Financial Performance - The company's revenue decreased by approximately 15.4% from HKD 58.9 million in the previous year to HKD 49.8 million for the year ended March 31, 2020[11]. - The company recorded a loss attributable to shareholders of approximately HKD 11.2 million for the year[11]. - The home goods export business revenue decreased by about 14.6% compared to the previous year due to declining consumer confidence and intense market competition[12]. - E-commerce revenue decreased by approximately 23.5% compared to the previous year, primarily due to a decline in sales on Amazon in the United States[13]. - The company reported a gross profit of HKD 12.85 million for the year ended March 31, 2020, down from HKD 17.54 million in the previous year[8]. - Gross profit fell by approximately 26.9% to about HKD 12.8 million, with a gross margin decrease from approximately 29.8% in 2019 to about 25.8% in the current year[23]. - The company recorded a loss attributable to owners of approximately HKD 11.2 million, an increase of about 60.0% compared to HKD 7.0 million in 2019, primarily due to increased market competition[27]. - The cost of sales decreased by approximately 10.9% to about HKD 36.9 million from HKD 41.4 million in 2019, aligning with the revenue decline[22]. - Selling and distribution expenses were reduced to about HKD 8.9 million, a decrease of approximately 23.9% from HKD 11.7 million in 2019 due to cost-cutting measures[24]. Assets and Liabilities - The total assets of the company as of March 31, 2020, were HKD 45.31 million, a decrease from HKD 55.04 million in the previous year[9]. - The total liabilities increased to HKD 5.70 million in 2020 from HKD 4.18 million in 2019[9]. - The company's cash and bank balances were approximately HKD 31.2 million, slightly down from HKD 31.3 million in 2019[29]. - The capital debt ratio was approximately 5.2% as of March 31, 2020, after applying the new Hong Kong Financial Reporting Standards[29]. Business Strategy and Future Plans - The company plans to focus on core business and develop proprietary brand products to achieve sustainable growth[11]. - The company aims to expand sales channels in China in the coming year[13]. - The company plans to focus on high-quality home products and explore new business opportunities for sustainable growth amid a challenging market environment[19]. - The company decided to terminate the establishment of contact offices in Europe and the United States due to adverse global economic conditions[11]. Corporate Governance - The company adheres to the principles of good corporate governance to enhance shareholder value[57]. - The board of directors is responsible for overseeing the group's business affairs and overall performance management[61]. - The company has adopted the corporate governance code as per GEM listing rules and has complied with all applicable provisions throughout the year[59]. - The board has established several committees to delegate responsibilities and ensure effective governance[61]. - The company has a standard code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules[60]. - The board consists of three independent non-executive directors, exceeding the GEM listing rules requirement of at least one-third[69]. - All independent non-executive directors confirmed their independence according to GEM listing rules, ensuring compliance[69]. - The board diversity policy was adopted on February 1, 2019, emphasizing the importance of diverse skills and experiences[78]. - The company believes that board diversity is key to maintaining competitive advantage and enhancing decision-making capabilities[78]. Risk Management - The group faces currency risk as most transactions, assets, and liabilities are denominated in HKD, RMB, GBP, and USD, with sales and procurement primarily settled in USD[34]. - The company has taken measures to ensure effective risk management and internal controls, with no significant risks identified during the annual review[108]. - The company has not established any foreign currency hedging policies but will closely monitor foreign exchange risks and consider hedging significant foreign currency risks when necessary[34]. - The company's risk management and internal control systems were deemed effective and sufficient by the board after an annual review[108]. Employment and Human Resources - As of March 31, 2020, the group employed a total of 31 full-time employees, down from 34 in 2019, with total employee benefits expenditure amounting to approximately HKD 8.5 million, a decrease from approximately HKD 9.3 million in 2019[33]. - The company plans to recruit additional staff, including two designers and two product engineers, as part of its ongoing development strategy[134]. Shareholder Information - The board does not recommend the payment of a final dividend for the year, consistent with the previous year[43]. - The company has adopted a dividend policy as of February 1, 2019, which outlines principles and guidelines for declaring dividends based on profitability and operational stability[83]. - The board plans to balance sufficient funds for business development and shareholder returns when considering dividend payments[84]. - The company does not have a predetermined dividend payout ratio, and past dividend distributions may not serve as a benchmark for future dividends[84]. Audit and Compliance - The audit committee has reviewed the consolidated financial statements for the year ending March 31, 2020, and found them compliant with applicable accounting standards and GEM listing rules[90]. - The independent auditor's report confirmed the company's responsibility for the consolidated financial statements for the year[107]. - The independent auditor, RSM Hong Kong, was paid HKD 700,000 for annual audit services in both 2020 and 2019[103]. Share Option Scheme - The share option plan allows the company to grant options to eligible participants as a reward for their contributions, with the plan approved by shareholders on September 22, 2017[159]. - The maximum number of shares available for subscription under the share option plan is capped at 10% of the total issued shares immediately following the completion of the share issuance, equating to 100,000,000 shares[165]. - The total number of shares that may be issued to any individual participant under the share option plan within any 12-month period is limited to 1% of the issued shares as of the grant date[167]. - The company must obtain independent non-executive directors' approval before granting stock options to directors, major executives, or major shareholders[169]. - Stock options granted must not exceed 0.1% of the issued shares or other percentages as stipulated by GEM listing rules, and the total value must not exceed HKD 5 million[171]. - The company cannot grant stock options during the one-month period prior to the announcement of financial results[173]. - The company has not granted or agreed to grant any options under the share option scheme as of March 31, 2020[191]. Operational Overview - The company operates primarily in the home goods sector, focusing on design, development, and production management in China and Hong Kong[124]. - The company has faced various risks, including competition in the home goods industry and potential changes in trade policies affecting supply chains due to the ongoing COVID-19 pandemic[125].
舍图控股(08392) - 2020 - 年度财报