Financial Performance - The company reported revenue of approximately HKD 1,038.95 million for the fiscal year ending March 31, 2021, a decrease from HKD 1,087.24 million in 2020[10]. - Profit attributable to the company's owners increased to approximately HKD 135.22 million, representing a 68.6% increase compared to HKD 80.20 million in 2020[10]. - The company's total revenue for the fiscal year ending March 31, 2021, was approximately HKD 1,038.95 million, a decrease of about 4.4% compared to HKD 1,087.24 million in the previous year[29]. - Retail business revenue decreased by approximately 5.7% year-on-year, primarily due to the impact of the COVID-19 pandemic[29]. - The mobile distribution and related services segment saw a revenue increase of approximately 46.2%, attributed to a diversified product range[29]. - The revenue from providing paging and other telecommunications services decreased by approximately 18.9%, reflecting a continuous decline in the number of paging service users[29]. - The operating services segment's revenue decreased by approximately 3.7%, mainly due to intense competition in the mobile telecommunications market[29]. - Other income and gains for the fiscal year amounted to approximately HKD 43.92 million, a significant increase of about 704.4% compared to HKD 5.46 million in the previous year, mainly due to government subsidies related to COVID-19[31]. - The company's profit attributable to owners for the year ended March 31, 2021, was approximately HKD 135.22 million, a significant increase of about 68.6% from HKD 80.20 million in 2020, driven by effective cost-saving strategies and government subsidies related to COVID-19 relief measures[35]. Dividends - The company declared a fourth interim dividend of HKD 0.08 per share, bringing the total dividend for the year to HKD 0.26 per share[10]. - The board declared a fourth interim dividend of HKD 0.08 per share for the year ended March 31, 2021, compared to HKD 0.10 per share in 2020[41]. - The company maintained a dividend policy that aims to balance appropriate returns to shareholders with future growth, declaring dividends quarterly and potentially special dividends in strong performance years[88]. - The company reported a third interim dividend of HKD 0.06 per share paid on March 19, 2021, and declared a fourth interim dividend of HKD 0.08 per share for the year ending March 31, 2021[180]. Retail and E-commerce - The retail business remains the primary revenue source, supported by a network of 82 stores and an expanded product portfolio[11]. - The e-commerce sector showed steady progress, benefiting from public acceptance, particularly through the Mango Mall platform[11]. - The company plans to continue expanding its retail network and enhancing its e-commerce business through product diversification and the "Mango Dollar" program[20]. - The company aims to strengthen its retail network to provide a high-quality shopping experience and enhance employee relations for operational efficiency[14]. - A major goal for the upcoming year is the renovation and upgrade of 18 retail network stores to enhance the shopping experience[47]. - The retail network consists of 82 stores, generating approximately HKD 616.02 million in revenue during the review year[25]. Corporate Governance - The company has established an audit committee, remuneration committee, and nomination committee, each with specific written terms of reference[61]. - The board consists of six executive directors and three independent non-executive directors, ensuring a balanced governance structure[64]. - The company has adhered to the corporate governance code throughout the fiscal year ending March 31, 2021, with some deviations disclosed in the "Board Functions" section[62]. - The management team is led by experienced executives, including the CEO and CFO, who provide monthly updates to the board on the company's performance and outlook[67]. - The company has a clear policy for the appointment and re-election of directors, ensuring accountability and transparency[69]. - The company has three independent non-executive directors, complying with Listing Rule 3.10(1)[71]. - The Audit Committee, established on May 20, 2014, includes three independent non-executive directors and is responsible for reviewing financial statements and risk management systems[76][77]. - The company has received written confirmations regarding the independence of its independent non-executive directors[71]. - The company has implemented corporate governance measures to monitor compliance with the non-competition agreement, including annual reviews by independent non-executive directors[184]. Employee Relations and Development - As of March 31, 2021, the company employed 645 full-time employees, an increase from 641 in 2020[46]. - The group provides competitive compensation packages and benefits, including mandatory contributions to social insurance and retirement plans for eligible employees in Shenzhen and Hong Kong[134]. - The group emphasizes employee training and development, conducting regular performance evaluations to identify future training needs and support career advancement[136]. - The average training hours per employee decreased to 14 hours (55% of employees trained) from 23 hours (54% trained) in the previous year[155]. - The company aims to improve employee retention and training effectiveness as part of its strategic initiatives[161]. - The overall employee training participation rate has slightly increased from the previous year, indicating a focus on employee development[161]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers key performance indicators related to the company's operations in Hong Kong and its Shenzhen office in China[110]. - The board aims to establish effective ESG risk management mechanisms and regularly reviews the content and quality of the ESG report[112]. - An independent third-party ESG consultant was engaged to identify key issues and provide recommendations on the company's ESG performance[112]. - The company has disclosed quantitative environmental and social key performance indicators in its ESG report, allowing stakeholders to understand its performance comprehensively[111]. - The group has adopted energy-saving plans to enhance equipment efficiency and reduce energy consumption, with 23 retail stores awarded gold in the "Outdoor Lighting Charter" for energy-saving efforts[126]. - The group strictly adheres to environmental laws and regulations, with no reported violations during the year[120]. - The group encourages employee participation in environmental protection through reminders and initiatives to save energy and resources[127]. - The group has established recycling bins in offices to manage waste effectively, ensuring proper disposal of both harmless and hazardous waste[125]. Compliance and Risk Management - The company has implemented strict compliance with laws regarding bribery, extortion, fraud, and money laundering, ensuring a fair competitive market environment[143]. - The company has not reported any violations related to personal data protection and intellectual property laws during the year[141]. - The company has implemented measures to prevent child labor and forced labor in its employment practices[169]. - The group has not encountered any violations of labor and employment laws, including child labor and forced labor regulations, during the year[133]. - The company has policies in place to manage environmental and social risks in its supply chain[173]. Customer Relations - The company has established a return and exchange procedure allowing customers to apply for returns or exchanges within 7 days after signing the receipt[142]. - The company’s retail stores have been recognized as "Quality Tourism Services Scheme - Accredited Merchants" for over ten consecutive years by the Hong Kong Tourism Board[142]. - The largest customer, New Mobile Communications, accounted for approximately HKD 400.04 million, representing about 38.5% of the total revenue for the year ended March 31, 2021[188]. - The top five customers contributed approximately 41.9% of the total revenue, while the top five suppliers accounted for about 85.2% of total procurement for the same period[188].
电讯数码控股(06033) - 2021 - 年度财报