Financial Performance - The group's revenue for the fiscal year ending March 31, 2021, was approximately HKD 38,350,000, a decrease from HKD 44,324,000 in the previous year, representing a decline of about 13.4%[10] - Gross profit for the same period was approximately HKD 15,325,000, down from HKD 16,721,000, indicating a decrease of about 8.4%[10] - Net profit increased significantly to approximately HKD 9,573,000, compared to HKD 2,507,000 in the previous year, marking an increase of approximately 282.5%[10] - For the fiscal year ending March 31, 2021, the company's net profit increased by approximately 281.9% to about HKD 9.57 million compared to HKD 2.51 million in the previous year[23][32] - Repair service revenue for the fiscal year was approximately HKD 34.1 million, a decrease of about 19.4% from HKD 42.3 million in the previous year, primarily due to a reduction in repair work[24] - Sales of accessories and support services increased by approximately 109.6% to about HKD 4.25 million, up from HKD 2.03 million, driven by the new mobile screen protection plan[24] - The company's total operating expenses increased by approximately 40.3% to about HKD 6.16 million, mainly due to direct costs associated with the mobile screen protection plan[30] - The company reported other income of approximately HKD 9.34 million, significantly up from HKD 2.59 million in the previous year, mainly due to foreign exchange gains and government subsidies related to COVID-19[29] - The company's total sales cost decreased by approximately 16.6% to about HKD 23.03 million, down from HKD 27.6 million, due to reductions in both parts and labor costs[25] - As of March 31, 2021, the company had current assets of approximately HKD 98.04 million and current liabilities of about HKD 3.74 million, resulting in a current ratio of approximately 26.2[34] - As of March 31, 2021, the company had no bank borrowings, maintaining a strong liquidity position with cash and cash equivalents of approximately HKD 89.73 million[35] - The company declared a fourth interim dividend of HKD 0.02 per share for the fiscal year ending March 31, 2021[42] - The company has not made any significant acquisitions or investments during the fiscal year ending March 31, 2021[33] - The company has not held any significant investments in other companies apart from its subsidiaries as of March 31, 2021[44] - The company has established a supply chain management policy to address environmental and social risks, with F suppliers currently engaged[170] Business Strategy and Operations - The company plans to acquire a property in Kowloon for HKD 54,400,000, with a total construction area of approximately 4,357 square feet, aimed at increasing revenue and cash flow[12] - The company has implemented cost control measures to enhance operational efficiency, which are expected to yield ongoing cost savings in the future[18] - The group aims to diversify its business by exploring various business channels and investment opportunities, including low-risk financial products for stable returns[19] - The company has introduced a mobile device screen protection plan, which has been well-received by customers, prompting further exploration of expanding the plan to other components[11] - The group intends to enhance service quality and operational efficiency through the integration of internal and external resources, which will strengthen its core competitiveness[14] - The company has seen increased demand for repair and refurbishment services due to the rise in electronic device usage during the COVID-19 pandemic[11] - The group has maintained a good liquidity position, allowing it to pursue additional income-generating opportunities through investments in fixed-income securities[12] - The group plans to enhance service quality and operational efficiency while exploring diversification opportunities[46] - A temporary purchase agreement was signed in May 2021 for a property at Silver City Plaza for HKD 54,400,000, with a total area of approximately 4,357 square feet[46] - The group aims to utilize the acquired property to reduce rental expenses and generate rental income from unused units[46] - The group has a good liquidity position and has recently purchased interest-bearing notes linked to stocks for additional income[46] Corporate Governance - The company has a strong governance structure with established audit, remuneration, and nomination committees to ensure compliance with the corporate governance code[61] - The board consists of three non-executive directors, one executive director, and three independent non-executive directors, ensuring a balanced decision-making process[65] - The company has adhered to the corporate governance code throughout the fiscal year ending March 31, 2021, with specific deviations disclosed[63] - The management team is independent and experienced, responsible for executing the company's policies and strategies[67] - The company has a clear process for the appointment and re-election of directors, ensuring accountability and transparency[69] - The executive director has been providing monthly updates to the board regarding significant changes in the company's performance and outlook[67] - The company has a structured approach to board meetings, with detailed records maintained of discussions and decisions made[68] - The independent non-executive directors