Financial Performance - The total revenue for the fiscal year ending March 31, 2021, decreased by approximately 46.9% or HKD 14.5 million compared to the previous year, primarily due to a reduction in fees and commissions from placement and underwriting activities [15]. - The total revenue for the year ended March 31, 2021, was approximately HKD 16.4 million, a decrease of about 46.9% compared to HKD 30.9 million for the year ended March 31, 2020 [31]. - Commission income from securities trading and brokerage services increased by 11.4% from approximately HKD 7.0 million in 2020 to approximately HKD 7.8 million in 2021 [14]. - Income from financing and loan clients decreased by 41.2% from approximately HKD 8.5 million in 2020 to approximately HKD 5.0 million in 2021 [14]. - Fees from asset management services rose by 128.6% from approximately HKD 0.7 million in 2020 to approximately HKD 1.6 million in 2021, attributed to the addition of a new asset management client [14]. - Other income, which includes professional service fees and loan commitment fees, decreased by 60.5% from approximately HKD 3.8 million in 2020 to approximately HKD 1.5 million in 2021 [14]. - Income from underwriting and placement activities decreased by approximately 95.4% from about HKD 11.0 million in 2020 to approximately HKD 0.5 million in 2021, primarily due to a reduction in the number of engagements and a decrease in total transaction value by approximately HKD 101.6 million [36]. - The net loss attributable to the owners of the company for the year was approximately HKD 16.0 million, compared to a loss of approximately HKD 6.3 million in 2020, representing an increase of 155.9% [31]. - The net loss for the year was approximately HKD 16.1 million in 2021, compared to a net loss of about HKD 6.2 million in 2020, with a basic loss per share of approximately HKD 0.80 [48]. Business Environment - The unemployment rate in Hong Kong reached 6.8% during the first quarter of 2021, reflecting the economic impact of COVID-19 [13]. - The company faced a challenging business environment due to the global pandemic, which affected various sectors in Hong Kong [13]. - The overall business environment has led to cautious investor sentiment, impacting the company's performance [13]. - The group remains cautiously optimistic about future business development and overall performance despite ongoing economic uncertainties [19]. Assets and Liabilities - Current assets decreased by 25.2% from HKD 291.4 million in 2020 to HKD 218.0 million in 2021 [31]. - The total assets under management dropped to zero as of March 31, 2021, from approximately HKD 4.3 billion in 2020, with all asset management clients terminating their agreements [29]. - As of March 31, 2021, the group's current assets net value was approximately HKD 169.3 million, down from about HKD 236.9 million in 2020, with a current ratio of about 4.4 times [50]. - The debt-to-equity ratio as of March 31, 2021, was 0.7%, a decrease from 2.5% in 2020 [57]. Corporate Governance - The company is committed to ensuring the accuracy and completeness of the information provided in its reports, as confirmed by the board of directors [12]. - The company reported a commitment to high standards of corporate governance, adhering to the principles and code provisions of the GEM Listing Rules [87]. - The board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors [91]. - The company has appointed three independent non-executive directors, constituting over one-third of the board, ensuring compliance with GEM listing rules [99]. - The company emphasizes the importance of separating the roles of the chairman and CEO, which is currently under review [87]. - The board is responsible for overseeing the risk management and internal control systems, which are designed to manage risks rather than eliminate them, ensuring reasonable assurance against material misstatements [133]. - The company has engaged independent external consultants to conduct an annual review of its risk management and internal control systems [133]. - The board regularly reviews the effectiveness of the risk management and internal control systems, deeming them sufficient and effective [143]. Management and Leadership - The management plans to focus on securities trading and brokerage services, underwriting services, and asset management services in response to the challenging business environment [52]. - The company has experienced changes in its executive leadership, with new appointments made in late 2020 [91]. - The executive director, Mr. Huo, has over 20 years of experience in wholesale trade and distribution of communication electronic products [72]. - The company has a strong management team with extensive experience in finance, investment, and corporate restructuring [77]. - The management team includes professionals with advanced degrees in business and finance, contributing to strategic decision-making [81]. Compliance and Risk Management - The group has appointed compliance officers to oversee daily operations and compliance matters, aiming to reduce human errors [70]. - The company is focused on risk management, financial accounting, and anti-money laundering as part of its core functions [81]. - The company has engaged independent external consultants for internal control reviews, ensuring effective risk management and internal control systems [134]. - The company has identified and assessed significant risks, implementing mitigation plans and internal control procedures [140]. Shareholder Relations - The company is focused on maintaining effective communication with shareholders and regulatory bodies [89]. - The company has adopted a dividend policy that emphasizes maintaining sufficient cash reserves to meet operational needs and future development while considering financial performance and cash flow [130]. - The board has the discretion to declare dividends based on various factors, including financial performance, cash flow, and future operational needs [130]. - The board will continue to review its governance practices to align with shareholder and investor expectations [87]. Customer and Revenue Concentration - The largest customer accounted for approximately 24.9% of the total revenue for the year ended March 31, 2021, compared to 17.7% in 2020 [164]. - The top five customers contributed about 49.8% of the total revenue for the year ended March 31, 2021, up from 41.8% in 2020 [164]. Employee and Operational Matters - Employee costs increased by approximately 6.7% to about HKD 16.0 million in 2021 from about HKD 15.0 million in 2020, accounting for approximately 45.4% of total expenses in 2021 compared to 39.3% in 2020 [43]. - The company has established a clear management structure and responsibilities, with high recruitment standards and regular training for employees [135]. - The company provides comprehensive information to management, covering financial performance and non-financial indicators [135]. Miscellaneous - The company has a share option scheme that allows for the issuance of up to 10% of the issued share capital as of January 6, 2017, with a total of 200 million shares available for issuance under the scheme [179]. - No share options were granted under the scheme from its adoption until March 31, 2021 [180]. - The group had a total of 488 active securities accounts as of March 31, 2021, compared to 393 accounts in 2020, representing a growth of approximately 24.2% [190]. - The group did not make any charitable donations in the fiscal year ending March 31, 2021, compared to HKD 0.2 million in 2020 [195].
高裕金融(08221) - 2021 - 年度财报