Financial Performance - For the year ended June 30, 2021, the Group's revenue was approximately HK$86.6 million, representing a 61.0% increase compared to HK$53.8 million in the previous year[12]. - The gross profit for the same period was approximately HK$18.7 million, reflecting a 9.1% increase from HK$17.1 million in the prior year[12]. - The Group reduced its loss for the year to approximately HK$11.8 million, a significant improvement of 58.2% compared to a loss of approximately HK$28.2 million in the previous year[12]. - The gross profit margin for the year was 21.6%, down from 31.8% in the previous year[12]. - The Group's overseas business was adversely affected by the COVID-19 pandemic, with revenue from overseas activities at approximately HK$11.9 million in 2021, down from HK$22.3 million in 2020[83]. - Revenue from interior solutions services significantly increased to approximately HK$59.5 million in 2021 from approximately HK$25.4 million in 2020[103]. - Direct costs increased by approximately 85.3% from approximately HK$36.7 million in 2020 to approximately HK$67.9 million in 2021, representing 68.2% and 78.4% of revenue in 2020 and 2021 respectively[110]. Business Strategy and Outlook - The management plans to strengthen cost control and resource management while actively participating in project tenders to maintain competitiveness[18]. - The Group has secured several large projects related to millworks and interior solutions for luxury hotels, indicating a positive outlook for future business relationships[19]. - The Group is actively exploring business opportunities in the PRC's interior solutions market, resulting in promising project negotiations[26]. - The management is confident that the quality of products and services will lead to long-term business relationships and more similar projects in the near future[23]. - The Group aims to leverage its established experience and connections in the luxury hotel market to expand its business further[23]. - The Group is making pre-emptive moves to seize potential business opportunities to support sustainable development[27]. Management and Governance - The Board is committed to maximizing the interests of the Group and its shareholders for long-term value growth[29]. - The Board has established four committees to oversee various aspects of the Company's affairs, ensuring effective governance and strategic decision-making[181]. - The Board consists of seven members, including four executive directors and three independent non-executive directors[185]. - The Company complied with the Listing Rules requiring at least three independent non-executive directors, with one possessing appropriate professional qualifications or financial management expertise[187]. - Mr. Lee Wai Sang serves as both Chairman and Chief Executive Officer, which the Board believes provides strong and consistent leadership[190]. Financial Position and Capital Management - Total assets decreased to HK$48.6 million, down 11.5% from HK$54.9 million in the prior year[12]. - The current ratio decreased to 0.90 from 1.47 in the prior year, indicating a decline in liquidity[12]. - As of June 30, 2021, cash and bank balances amounted to approximately HK$18.8 million, down from approximately HK$27.5 million in 2020[124]. - The Group has a bank facility of HK$15.0 million, with HK$6.0 million drawn down as of June 30, 2021[124]. - The Group utilized approximately HK$5.3 million from the net proceeds of the placing for general working capital, including office rent, legal fees, and employee salaries[139]. - The Group's net proceeds from the share offer amounted to approximately HK$64.6 million, with plans to allocate part of it for expanding interior solutions services[162][163]. Human Resources - Total employee benefits amounted to approximately HK$20.3 million, a decrease from approximately HK$21.9 million in the previous year, primarily due to restructuring of senior management remuneration[149]. - The Group had no significant contingent liabilities as of June 30, 2021[138]. Market and Competitive Environment - The Group is focusing on enhancing cost control and resource management to maintain market competitiveness[23]. - The management emphasized the importance of local market development in response to ongoing global challenges[84]. - The Group is actively seeking potential acquisition targets that may synergize with its existing business for ongoing strategic growth[102]. COVID-19 Impact - The management will continue to monitor the impact of the COVID-19 pandemic on operations and results, ensuring shareholders are kept informed[17]. - The Group's overseas business activities continue to be adversely affected by the ongoing COVID-19 pandemic, prompting a strategic focus on local markets[91].
易纬集团(03893) - 2021 - 年度财报