Financial Performance - For the fiscal year ending March 31, 2019, the company's revenue increased by approximately HKD 87.6 million or 36.5% to about HKD 327.4 million compared to the fiscal year ending March 31, 2018[10]. - The net profit for the fiscal year 2019 was approximately HKD 25.0 million, a significant increase from HKD 6.7 million in the previous fiscal year[10]. - The company recorded a significant increase in gross profit, contributing to the rise in net profit[10]. - Revenue increased by approximately 36.5% from about HKD 239.8 million for the year ending March 31, 2018, to about HKD 327.4 million for the year ending March 31, 2019, driven by new product launches and strong demand for existing products[26]. - Gross profit for the year ending March 31, 2019, was approximately HKD 43.5 million, an increase of about 38.5% from HKD 31.4 million for the previous year, with a gross margin of approximately 13.3%[30]. - The company reported a profit attributable to owners of approximately HKD 25.0 million for the year ended March 31, 2019, compared to HKD 6.7 million for the year ended March 31, 2018, representing an increase of approximately 273.9%[36]. Operational Developments - The company expanded its product range to over 100 varieties and served more than 300 customers during the year[11]. - A property holding company was acquired, which includes a factory unit with a total floor area of approximately 10,044 square feet, enhancing the company's cold storage capacity[11]. - The new warehouse will reduce reliance on external cold storage, leading to savings in storage costs[11]. - The company aims to strengthen its market position in the frozen seafood import and wholesale industry in Hong Kong[11]. - The company aims to enhance its market position in the frozen seafood import and wholesale industry through new sales agency arrangements with overseas suppliers[25]. - The company plans to continue seeking exclusive agency or sales arrangements with both existing and new overseas suppliers to enrich its product offerings[25]. Cost and Expenses - The cost of goods sold rose to approximately HKD 283.9 million for the year ending March 31, 2019, up about 36.2% from HKD 208.4 million for the previous year, reflecting the revenue growth[27]. - Selling and distribution costs increased to approximately HKD 6.0 million for the year ending March 31, 2019, up about 35.0% from HKD 4.4 million for the previous year, primarily due to increased external warehouse usage[31]. - Administrative expenses rose to approximately HKD 7.7 million for the year ending March 31, 2019, from HKD 5.4 million for the previous year, mainly due to increased legal and professional fees related to compliance[32]. - Tax expenses increased from approximately HKD 3.7 million for the year ended March 31, 2018, to approximately HKD 5.1 million for the year ended March 31, 2019, an increase of about HKD 1.4 million or 37.4%[35]. Shareholder and Corporate Governance - The company proposed a final dividend of HKD 0.027 per share for the year ended March 31, 2019, totaling HKD 7,560,000, compared to HKD 6,160,000 for the previous year[65]. - Major shareholders hold 210,000,000 shares each, representing 75% ownership in the company[90]. - The company has established a director and officer liability insurance for its directors and senior officers[98]. - The company has adhered to the corporate governance code since its listing date on October 19, 2017, with the exception of a deviation regarding the roles of the chairman and CEO[135]. - The board consists of two executive directors and three independent non-executive directors, with all members having attended 100% of the five board meetings held in the fiscal year ending March 31, 2019[151]. Environmental and Social Responsibility - The group is committed to minimizing its negative environmental impact and adhering to environmental laws[107]. - The company emphasizes its commitment to environmental and social responsibilities as a core part of its operations and stakeholder value creation[193]. - The company is committed to balancing effective operations with environmental protection and has established policies for pollution prevention and natural resource conservation[195]. - The annual fuel consumption of the company's trucks is approximately 14,660 liters, covering a distance of about 125,299 kilometers[199]. - The emissions data from the company's operations includes nitrogen oxides at 371.8 kg, sulfur oxides at 0.2 kg, and particulate matter at 33.1 kg[200]. Risk Management and Internal Controls - The company has adopted a risk management framework that includes identifying significant risks in the operating environment and assessing their impact on the business[173]. - The board has reviewed the effectiveness of the risk management and internal control systems for the year ending March 31, 2019, and deemed them effective[175]. - The company has implemented a systematic review of financial and business processes to ensure effective internal controls[173]. - An independent internal control consultant was appointed to review the internal control system prior to the company's listing, identifying and correcting significant issues[171]. Compliance and Regulatory Matters - The compliance advisor has been appointed to provide guidance on adherence to GEM listing rules, effective from the listing date until the publication of financial results for the second full fiscal year post-listing[176]. - The company has complied with GEM listing rules regarding continuous connected transactions during the reporting period[96]. - The company has maintained sufficient public float as per GEM listing rules as of the report date[105].
大洋环球控股(08476) - 2019 - 年度财报