Electric Vehicle Charging Business - The group acquired an electric vehicle charging business in August 2020, recognizing the importance of carbon neutrality as a global focus since 2016[22]. - The electric vehicle market is thriving, and management's goal is to seize opportunities for further development supported by government policies[25]. - The acquisition of Cornerstone Electric Vehicle Charging Services Limited was completed on August 4, 2020, making it a wholly-owned subsidiary, and its financial performance is consolidated into the group's results[29]. - Cornerstone Electric Vehicle Charging is recognized as a major provider of electric vehicle charging solutions in Hong Kong, having been appointed as a licensed supplier by a renowned Japanese automobile manufacturer[30]. - The group won contracts for the installation of 153 chargers at Kwai Fong and Shek Mei Tsui Municipal Parking Lots, part of a HKD 120 million budget to expand the public charging network[33]. - A total of 94 chargers at Kwai Fong Parking Lot are equipped with a power load management system, maximizing available power supply without increasing electrical load[34]. - The group is expanding its footprint with the construction of an outdoor fast charging station in Mui Wo, Lantau Island, set to open to the public in April 2021[35]. - The group established a large charging station at the border with over 120 chargers to facilitate cross-border commuters[37]. - The group plans to leverage opportunities in the electric vehicle charging business to become a key market player in achieving the vision of "zero carbon emissions, fresh air, and smart city" in Hong Kong[41]. - The company is focused on the continuous development of electric vehicle charging technology, leveraging over 13 years of industry experience[105]. - The company has established a reputation for providing advanced electric vehicle charging products and comprehensive solutions within the industry[105]. - The company has been involved in significant research and development activities, collaborating with government officials and industry stakeholders to promote the electric vehicle charging sector[105]. - The company has a strategic focus on market expansion and technological innovation in the electric vehicle sector[105]. Financial Performance - Revenue from commercial printing services for the reporting period was approximately HKD 19 million, down from HKD 36.1 million for the year ended March 31, 2020[39]. - Revenue from financial printing services for the reporting period was approximately HKD 20.2 million, down from HKD 25 million for the year ended March 31, 2020[39]. - Total revenue from the printing business for the nine months ended December 31, 2020, was HKD 40.3 million, compared to HKD 64.3 million for the year ended March 31, 2020[44]. - The group's revenue for the nine months ended December 31, 2020, was approximately HKD 40,900,000, compared to approximately HKD 64,300,000 for the year ended March 31, 2020, representing a decrease of about 36.5%[45]. - Revenue from commercial printing services for the nine months ended December 31, 2020, was approximately HKD 19,000,000, down from approximately HKD 36,100,000 for the year ended March 31, 2020, indicating a decline of about 47.4%[46]. - Revenue from financial printing services for the nine months ended December 31, 2020, was approximately HKD 20,200,000, compared to approximately HKD 25,000,000 for the year ended March 31, 2020, reflecting a decrease of about 19.6%[48]. - Revenue from other services for the nine months ended December 31, 2020, was approximately HKD 1,100,000, down from approximately HKD 3,200,000 for the year ended March 31, 2020, a decline of about 65.6%[49]. - The company recorded a total comprehensive loss of approximately HKD 30.5 million for the nine months ended December 31, 2020, compared to a loss of approximately HKD 16.3 million for the year ended March 31, 2020[66]. - The loss situation was primarily due to a decrease in customer orders for printing services, driven by increasing environmental concerns and the impact of the COVID-19 pandemic[66]. Management and Governance - The company is committed to corporate governance practices in accordance with the GEM Listing Rules of the Hong Kong Stock Exchange[115]. - The board consists of experienced individuals, with half being independent non-executive directors, ensuring a balance of power and authority[116]. - The board has established three special committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to oversee specific aspects of the company's affairs[127]. - The company has complied with GEM Listing Rules regarding the independence of its non-executive directors[122]. - The board held a total of 8 meetings, with all executive directors attending all meetings[125]. - The board is responsible for ensuring the company's continuous operation and managing risks effectively[123]. - The company has adopted internal guidelines that require board approval for significant operational projects and major investments[123]. - The Audit Committee reviewed and recommended the approval of the audited consolidated financial statements for the nine months ended December 31, 2020, and the interim results for the six months ended September 30, 2020[130]. - The Audit Committee held four meetings from April 1, 2020, to the date of the report, ensuring compliance with applicable accounting standards and GEM listing rules[129]. - The Remuneration Committee reviewed the remuneration policies for directors and senior management, holding three meetings during the reporting period[132]. - The Nomination Committee assessed the independence of independent non-executive directors and reviewed the board's structure, holding three meetings in the reporting period[134]. - The company has adopted a board diversity policy, considering factors such as gender, age, and professional experience in the election of board members[135]. - Independent non-executive directors are appointed for a fixed term of three years, with provisions for re-election and independence confirmation[136]. - The company provided formal and comprehensive training for newly appointed directors to ensure understanding of operations and responsibilities[138]. Employee and Talent Management - The group had 149 employees in Hong Kong, an increase from 112 employees as of March 31, 2020[177]. - The group has implemented a stock option plan to attract and retain talent[177]. - The company has made significant progress in hiring operational staff to support business growth[83]. - The company is focused on retaining top industry talent to ensure continued growth and innovation[83]. - The company has hired several experienced sales personnel to strengthen customer relationships and support business growth[83]. Compliance and Risk Management - The company is committed to environmental protection and compliance with relevant laws and regulations[172][173]. - The company has established a risk management system that includes risk identification, assessment, and mitigation measures[149]. - The board confirmed the effectiveness of the internal control and risk management systems as of December 31, 2020[149]. - The company has not established an internal audit function as per the code provisions but will continue to review its necessity annually[150]. - The company’s audit committee has reviewed the internal control system and found it effective and sufficient[149]. Shareholder Relations and Dividends - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[156]. - The board does not recommend the distribution of a final dividend for the nine months ended December 31, 2020[182]. - The group has adopted a dividend policy that allows for cash or stock dividends, subject to board discretion and shareholder approval[180]. - The group has no distributable reserves as of December 31, 2020[185]. Acquisitions and Investments - The company plans to allocate HKD 20,000,000 for exploring sustainable new business opportunities, with HKD 15,000,000 already utilized for the acquisition of an electric vehicle charging business[89]. - There were no major acquisitions or disposals of subsidiaries or associates during the nine months ended December 31, 2020[77]. - The net proceeds from the initial public offering in May 2018 amounted to approximately HKD 41,000,000 after deducting underwriting commissions and related expenses[84]. - As of December 31, 2020, the company had utilized HKD 34,606,000 of the net proceeds, leaving an unutilized balance of HKD 6,394,000[86].
基石科技控股(08391) - 2020 - 年度财报