Financial Performance - The group recorded a profit attributable to owners for the year ended March 31, 2021, despite challenges posed by the COVID-19 pandemic[33]. - The group's revenue for the year ended March 31, 2021, was approximately HKD 53.4 million, a decrease of about 14.6% compared to HKD 62.5 million for the year ended March 31, 2020, primarily due to weak retail sales caused by the COVID-19 pandemic in Hong Kong[36]. - The cost of sales decreased to approximately HKD 11.2 million, down about 51.7% from HKD 23.2 million in the previous year, attributed to effective cost control measures and inventory management[37]. - Gross profit increased by approximately 7.1% to about HKD 42.2 million from approximately HKD 39.4 million in the previous year[37]. - The group recorded a profit before tax of approximately HKD 4.4 million for the year ended March 31, 2021, compared to a loss of about HKD 46.8 million for the year ended March 31, 2020[40]. - The net loss attributable to the company's owners decreased to approximately HKD 3.7 million for the year ended March 31, 2021, from a loss of about HKD 46.8 million in the previous year[43]. Operational Efficiency and Strategy - The company aims to enhance operational efficiency and strengthen cost control measures moving forward[34]. - The group will continue to optimize existing resources to improve profitability and core competitiveness[34]. - The company completed a placement of new shares on April 30, 2021, and will cautiously seek potential business opportunities to create higher value for shareholders[34]. - The company has ceased operations of a non-profit retail store in Tseung Kwan O to improve efficiency[33]. - The company is committed to enhancing inventory management and reducing production capacity in response to market conditions[33]. Market Conditions and Challenges - The COVID-19 pandemic significantly disrupted the local retail market, particularly during peak seasons like spring and Christmas[32]. - The board remains cautiously optimistic about the recovery of the local retail market as vaccination programs are implemented[34]. - The group is actively negotiating with suppliers and business partners to implement mitigation measures[33]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring transparency and accountability[70]. - As of March 31, 2021, the company did not comply with GEM Listing Rules regarding the minimum number of independent non-executive directors, which was less than the required number[72]. - The company appointed a qualified independent non-executive director on June 18, 2021, thus meeting the GEM Listing Rules requirements thereafter[73]. - The board of directors is responsible for overseeing the company's overall strategy, business performance, and risk management systems[76]. - The company has a strong focus on internal controls to protect shareholder interests and enhance long-term shareholder value[70]. Board Structure and Diversity - The company has a diverse board with members possessing extensive experience in finance, management, and consulting[66][67]. - The company emphasizes the separation of roles between the chairman and the chief executive officer to enhance governance[71]. - The board consists of 5 members, including 2 executive directors and 3 independent non-executive directors[77]. - The company emphasizes the importance of board diversity, considering various factors such as gender, age, and professional experience in its selection process[102]. - The company is committed to maintaining a balanced diversity among board members to meet business needs and development plans[102]. Risk Management and Compliance - The board is responsible for maintaining effective risk management and internal control systems, with an annual review of their adequacy and effectiveness[111]. - The company has implemented measures to identify, assess, and manage significant risks, including risk identification, assessment, response, and monitoring[108][109][110]. - The board has taken steps to ensure compliance with legal and regulatory requirements, including providing adequate training to employees[105]. - The company has engaged external consultants to review its internal control systems and provide recommendations for improvement[113]. - The company has established a Compliance Committee to oversee all compliance matters and ensure proper approval of significant acquisitions and transactions[105]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a governance framework to oversee its environmental, social, and governance (ESG) strategies, ensuring effective risk management and internal controls[125]. - The company has identified key performance indicators (KPIs) related to its ESG initiatives, which are reported to stakeholders[126]. - The company aims to minimize its negative environmental impact and seeks eco-friendly operational methods[139]. - The company has implemented a stakeholder engagement process to gather feedback and improve its ESG performance[132]. - The company focuses on community investment in education, social welfare, and environmental protection, committing to social responsibility[196]. Employee Management and Welfare - The company has implemented health and safety measures in response to COVID-19, including temperature checks and mandatory mask-wearing for employees and customers[181]. - The company emphasizes a zero-tolerance policy towards discrimination in the workplace, promoting an inclusive work culture[171]. - The company emphasizes the importance of employee training and performance evaluation, providing regular training programs including onboarding, skills training, and quality training[182]. - Competitive compensation and benefits are provided, including performance bonuses and flexible leave arrangements, to enhance employee retention[174]. - The overall employee turnover rate for the year was 26%, with 31% of those leaving being aged 19-60 and 17% aged 60 or above[170]. Environmental Impact and Sustainability - The company has not reported any significant violations of environmental regulations regarding emissions and waste management during the fiscal year[139]. - The company encourages employees to adopt paperless practices to reduce paper usage and promotes energy-saving measures in its operations[140]. - The company's nitrogen oxide emissions increased from 5.84 kg in 2020 to 8.88 kg in 2021, representing a 52.4% increase[142]. - Total greenhouse gas emissions decreased by approximately 33% from about 165.21 tons of CO2 equivalent in 2020 to about 110.46 tons in 2021[149]. - Total energy consumption decreased by approximately 34% from about 311,983.00 kWh in 2020 to about 206,374.76 kWh in 2021[159].
海纳星空科技(08297) - 2021 - 年度财报