Financial Performance - For the fiscal year ending March 31, 2021, the group recorded total revenue of approximately HKD 147 million, a slight increase from HKD 145.4 million in the previous year, primarily due to increased project sales [8]. - The net profit attributable to the company's owners for the fiscal year was approximately HKD 10.1 million, a turnaround from a net loss of HKD 0.7 million in the previous year, largely due to government subsidies of approximately HKD 4.2 million and rental concessions of about HKD 5.9 million related to COVID-19 [8]. - Revenue for the last six months of the fiscal year increased by approximately 28.4% compared to the same period last year, indicating a recovery in consumer sentiment as the pandemic situation improved [9]. - The total revenue for the year ended March 31, 2021, was approximately HKD 147.0 million, an increase of about 1.1% from HKD 145.4 million for the year ended March 31, 2020 [19]. - The gross profit for the year ended March 31, 2021, was approximately HKD 93.0 million, a decrease of about 10.7% from HKD 104.1 million for the previous year, resulting in a product profit margin decline from 71.6% to 63.3% [22]. - The company recorded a profit attributable to owners of approximately HKD 10.1 million for the year ended March 31, 2021, a significant increase of about HKD 10.8 million compared to a loss of HKD 0.7 million for the previous year [26]. - Other expenses for the year ended March 31, 2021, were approximately HKD 17.6 million, compared to HKD 20.2 million for the previous year [25]. - The company recorded a net exchange loss of approximately HKD 0.4 million for the year ended March 31, 2021, compared to a net exchange gain of HKD 0.4 million for the previous year [31]. Strategic Initiatives - The company plans to allocate approximately HKD 30 million to HKD 35 million of previously unutilized listing proceeds for property investments in Hong Kong, with the remainder for general working capital [10]. - In February 2021, the group entered into an agreement to acquire a property holding company for HKD 31 million, which is expected to generate sustainable cash flow and stable rental income [10]. - The company aims to expand its product portfolio and enhance product diversity in response to changing consumer behavior and market conditions [13]. - The group intends to strengthen collaboration with existing distributors and explore additional distribution networks in China as the retail market is expected to rebound post-COVID-19 [13]. - The company expects to utilize approximately HKD 21.1 million of unutilized proceeds for minimum procurement commitments under new exclusive distribution rights by the end of 2021 [52]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years [63]. - A strategic acquisition of a local competitor is anticipated, which is expected to enhance the company's product offerings and customer base [63]. - The company has introduced two new product lines, which are expected to contribute an additional HKD 200 million in revenue in the upcoming fiscal year [63]. Corporate Governance - The company reported a commitment to high standards of corporate governance to enhance accountability, independence, and transparency, thereby creating value for shareholders [69]. - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a strong independent element [74]. - The company has complied with all applicable code provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO, which are currently held by the same individual [70]. - The independent non-executive directors represent more than one-third of the board, providing independent judgment and oversight [75]. - The company has established a three-year appointment letter with each independent non-executive director, allowing for termination with three months' written notice [75]. - The board is responsible for the overall strategy of the group and monitoring management performance, ensuring alignment with shareholder interests [71]. - The company emphasizes the importance of corporate governance for long-term success and sustainable development [69]. - The board will continue to review the current structure and consider separating the roles of Chairman and CEO when appropriate [70]. - The company has a strong management team with extensive experience in finance and corporate governance, enhancing operational effectiveness [66][67]. - The company is committed to maintaining high standards of financial reporting and management practices [75]. Shareholder Information - The company does not recommend any final dividend for the year ended March 31, 2021 [43]. - The board of directors highlighted the commitment to shareholder returns, with plans to increase dividends by 10% in the next fiscal year [63]. - The company's distributable reserves amounted to approximately HKD 55.8 million as of March 31, 2021, including share premium and accumulated losses [146]. - The top five customers accounted for less than 29.6% of the total revenue for the year ended March 31, 2021, while the top five suppliers accounted for approximately 29.1% of total procurement (down from 43.2% in 2020) [148]. - The largest supplier represented about 9.3% of total procurement for the year ended March 31, 2021, compared to 13.7% in 2020 [148]. - Major shareholders TMF (Cayman) Ltd., RB Management, and RB Power collectively hold 1,500,000,000 shares, representing 62.5% of the company's issued share capital [194]. - As of March 31, 2021, the major shareholders included Mr. Cao, holding 150,000,000 shares (62.5% of issued share capital) and Ms. Xu, also holding 150,000,000 shares (62.5%) [189]. Risk Management and Compliance - The audit committee assessed the effectiveness of the group's risk management and internal control systems during the fiscal year, finding them adequate and effective [115]. - The company confirmed compliance with relevant laws and regulations, with no significant non-compliance issues identified during the year [176]. - The company has implemented policies and procedures to ensure timely and accurate disclosure of inside information in compliance with relevant regulations [116]. - The group has maintained transparent communication with investors through various channels, including annual general meetings and financial reports [126]. - The company has established a non-competition agreement with its controlling shareholders to protect its business interests [165]. - The company has purchased directors' liability insurance to provide appropriate protection for its directors and those of its subsidiaries [160]. Audit and Financial Reporting - The audit committee confirmed that the annual report complies with applicable accounting standards and regulations [96]. - The financial statements for the year were audited by Zhongzheng Zhonghuan, who is eligible and willing to be reappointed as the auditor [181]. - The group appointed Zhongren Zhonghuan as the external auditor, with audit fees for the fiscal year ending March 31, 2021, amounting to HKD 680,000 for statutory audit services [111]. - The tax compliance service fees for the fiscal year ending March 31, 2021, were HKD 71,000, compared to HKD 70,000 for the previous year [111]. - The company has established a formal and transparent remuneration policy for all directors and senior management [98]. - The audit committee reviewed the accounting standards and practices adopted by the group for the year [178]. Sustainability and Social Responsibility - The management emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2025 [63]. - The company is committed to promoting environmental and social sustainability in its operations [175].
MOS HOUSE(01653) - 2021 - 年度财报