Financial Performance - The group recorded a revenue of HKD 50,500,000 for the fiscal year ending March 31, 2021, a decrease of 23.7% from HKD 66,200,000 in the previous year due to the ongoing COVID-19 pandemic[16] - The lending business contributed HKD 1,900,000 to the group's revenue, down from HKD 2,000,000 in the previous year[16] - The group's gross profit decreased from HKD 6,000,000 in the previous year to HKD 4,500,000 in the current year[16] - Other income for the year was HKD 2,100,000, down from HKD 2,800,000 in the previous year, primarily due to interest income from loans to invested companies[16] - The net loss for the year was HKD 1,300,000, an improvement from a net loss of HKD 2,300,000 in the previous year[16] - The loss from the sale of financial assets measured at fair value through profit or loss decreased from approximately HKD 3,800,000 to about HKD 1,000,000[16] - The group recorded a loss attributable to owners of approximately HKD 66,700,000 for the year, an increase of 234.2% compared to HKD 19,900,000 in 2020, mainly due to goodwill impairment of approximately HKD 29,400,000[17] - Revenue from the palm oil trading business was HKD 25,500,000, down 9.6% from HKD 28,200,000 in 2020, continuing to be affected by COVID-19[21] - The consumer goods and fashion apparel segment reported revenue of HKD 23,100,000, a decrease of 35.6% from HKD 35,900,000 in 2020, with a focus on reallocating resources to profitable segments[22] - The lending business generated revenue of HKD 1,900,000, a slight decrease from HKD 2,000,000 in 2020, indicating ongoing market demand for this segment[26] - The securities investment segment recorded a net loss of HKD 400,000, an improvement from a net loss of HKD 2,600,000 in 2020, with a fair value of the investment portfolio remaining stable at HKD 2,700,000[27] - As of March 31, 2021, the group's net asset value was HKD 69,100,000, down from HKD 93,800,000 in 2020, primarily due to goodwill impairment[29] - The current ratio as of March 31, 2021, was approximately 3.2, slightly down from 3.4 in 2020, indicating a stable liquidity position[32] Business Strategy and Future Outlook - The company plans to diversify its business and expand its sales network, particularly in the fashion product sector targeting the younger generation[13] - Future business environment is expected to remain challenging due to global issues and the ongoing pandemic[14] - The company aims to utilize its strong business connections to develop existing operations while seizing emerging opportunities for diversification[14] - Funds raised from a rights issue will be used to expand business operations, including broadening sales channels and developing new products[13] - The group plans to expand its business by leveraging funds raised from rights issues and enhancing marketing strategies to drive growth in sales and profit margins[25] - The group remains optimistic about the recovery of the business once COVID-19 is controlled, with confidence stemming from customer satisfaction with differentiated products[23] Operational and Financial Management - Operating expenses for the year ended March 31, 2021, were HKD 27,400,000, an increase of 67.1% from HKD 16,400,000 in 2020, primarily due to increased marketing expenses in the consumer goods trading business[17] - The total employee cost for the year ended March 31, 2021, was approximately HKD 4,300,000, an increase from HKD 3,100,000 in the previous year[44] - The company has utilized HKD 29,000,000 of the planned HKD 39,100,000 proceeds for various purposes, including debt repayment and marketing activities[43] - The company has adopted a conservative inventory policy and closely monitors its liquidity to ensure financial stability[39] - The company has no foreign currency hedging policies in place but will consider hedging significant foreign currency risks as needed[38] Corporate Governance and Compliance - The company adhered to the GEM Listing Rules and corporate governance code, with some deviations explained in the report[133] - The board of directors is responsible for policy formulation and monitoring the company's financial performance[136] - The board composition includes two executive directors and three independent non-executive directors, ensuring a balance of skills and experience[142] - The company has maintained sufficient public float as per GEM listing regulations prior to the publication of the annual report[113] - The company has established a nomination committee to review board composition and oversee the nomination and appointment processes[149] - The company has established committees to oversee specific areas, including executive, investment, audit, remuneration, and nomination[164] - The Audit Committee ensures compliance with financial reporting and risk management procedures[167] - The company has established a formal whistleblowing policy to encourage employees to report significant concerns without fear[189] - The company has adopted a shareholder communication policy to ensure timely and equal access to comprehensive information for shareholders and potential investors[195] - The company has implemented measures to protect shareholder rights, including presenting independent resolutions for significant issues at shareholder meetings[200] Risk Management - The company faces business risks related to its lending operations, including potential defaults by clients and insufficient collateral value[64] - The company has established internal policies to manage risks, but acknowledges that these may not be fully effective[64] - The company is committed to monitoring liquidity risk and maintaining sufficient cash flow and credit lines to meet financial obligations[72] - The board has confirmed the effectiveness of the risk management and internal control systems for the year ended March 31, 2021[189] Environmental and Social Responsibility - The company has taken proactive measures to reduce carbon emissions and resource consumption in its operations[75] - The company will publish an Environmental, Social, and Governance (ESG) report within three months after the annual report to comply with GEM listing rules[75] Shareholder and Director Information - The company issued 513,585,000 rights shares at a price of HKD 0.08 per share, raising approximately HKD 41.1 million before expenses[100] - As of March 31, 2021, the executive directors each held 2,805,928 shares, representing approximately 0.39% of the total issued shares[93] - The company has adopted a share option scheme as a reward for directors and eligible employees, with details provided in the financial statements[108] - The remuneration policy for employees is based on performance, qualifications, and capabilities[106] - Independent non-executive directors confirmed their independence in accordance with GEM Listing Rules[109] - The company has purchased suitable directors and officers liability insurance for its directors and executives during the year[91] - No directors had significant interests in any important contracts related to the group's business during the year[103] - The company's secretary has completed no less than 15 hours of professional training during the year ended March 31, 2021[192] Audit and Financial Reporting - The independent auditor for the financial statements for the year ending March 31, 2021, was KPMG, with a resolution to reappoint them at the upcoming annual general meeting[124] - The total fees paid and payable to the external auditor for the audit and other services for the year ended March 31, 2021, amounted to HKD 590,000[191] - The financial summary for the group over the last five fiscal years is detailed on page 122 of the annual report[119] - The company believes it has adopted consistent and appropriate accounting policies for preparing financial statements[182] - The directors are responsible for ensuring accurate accounting records to reflect the company's financial position[183]
富誉控股(08269) - 2021 - 年度财报