Financial Performance - The Group's revenue for the fiscal year ending March 31, 2021, was approximately HKD 7,180,000, a decrease of about 84.21% compared to HKD 45,430,000 in the previous year[29]. - The Group recorded a net loss attributable to shareholders of approximately HKD 8,150,000 for the fiscal year, a reduction from a net loss of HKD 39,510,000 in the previous year[29]. - The Group's dry bulk shipping and logistics business generated no revenue for the fiscal year, down from approximately HKD 44,760,000 in the previous year, due to the impact of the COVID-19 pandemic and market competition[28]. - The IP automation and entertainment business generated revenue of approximately HKD 7,180,000, significantly up from HKD 669,000 in the previous year[29]. - The group's revenue for the fiscal year decreased by approximately 84.21% to about HKD 7,180,000, compared to approximately HKD 45,430,000 in the previous year[38]. - The net loss attributable to the owners of the company for the fiscal year was approximately HKD 8,150,000, a decrease from a net loss of approximately HKD 39,510,000 in the previous year[41]. - The administrative and operating expenses increased by approximately 24.27% to about HKD 12,950,000, up from approximately HKD 10,290,000 last year[39]. - The total employee cost for the fiscal year was approximately HKD 4,980,000, down from approximately HKD 7,950,000 in the previous year[54]. Business Expansion and Strategy - The Group plans to expand its business by developing a comprehensive entertainment playground of over 7,000 square feet in Westwood in the fourth quarter of 2021[31]. - Mobile/pop-up playgrounds will be established in various shopping centers, with confirmed locations including Whampoa in July 2021 and West Point City in August 2021[31]. - The Group's strategy includes introducing e-sports, STEAM education, and party elements to enhance the entertainment experience[31]. - The Group plans to expand its Ganawawa business by developing an integrated entertainment playground of over 7,000 square feet in Westwood in Q4 2021[55]. - Mobile/pop-up playgrounds will be opened in various shopping centers, with confirmed locations including Whampoa in July 2021 and West Point City in August 2021[55]. Governance and Compliance - The board consists of 4 executive directors and 3 independent non-executive directors, ensuring over one-third of the board is independent[62]. - The board held a total of 11 meetings during the fiscal year, with all executive directors attending all meetings[66]. - The nomination committee is responsible for reviewing the board's structure and diversity at least annually, ensuring alignment with the company's corporate strategy[74]. - Independent non-executive directors are required to have a service agreement with a term of three years, subject to re-election[71]. - The company emphasizes compliance with GEM listing rules and corporate governance practices, providing regular updates to all directors[70]. - The audit committee is chaired by an independent non-executive director, ensuring oversight of financial reporting and compliance[62]. - The company has established a remuneration committee to oversee executive compensation and ensure alignment with performance[62]. - The board is responsible for the overall strategy and financial performance of the company, with executive directors managing day-to-day operations[64]. - The company has implemented a process for independent professional advice to assist directors in fulfilling their duties[70]. - The board's composition and performance are regularly assessed to ensure it meets the company's needs and regulatory requirements[75]. - The company has adopted a board diversity policy to enhance decision-making capabilities, considering factors such as independence, age, gender, race, and cultural background[77]. - The nomination committee held two meetings during the fiscal year to discuss board structure, diversity, and the extension of independent non-executive directors' terms[78]. - All independent non-executive directors confirmed their independence according to GEM Listing Rules, and the company believes they all meet the independence guidelines[79]. - The company has implemented a code of conduct for securities trading, ensuring compliance with GEM Listing Rules, and all directors adhered to these regulations during the fiscal year[81]. - The company reported a comprehensive financial statement for the year ending March 31, 2021[111]. - The company has established a robust governance framework, detailed in the corporate governance report[177]. Financial Position and Assets - As of March 31, 2021, the group's current assets net value was approximately HKD 13,660,000, down from approximately HKD 20,310,000 in the previous year[42]. - The group's cash and bank balance as of March 31, 2021, was approximately HKD 26,540,000, significantly up from approximately HKD 1,150,000 in the previous year[42]. - The group's debt-to-equity ratio improved to 31.40% as of March 31, 2021, compared to 77.85% in the previous year[42]. - The company reported a cash reserve available for distribution as zero as of March 31, 2021, consistent with the previous year, with a share premium of approximately HKD 288.84 million and accumulated losses of approximately HKD 299.67 million[123]. - The group reported trade receivables of approximately