Financial Performance - The total revenue for the year ended March 31, 2021, was approximately HKD 36.1 million, a slight decrease of 2.7% compared to HKD 37.1 million for the year ended March 31, 2020[11]. - The group recorded a loss attributable to owners of approximately HKD 9.1 million for the year ended March 31, 2021, compared to a loss of approximately HKD 12.3 million in the previous year[12]. - The group's consolidated revenue for the fiscal year ending March 31, 2021, was approximately HKD 36.1 million, a decrease of 2.7% from HKD 37.1 million in 2020[19]. - The annual gross profit was approximately HKD 27.8 million, down 2.1% from HKD 28.4 million in 2020, with a gross profit margin of 77.0%, slightly up from 76.5% in the previous year[19]. - The group experienced a net loss of approximately HKD 9.1 million, an improvement from a net loss of HKD 12.3 million in 2020, primarily due to the ongoing impact of COVID-19 and changes in accounting treatments[19]. - Other income increased from approximately HKD 17,000 in 2020 to about HKD 3.7 million in the reporting year, mainly due to retail industry support programs and government subsidies[21]. Cost Management - The group has reduced its operating costs by ceasing the operations of a subsidiary, which had recorded losses for two consecutive years, to improve cash flow[11]. - The board is committed to controlling costs, including reducing rent, advertising, and discretionary expenses[11]. - The group plans to maintain a prudent financial policy, primarily using cash generated from operations and proceeds from share issuance to meet liquidity needs[27]. Sales and Revenue Sources - Online sales through the HKTV Mall platform significantly increased, compensating for some of the sales losses from traditional stores and counters[12]. - Tea sales accounted for 92.6% of total revenue, up from 88.5% in 2020, with Pu-erh tea being the best-selling product, contributing 40.1% of total sales[20]. Legal Matters - The company has taken legal action against a software vendor for failing to deliver a defect-free ERP and POS system, seeking compensation for costs and losses incurred[13]. - The company has taken legal action against a software vendor for failure to deliver an ERP system on time, seeking compensation for costs and losses incurred[60]. Employee and Operational Changes - As of March 31, 2021, the group had 56 employees, a decrease from 71 employees in 2020, with total employee costs amounting to approximately HKD 14.6 million compared to HKD 16.2 million in 2020[40]. - The group has ceased operations of its tea-related beverage store in Tsim Sha Tsui as of March 31, 2021, due to the adverse effects of the COVID-19 pandemic[18]. - The company opened a new beverage store in Tsim Sha Tsui, utilizing approximately HKD 6.1 million of available funds as of March 31, 2021[50]. Financial Position - As of March 31, 2021, the company's current liabilities amounted to approximately HKD 2.5 million, a decrease of HKD 17.4 million or 116.8% compared to HKD 14.9 million in 2020[29]. - Cash and bank balances were approximately HKD 3.9 million, down HKD 1.9 million or 32.8% from HKD 5.8 million in 2020[29]. - The equity attributable to shareholders was approximately HKD 27.9 million, a decrease of HKD 8.6 million or 23.6% from HKD 36.5 million in 2020[35]. - The group's asset-to-liability ratio increased to 352.2% as of March 31, 2021, up from 284.0% in 2020, primarily due to increased bank loans and accumulated losses[43]. Environmental Impact - The company's electricity consumption decreased from 210,158 kWh in 2020 to 195,268 kWh in 2021, representing a reduction of approximately 7.5%[79]. - Carbon dioxide (CO₂) emissions decreased from 136.294 tons in 2020 to 107.954 tons in 2021, a decline of about 20.8%[76]. - The density of CO₂ emissions per square foot of office and factory space improved from 9 kg/sq ft in 2020 to 7 kg/sq ft in 2021, indicating a 22.2% reduction[76]. - The total paper consumption decreased from 55,000 sheets in 2020 to 52,500 sheets in 2021, a reduction of approximately 4.5%[79]. - The company reported a decrease in the consumption of packaging materials, with paper bag consumption dropping from 120,865 units in 2020 to 108,136 units in 2021, a decline of about 10.6%[83]. - The company has implemented energy-saving measures, including the use of LED lighting and encouraging employees to conserve resources, which contributed to reduced energy consumption[78]. - The company has not faced any fines or penalties for violating environmental regulations during the reporting year[75]. Corporate Governance - The board consists of 6 members, including 3 executive directors and 3 independent non-executive directors, ensuring a balanced governance structure[112]. - The company adheres to high standards of corporate governance and has complied with the GEM Listing Rules during the review period[109]. - The board is responsible for setting overall strategy and reviewing the group's operational and financial performance[111]. - The company has established a formal and transparent process for the selection, appointment, and reappointment of directors to ensure board composition changes do not cause undue disruption[139]. Risk Management - The internal control system is designed to manage risks rather than eliminate them entirely, providing reasonable assurance against significant misstatements or losses[152]. - The board is responsible for risk management and internal control systems, ensuring annual reviews of their effectiveness, considering changes in significant risks and the company's ability to respond[161]. - The company does not have an internal audit department; instead, it appoints external professionals to assess the adequacy and effectiveness of risk management and internal control systems, which is deemed more cost-effective[162]. Community Engagement - The group donated approximately HKD 5,000 in the reporting year to support community services and school education, a decrease from HKD 62,000 in 2020[107]. - The group actively promotes traditional tea culture through social media platforms, enhancing community engagement[107].
英记茶庄集团(08241) - 2021 - 年度财报