Air Cargo Demand and Market Conditions - The Group experienced a sustained increase in demand for air cargo space due to the suspension of global air flights, with many routine passenger flights cancelled [22]. - The air cargo industry has officially recovered from the COVID-19 pandemic, leading to a shift from sea shipping to air shipping due to extreme delays from port congestion [23]. - Airfreight rates remain highly unpredictable, influenced by stricter quarantine rules in Hong Kong and strong demand for certain cargo routes [23]. - The Group anticipates rapid fluctuations in air cargo space costs due to ongoing competition and market uncertainties [37]. - The airfreight rates are expected to rise in the upcoming months, indicating a potential recovery in demand for air cargo services as economies in the USA and Europe recover from the pandemic [105]. Financial Performance - The Group's total revenue increased by approximately 87.0% to approximately HK$332.8 million for the year ended 31 March 2021, compared to approximately HK$178.0 million in the previous year [30]. - Gross profit rose by approximately 156.2% to approximately HK$31.0 million in the year, up from HK$12.1 million in the previous year [30]. - The Group turned around from a net loss of approximately HK$22.8 million in the previous year to a net profit of approximately HK$4.2 million in the year [30]. - Revenue from air freight forwarding and related logistics services amounted to approximately HK$299.9 million, accounting for approximately 90.1% of the Group's total revenue [42]. - The Group's cost of services rose by approximately 82.0% to approximately HK$302.0 million from approximately HK$165.9 million in the previous year, primarily due to increased acquisition costs of air cargo space [44][47]. - Gross profit increased by approximately 154.5% to approximately HK$30.8 million from approximately HK$12.1 million, with gross profit margin improving from 6.8% to 9.3% [45][48]. - The Group recorded a profit from continuing operations of approximately HK$0.5 million, a turnaround from a loss of approximately HK$19.3 million in the previous year [62][67]. - The Group recorded a profit of approximately HK$0.5 million for the year, a turnaround from a loss of approximately HK$19.3 million in the previous year, primarily due to an increase in gross profit of approximately HK$18.7 million and government subsidies of approximately HK$1.0 million [68]. Operational Changes and Strategic Focus - The Group discontinued its operations in warehousing and related value-added services after disposing of its equity interest in Fu Yo Warehouse Logistics Company Limited [29]. - The Group has implemented cost-control and operational efficiency measures to maximize profitability [36]. - The Group resolved not to rent a new warehouse, resulting in a net proceeds amount of HK$10,956,000 allocated for settling commission, deposits, and rental payments [134]. - The Group has resolved to discontinue warehousing and related value-added services, indicating a strategic shift in operations [137]. - The Group decided not to develop its own trucking fleet, which reflects a change in operational strategy [136]. Employee and Management Information - The total employee compensation and benefits cost for the year was approximately HK$23.0 million, an increase from approximately HK$21.1 million in the previous year [112]. - As of March 31, 2021, the Group employed 30 staff members, a reduction from 59 staff members in the previous year [111]. - The management emphasizes the importance of maintaining harmonious relationships with employees, customers, suppliers, and subcontractors [128]. - The Group has provided medical insurance and various training programs for eligible employees during the year [128]. - The management team includes individuals with diverse backgrounds in finance, logistics, and hospitality, enhancing strategic capabilities [141][146][149][152]. Governance and Compliance - The company has a strong focus on corporate governance, with independent directors providing advice on significant decisions and connected transactions [154][161]. - The board includes members with extensive experience in both local and international markets, supporting strategic growth initiatives [146][155]. - The company emphasizes the importance of risk management and corporate governance in its operational strategy [155][161]. - The company has adhered to corporate governance guidelines from April 1, 2020, to March 31, 2021, with a noted deviation from code provision A.2.1 [196]. - The board composition reflects a balance of qualifications, skills, and experience necessary for effective business leadership [199]. Financial Position and Investments - The Group's cash and cash equivalents increased to approximately HK$26.7 million at March 31, 2021, from approximately HK$15.9 million at March 31, 2020 [80]. - The Group had bank borrowings of approximately HK$3.6 million at March 31, 2021, compared to nil at March 31, 2020 [81]. - The gearing ratio decreased to approximately 11.6% at March 31, 2021, from approximately 13.8% at March 31, 2020, due to a decrease in lease liabilities and an increase in total equity [82]. - The Group invested approximately HK$1.6 million in property, plant, and equipment during the year, mainly for leasehold improvements in the Taipei office and right-of-use assets in Shenzhen and Hong Kong [93]. - The Group has not yet utilized HK$9,786,000 of the net proceeds as of 31 March 2021, indicating available funds for future use [137].
万励达(08482) - 2021 - 年度财报