HKD 692,000 and other receivables of approximately HKD 340,000 as of March 31, 2021[185]. - Expected credit loss provisions for trade receivables were approximately HKD 35,000, while for other receivables, it was approximately HKD 303,000[185]. - The impairment losses recognized for property, plant, and equipment amounted to approximately HKD 919,000 and HKD 1,483,000 for right-of-use assets as of March 31, 2021[189]. Future Outlook and Investments - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[135]. - The company is investing in R&D for new technologies, with an allocated budget of $10 million for the upcoming year[138]. - Market expansion efforts include entering three new international markets by the end of Q3 2022, aiming for a 20% increase in market share[139]. - The company has completed a strategic acquisition of a competitor, valued at $50 million, to enhance its service offerings[140]. - New product lines are expected to contribute an additional $5 million in revenue within the first six months post-launch[141]. - The company has established partnerships with two major healthcare providers to expand its service network[136]. - A focus on sustainability initiatives is projected to reduce operational costs by 10% over the next two years[137]. Shareholder and Securities Information - As of March 31, 2021, the company’s major shareholders include Ms. Ho Chiu-Yin with a beneficial ownership of 407,890,000 shares (16.49%) and 229,062,500 shares (9.26%) held through Refulgent Sunrise Limited, totaling approximately 25.76% of the company's equity[148]. - Ms. Wen Ying-Yi holds 441,900,000 shares, representing 17.87% of the company's equity, while Mr. Wang Qiang holds 100,000,000 shares (4.04%) and Mr. Liu Ling-De holds 43,937,500 related shares (1.78%) as of the same date[148]. - The company confirmed it maintains sufficient public float as required by GEM listing rules as of the report date[155]. - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the fiscal year[156]. - On February 17, 2021, the company’s wholly-owned subsidiary entered into a subscription agreement to issue 11,395 new ordinary shares for an initial subscription amount of HKD 2,500,000, resulting in the issuer being owned approximately 18% by the company post-completion[160]. - The subscription agreement was completed on September 17, 2020, with a subscription price of HKD 1,930,540, resulting in the company's equity interest in the issuer and its subsidiaries being diluted to approximately 17.99%[161]. - The subscription is considered a related party transaction, with the applicable percentage rate being below 5% and the consideration being below HKD 3,000,000, thus exempting it from shareholder approval, reporting, and announcement requirements under GEM Listing Rules[161]. - The company has adopted a share option scheme aimed at enhancing the interests of the company and its shareholders by granting options to attract, retain, and reward eligible individuals[166]. - The maximum number of shares that may be issued under the share option scheme is 241,000,000 shares, equivalent to approximately 9.75% of the issued share capital as of the report date[173]. - The board has the discretion to determine the terms of the options, with the exercise price being the higher of the closing price on the date of grant or the average closing price over the preceding five trading days[169]. - The company is authorized to issue options to subscribe for a total of 226,000,000 shares, which is 10% of the total issued shares as of the update date[170]. - The acceptance period for the options is generally not to exceed ten trading days from the date of the offer[172]. - The company has confirmed that all directors have complied with the trading rules during the financial year[164]. - Related party transactions during the financial year are detailed in the financial statements, with no transactions constituting related party transactions as defined by GEM Listing Rules[165]. - The subscription proceeds will be used to support the future working capital of the issuer[161]. Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements reflect the group's financial position accurately as of March 31, 2021[180]. - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with disclosure requirements[180]. - The audit committee is tasked with overseeing the financial reporting process of the company[195]. - The auditors aim to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[199]. - The auditors identified and assessed risks of material misstatement due to fraud or error and designed audit procedures to address these risks[199]. - The company must evaluate its ability to continue as a going concern and disclose relevant matters if applicable[194]. - The independent auditor's report highlighted key audit matters, including the assessment of expected credit losses and impairment of assets[184]. - The group has implemented significant monitoring measures to manage and control credit risk related to trade and other receivables[185]. - The management's assessment of the recoverability of trade and other receivables is based on various factors, including customer credit status and historical settlement records[185]. - The group plans to present a resolution at the upcoming annual general meeting to reappoint the auditor for the next term[178].
宏海控股集团(08020) - 2021 - 年度财报