Financial Performance - For the year ended 31 March 2020, eprint Group Limited reported a revenue of HK$365.8 million, a decrease of 10.5% compared to HK$408.7 million in 2019[11]. - The e-print segment revenue decreased by 10.1% to HK$282.3 million, while the e-banner segment revenue decreased by 11.7% to HK$83.5 million[11]. - Operating profit before other losses decreased by 25.8% to HK$15.5 million from HK$20.9 million in the previous year[11]. - The net profit attributable to equity holders of the company decreased by 67.2% to HK$5.7 million, down from HK$17.4 million in 2019[11]. - The gross profit margin improved to 34.8% from 32.7% in the previous year, despite a decrease in overall gross profit[11]. - The Group recorded a profit decrease of 67.2%, primarily due to a fair value loss of approximately HKD 5,300,000 on listed equity investments, which accounted for a profit decrease of about 45.4%[21]. - The profit attributable to equity holders dropped by 67.2% to HK$5.7 million, primarily due to a fair value loss of approximately HK$5.3 million on listed equity investments and a decline in sales volume[30]. - The Group recorded a net loss of HK$8.5 million for the year ended 31 March 2020, an increase in loss of HK$8.2 million compared to a loss of HK$0.3 million for the year ended 31 March 2019[45]. Revenue Breakdown - The paper printing segment's revenue decreased by HK$31.8 million or 10.1%, with advertising printing contributing HK$114.1 million, representing 31.2% of total revenue[30]. - The banner printing segment's revenue decreased by HK$11.0 million or 11.7%, while gross profit only slightly dropped by 5.1% due to cost control measures[30]. - Revenue from the provision of printing and other services decreased by HK$42.9 million or 10.5% during the year ended 31 March 2020[37]. - Revenue from websites increased to HK$192.3 million, representing 52.6% of total revenue, while store revenue decreased to HK$62.0 million, accounting for 16.9%[42]. - The Group's total revenue for the year ended 31 March 2020 was primarily driven by online sales, contributing 52.6% of total revenue, an increase of 7.1% compared to the previous year[45]. Cost Management - The company faced challenges including increased operating costs and the impact of the COVID-19 outbreak, which adversely affected market demand[15][16]. - Subcontracting costs decreased by approximately HK$34.9 million or 24%, from HK$146.2 million in 2019 to HK$111.3 million in 2020 due to strategic changes[17]. - The Group has taken measures to control operating costs and explore various business opportunities to maintain profitability[19]. - Selling and distribution expenses represented 9.1% of revenue for the year ended 31 March 2020, compared to 8.5% for the previous year, with a decrease of HK$1.5 million attributed to reduced staff costs[51]. - Administrative expenses accounted for 22.1% of total revenue for the year ended 31 March 2020, remaining stable at approximately HK$80.8 million compared to the previous year[52]. Cash and Assets - Total assets increased by 5.4% to HK$327.6 million, compared to HK$310.7 million in 2019[11]. - Cash and cash equivalents decreased by 17.9% to HK$101.5 million from HK$123.7 million in the previous year[11]. - The Group's bank balances and cash decreased to HK$101.5 million as at 31 March 2020, a decline of HK$22.1 million compared to HK$123.6 million as at 31 March 2019[60]. - As of 31 March 2020, the Group's bank borrowings were HK$21.2 million, down from HK$25.9 million as of 31 March 2019, representing a decrease of approximately 18.2%[63]. Strategic Initiatives - The Group aims to diversify its business portfolio and explore new business opportunities to improve shareholder value[34]. - The Group's strategy includes diversifying into other industries and nations, as evidenced by previous investments in Sakura Japan Property and e-print Solutions Sdn. Bhd[24]. - The Group maintained a healthy cash balance through effective cash management, which can be utilized for further expansion and investment[24]. - The Group has invested in Top Success Investment Group Limited, which is engaged in finance leasing, providing an opportunity for further business diversification[24]. Governance and Board Structure - The Company complied with the Corporate Governance Code except for the separation of the roles of chairman and chief executive officer, which are held by the same individual[92]. - The Board consists of seven Directors, including two executive Directors, two non-executive Directors, and three independent non-executive Directors[103]. - The Nomination Committee consists of two independent non-executive Directors and one executive Director, focusing on board composition and diversity[140]. - The company emphasizes a formal and transparent procedure for the selection and appointment of Directors to ensure stability[142]. - Independent non-executive Directors have confirmed their independence according to Listing Rules, ensuring a balanced board[134]. Meetings and Professional Development - Five Board meetings were held during the year ended 31 March 2020, allowing Directors to include matters in the agenda and review documents in advance[108]. - All directors participated in continuous professional development through seminars relevant to their roles, ensuring they remain informed and effective[125]. - The Nomination Committee held two meetings during the year ended March 31, 2020, to review board composition and assess the independence of independent non-executive Directors[154]. Audit and Remuneration - The Audit Committee reviewed the audited financial statements for the year ended 31 March 2020, ensuring compliance with applicable accounting standards and Listing Rules[166][174]. - The Remuneration Committee held 2 meetings during the year ended 31 March 2020 to review the remuneration policy and structure for Directors and senior management[160]. - The emolument payable to Directors is determined based on contractual terms and the Group's performance, with details provided in the financial statements[163]. - The Audit Committee comprises three independent non-executive Directors, ensuring oversight of financial reporting and risk management[167]. Dividend Policy - The Company does not have a pre-determined dividend distribution ratio, and past dividend distribution records may not be used as a reference for future dividends[190]. - The Board will continually review the Dividend Policy and reserves the right to update, amend, and modify it at any time[191]. - The declaration and payment of dividends are subject to restrictions under the Companies Law of the Cayman Islands and other applicable laws and regulations[189].
EPRINT集团(01884) - 2020 - 年度财报