Financial Performance - The company recorded a revenue increase of approximately 14% for the fiscal year ending March 31, 2019, compared to 2018[10] - The company recorded revenue of approximately HKD 75.1 million for the year ended March 31, 2019, representing an increase of 14.0% from HKD 65.9 million for the year ended March 31, 2018[25] - The profit attributable to the owners of the company increased to approximately HKD 6.6 million for the year ended March 31, 2019, compared to a loss of approximately HKD 3.5 million for the previous year[25] - Revenue from the sale of LED lighting devices increased by 15.6%, from approximately HKD 59.7 million to approximately HKD 69.0 million[28] - Revenue from integrated LED lighting solution services rose by 70.0%, from approximately HKD 2.0 million to approximately HKD 3.4 million[29] - Revenue from LED lighting system consulting and maintenance services slightly increased from approximately HKD 2.5 million to approximately HKD 2.6 million[30] - Revenue from the sale of audio-visual systems decreased by approximately 94.1%, from approximately HKD 1.7 million to approximately HKD 0.1 million[33] - Direct costs increased by 17.1%, from approximately HKD 31.6 million to approximately HKD 37.0 million, consistent with the increase in revenue[35] - Gross profit increased by approximately HKD 3.7 million or 10.8% to approximately HKD 38.1 million[36] - Other income and gains increased by approximately HKD 34,000 or 42.0% to HKD 115,000, primarily due to foreign exchange gains of approximately HKD 68,000[37] - The overall administrative expenses increased due to higher salaries and professional fees, partially offsetting the profit increase[25] - Income tax expenses increased by HKD 2.3 million or 60.5% to approximately HKD 6.1 million due to higher taxable profits from subsidiaries in China[43] Business Strategy and Expansion - The company plans to establish a new factory in Zhongshan, aiming to reduce costs and improve the quality of its LED lighting products, with production expected to start in Q4 2019[10] - The company is actively seeking business and investment opportunities in China and the Asia-Pacific region to expand its business network[11] - The company attributes the revenue increase primarily to the rise in sales of LED lighting devices due to the establishment of flagship stores by well-known brands in China[28] - The company plans to focus resources on the sale of LED lighting devices, reallocating from other segments[33] - The company aims to become a leading LED lighting solution provider in Hong Kong, leveraging sufficient financial resources from the IPO to expand its customer base and establish its own factory for cost savings[79] - The company is exploring alternative sources for LED chips from Japan and South Korea to mitigate risks associated with US suppliers[82] - The company anticipates that the increasing wealth of Chinese residents will attract luxury brands to enter the Chinese market, providing valuable opportunities for market penetration[82] - The company is actively identifying potential acquisition targets as part of its growth strategy[74] Sustainability and Environmental Impact - The group reported a reduction in electricity consumption to 64.8 MWh, a decrease of nearly 3% compared to the previous reporting year[101] - The group has adopted a green office policy to enhance energy efficiency, including measures such as turning off unnecessary lights and installing heat insulation films[101] - The group is committed to improving its environmental data management measures in future reporting years due to the inability to provide water consumption data this year[104] - The group plans to establish resource-saving targets and appropriate action plans in the next reporting year to reflect progress in reducing resource consumption[105] - The group emphasizes the importance of effective risk management for long-term growth and sustainability, with a focus on integrating environmental, social, and governance issues into risk assessments[99] - The group has selected resource usage, development and training, and community investment as key areas for disclosure in its environmental, social, and governance report[95] - The group emitted 588.7 tons of greenhouse gases during the reporting year, with paper processing being the largest source, accounting for 79.6% of total emissions[107] - The group has implemented measures to reduce paper and electricity consumption as part of its climate change response[107] - The group has no violations related to emissions and pollution during the reporting year, adhering to all relevant environmental laws and regulations[109] Employee Engagement and Corporate Governance - The percentage of trained employees decreased from 9% in the previous year to 8% in the reporting year[112] - Employee turnover rate increased from 6% to 12% in the reporting year, indicating a need for improved employee engagement measures[116] - The group has established a comprehensive occupational health and safety management policy to ensure employee safety[117] - The company has a commitment to sustainability, aiming to reduce packaging materials and energy consumption in collaboration with suppliers[126] - The company emphasizes policies on equal opportunities, diversity, and anti-discrimination in its employment practices[147] - The corporate governance report indicates compliance with GEM listing rules and emphasizes accountability and transparency to shareholders[152] - The board of directors is composed of five members, including three independent non-executive directors, ensuring over one-third of the board is independent[160] - The company has adopted a board diversity policy to enhance the skills, experience, and perspectives of its members, supporting business strategy execution[164] - The board has established a nomination policy to guide the nomination, evaluation, and removal of board members, ensuring a balanced composition[165] - The company has implemented a code of conduct for directors regarding securities trading, confirming compliance with trading standards[154] Risk Management and Internal Control - The company has a risk management and internal control system in place, which is independently reviewed to assess its effectiveness[183] - The board believes that the internal control and risk management systems are effective and adequate based on the recommendations from the independent review[181] - The company has no internal audit function but has appointed external professionals to conduct internal audits[180] - The company engaged Zhonghui Anda Risk Management Limited to independently review and assess the effectiveness of its risk management and internal control systems[181] Shareholder Communication and Dividend Policy - The company adopted a dividend policy on January 30, 2019, allowing shareholders to share in profits while retaining liquidity for future growth opportunities[186] - The board will consider actual and expected financial performance, retained earnings, and capital expenditure needs when deciding on dividend payments[187] - The company promotes investor relations and communication with existing shareholders and potential investors[197] - The company provides multiple channels for shareholder communication, including printed and electronic reports available on its website[194] - The board will continuously review the dividend policy and does not guarantee any specific amount of dividends for any designated period[189]
英马斯集团(08136) - 2019 - 年度财报