Financial Performance - Revenue for the e-print segment was HK$314.1 million, a 1.7% increase from HK$308.8 million in the previous year[11]. - Operating profit before other losses decreased by 38.2% to HK$20.9 million from HK$33.8 million year-on-year[11]. - Profit attributable to equity holders of the company was HK$17.4 million, down 20.9% from HK$22.0 million in the prior year[11]. - Net profit margin decreased to 4.3% from 5.5% year-on-year[11]. - Gross profit margin declined to 32.7% compared to 36.2% in the previous year[11]. - Basic earnings per share fell by 21.2% to 3.16 HK cents from 4.01 HK cents[11]. - The audited profit attributable to equity holders decreased by 20.9% to HK$17.4 million, primarily due to increased operating costs and absence of one-off income from software sales[23]. - Profit for the year attributable to equity holders decreased by HK$4.6 million or 20.9%, from HK$22.0 million in 2018 to HK$17.4 million in 2019, with a net profit margin drop of 1.2%[60]. Revenue Segments - The paper printing segment recorded a slight revenue improvement despite strong competition from digital marketing[13]. - The banner printing segment achieved comparable results to the previous year, indicating successful market penetration and reputation building[13]. - Revenue from printing and other services increased by HK$5.4 million or 1.3%, mainly driven by paper printing services[30]. - The paper printing segment's revenue rose by HK$5.3 million, with advertising printing contributing HK$128.1 million, while the gross profit margin dropped by 3.0% to 32.2%[23]. - The banner printing segment maintained similar revenue levels, but the gross profit margin dropped by 5.1% due to reclassification of delivery charges and increased costs[23]. Assets and Equity - Total assets slightly decreased by 0.2% to HK$310.7 million from HK$311.2 million[11]. - Total equity increased by 1.2% to HK$234.5 million from HK$231.7 million[11]. - As of 31 March 2019, the Group's bank balances and cash increased by HK$34.2 million to HK$123.7 million, primarily due to cash inflow from operating activities[66]. - The Group's current ratio improved to 2.5 as of 31 March 2019, compared to 2.3 as of 31 March 2018, while the gearing ratio decreased to 12.0% from 13.7%[67]. Cash Flow and Investments - Cash and cash equivalents rose by 38.2% to HK$123.7 million from HK$89.5 million[11]. - The Group maintains a healthy cash balance for further expansion and investment opportunities[15]. - The group has diversified investments in bonds issued by listed companies on The Stock Exchange of Hong Kong for capital preservation and higher interest returns compared to bank interest income[50]. Operational Challenges and Strategies - Profit decreased due to the absence of one-off software income from the previous year and increased operational expenses[13]. - The Group anticipates a challenging operating environment in Hong Kong due to global economic uncertainty and rising operating costs[26]. - The management plans to enhance competitiveness through cost control, new business development, and improved value-added services[27]. - The Group plans to adopt a diversification strategy by expanding its product and services portfolio[15]. Corporate Governance - The company complied with the Corporate Governance Code except for the separation of the roles of chairman and CEO, which are held by the same individual[89]. - The board consists of eight directors, including two executive directors, three non-executive directors, and three independent non-executive directors[95]. - The board is responsible for overall strategy, major acquisitions, annual budgets, and significant operational and financial matters[95]. - The Company has established a corporate governance framework to comply with the CG Code and other legal requirements[165]. Board and Committees - The Nomination Committee, established on November 13, 2013, consists of two independent non-executive Directors and one executive Director, focusing on Board composition and diversity[124]. - The Remuneration Committee was established on November 13, 2013, and consists of two independent non-executive Directors and one executive Director[141]. - The Audit Committee reviewed the annual results for the year ended March 31, 2018, and the interim results for the six months ended September 30, 2018, ensuring compliance with applicable accounting standards and Listing Rules[153]. - The Audit Committee is responsible for overseeing the Company's financial reporting system and risk management[156]. Risk Management - The Group has established an enterprise risk management framework to manage various risks faced by the organization[199]. - The Board considers the internal control and risk management systems to be effective and adequate based on findings from the independent review and Audit Committee comments[195]. - The Audit Committee noted that the existing risk management and internal control systems would be reviewed annually[161]. Employee and Shareholder Engagement - The Company provides various employee benefits, including retirement contributions and medical insurance, in compliance with local regulations[84]. - The Company is committed to open communication and reasonable disclosure of information to shareholders[184]. - The general meeting serves as an effective communication channel between the Board and shareholders[184].
EPRINT集团(01884) - 2019 - 年度财报