Financial Performance - The group recorded a profit before tax of approximately HKD 6.9 million for the year ended March 31, 2021, a significant improvement compared to a loss of HKD 7.5 million for the year ended March 31, 2020[10]. - The profit attributable to shareholders of SCHL for the year was approximately HKD 8.5 million, a significant improvement from a loss of HKD 5.8 million in 2020, resulting in a basic earnings per share of HKD 0.0603 and diluted earnings per share of HKD 0.0583[17]. - The group reported a post-tax profit of approximately HKD 7.3 million for the year, a turnaround from a post-tax loss of approximately HKD 7.2 million in 2020, primarily due to reduced operating expenses and the fair value gain from the redemption of shares in CIAF[34]. - The group recorded a pre-tax profit of approximately HKD 6.9 million for the year, a significant improvement compared to a pre-tax loss of HKD 7.5 million in the previous year[29]. - The total revenue decreased by approximately 0.4% to about HKD 75.5 million from approximately HKD 75.8 million in the previous year[41]. Revenue Breakdown - Revenue from corporate finance consulting business was approximately HKD 75.0 million, slightly down from HKD 75.6 million in 2020, with a segment profit before tax of approximately HKD 5.9 million compared to HKD 5.3 million in 2020[11]. - Revenue from financial advisory and independent financial advisory services was approximately HKD 55.9 million, accounting for about 74.0% of total revenue, up from 70.4% in 2020[11]. - Compliance advisory services generated revenue of approximately HKD 19.1 million, representing about 25.3% of total revenue, compared to 23.6% in 2020[12]. - The asset management segment recorded revenue of approximately HKD 0.4 million, up from HKD 0.2 million in 2020, but incurred a pre-tax loss of approximately HKD 7.7 million, compared to a loss of HKD 5.9 million in 2020[33]. - Other income decreased from approximately HKD 1.7 million to about HKD 1.3 million, mainly due to reduced interest income from bank deposits[43]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.038 per share, an increase from HKD 0.025 per share in 2020, reflecting approximately two-thirds of the diluted earnings per share of HKD 0.0583[19]. - The board has proposed a final dividend of HKD 0.038 per share for the year, an increase from HKD 0.025 per share in 2020, pending shareholder approval[69]. - The company has adopted a dividend policy to distribute at least 40% of the annual consolidated net income attributable to shareholders as dividends[177]. - The company emphasizes maintaining a consistent and sustainable dividend level, even in adverse conditions, as long as financial health allows[173]. Operational Efficiency and Cost Management - Employee salaries and benefits decreased by approximately 1.8% to about HKD 53.1 million, primarily due to government subsidies of approximately HKD 2.5 million received under the employment support scheme[16]. - Depreciation and other operating expenses decreased by approximately 5.7% to about HKD 21.6 million from approximately HKD 22.9 million in the previous year[48]. - The group maintained a high level of liquidity, with no significant impact on liquidity risk from the COVID-19 pandemic[36]. - The group had no bank financing or borrowings as of March 31, 2021, maintaining a debt-free status[57]. Strategic Initiatives and Future Outlook - The company is exploring new projects in asset management and considering opportunities in the digital finance sector[23]. - The company aims to maintain a robust asset base and liquidity to support existing operations and future initiatives[18]. - The company is actively exploring new business plans, including concepts related to digital finance, to adapt to the evolving market environment[86]. - The company has outlined a future outlook with a projected revenue growth of 20% for the next fiscal year[193]. - New product development initiatives are underway, focusing on innovative financing solutions expected to launch in Q3 2022[193]. Governance and Compliance - The company has complied with all relevant laws and regulations in Hong Kong and China regarding its business operations during the fiscal year[84]. - The board of directors is responsible for overseeing corporate governance policies and practices, including compliance with legal and regulatory requirements[135]. - The company has established appropriate insurance arrangements for directors and senior officers[94]. - The company has a nomination committee to ensure the board's composition meets all applicable laws and regulations[119]. Risk Management - The company faces significant risks, including potential disruptions to its main operating subsidiary, New Baili Financing, which could adversely affect its business and financial performance[79]. - The company’s earnings are difficult to predict due to market conditions affecting transaction negotiations and completion times, leading to potential revenue fluctuations[79]. - The board is responsible for the effectiveness of the risk management and internal control systems, which are reviewed annually[166]. - An independent internal control consultant has been appointed to evaluate the adequacy and effectiveness of the risk management and internal control systems[164]. Market Position and Competitive Landscape - The company operates in a highly competitive environment with numerous existing participants and potential new entrants in the Hong Kong corporate financing industry[82]. - The management team emphasized the importance of technology integration, with a budget allocation of $10 million for R&D in the upcoming year[193]. - The company aims to improve operational efficiency by 15% through new process optimizations and technology upgrades[193]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[193].
新百利融资(08439) - 2021 - 年度财报