[46]. Employee and Remuneration - The total remuneration cost for employees was HK$19.9 million, an increase from HK$18.9 million in 2019[51]. - The remuneration package for directors includes basic salary, discretionary bonuses, retirement scheme contributions, and share options[184]. - The annual remuneration for senior management was disclosed by band, with three members earning up to HK$1,000,000 and one member earning between HK$1,000,001 and HK$2,000,000[189]. - The primary aim of the remuneration policy is to motivate and retain executive directors and senior management by aligning their performance with corporate goals[184]. Corporate Governance - The company emphasizes the importance of corporate governance through its various committees[84]. - The Board comprises six members, with half being non-executive and independent, ensuring a balance of skills and experience[112]. - The Company has complied with the Corporate Governance Code provisions during the year ended March 31, 2020[101]. - The Board has established three committees: Nomination Committee, Remuneration Committee, and Audit Committee, to oversee various aspects of corporate governance[168]. - The Company ensures compliance with the Listing Rules by maintaining at least three independent non-executive Directors, with one possessing appropriate professional qualifications in finance[161]. - The Company has adopted a dividend policy to maintain adequate cash reserves for future growth, with the Board having full discretion to declare dividends subject to shareholder approval[162]. Board Structure and Meetings - The Board consists of six members, with three being independent non-executive directors, complying with the listing rules[115]. - The Board meets at least four times a year to discuss business development and financial performance[137]. - The company has arranged liability insurance for its directors and officers, reviewed annually to ensure adequate protection[124]. - The Nomination Committee held two meetings during the year ended March 31, 2020, focusing on the evaluation of independent non-executive directors' independence and reviewing the board's structure and diversity[178]. Audit and Financial Reporting - The Audit Committee is responsible for overseeing the financial reporting process and has independent communication with external auditors[192]. - The Directors confirmed their responsibility for preparing the financial statements for the year ended March 31, 2020, ensuring compliance with applicable regulatory requirements and accounting standards[197]. - The financial statements for the year ended March 31, 2020, were prepared on a going concern basis, with no material uncertainties identified[197]. - The Audit Committee reviewed connected transactions and compliance with relevant disclosures during the year[194].
结好金融(01469) - 2020 - 年度财报