Financial Performance - For the year ended March 31, 2021, the e-print segment revenue was HK$266.9 million, a decrease of 27.0% from HK$365.8 million in 2020[15]. - The e-banner segment recorded an operating profit of HK$56.5 million, down 32.3% from HK$83.5 million in the previous year[15]. - Profit attributable to equity holders of the Company increased to HK$19.0 million, representing a 233.3% increase from HK$5.7 million in 2020[15]. - The net profit margin attributable to equity holders of the Company improved to 7.1%, compared to 1.6% in the previous year[15]. - Total revenue from all sales channels was HK$266.9 million, with websites contributing approximately 55.3% of total revenue[48]. - Revenue from printing and other services decreased by approximately HK$98.9 million or approximately 27.0%, from approximately HK$365.8 million to approximately HK$266.9 million due to the impact of the macroeconomic downturn and COVID-19[42]. - The paper printing segment reported a revenue decline of approximately 25.5%, while the banner printing segment experienced a decrease of approximately 32.3%[34][35]. Assets and Equity - Total assets as of March 31, 2021, were HK$331.2 million, a slight increase of 1.1% from HK$327.6 million in 2020[15]. - Total equity rose to HK$250.7 million, reflecting a 9.0% increase from HK$230.0 million in the prior year[15]. - Cash and cash equivalents increased to HK$106.6 million, up 5.0% from HK$101.5 million in 2020[15]. - As of 31 March 2021, the current ratio was 2.2, unchanged from the previous year, while the gearing ratio decreased to 15.7% from 25.4%[59][60]. - The Group's bank borrowings were approximately HK$19.9 million as of March 31, 2021, down from HK$21.2 million in the previous year, with a weighted average interest rate of 2.3% for both FY2020/21 and FY2019/20[61][63]. Cost Management - Management implemented cost reduction measures and developed new income sources to mitigate the impact of the pandemic[20]. - Subcontracting costs decreased from approximately HK$111.3 million to approximately HK$58.0 million, representing a reduction of approximately 47.9%[24]. - The gross profit margin increased from approximately 34.8% to approximately 38.7% due to a significant reduction in the cost of sales[32]. - The Group plans to strengthen cost control to maintain a competitive pricing strategy[40]. - The Group will continue to implement measures to control operational costs amid ongoing uncertainties due to the COVID-19 pandemic[27]. Business Challenges and Strategies - The Group faced challenges due to COVID-19, leading to reduced market demand and sales orders throughout the year[19]. - The management expects the operating environment in Hong Kong to remain challenging and uncertain in the coming period[40]. - New business lines and customized products will be developed to meet market demand[40]. - The Group will enhance value-added services, including the e-print app and self-service platforms[40]. - Management plans to explore different business opportunities to enhance long-term growth and maximize shareholder value[27]. Corporate Governance - The company reported compliance with the Corporate Governance Code during FY2020/21, with one deviation regarding the separation of the roles of chairman and CEO[81]. - The Board consists of seven Directors, including two executive Directors, two non-executive Directors, and three independent non-executive Directors[84]. - The company aims to enhance corporate governance practices to ensure proper regulation of business activities and decision-making processes[81]. - The Board will continue to review and improve corporate governance standards to enhance shareholder value[81]. - The company has a balanced board composition to ensure strong independence and effective leadership[86]. Risk Management - The Group's risk management framework follows the COSO Enterprise Risk Management – Integrated Framework, allowing effective management of risks[189]. - For FY2020/21, principal risks identified include strategic risks from potential market volatility and operational risks from the outbreak of coronavirus disease[193]. - The Group maintains a risk register to track major risks, which is updated at least annually based on likelihood and potential impact[195]. - The effectiveness of the Group's risk management framework will be evaluated at least annually, with periodic management meetings to update progress[198]. - The Company will continue to engage external professionals annually to review and enhance the internal control and risk management systems[199]. Shareholder Communication - The Company is committed to open communication and reasonable disclosure of information to its shareholders[177]. - The Board acknowledges its responsibility to prepare consolidated financial statements that provide a true and fair view of the Group's financial position[180]. - The Company will publish annual and interim results and reports to all shareholders[178]. - All shareholder votes at general meetings must be taken by poll, except for procedural matters[173]. - Shareholders holding at least 10% of the paid-up capital can requisition an extraordinary general meeting[167].
EPRINT集团(01884) - 2021 - 年度财报