Financial Performance - The company's revenue for the fiscal year 2020 decreased slightly by approximately HKD 3.7 million or 1.1% to about HKD 323.7 million compared to the fiscal year 2019[9] - The net profit for the fiscal year 2020 was approximately HKD 18.7 million, down from HKD 25.0 million in the fiscal year 2019[9] - The adjusted profit for the fiscal year 2020, excluding expenses related to the proposed transfer of listing, was HKD 22.2 million, compared to HKD 25.6 million in the previous year[9] - For the fiscal year ending March 31, 2020, the company recorded a net profit of approximately HKD 18.7 million, down from HKD 25.0 million for the previous year, reflecting a decrease of about 25.2%[23] - Revenue for the fiscal year ending March 31, 2020, was approximately HKD 323.7 million, a slight decrease of about 1.1% from HKD 327.4 million in the previous year[25] - The cost of goods sold for the fiscal year ending March 31, 2020, was approximately HKD 281.4 million, a decrease of about 0.9% from HKD 283.9 million in the previous year[26] - Gross profit for the fiscal year ending March 31, 2020, was approximately HKD 42.2 million, down about 2.9% from HKD 43.5 million in the previous year, with a gross margin of approximately 13.0%[29] - Selling and distribution costs increased to approximately HKD 7.0 million for the fiscal year ending March 31, 2020, up about 17.8% from HKD 6.0 million in the previous year[30] Challenges and Market Position - The company faced challenges due to the impact of the US-China trade tensions and social unrest in Hong Kong, further exacerbated by the COVID-19 pandemic[8] - The company anticipates facing significant challenges in the upcoming year due to expected economic downturns in Hong Kong[24] - The company aims to strengthen its market position in the frozen seafood import and wholesale industry in Hong Kong[10] - The company plans to strengthen cost-saving measures in response to the ongoing impact of COVID-19 on operations and financial performance[24] Customer and Supplier Relationships - The company served over 340 customers, primarily frozen seafood resellers and suppliers, offering a variety of over 100 types of seafood products[10] - The largest customer accounted for approximately 5.8% of total sales, while the top five customers represented about 20.9% of total revenue for the year ended March 31, 2020, compared to 5.4% and 23.0% in 2019[63] - The largest supplier accounted for approximately 13.5% of total purchases, with the top five suppliers representing about 48.8% of total procurement for the year ended March 31, 2020, compared to 10.2% and 41.7% in 2019[63] Expenses and Financial Management - The expenses related to the proposed transfer of listing amounted to approximately HKD 3.5 million in the fiscal year 2020, compared to HKD 0.6 million in the fiscal year 2019[9] - Administrative expenses increased from approximately HKD 7.7 million for the year ended March 31, 2019, to approximately HKD 11.4 million for the year ended March 31, 2020, primarily due to increased legal and professional fees related to the proposed transfer from GEM to the main board[31] - Financial costs decreased from approximately HKD 0.6 million for the year ended March 31, 2019, to approximately HKD 0.4 million for the year ended March 31, 2020[32] - Tax expenses decreased by approximately HKD 0.4 million or 9.0%, from approximately HKD 5.1 million for the year ended March 31, 2019, to approximately HKD 4.7 million for the year ended March 31, 2020[33] - Profit attributable to owners of the company decreased from approximately HKD 25.0 million for the year ended March 31, 2019, to approximately HKD 18.7 million for the year ended March 31, 2020, mainly due to expenses related to the proposed transfer to the main board and increased selling and administrative costs[34] Corporate Governance and Compliance - The board of directors includes Mr. Chan Kin Fung as Chairman and CEO, and Ms. Tse Chun Ha, with independent non-executive directors including Mr. So Yuk Kei, Mr. Lee Kam Wan, and Dr. Leung Wai Ping[64] - The company has not entered into any management or administrative contracts regarding the whole or any substantial part of its business as of March 31, 2020[71] - The remuneration of directors is determined by the remuneration committee based on the group's operating performance, individual performance, and comparable market statistics[70] - The company has received independence confirmations from all independent non-executive directors, affirming their independence[68] - The company has adhered to the corporate governance code since its listing date, with ongoing reviews to maintain high standards[124] - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[132] - The board retains decision-making authority on all major matters, including policies, overall strategy, and significant transactions[136] - The company has implemented an internal control policy regarding the disclosure of insider information[127] Environmental and Social Responsibility - The company is committed to minimizing its negative environmental impact and adhering to environmental laws[98] - The group emphasizes environmental and social responsibility as a core commitment, aiming to expand its business while contributing to industry and societal development[183] - Stakeholder feedback on the group's environmental, social, and governance policies and performance is welcomed, with communication channels available on the company's website[184] - The company has implemented a code of ethics to ensure high standards of conduct and ethical values in all business operations[167] - Measures taken to reduce emissions include limiting air conditioning usage and encouraging the use of electronic documents to minimize paper waste[198] - The company promotes recycling and encourages employees to use video or phone conferencing to reduce travel-related emissions[198] Audit and Risk Management - The audit committee, composed of three independent non-executive directors, reviewed the financial statements for the year ended March 31, 2020[121] - The company plans to propose the reappointment of Deloitte Touche Tohmatsu as its auditor at the 2020 annual general meeting[122] - The internal audit function, including enterprise risk assessment, is provided to assist the board and audit committee in monitoring risk management[161] - The board has reviewed the effectiveness of the group's risk management and internal control systems for the year ending March 31, 2020, and deemed them effective[168] - The group has adopted a risk management framework that includes identifying significant risks, assessing their impact, and implementing necessary measures to manage these risks[164]
大洋环球控股(08476) - 2020 - 年度财报