Financial Performance - The company reported a revenue increase of approximately 10.4 times to about HKD 1,225,000,000 for the fiscal year ending March 31, 2020, compared to HKD 107,000,000 in 2019[11]. - The profit attributable to owners of the company was approximately HKD 34,600,000, a significant turnaround from a loss of HKD 42,700,000 in 2019[11]. - The group's total revenue from continuing operations was approximately HKD 1,225,000,000, a significant increase of about 10.4 times compared to HKD 107,200,000 in the previous year[22]. - The advertising and media services segment generated revenue of approximately HKD 101,200,000, a decrease of about 3.2% from HKD 104,500,000 in the previous year, while achieving a profit of approximately HKD 11,300,000 compared to a loss of HKD 2,500,000 in the prior year[19]. - The financial services segment reported a revenue of approximately HKD 800,000, down about 70.4% from HKD 2,700,000, with a loss of approximately HKD 12,100,000, an increase of about 22.2% from the previous year's loss of HKD 9,900,000[21]. - The company reported a profit attributable to owners of approximately HKD 34,600,000, a turnaround from a loss of approximately HKD 42,700,000 in the previous year, mainly due to the publishing segment's performance[24]. Business Focus and Strategy - The company is focused on publishing, procurement, and distribution of books, as well as advertising and media-related services, and providing financial services[13]. - The company aims to leverage the increasing demand for educational resources driven by national policies on school library construction and updates[14]. - The company plans to expand its publishing, procurement, and distribution business, aiming for significant sales growth and collaboration with well-known institutions like Shanghai Children's Publishing House[25]. - The company has undergone a rebranding in May 2019, changing its name to Dadi International Group Limited, reflecting its broader business scope[11]. Market Outlook - The total market size for school library book supply in China is projected to exceed 5.7 billion volumes over the next five years, indicating substantial growth potential[14]. - The company expressed confidence in the long-term stable growth of the Chinese economy despite the challenges posed by the COVID-19 pandemic[11]. - The company is expanding its market presence in the Asia-Pacific region, targeting a market share increase of EE% by the end of the next fiscal year[63]. Corporate Governance - The board consists of eight directors, including three executive directors and three independent non-executive directors, ensuring a balance of power and accountability[77]. - The company emphasizes board diversity, considering factors such as gender, age, and professional experience to achieve strategic goals[89]. - The company has adopted a code of conduct for directors' securities transactions in compliance with GEM Listing Rules[113]. - The company’s board of directors is focused on enhancing corporate governance standards to maintain investor confidence[130]. - The company has implemented new strategies to improve corporate governance, ensuring compliance with all applicable regulations and enhancing shareholder value[73]. Risk Management - The company faces various risks, including business risk from changing customer preferences and economic downturns, which it aims to mitigate through market trend reviews and flexible solutions[45]. - The company emphasized the importance of internal controls and risk management, implementing a three-line defense model for risk identification and monitoring[116]. - The board reviewed the effectiveness of the risk management and internal control systems and found them to be effective without any significant deficiencies[117]. Human Resources - The company employed 46 staff as of March 31, 2020, an increase from 38 in the previous year[55]. - The remuneration committee is responsible for setting compensation policies and reviewing the remuneration of senior management, ensuring alignment with company performance[90]. Financial Position - The total assets of the group increased to approximately HKD 1,225,100,000 from HKD 638,500,000, primarily due to increased receivables and prepayments from the publishing business[31]. - The company's debt-to-asset ratio increased to 56.3% from 23.2% in the previous year, primarily due to increased borrowings to support its publishing business[56]. - The company reported a total distributable reserve of HKD 325,900,000 as of March 31, 2020, unchanged from the previous year[148]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of March 31, 2020[179]. - The company has not changed auditors in the past three years, with the current auditor being Guo Wei CPA Limited[176]. - The audit committee oversees the financial reporting process of the company[194]. - The auditor assesses the appropriateness of accounting policies adopted by the directors and the reasonableness of accounting estimates and related disclosures[198].
大地国际集团(08130) - 2020 - 年度财报