Financial Performance - The Group's total revenue decreased by approximately 10.9% from HK$340.0 million last year to HK$302.9 million this year[12]. - Revenue from the lifestyle entertainment segment dropped significantly by approximately HK$37.8 million, from HK$52.0 million to HK$14.2 million[12]. - The Group's profit before taxation decreased from HK$29.2 million last year to HK$7.1 million this year, representing a decline of approximately 75.7%[18]. - The lifestyle entertainment segment recorded revenue of HK$14.2 million for the year ended 31 March 2021, down from HK$52.0 million in the previous year, indicating a decline of approximately 72.7%[37]. - The Group reported a loss of approximately HK$8.6 million for the year ended 31 March 2021, compared to a profit of approximately HK$13.2 million for the previous year, primarily due to a revenue decrease of HK$37.1 million and increased impairment losses of HK$16.9 million[50][54]. Operational Changes - The number of projects managed by the Group decreased from 64 to 63, while the aggregate contracted gross floor area increased from 7.19 million sq.m. to 7.62 million sq.m.[13]. - The Group continues to optimize its project portfolio, focusing on larger service area projects[13]. - The Group's lifestyle entertainment segment was significantly impacted by COVID-19 prevention measures, leading to operational challenges[12]. - The Group expects the economy to fully recover to pre-COVID-19 status in another 6 to 12 months[21]. - The Group aims to expand its lifestyle entertainment segment through the introduction of new brands and potential acquisitions[22]. Cost Management - Staff costs decreased by approximately 16.8% or HK$26.2 million to approximately HK$129.9 million for the year ended 31 March 2021 from HK$156.1 million for the previous year[40]. - Property rentals and related expenses decreased by approximately 58.5% or HK$5.5 million to approximately HK$3.9 million for the year ended 31 March 2021 from HK$9.4 million for the previous year[42]. - Utilities and repair and maintenance expenses decreased by approximately HK$3.6 million or 12.2% for the year ended 31 March 2021, mainly due to the termination of a commercial complex management project[47][50]. - Advertising and marketing expenses dropped by approximately 69.0% to about HK$1.3 million for the year ended 31 March 2021, primarily due to COVID-19 restrictions[46]. Asset and Liability Management - Total current assets as of 31 March 2021 were approximately HK$324.5 million, up from approximately HK$302.6 million in the previous year, while current liabilities increased to approximately HK$202.4 million from HK$177.8 million[51][55]. - The current ratio as of 31 March 2021 was about 1.6 times, slightly down from 1.7 times in the previous year[51][55]. - Cash at bank and in hand increased to approximately HK$227.2 million as of 31 March 2021, compared to approximately HK$206.7 million a year earlier[52][55]. - Total interest-bearing borrowings decreased to approximately HK$108.3 million as of 31 March 2021 from HK$131.3 million in the previous year, with a gearing ratio of 0.80 compared to 1.02[53][56]. Corporate Governance - The Company has adopted a high standard of corporate governance and is committed to transparency and accountability[108]. - The Board comprised four executive Directors and three independent non-executive Directors as of 31 March 2021[114]. - The independent non-executive Directors represent more than one-third of the Board, ensuring a strong independent element[114]. - The Company has complied with all applicable code provisions in the Corporate Governance Code for the year ended 31 March 2021[109]. - The positions of Chairman and Chief Executive Officer were held separately, with Mr. Zheng Jiang as Chairman and Mr. Chan Hon Ki as CEO[121]. Risk Management - The Group's enterprise risk management framework was established in 2016, with the Board responsible for maintaining effective internal controls[186]. - The Group adopts a "three lines of defence" corporate governance structure for risk management, with operational management, finance and compliance monitoring, and independent internal audit conducted by BTCG[189]. - The risk register is updated at least annually to track major risks and management actions taken to mitigate them[189]. - The effectiveness of the Group's risk management framework is evaluated at least annually, with periodic management meetings to update risk monitoring efforts[190]. - The Company engages external independent professionals annually to review and enhance its internal control and risk management systems[191]. Employee Management - The Group employed approximately 1,077 employees as of March 31, 2021, down from 1,304 employees as of March 31, 2020[74]. - The Company encourages Directors to participate in continuous professional development courses and seminars[121]. Future Outlook - The Group expects to benefit from the recovery of Hong Kong's economy post-COVID-19, particularly in its lifestyle entertainment segment[76]. - The Group plans to explore different business and investment opportunities in areas such as trading, property management, and healthcare[67].
奥克斯国际(02080) - 2021 - 年度财报