Financial Performance - The company's revenue decreased to approximately HKD 1,087.24 million for the fiscal year ending March 31, 2020, down from HKD 1,239.25 million in the previous year, representing a decline of about 12.3%[10] - Profit attributable to the company's owners was approximately HKD 80.20 million, compared to HKD 131.75 million in the previous year, reflecting a decrease of approximately 39%[10] - Revenue from the distribution business decreased by approximately 12.8% year-on-year due to changing market conditions[25] - Revenue from paging and other telecommunications services fell by approximately 20.1% year-on-year, reflecting a decline in subscriber numbers[25] - Retail business revenue decreased by approximately 14.7% year-on-year, primarily due to the impact of social unrest and the COVID-19 pandemic[25] - Other income and gains, primarily from rental and sub-rental income, slightly decreased to approximately HKD 5.46 million from HKD 5.80 million in the previous year, a decline of about 5.9%[27] - Financing costs for the year included bank interest of approximately HKD 5.47 million, an increase from HKD 4.90 million in 2019, and lease liabilities interest of approximately HKD 2.91 million, which was not present in the previous year[30] - Income tax expense for the year was approximately HKD 16.67 million, a decrease of about 42.7% from HKD 29.11 million in 2019, mainly due to a reduction in profit before tax[31] - The company's total revenue for the fiscal year ending March 31, 2020, was approximately HKD 1,087.24 million, a decrease of about 12.3% compared to HKD 1,239.25 million in the previous year[25] Dividends - The board proposed a fourth interim dividend of HKD 0.10 per share, bringing the total dividend for the year to HKD 0.22 per share[10] - The board declared a fourth interim dividend of HKD 0.1 per share for the year ended March 31, 2020, compared to HKD 0.06 per share in 2019[38] - The company has adopted a dividend policy that requires board approval for any dividend declaration, which will depend on operating performance, working capital, financial condition, future prospects, and other relevant factors[86] - The company has no preset dividend payout ratio, allowing flexibility based on various factors[86] Retail Operations - The company operated a total of 80 retail stores as of March 31, 2020, which contributed the highest revenue among its business segments[11] - The company maintained 80 retail stores during the review period, despite a challenging market environment[22] - The Mango Mall e-commerce platform received positive feedback and has been favored by customers since its launch in 2017, capitalizing on online retail trends[11] - The online platform Mango Mall showed resilience, recording stable revenue growth and an increase in membership numbers[22] - Future outlook indicates continued expansion of the retail network despite a bleak economic outlook for Hong Kong, with plans to increase the workforce and provide comprehensive training for employees[13] - The company plans to expand its retail network prudently, focusing on opening new stores in prime locations and renovating existing stores to enhance the overall shopping experience[44] Employee Management - The group employed 641 full-time employees as of March 31, 2020, an increase from 556 in 2019[43] - Continuous training will be provided to employees to improve service quality and maintain good relationships with staff[44] - The company has implemented a performance evaluation system to enhance employee motivation, which influences promotions and salary adjustments[132] - The company organized various employee activities, including a company trip to Thailand and Christmas parties, to promote a healthy work-life balance[128] - The percentage of male employees receiving training was 61%, while female employees receiving training was 45%[145] - The average training hours per male employee were 23, while for female employees, it was also 23[145] Corporate Governance - The company has established an audit committee, remuneration committee, and nomination committee in compliance with the listing rules[59] - The board consists of six executive directors and three independent non-executive directors, ensuring a diverse governance structure[62] - The company has adhered to the corporate governance code throughout the fiscal year ending March 31, 2020, with some exceptions noted in the board functions section[60] - The independent non-executive directors serve fixed terms of three years, ensuring regular re-evaluation of board composition[68] - The company’s management team is led by experienced professionals, providing updates to the board on significant changes affecting the company’s performance and outlook[65] - The company has a clear policy for the appointment, re-election, and removal of directors, ensuring compliance with governance standards[67] - The company has received written confirmations regarding the independence of its independent non-executive directors[70] - The company has established appropriate insurance coverage for potential legal actions against directors and the company secretary[74] - The company has implemented corporate governance measures to monitor compliance with non-competition agreements by major shareholders[176] Environmental, Social, and Governance (ESG) Practices - The environmental, social, and governance (ESG) report covers the company's performance in sustainability practices during the fiscal year from April 1, 2019, to March 31, 2020[106] - The board is responsible for overseeing and reporting on ESG policies and identifying related risks[110] - The company aims to enhance stakeholder engagement to gather constructive feedback for improving governance practices[114] - The company has engaged independent third-party consultants to collect stakeholder opinions on ESG matters[111] - The company is committed to maintaining supportive and trusting relationships with stakeholders through diverse communication channels[115] - The company strictly adheres to environmental laws and regulations, including the Environmental Protection Law of the People's Republic of China and the Air Pollution Prevention and Control Law[118] - The company has implemented energy-saving plans to improve efficiency and reduce energy consumption, utilizing natural light and encouraging employees to use energy-saving modes on devices[121] - The company’s 23 retail stores received a gold award from the Hong Kong Environmental Protection Department for their active support of energy-saving activities[122] - The company aims to reduce resource consumption by promoting double-sided printing, recycling paper, and encouraging electronic transactions to minimize paper waste[123] Financial Position - As of March 31, 2020, the group had a net current liability of approximately HKD 62.07 million and cash and cash equivalents of approximately HKD 40.97 million[33] - The group had a debt-to-equity ratio of approximately 41.0% as of March 31, 2020, down from 59.2% in 2019, based on total borrowings of approximately HKD 147.02 million[33] - As of March 31, 2020, the company's distributable reserves amounted to approximately HKD 278.27 million, up from HKD 204.75 million in 2019[182] Share Option Plan - The total number of shares available for issuance under the share option plan is 29,104,000 shares, accounting for approximately 7.2% of the total issued shares as of the report date[196] - Each participant in the share option plan is limited to a maximum of 1% of the total issued shares in any 12-month period, and for directors or major shareholders, the limit is 0.1% of the issued shares with a total value not exceeding HKD 5 million[196] - The share option plan is valid for 10 years from May 20, 2014, leaving approximately 4 years remaining[199] - The exercise price for shares under the share option plan will be determined by the board but cannot be lower than the higher of the closing price on the offer date or the average closing price over the preceding 5 trading days[198] Health and Safety - The company has implemented safety training and health measures in response to the COVID-19 pandemic, including providing masks and requiring health declarations[131] - The company has not reported any violations of relevant laws and regulations during the year[119] - There were no reported incidents of work-related deaths or days lost due to occupational injuries during the year[130] - The company has measures in place to avoid child labor and forced labor in its recruitment practices[155]
电讯数码控股(06033) - 2020 - 年度财报