Financial Performance - The company's net profit attributable to shareholders increased by 75% from HKD 32.22 million in 2017-18 to HKD 56.30 million in 2018-19[6]. - The total dividend for the year is HKD 0.052 per share, consisting of a final dividend of HKD 0.03 and an interim dividend of HKD 0.022[6]. - The group recorded revenue of approximately HKD 262,190,000 for the fiscal year ending March 31, 2019, an increase of HKD 53,110,000 or 25% compared to HKD 209,080,000 for the previous fiscal year[18]. - The cigarette packaging business contributed approximately HKD 216,530,000 to revenue, a 5% increase from HKD 206,810,000 in the previous year, while the environmental management business generated approximately HKD 45,660,000, up 1,911% from HKD 2,270,000[19]. - The overall gross profit was approximately HKD 92,170,000, with a gross profit margin of 35%, slightly down from 36% in the previous year[21]. - Administrative expenses increased by approximately HKD 3,520,000 to about HKD 31,850,000, primarily due to costs associated with the acquisition of Hongdong[22]. - Other income netted approximately HKD 2,050,000, a recovery from a loss of HKD 9,330,000 in the previous year, benefiting from a favorable securities market[23]. - Financing income amounted to approximately HKD 9,080,000, an increase from HKD 4,910,000 in the previous year[24]. - The tax expense rose to approximately HKD 13,620,000 from HKD 9,100,000, attributed to increased pre-tax profits and non-deductible expenses[25]. - The profit attributable to the owners of the company was approximately HKD 56,300,000, an increase of about HKD 24,080,000 from HKD 32,220,000 in the previous year[26]. - The group's listed securities generated a profit of approximately HKD 860,000 in the fiscal year 2018/19, compared to a loss of HKD 6,520,000 in the previous fiscal year[30]. - As of March 31, 2019, the total cash and restricted cash balance was approximately HKD 266,810,000, an increase from HKD 218,210,000 as of March 31, 2018[32]. - The group's capital expenditure for the fiscal year 2018/19 was approximately HKD 19,640,000, significantly higher than HKD 1,260,000 in the previous fiscal year[36]. - The net cash generated from operating activities was approximately HKD 100,220,000 for the fiscal year 2018/19[32]. - The group has no borrowings as of March 31, 2019, resulting in no debt ratio being presented[33]. - The group has no contingent liabilities as of March 31, 2019, consistent with the previous year[38]. - The company’s retained earnings before dividends amounted to approximately HKD 175,760,000, an increase from HKD 151,100,000 as of March 31, 2018, representing a growth of about 16.5%[76]. - The top five customers accounted for approximately 95% of the total revenue, with the largest customer contributing about 56% of the total revenue for the year ended March 31, 2019, compared to 93% and 65% respectively for the year ended March 31, 2018[77]. - The group had no bank borrowings as of March 31, 2019, and March 31, 2018, indicating a debt-free status during these periods[70]. Business Strategy and Market Outlook - The tobacco packaging business showed resilience despite a challenging market, with cigarette sales in China slightly increasing to 2,372 billion sticks in 2018[7]. - The tobacco industry is expected to face increasing competition in 2019, but the potential for improved profitability remains due to high economic value[14]. - The Guangdong environmental governance market presents significant growth opportunities, with government initiatives targeting the elimination of poor water quality by the end of 2019[14]. - The company is committed to enhancing its technical, management, and construction qualifications to create better returns for shareholders in the coming year[14]. - The company emphasizes its dedication to brand establishment, market expansion, and integrity as core objectives[6]. - The company is diversifying its business strategies to seek growth opportunities in other sectors, including environmentally friendly businesses, to expand revenue sources[66]. - The company is actively monitoring industry trends, technological innovations, and business strategies to address changes in the market, particularly in response to tobacco regulation policies[66]. - The company faces significant reliance on a limited number of major customers in China, which poses risks related to economic and regulatory changes affecting core business performance[66]. - The company has experienced a significant increase in operational challenges due to tobacco control policies, which may adversely affect cigarette sales in the future[66]. - The company plans to invest more resources in designing new products and improving quality to deepen relationships with existing customers and attract potential customers[41]. - The group aims to explore new wastewater treatment projects to expand revenue sources and enhance shareholder returns, leveraging new environmental permits[41]. Environmental Governance and Sustainability - The environmental governance business is aligned with Guangdong Province's water quality improvement goals, aiming for over 83.1% of surface water to meet good quality standards by 2019[9]. - The company has established strategic cooperation with Tsinghua University for advanced water environment governance technologies[13]. - The company completed the Shantou City drainage project by the end of November 2018 and plans to start a three-year maintenance period in June 2019[13]. - The company has expanded its business into environmental governance through the acquisition of Hong Kong Hongdong Investment Co., Ltd. and its subsidiary, which includes a comprehensive technology implementation and equipment production base[169]. - The company is committed to integrating environmental protection and social responsibility into its operations while pursuing sustainable development[162]. - The company has established internal monitoring and formal auditing procedures to ensure the accuracy and reliability of the data disclosed in its reports[168]. - The company recognizes the importance of maintaining communication with stakeholders, including shareholders, customers, and regulatory bodies, to determine long-term development directions[171]. - The company’s environmental governance capabilities include equipment research and development, ecological restoration plant cultivation, and pollutant detection and analysis[169]. - The company has installed exhaust gas collection devices in all production workshops to ensure compliance with environmental standards[180]. - The company reported a total of 7.3 tons of TVOCs and 0.01 tons of benzene compounds generated during production activities[181]. - The company has implemented green production measures to