Financial Performance - The Group recorded an overall turnover of approximately HK$108.2 million for the year ended 31 March 2019, with a loss of approximately HK$36.0 million[7]. - Turnover from the trading business significantly decreased to approximately HK$67.7 million during the year[7]. - The Group recorded a turnover of approximately HK$108.2 million and a gross profit of approximately HK$37.9 million for the year ended 31 March 2019, compared to approximately HK$463.3 million and HK$30.6 million for the previous year[12]. - The loss for the year was narrowed to approximately HK$36.0 million, down from approximately HK$54.6 million in the previous year, mainly due to an increase in gross profit and a decrease in administrative expenses[12]. - The Group's trading business recorded a turnover of approximately HK$67.7 million with a loss of approximately HK$33.4 million, compared to approximately HK$427.5 million and a loss of approximately HK$19.1 million in the previous year[16]. - The significant increase in loss in the trading business was mainly due to an increase in provision for impairment of trade receivables amounting to approximately HK$20.9 million[16]. - The Group's food trading business recorded a turnover of approximately HK$67.4 million, down from approximately HK$253.2 million in the previous year, attributed to serious smuggling issues and intense competition in the seafood market[19]. - The electronic products trading business recorded a turnover of approximately HK$234,000, a significant decrease from approximately HK$55.7 million in the previous year, due to trade barriers between the PRC and the United States[20]. Business Strategy and Opportunities - The Financial Services Business continued to provide a sustainable income stream with steady growth throughout the year[7]. - The Company entered into an acquisition agreement on 7 January 2019 to acquire a company engaged in securities brokerage, asset management, and investment advisory services[8]. - The acquisition is expected to diversify the Group's business within the financial services sector and enhance its revenue stream[8]. - The Group plans to actively identify and explore other investment and business opportunities to broaden its assets and revenue base[9]. - The Group aims to cautiously search for investment opportunities to improve business operations and profitability[9]. Assets and Liabilities - The total assets of the Group as of 31 March 2019 amounted to approximately HK$806.5 million, down from HK$1,007.9 million in 2018[12]. - The net assets of the Group as of 31 March 2019 were approximately HK$748.3 million, compared to HK$869.2 million in 2018[12]. - As of 31 March 2019, the Group had cash and bank balances of approximately HK$140.3 million, down from HK$172.8 million in 2018, with total borrowings of approximately HK$4.6 million[31]. - The Group's gearing ratio was 0.61% as of 31 March 2019, slightly down from 0.62% in the previous year, indicating stable financial leverage[31]. - The liquidity ratio improved to 10.74 as of 31 March 2019, compared to 5.24 in 2018, primarily due to a decrease in trade payables and other liabilities[31]. Corporate Governance - The Company has been in compliance with all code provisions set out in the Corporate Governance Code for the year ended March 31, 2019[44]. - The Board currently comprises 2 executive Directors and 3 independent non-executive Directors, ensuring a balance of skills and experience[49]. - No claims have been made against the Directors throughout the year ended March 31, 2019, indicating effective governance and risk management[50]. - The Chairman and CEO positions are held by different individuals to maintain independence and balanced decision-making[54]. - Each independent non-executive Director has confirmed their independence annually, in accordance with Listing Rules[56]. - The Company has arranged appropriate insurance cover for Directors' liabilities, which will be reviewed and renewed annually[48]. - The Board is responsible for monitoring the Company's performance, position, and prospects, with monthly updates provided to all Directors[46]. - The CEO is responsible for the day-to-day management and operations of the Company, including financial and operational performance monitoring[55]. Risk Management - The Group's financial risk factors include credit risk, market risk, and liquidity risk, with management measures detailed in the financial statements[40]. - The risk management and internal control systems were reviewed and considered effective and adequate by the Board through the Audit Committee[92]. - The Group employs a complete process style of risk management, including risk identification, assessment, evaluation, and treatment[92]. - The established risk management systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement[92]. Environmental, Social, and Governance (ESG) - The ESG Report covers the reporting period from April 1, 2018, to March 31, 2019, prepared in accordance with the ESG Reporting Guide of the Stock Exchange of Hong Kong[103]. - The Group's ESG strategy aims to create long-term value for stakeholders, with a dedicated ESG working group responsible for formulating policies and initiatives[110]. - Stakeholder engagement is a continuous process, identifying key stakeholders and understanding their expectations to improve corporate social responsibilities[106]. - The materiality assessment helps prioritize relevant ESG issues, ensuring adequate resources are allocated to meet strategic plans[110]. - The Group maintains ongoing dialogues with shareholders and investors through various communication channels, including interim and annual reports[100]. - The Group's commitment to sustainability includes support for environmental protection and community engagement[106]. - The Group has implemented policies to minimize air emissions and GHG emissions, including monitoring travel logs and fuel consumption of motor vehicles[124]. - The Group has established environmental protection policies compliant with applicable regulations and standards recommended by the IMO[139]. Employee and Community Engagement - The Group employed approximately 60 employees and continues to provide regular training to enhance workforce capabilities[42]. - Staff training includes continuous professional training courses to maintain and enhance technical knowledge and professional skills[156]. - The Group regularly organizes employee social activities to foster loyalty and teamwork among staff[155]. - The Group actively participates in community activities, including food and moon cake donation campaigns for the elderly and needy[166]. - Staff are encouraged to participate in blood donation campaigns, promoting a culture of giving back to the community[166]. Compliance and Legal Matters - The Group strictly complies with all applicable anti-money laundering laws and regulations in Hong Kong, including the Anti-Money Laundering and Counter-Terrorist Financing Ordinance[159]. - During the Reporting Period, the Group was not aware of any incident of non-compliance with relevant laws and regulations relating to bribery, extortion, fraud, and money laundering that would have significant impact on the Group[160]. - The Group has established and implemented policies and procedures on risk assessment, customer due diligence measures, ongoing monitoring of customers, suspicious transactions reporting, record keeping, and staff training[159]. - The Group prohibits the employment of child labour and strictly adheres to the Employment Ordinance in Hong Kong and relevant labour laws in the PRC[158]. - The Group has not experienced any case of child labour or forced labour during the Reporting Period[158].
香港潮商集团(02322) - 2019 - 年度财报