bring diverse expertise and experience to the board, enhancing its effectiveness[66] - The company has established a code of conduct for securities trading by directors, ensuring ethical compliance[64] - The company is committed to balancing the interests of shareholders, customers, and employees through effective governance practices[61] - The company has three independent non-executive directors, complying with Listing Rule 3.10(1)[73] - The Audit Committee, established on May 2, 2013, includes three independent non-executive directors and is responsible for monitoring the integrity of financial statements[80][81] - The Remuneration Committee, also established on May 2, 2013, reviews the overall remuneration policy for all directors and senior management[84][85] - The company ensures that all directors participate in continuous professional development to enhance their knowledge and skills[76][78] - The company has a clear policy for the remuneration of directors and senior management, which is regularly reviewed based on market levels and company performance[88] - The company’s chairman and CEO roles are distinct, with Mr. Zhang Jingshi serving as chairman and Mr. Zhang Jingfeng as CEO as of March 31, 2021[74] - The company has established a Nomination Committee to review the board's structure and recommend appointments[89][90] - The Audit Committee's responsibilities include reviewing the financial control and risk management systems of the group[86] - The company has insurance coverage for directors against legal actions arising from corporate activities[79] - The company’s independent non-executive directors have confirmed their independence as per Listing Rule 3.13[73] - The company has adopted a dividend policy that allows for the declaration and recommendation of dividends based on operating performance, financial condition, and future prospects, with no preset payout ratio[93] - The board has a diversity policy in place since November 7, 2013, focusing on measurable targets including gender, age, and professional experience, with one female director among the seven board members[94] - The company held four board meetings and four audit committee meetings in the fiscal year ending March 31, 2021, with full attendance from non-executive directors[96] - The total fees paid to the auditors for the fiscal year ending March 31, 2021, amounted to HKD 890,000, with HKD 650,000 for audit services and HKD 240,000 for non-audit services[99] - The board is responsible for maintaining the effectiveness of the internal control system, which was reviewed and deemed effective for the fiscal year ending March 31, 2021[100] - The company emphasizes communication with shareholders and investors, utilizing various channels to provide performance updates and encourage feedback[102] - The nomination committee has reviewed the independence of all independent non-executive directors and proposed a list of retiring directors for re-election at the annual general meeting[91] - The company aims to balance appropriate returns to shareholders through dividends while supporting future growth, typically declaring dividends quarterly[93] - The board will continue to review its composition to ensure it meets the specific needs of the business[94] - The company has established a transparent nomination policy to ensure that the selection criteria for directors align with the group's goals and needs[92] - The company emphasizes the importance of shareholder engagement and encourages attendance at the annual general meeting, requiring at least 20 business days' notice[103] - The company has not made any changes to its charter documents for the fiscal year ending March 31, 2021[110] Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the company's performance in sustainable development principles from April 1, 2020, to March 31, 2021[112] - The board of directors is committed to overseeing ESG-related policies and performance, including setting and reviewing relevant goals and strategies[118] - The company has conducted an internal stakeholder survey to assess the importance of ESG issues and will continue to review stakeholder engagement channels[119] - The company aims to maintain effective communication with stakeholders through diverse channels to understand and respond to their expectations[121] - The total water consumption for the year was 133 cubic meters, with a water consumption density of 2.18 cubic meters per employee, down from 2.72 cubic meters per employee in the previous year[128] - The company has implemented various energy-saving measures, including the installation of energy-efficient lighting and encouraging employees to turn off lights and air conditioning after office hours[132] - The company generated mainly non-hazardous waste, including paper and general waste, and has set up recycling bins at its headquarters and maintenance centers[129] - The company has identified eight significant environmental, social, and governance issues based on stakeholder surveys and external assessments[124] - The company has established internal guidelines to address climate change and has prioritized employee safety during extreme weather events[134] - The company encourages suppliers to avoid using single-use packaging materials and promotes the reuse of packaging among employees[129] - The total waste generated includes hazardous waste