Financial Performance - The group's revenue for the fiscal year 2019 was approximately HKD 65.1 million, a decrease of about 15.2% compared to HKD 76.8 million in the fiscal year 2018[10]. - The net profit after tax for the fiscal year 2019 was HKD 0.2 million, down from HKD 4.8 million in the fiscal year 2018[10]. - The adjusted profit for the fiscal year 2019, excluding non-recurring listing expenses, was approximately HKD 5.2 million, a decline of 66.2% from HKD 15.4 million in the fiscal year 2018[10]. - The decrease in revenue was primarily attributed to a reduction in trading volume due to uncertainties surrounding the US-China trade war and rising interest rates in the US[10][17]. - For the fiscal year 2019, the total revenue was approximately HKD 65,148,000, a decrease from HKD 76,759,000 in 2018, representing a decline of about 15.0%[18]. - The net profit for the fiscal year 2019 was approximately HKD 0.2 million, down from HKD 4.8 million in 2018, primarily due to non-recurring listing expenses of about HKD 5.0 million in 2019[23]. Expenses and Costs - Employee costs decreased from approximately HKD 42.0 million in 2018 to about HKD 37.2 million in 2019, a reduction of approximately 11.4%[19]. - Other operating expenses increased from approximately HKD 16.6 million in 2018 to about HKD 21.1 million in 2019, an increase of approximately 27.1%[20]. - The total operating expenses for legal and professional fees rose by approximately 550.0% to HKD 1.3 million in 2019, primarily due to expenses related to the listing[20]. - The depreciation expense increased by approximately 280.1% to HKD 574,000 in 2019, attributed to new office renovations and IT infrastructure improvements[21]. - The income tax expense decreased from approximately HKD 3.0 million in 2018 to about HKD 1.1 million in 2019, a reduction of approximately 63.3%[22]. Financial Health and Ratios - As of March 31, 2019, the current ratio was approximately 18.0 times, significantly up from 4.0 times in 2018, indicating strong financial health[25]. - The interest coverage ratio for 2019 was approximately 44.3 times, down from 206.3 times in 2018, reflecting the impact of listing expenses[25]. - Cash and bank balances increased to approximately HKD 59.1 million in 2019 from HKD 21.4 million in 2018[25]. Business Operations and Strategy - The main business of the group is derivative brokerage, with all revenue generated from commission income for providing these services[14]. - The company aims to leverage its listing status and funds raised to expand its product portfolio and enhance profitability[11]. - The company is preparing to face potential volatile conditions in 2020 due to ongoing macroeconomic risks[11]. - The company has established arrangements with several executing brokers to provide derivative services for listed derivatives on the Singapore Exchange and single stock options on the Hong Kong Stock Exchange[15]. - The company is expanding its market presence in Asia, targeting a 20% increase in market share within the next two years[57]. Employee and Training - The group had a total of 31 employees as of March 31, 2019, an increase from 25 employees as of March 31, 2018[43]. - 43% of female employees and 63% of male employees received training during the year[164]. - 75% of senior management, 69% of middle management, and 30% of other employees participated in training programs[164]. - Average training hours per employee were 3 hours for females and 6 hours for males, with senior management receiving an average of 8 hours[164]. - The employee turnover rate was 8% for males and 43% for females, with a total employee count of 31, including 7 females and 24 males[161]. Governance and Compliance - The board of directors consists of five executive directors, one non-executive director, and three independent non-executive directors, fulfilling the GEM listing rules requirements[86]. - The company has maintained compliance with the corporate governance code since its listing date, ensuring transparency and accountability[83]. - The company has established appropriate policies and practices to promote business growth and effective operation[82]. - The board is responsible for assessing and managing risks associated with achieving strategic objectives, maintaining effective risk management and internal control systems[125]. - The company has established risk management procedures and guidelines, ensuring compliance through annual self-assessments across departments[125]. Environmental and Social Responsibility - Total greenhouse gas emissions for the year amounted to 55 tons of CO2 equivalent, with scope 1 direct emissions at 4 tons, scope 2 indirect emissions at 49 tons, and scope 3 other indirect emissions at 2 tons[154]. - The company generated 1,470 kg of non-hazardous waste, averaging 47.42 kg per employee, while hazardous waste produced was 600 grams, averaging 19.36 grams per employee[154]. - The company has a commitment to environmental protection, complying with local environmental laws and regulations[153]. - The company promotes green office strategies to minimize resource consumption and waste generation[157]. - The company encourages employee participation in charitable activities to foster a supportive community atmosphere[176]. Future Outlook - The company anticipates a revenue growth of 15% for the next fiscal year, projecting total revenues to reach approximately $120 million[55]. - New product launches are expected to contribute an additional $10 million in revenue, with a focus on innovative derivatives products[56]. - A strategic acquisition of a smaller competitor is in progress, which is expected to enhance the company's product offerings and client base[58]. - The company plans to enhance its digital marketing strategies, aiming for a H% increase in customer engagement metrics[68].
衍汇亚洲(08210) - 2019 - 年度财报