Financial Performance - The company recorded a revenue decrease of approximately 18.2% for the year ending March 31, 2020, compared to the previous year due to the impact of the COVID-19 pandemic[11]. - The company reported revenue of approximately HKD 61.4 million for the year ended March 31, 2020, a decrease of 18.2% from HKD 75.1 million for the year ended March 31, 2019[23]. - Profit attributable to the owners of the company decreased to approximately HKD 5.0 million for the year ended March 31, 2020, down from HKD 6.6 million for the previous year[23]. - Revenue from the sale of LED lighting devices decreased by approximately 24.1%, from HKD 69.0 million in 2019 to HKD 52.4 million in 2020[25]. - Revenue from integrated LED lighting solution services slightly increased by approximately 5.9%, from HKD 3.4 million in 2019 to HKD 3.6 million in 2020[26]. - Revenue from LED lighting system consulting and maintenance services increased significantly by approximately 103.8%, from HKD 2.6 million in 2019 to HKD 5.3 million in 2020[27]. - The company's gross profit decreased by approximately 14.2%, from HKD 38.1 million in 2019 to HKD 32.7 million in 2020, while the gross profit margin increased from approximately 50.8% to 53.2%[32]. - The cost of sales decreased by approximately 22.4%, from HKD 37.0 million in 2019 to HKD 28.7 million in 2020, consistent with the decrease in revenue[31]. Impact of COVID-19 - The company is taking all possible emergency measures to mitigate the impact of the COVID-19 pandemic on its operations[11]. - The challenging business environment was influenced by the US-China trade war and the COVID-19 pandemic, affecting overall economic activities in China[11]. - The management anticipates that the pandemic will continue to impact business operations in the second and third quarters of 2020[11]. - The company attributes the revenue decline primarily to reduced sales of LED lighting devices due to project suspensions in response to the COVID-19 pandemic[25]. - The company anticipates that the pandemic will affect its business operations in the second and third quarters of 2020 due to production and transportation restrictions[72]. Operational Developments - A new factory was established in Zhongshan, which commenced operations in April 2020, aimed at reducing costs and improving the quality of LED lighting products[12]. - The company is committed to enhancing competitiveness against rivals through the establishment of the new factory[12]. - The company has completed the renovation of the factory located in Zhongshan, which was delayed from June 2018 to April 2020[62]. - The company has completed the expansion and upgrading of its workshop and office facilities, achieving 100% of the planned expenditure in this area[60]. Financial Position - Current ratio improved to 5.6 for the year ended March 31, 2020, compared to 5.1 for the year ended March 31, 2019, driven by cash generated from operating activities[42]. - Cash and bank balances, along with fixed deposits, totaled approximately HKD 63.3 million as of March 31, 2020, compared to HKD 59.2 million as of March 31, 2019[44]. - Net current assets amounted to approximately HKD 57.4 million as of March 31, 2020, down from approximately HKD 63.3 million as of March 31, 2019[45]. - Total equity attributable to owners of the company increased to approximately HKD 66.8 million as of March 31, 2020, from approximately HKD 63.7 million as of March 31, 2019[46]. Governance and Compliance - The company’s board of directors has confirmed the accuracy and completeness of the information presented in the annual report[4]. - The company operates in a high-risk investment environment as a GEM-listed entity, which may experience higher market volatility[3]. - The board of directors consists of five members, including three independent non-executive directors, ensuring compliance with GEM listing rules[162]. - The company has implemented a code of conduct for directors regarding securities trading, confirming compliance for the fiscal year ending March 31, 2020[156]. - The company has a clear separation of responsibilities between the chairman and the CEO, enhancing governance and operational efficiency[155]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the period from April 1, 2019, to March 31, 2020, focusing on sales of LED lighting devices and integrated solutions[74]. - The company has established a risk management and internal control system to manage risks, with regular assessments conducted by the audit committee and external professionals[82]. - The company has implemented measures to monitor employee health and safety, including temperature checks due to the COVID-19 pandemic[83]. - The company is committed to maintaining strong governance to integrate sustainability issues into its core business[82]. - The ESG report was reviewed and approved by the board on June 19, 2020, ensuring the accuracy and reliability of the information presented[79]. Employee and Community Engagement - The annual report highlights the importance of stakeholder support and employee contributions during challenging times[13]. - The company has established a community investment policy focusing on education, environment, labor needs, health, culture, and sports, allocating resources amounting to $500,000[152]. - Total employee count is 36, with a male to female ratio of 2.3:1[139]. - New hires accounted for 13.9% of total employees, with 5 new employees (3 male and 2 female)[139]. - Employee turnover rate is 8.3%, with a total of 3 employees leaving the company[140]. Customer Satisfaction and Product Responsibility - Customer satisfaction is a key performance indicator, with no complaints received regarding products or services in the reporting year[104][105]. - The group has implemented a product responsibility policy focusing on customer satisfaction, health and safety, and data privacy[101]. - The group has implemented a one-year warranty policy for products, allowing free returns for defective items within the warranty period[102]. - The company reported a total product recall percentage due to health and safety reasons at 2.5% of total products sold or shipped[152]. - The number of complaints received regarding products and services was 150, with a response rate of 95%[152].
英马斯集团(08136) - 2020 - 年度财报