Financial Performance - For the fiscal year ending March 31, 2021, the company reported revenue of approximately HKD 40.0 million, a decrease of 27.2% compared to the previous year[11]. - The company recorded a loss attributable to shareholders of approximately HKD 3.3 million due to operational disruptions caused by the global pandemic[11]. - The group's revenue for the year ended March 31, 2021, was approximately HKD 40.0 million, a decrease of 27.2% from HKD 54.9 million for the year ended March 31, 2020[18]. - Revenue from precision 3D inspection solutions decreased from HKD 54.9 million to HKD 40.0 million, primarily due to a reduction in sales of HKD 14.9 million[19]. - Gross profit decreased from HKD 31.1 million to HKD 16.4 million, representing a decline of 47.4%, with the gross margin dropping from 56.7% to 41.0%[21]. - The net loss for the year ended March 31, 2021, was HKD 3.3 million, a decrease of 206.4% from a net profit of HKD 3.1 million for the year ended March 31, 2020[27]. - The group's net current assets as of March 31, 2021, were approximately HKD 50.0 million, down from HKD 57.6 million as of March 31, 2020[29]. - The group had cash and cash equivalents of approximately HKD 2.7 million as of March 31, 2021, compared to HKD 13.1 million as of March 31, 2020[30]. - The net debt-to-equity ratio as of March 31, 2021, was 8%, compared to zero as of March 31, 2020[28]. Business Operations and Strategy - The company successfully secured 18 new projects during the year and completed 12 new projects along with 14 ongoing projects from previous years[15]. - As of March 31, 2021, the company had 7 ongoing projects, all related to precision 3D scanning solutions[15]. - The company aims to continue expanding its market presence and developing advanced new products and technologies to enhance its solution offerings and reduce project costs[12]. - The company is optimistic about the future of the smart manufacturing solutions industry in China despite potential economic downturns[12]. - The company plans to improve operational efficiency across its business units to enhance profitability and core competitiveness[12]. - The company will actively seek potential business opportunities to create more value for shareholders[12]. - The group plans to expand its business and increase market share while investing in research and development to enhance its core technology[16]. - The group will continue to monitor the impact of the ongoing pandemic on its business performance and adapt accordingly[16]. - The group is increasing its sales and marketing efforts, expanding its sales team and coverage areas to secure new contracts and maintain business activity levels[44]. Research and Development - The company holds a total of 16 registered patents, including 6 invention patents and 10 utility model patents, with an additional 8 invention patents in the registration phase[15]. - The group has established its own R&D center and has acquired necessary equipment and software, resulting in the addition of 6 invention patents and 3 utility model patents since its listing, with 9 invention patents and 8 utility model patents currently in the registration stage[42]. - The group plans to enhance its R&D efforts and recruit more talented technical personnel to maintain its technological leadership[44]. - The company is investing in R&D, with a budget allocation of $EE million, focusing on innovative technologies and product enhancements[62]. Corporate Governance - The management team emphasized the importance of corporate governance, adhering to GEM listing rules to ensure transparency and accountability[71]. - The company has maintained compliance with trading standards, confirming that all directors adhered to the required trading regulations during the fiscal year[76]. - The board of directors is set for re-election, with all members eligible for another term, ensuring continuity in leadership[74]. - The board of directors held 5 meetings in the fiscal year ending March 31, 2021, with full attendance from executive directors[83]. - The audit committee conducted 4 meetings during the same period, focusing on financial reporting and risk management[89]. - The remuneration committee held 1 meeting to review the compensation policies for directors and senior management[92]. - The nomination committee also convened 1 meeting to assess the board's structure and diversity[96]. - The audit committee is composed of three independent non-executive directors, ensuring oversight of financial integrity[88]. - The remuneration committee's recommendations are based on directors' responsibilities and performance metrics[91]. - The nomination committee evaluates candidates based on reputation, experience, and ability to contribute to the board[98]. - The board has adopted a nomination policy to ensure a structured approach to selecting suitable candidates[97]. - The company has established specific committees to enhance governance and oversight of key operational areas[84]. - The board is committed to maintaining effective governance practices and ensuring alignment with shareholder interests[82]. Compliance and Risk Management - The company has implemented a risk management policy to address various identified risks, including operational and credit risks[115]. - The company has not experienced any non-compliance issues that would significantly impact its business or the ability of directors and senior management to operate compliantly during the year[115]. - The compliance advisor has been appointed in accordance with GEM Listing Rules since April 20, 2018, with a term that can be extended by mutual agreement[105]. - The company has established an internal control system deemed sufficient and effective for its operations as of March 31, 2021[117]. - The company has appointed RaffAello Capital Limited as a compliance advisor to ensure adherence to GEM listing rules[119]. Employee Relations and Compensation - The group had a total of 25 employees, consistent with the previous year[137]. - The group contributed HKD 103,000 to the retirement benefits plan for the year ended March 31, 2021, a decrease of 75.5% from HKD 419,000 in 2020[137]. - The company has adopted a stock option plan to incentivize employees, details of which are available in the annual report[138]. - The company has established long-term employment contracts of four years or more with all senior management to ensure stability[137]. - The company has implemented performance reviews to assess annual bonuses, salary adjustments, and promotions for employees[138]. Shareholder Information - The available distributable reserves for shareholders as of March 31, 2021, amounted to HKD 35,976,007[144]. - The company has no plans for share buybacks or securities repurchases during the year ended March 31, 2021[159]. - The company has a shareholding structure where Mr. Ng holds 293,940,000 shares, representing 73.49% of the issued shares[169]. - The company has adopted a share option scheme with a limit of 10% of the total issued shares, equating to 40,000,000 shares[178]. - The board of directors will consider various factors, including financial performance and future expansion plans, when proposing dividends[167]. - The company’s dividend policy is subject to the board's discretion and compliance with applicable laws and regulations[167]. Legal and Regulatory Matters - The company has not encountered any significant legal violations or regulatory issues affecting its business as of March 31, 2021[133]. - The company confirmed compliance with the non-competition agreement by its controlling shareholders as of March 31, 2021[184]. - The company has maintained appropriate insurance arrangements for its directors and senior management against legal claims arising from corporate activities[186]. - The company has not engaged in any competitive business activities that could conflict with its operations as of March 31, 2021[183]. - No related party transactions or continuing connected transactions were conducted during the fiscal year ending March 31, 2021[188]. Customer and Supplier Relations - Approximately 70.0% of total revenue for the year ended March 31, 2021, came from the top five customers, with the largest customer accounting for about 21.0%[157]. - The group’s procurement from the top five suppliers accounted for approximately 50.0% of total procurement, with the largest supplier representing about 21.1%[157]. - The company has maintained good relationships with suppliers, with no complaints or debt disputes reported as of March 31, 2021[136]. - There were no significant disputes with employees, customers, or suppliers as of March 31, 2021, ensuring smooth business operations[136]. Environmental and Social Responsibility - The company is committed to environmental protection and compliance with relevant laws and regulations[132]. - The company has a shareholder communication policy in place to enhance engagement with shareholders and investors[121].
民富国际(08511) - 2021 - 年度财报