such as batteries and electronic waste, which are properly handled to prevent environmental pollution[129] - The company has adopted a green operation approach by reducing paper consumption and promoting online platforms to minimize printing needs[133] - The company is committed to complying with local laws and regulations regarding emissions control and has no significant industrial wastewater or exhaust emissions[128] - The company has set up a communication strategy with stakeholders, including regular meetings with regulatory bodies and transparent reporting to shareholders[124] - The company emphasizes the importance of experienced and capable employees as a competitive advantage, investing in their rights and career opportunities[136] - The company adheres to labor laws regarding compensation, benefits, and working hours, with a zero-tolerance policy for discrimination based on gender, race, or other protected characteristics[137] - A comprehensive performance evaluation system is in place, influencing salary adjustments and promotions based on employee capabilities and performance[138] - The company has not reported any work-related fatalities in the past three years and has not experienced any workdays lost due to injuries in the current year[142] - COVID-19 preventive measures include mandatory mask-wearing, temperature checks, and health declarations for employees and clients[143] - The company is committed to enhancing employee knowledge through internal training programs and encourages participation in external seminars[145] - Procurement decisions are based on inventory levels, expected sales, and environmental and social risks, with a focus on selecting eco-friendly products[147] - The total greenhouse gas emissions decreased from 155 tons CO2 equivalent in 2019/20 to 56 tons CO2 equivalent in 2020/21, representing a reduction of approximately 64%[157] - Scope 2 emissions dropped from 148 tons CO2 equivalent in 2019/20 to 51 tons CO2 equivalent in 2020/21, a decrease of about 65%[157] - The total energy consumption reduced from 289 MWh in 2019/20 to 139 MWh in 2020/21, reflecting a decline of approximately 52%[159] - The number of employees increased from 80 in 2019/20 to 83 in 2020/21, with a gender distribution of 51 males and 32 females[159] - The employee turnover rate for males was 31% and for females was 25% in 2020/21[159] - The average training hours per employee were 5 hours for males (71% trained) and 2 hours for females (31% trained) in 2020/21[159] - The total plastic usage decreased from 1,693 kg in 2019/20 to 1,355 kg in 2020/21, a reduction of about 20%[157] - The company received no complaints related to product and service quality during the year[150] - The company has not been aware of any legal actions related to corruption against itself or its employees during the year[154] - The company has implemented a security plan in its warehouse, including a 24-hour CCTV monitoring system[151] - The company reported a total greenhouse gas emissions reduction target, with specific measures outlined to achieve these goals[165] - Direct and indirect energy consumption totaled X million kWh, with a density of Y kWh per unit of production[165] - The total water consumption was Z million liters, with a density of A liters per unit of production[165] - The company aims to reduce hazardous waste generation by B% over the next fiscal year[165] - Employee training programs have increased participation by C% compared to the previous year, with an average of D hours of training per employee[170] - The employee turnover rate was reported at E%, with specific demographics analyzed[168] - The total amount of packaging materials used was G tons, with a target to reduce this by H% in the upcoming year[165] - The company has set a goal to improve energy efficiency by I% through various initiatives[165] - The health and safety measures implemented have resulted in a decrease in workplace accidents by J% over the past three years[170] Customer and Market Engagement - The company primarily engages in investment holding, with its subsidiaries focusing on mobile and personal electronic product repair and refurbishment services, as well as related accessories sales and support services[179] - The company is committed to understanding community needs through participation and ensuring its activities consider community interests[175] - There were no reported product recalls due to safety and health reasons during the year[181] - The company has implemented consumer data protection and privacy policies, with related monitoring methods described[175] - The board plans to hold the annual general meeting on July 29, 2021, with a notice to be published around June 29, 2021[184] - The company has not disclosed any relevant complaints related to products and services during the year[181] - The top five customers accounted for approximately 62.7% of the group's revenue for the year ended March 31, 2021, with the largest customer contributing about 24.1%[189] - The top five suppliers represented around 97.5% of the cost of inventory recognized as expenses for the same period, with the largest supplier accounting for approximately 78.0%[189] - As of March 31, 2021, the company's reserves available for distribution to shareholders amounted to HKD 65,300,000, an increase from HKD 61,689,000 in 2020[190]
电讯首科(03997) - 2021 - 年度财报