promote energy-saving and low-carbon operations[177]. - The company adheres to various environmental laws and regulations, including the Air Pollution Comprehensive Emission Standards[177]. - The company has developed an emergency response plan for environmental incidents, which has been approved by experts and filed with relevant government departments[180]. - The total carbon dioxide emissions from the company amounted to 4,051.40 tons, with 3,764.90 tons from Xinda Printing and 286.50 tons from Hongdong Governance[183]. - Total nitrogen oxides emissions amounted to 0.3239 tons, with gasoline contributing 0.3095 tons and diesel 0.0144 tons[187]. - Total sulfur oxides emissions were recorded at 0.0168 tons, with gasoline at 0.0043 tons and diesel at 0.0125 tons[187]. - Solid waste generated by 信达彩印 included 0.500 tons of empty barrels, 0.050 tons of rags, 0.200 tons of light tubes, and 0.500 tons of activated carbon, totaling 9.739 tons of waste[190]. - Total water consumption for the year was 39,327 tons, with 信达彩印 using 38,790 tons and 弘東治理 using 537 tons[198]. - 信达彩印's wastewater treatment capacity is 8 tons per day, with a total wastewater discharge of approximately 2,920 tons during the reporting period[192]. - Energy consumption included 3,979,663 kWh of electricity, 7,348 kg of liquefied petroleum gas, 14,666 liters of gasoline, and 1,600 liters of diesel[196]. - The company saved approximately 73,000 tons of water through rainwater collection and recycling of cooling water[197]. - The company promotes the use of environmentally friendly materials, such as water-soluble inks and non-benzene adhesives, to enhance sustainability[199]. - The company actively engages in waste separation and recycling initiatives to minimize environmental impact[199]. - The company encourages employees to engage in environmentally responsible behaviors through communication and education initiatives[176]. - The company has completed the construction of spray towers and other equipment for exhaust gas treatment this year[180]. - No significant environmental violations were reported during the reporting period[178]. Corporate Governance - The company has adopted high standards of corporate governance to maintain competitiveness and healthy growth[113]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring diverse expertise[113]. - The company has implemented a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to achieve diversity[121]. - The audit committee held two meetings during the fiscal year ending March 31, 2019, to review the financial performance and internal controls of the group[128]. - The remuneration committee convened once in the fiscal year to review the compensation of directors and senior management[132]. - The attendance rate for the annual general meeting and regular board meetings was 100% for several directors, indicating strong engagement[126]. - The company has established appropriate liability insurance for directors and senior management to cover responsibilities arising from company activities[117]. - The board has adopted measurable targets for diversity and will review the policy periodically to ensure its effectiveness[122]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills[124]. - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring proper governance[123]. - The chairman and CEO is responsible for formulating overall business strategy and ensuring the board operates effectively[117]. - The audit services provided for the year ending March 31, 2019, amounted to HKD 1,487,000[147]. - Additional non-audit services, including interim performance-related services, totaled HKD 187,000[147]. - The company confirmed compliance with the corporate governance code during the year ending March 31, 2019, with some deviations noted[139]. - The board is responsible for maintaining effective risk management and internal control systems to protect shareholder interests[149]. - An independent review of the internal control system was conducted, with no significant irregularities found[150]. - The company has implemented procedures to prevent inappropriate asset use and ensure compliance with applicable laws and regulations[149]. - The board has not submitted the monthly performance reports as required by the corporate governance code, but has provided regular updates on significant changes[144]. - The nomination committee reviewed the board's structure and diversity during the year[135]. - The company has adopted the standard code for securities trading by directors and confirmed compliance throughout the year[145]. - The governance committee is responsible for evaluating and reviewing the company's governance policies and practices[138]. - The company maintains a dividend policy to distribute at least 35% of consolidated distributable profits as dividends, with the board regularly reviewing this policy[151]. - The board will consider various factors, including actual and expected financial performance, retained earnings, liquidity, and future cash needs when deciding on dividend payments[151]. - The company’s financial performance and position for the year ended March 31, 2019, are detailed in the audited consolidated financial statements[59]. - The company’s main business is investment holding, with subsidiaries engaged in various activities as detailed in the financial statements[58]. - The company’s annual general meeting is scheduled for August 23, 2019, with a record date for dividend eligibility set for September 3, 2019[61][62]. - The company has a management team with extensive experience in various fields, including finance, law, and business management, contributing to its strategic decision-making[54][55]. - The company has a total of 694,080,000 issued ordinary shares, with SXD Limited holding 450,000,000 shares, representing 64.83% of the total[103]. - As of March 31, 2019, the company had 50,060,000 unexercised share options, of which 6,320,000 were exercised[96]. - The company has a total of 39,660,000 share options granted to employees, with 33,340,000 remaining unexercised as of March 31, 2019[96]. - The beneficial ownership of shares by directors includes 1,200,000 shares held by Zheng Minsheng, representing 0.17% of the total[102]. - The company did not engage in any significant related party transactions that would constitute a major transaction under the Hong Kong Stock Exchange Listing Rules for the year ended March 31, 2019[78]. - The company had no purchases, redemptions, or sales of its listed securities during the year[75]. - There were no significant litigations or arbitrations involving the company as of March 31, 2019[109]. - The company has complied with the corporate governance code throughout the year, except for specific provisions[110].
华禧控股(01689) - 2019 - 年度财报