Financial Performance - The group's revenue for the fiscal year ending March 31, 2021, was approximately HKD 49.35 million, a slight increase of about 0.20% compared to HKD 49.25 million for the previous year[10]. - The net loss for the fiscal year ending March 31, 2021, was approximately HKD 26.68 million, an increase of about 6.30% from a net loss of HKD 25.10 million in the previous year[10]. - The gross profit margin decreased from approximately 19.57% in the previous year to about 18.39% for the fiscal year ending March 31, 2021[10]. - Revenue from the electronic products segment was approximately HKD 36.43 million, representing an increase of about 10.53% year-over-year, primarily due to increased sales of fishing indicators[17]. - The restaurant segment generated revenue of approximately HKD 12.92 million, a decrease of about 20.69% year-over-year, mainly due to the negative impact of COVID-19 and social distancing policies[18]. - The company's overall gross profit margin decreased from approximately 19.57% to 18.39% due to a reduction in orders for higher-margin products[22]. - The company reported a loss attributable to shareholders of approximately HKD 26.68 million for the fiscal year, compared to a loss of approximately HKD 25.10 million in the previous year[19]. - The company did not recommend the payment of any dividends for the fiscal year ending March 31, 2021[30]. - The company reported no final dividend for the fiscal year ending March 31, 2021[142]. Business Strategy and Development - The company launched a new product, the LED Wide Angle HUD2, featuring an eye-protecting filter, three brightness levels, and twelve LED lights[9]. - The company plans to focus on low-risk, higher-margin businesses and invest in the food and beverage sector moving forward[11]. - The company plans to expand its EMS business to international clients, particularly in the Chinese market, which is seen as having significant potential[23]. - The company aims to launch four to five new products in 2021, including lighting security system controllers and power management boards, to enhance market share and customer base[24]. - The company anticipates short-term impacts from COVID-19 but expects to accelerate cash flow collection and increase sales agreements with core customers to enhance profitability[39]. - The company plans to utilize the remaining unutilized proceeds from the IPO within one year from the report date[40]. - The company is implementing cost-reduction strategies aimed at decreasing raw material costs by 15% over the next year[70]. - The company has adopted new pricing strategies based on market data analysis, which are expected to improve profit margins by 5%[69]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[71]. - A strategic acquisition of a local competitor is being considered to enhance product offerings and customer base, with potential synergies estimated at HKD 30 million annually[71]. Corporate Governance - The management team emphasized the importance of maintaining high corporate governance standards to enhance shareholder value and operational efficiency[82]. - The board of directors confirmed compliance with all relevant corporate governance codes, ensuring transparency and accountability in operations[82]. - The company has established a clear division of responsibilities between the roles of the chairman and the CEO, held by Mr. Lao Xinyi and Mr. Zheng Ruo Xiong respectively[93]. - The company has adopted a policy allowing employees and stakeholders to report any potential misconduct to the audit committee[100]. - The company has maintained a commitment to ensuring that independent non-executive directors attend shareholder meetings as per the code provisions[90]. - The company has purchased directors and officers liability insurance to protect its directors against legal claims[96]. - The company is committed to environmental sustainability and has implemented policies to reduce its environmental impact[144]. - The company has established various channels for communication with shareholders and investors, including annual reports and a dedicated website[134]. - The company has identified and is managing risks associated with its business activities through a structured internal control system[122]. - The board is responsible for internal control systems and risk management, ensuring reasonable assurance against significant misstatements or losses[122]. Employee and Operational Metrics - As of March 31, 2021, the company's current assets were approximately HKD 5.61 million, a decrease from approximately HKD 26.03 million in the previous year[28]. - As of March 31, 2021, the total employee cost, including director remuneration, was approximately HKD 21.5 million, compared to HKD 20.31 million in 2020, reflecting an increase of about 5.85%[35]. - The company employed a total of 155 employees as of March 31, 2021, down from 163 employees in 2020, indicating a reduction of about 4.88%[35]. - The company has engaged an independent internal control consultant to review and improve its internal control systems, addressing identified issues and deficiencies[50]. - The company has not utilized any financial instruments for hedging purposes as of March 31, 2021, indicating a low foreign exchange risk perception[34]. Shareholder and Financial Reporting - The board of directors presented the audited consolidated financial statements for the year ending March 31, 2021[137]. - The company’s financial performance and position as of March 31, 2021, are detailed in the financial statements on pages 69 to 170[141]. - The top five customers accounted for approximately 61.52% of the total revenue, with the largest customer contributing about 41.84% of the total revenue[156]. - The top five suppliers represented approximately 38.96% of the total procurement amount, with the largest supplier accounting for about 11.73% of the total procurement[156]. - The company has maintained sufficient public float as per GEM listing rules prior to the publication of the annual report[182]. - The company confirms compliance with GEM listing rules regarding disclosure of related party transactions[186]. - The company has two stock option plans, including one adopted prior to the initial public offering[164]. - A total of 80,000,000 shares were granted under the pre-IPO stock option plan at an exercise price of HKD 0.15 per share[165]. - As of March 31, 2021, 4,000,000 stock options were still unexercised under the pre-IPO stock option plan[168]. - The company did not capitalize equity during the fiscal year ending March 31, 2021[150]. Market and Industry Context - The group primarily engages in the manufacturing and trading of electronic products and accessories, with no significant changes in business nature during the fiscal year[139]. - The group expanded its business scope by entering the restaurant industry in 2018, adding a new Chinese restaurant in Hong Kong Island in February 2021[193]. - The group operates three main business segments: the headquarters in Hong Kong, two Chinese restaurants, and an electronic products manufacturing factory in Shenzhen[193].
毅高国际控股(08218) - 2021 - 年度财报