Financial Performance - The company recorded revenue of approximately HKD 44,324,000 for the fiscal year ending March 31, 2020, representing a year-on-year decline of about 32.8% from HKD 65,992,000 in 2019[9]. - Gross profit totaled HKD 16,721,000, down 43.7% from HKD 29,674,000 in the previous year, while annual profit decreased by 73.3% to HKD 2,507,000 from HKD 9,402,000[9]. - Repair service revenue was approximately HKD 42,299,000, a decrease of about 34.0% from HKD 64,125,000 in 2019, primarily due to reduced demand for repair services[17]. - Other income for the year was approximately HKD 2,591,000, a decrease of about 33.1% from HKD 3,870,000 in 2019, primarily due to a decline in bank interest income and reduced storage income[20]. - Profit for the year was approximately HKD 2,507,000, a decrease of about 73.3% from HKD 9,402,000 in 2019[23]. Cost Management - The company's cost of sales decreased by approximately 24.0% to about HKD 27,603,000 from HKD 36,318,000, attributed to lower parts and labor costs[18]. - Direct labor costs for the fiscal year were approximately HKD 16,281,000, down about 33.3% from HKD 24,409,000 in 2019, mainly due to workforce reduction[19]. - Net operating expenses for the year ended March 31, 2020, were approximately HKD 4,388,000, a decrease of about 47.9% from HKD 8,418,000 in 2019, mainly due to reduced rent from the restructuring of corporate customer repair centers[21]. Business Strategy and Opportunities - The company plans to explore opportunities related to other smartphone protection plans to generate additional revenue sources in the upcoming year[11]. - The competitive landscape in the smartphone repair industry remains challenging, but the increasing smartphone usage and the launch of 5G services are expected to provide significant business opportunities[15]. - The company aims to diversify its business and investment opportunities to create synergies with its core operations while responding swiftly to changing market conditions[11]. Employee and Management Insights - The group employed 68 full-time employees as of March 31, 2020, a decrease from 85 in 2019[34]. - The management team emphasizes the importance of human resources and administrative policies in driving operational efficiency and effectiveness[42][44]. - The management team is dedicated to continuous improvement and innovation in service offerings to meet evolving customer needs[44]. Corporate Governance - The board consists of three non-executive directors, one executive director, and three independent non-executive directors[57]. - The company has established an audit committee, a remuneration committee, and a nomination committee, each with specific written terms of reference[54]. - The company has maintained compliance with the Corporate Governance Code, except for deviations disclosed in the "Board Functions" section[55]. Environmental and Social Responsibility - The company has committed to improving its environmental performance and reducing its environmental impact through various policies and practices[109]. - The company has implemented energy-saving measures, including the installation of energy-efficient lighting and policies to encourage employees to turn off lights and air conditioning after hours[114]. - The company has focused on maintaining compliance with local laws and regulations related to emissions control, ensuring no significant environmental issues arise from its operations[110]. Shareholder Information - The board has adopted a dividend policy that allows for quarterly dividends, with special dividends possible in years of strong earnings[82]. - The third interim dividend of HKD 0.01 per share was distributed on March 6, 2020, and the fourth interim dividend of HKD 0.02 per share is expected to be distributed around July 20, 2020[162][163]. - As of March 31, 2020, the company's reserves available for distribution to shareholders amounted to HKD 61,689,000, an increase from HKD 59,524,000 in 2019[170]. Risk Management - The company has policies in place to manage environmental and social risks within its supply chain, with relevant disclosures on page 31[153]. - Anti-corruption policies are in place, with disclosures regarding any corruption lawsuits filed against the company during the reporting period[155]. - The company has established a privacy protection plan, including 24-hour CCTV monitoring and access control systems to safeguard customer data[135].
电讯首科(03997) - 2020 - 年度财报