Financial Performance - Total revenue and investment income for the year amounted to approximately HKD 52,200,000, representing an increase of about 22.1% compared to the previous fiscal year[8] - Profit attributable to owners of the company was approximately HKD 15,200,000, a decrease of about 35.4% from the previous fiscal year[8] - The total revenue and investment income for the year amounted to approximately HKD 52,200,000, an increase of about 22.1% or HKD 9,500,000 compared to HKD 42,700,000 in 2020[12] - Commission and brokerage fees from securities trading decreased by approximately 10.1% to about HKD 6,545,721 from HKD 7,283,226 in the previous year[14] - The total trading volume for securities increased by approximately 37.9% to about HKD 57,059,000,000 from HKD 41,392,700,000 in the previous year[14] - Interest income from margin clients decreased by approximately 40.2% to about HKD 6,246,091 from HKD 10,450,822 in the previous year[15] - Interest income from loan financing was approximately HKD 19,679,716, a slight decrease of about 4.6% from HKD 20,636,605 in the previous year[16] - Placement and underwriting commissions increased by approximately 257.4% to about HKD 1,964,110 from HKD 549,552 in the previous year[17] - The net trading income from financial assets measured at fair value through profit or loss was approximately HKD 4,419,851, compared to HKD 445,817 in the previous year[19] Investment Portfolio - The value of the investment portfolio as of March 31, 2021, was approximately HKD 75,700,000, up from approximately HKD 54,100,000 in the previous fiscal year[8] - The value of the investment portfolio, including listed securities and bonds, was approximately HKD 75,700,000, up from HKD 54,100,000 in the previous year[19] Market Conditions - The financial market experienced volatility due to tensions in US-China relations and the COVID-19 pandemic, but showed unexpected recovery in the second half of 2020[11] - The IPO market in Hong Kong demonstrated strong vitality, with several innovative companies conducting IPOs[11] - The Hang Seng Index recorded 28,378 points on March 31, 2021, an increase of approximately 20.2% from 23,603 points on March 31, 2020[8] Business Strategy - The company aims to expand its customer base and enhance its trading platform despite economic uncertainties[8] - The company continues to diversify its revenue sources, including interest income and non-interest income such as commissions and fees[8] - The company plans to explore new business opportunities and expand its core business in the coming year[9] - The group aims to become a leading financial services group in Hong Kong and will continue to explore potential opportunities for new revenue sources[40] Financial Position - As of March 31, 2021, the group's cash and bank balances decreased by approximately 51.3% to HKD 21,000,000 from HKD 43,000,000 as of March 31, 2020[24] - The group's net current assets increased by approximately 7.5% from HKD 164,500,000 as of March 31, 2020 to HKD 176,800,000 as of March 31, 2021[24] - The current ratio as of March 31, 2021 was approximately 4.3 times, down from 5.9 times as of March 31, 2020[24] - The group had undrawn bank financing of HKD 27,500,000 as of March 31, 2021, a decrease from HKD 49,500,000 as of March 31, 2020[24] Administrative and Operational Efficiency - Administrative expenses decreased by approximately 3.1% to about HKD 16,700,000 from HKD 17,300,000 in the previous year[22] - Total employee costs for the year ended March 31, 2021 were approximately HKD 6,200,000, compared to HKD 6,400,000 for the year ended March 31, 2020[29] - The total number of employees remained stable at 15, with a turnover rate of 12.5% due to one employee leaving and one joining[118] Corporate Governance - The board of directors is responsible for formulating the group's strategy, supervising performance, and managing risks[49] - All directors confirmed compliance with the company's code of conduct regarding securities trading during the fiscal year ending March 31, 2021[45] - The board held regular meetings, with all directors attending 100% of board meetings and shareholder meetings during the fiscal year[53] - The company has three independent non-executive directors, all of whom meet the independence criteria set by GEM listing rules[52] - The board is tasked with reviewing financial performance and internal control systems, as well as making decisions on significant acquisitions and investments[50] Risk Management - The board is responsible for the overall internal control framework and acknowledges the necessity of risk management systems to protect shareholder interests[74] - The audit committee is responsible for reviewing the overall effectiveness of the group's risk management and internal control systems[75] - The management established procedures and controls for measuring expected credit losses, which involve significant estimates and judgments[195] Environmental, Social, and Governance (ESG) - The company is committed to enhancing its environmental, social, and governance (ESG) performance and reporting, focusing on sustainable development principles[85] - The company has implemented a stakeholder engagement process to identify key ESG issues, which will inform its short-term and long-term sustainability strategies[93] - The company strictly adheres to local laws and regulations regarding environmental protection and pollution control, including the Air Pollution Control Ordinance and Water Pollution Control Ordinance[95] - The company promotes electronic interactions to reduce unnecessary business travel and minimize its indirect greenhouse gas emissions from purchased electricity and paper consumption[95] - The company has established a waste management system where general waste is collected and processed by property management, while hazardous waste is safely handled by suppliers[97] Shareholder Relations - The company emphasizes the importance of maintaining high standards in investor relations and timely communication with shareholders through various channels[81] - The company has adopted a dividend policy that considers financial performance, funding needs, and other factors before declaring dividends[69] - The company plans to propose a final dividend of HKD 0.005 per ordinary share, subject to shareholder approval at the upcoming annual general meeting[134] Compliance and Legal Matters - The company has not reported any violations of employment-related laws or regulations during the year[103] - The group has no reported incidents of corruption or legal actions related to bribery, extortion, fraud, or money laundering during the year[115] - The company strictly adheres to the Personal Data (Privacy) Ordinance and ensures that personal data is only collected for necessary business purposes[111] Employee Development - The company recognizes the importance of training for employee development and encourages participation in professional training programs[106] - The company provides attractive compensation packages based on performance, department performance, and overall company results, with annual reviews conducted[104] Share Options and Equity - The total number of share options granted to directors as of March 31, 2021, was 60,000,000, representing approximately 2.73% of the total equity[151] - The exercise price for the share options is HKD 0.2275 per share, with an exercise period from April 9, 2014, to April 8, 2023[151] - The total number of unexercised share options granted under the share option scheme was 100,000,000 shares, representing approximately 4.55% of the company's issued share capital[165] - The new share option scheme allows for a total of 220,000,000 shares to be granted, which is equivalent to 10% of the total shares in issue as of March 31, 2021[163] Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2021[189] - The statutory audit service fee paid to the external auditor was HKD 630,000 for the fiscal year ending March 31, 2021[71]
昌利控股(08098) - 2021 - 年度财报