Financial Performance - Revenue from sales of ODM toys increased by approximately 32.7% to approximately HK$136,829,000 for the year ended 31 March 2020, compared to approximately HK$103,088,000 in the prior year[21]. - Revenue from the distribution of imported toys and related products decreased significantly by approximately 32.5% to HK$36,669,000 for the year, down from approximately HK$54,319,000 in the prior year[22]. - Revenue from sales of own licensed toys and related products increased by approximately 32.9% to HK$33,467,000 for the year, compared to approximately HK$25,176,000 in the prior year[23]. - Overall revenue increased by approximately 13.4% to approximately HK$206,965,000 for the year from approximately HK$182,583,000 in the prior year[30]. - Cost of sales increased by approximately 19.9% to approximately HK$164,783,000 for the year from approximately HK$137,423,000 in the prior year[31]. - Gross profit decreased by approximately 6.6% to approximately HK$42,182,000 for the year, with the gross profit margin decreasing to approximately 20.4% from approximately 24.7% in the prior year[32]. - Other net income increased by approximately 90.8% to approximately HK$6,254,000 for the year from approximately HK$3,278,000 in the prior year[33]. - Selling expenses increased by approximately 29.7% from approximately HK$5,306,000 in the prior year to approximately HK$6,882,000 for the year[39]. - Administrative expenses increased by approximately 45.1% from approximately HK$19,974,000 in the prior year to approximately HK$28,978,000 for the year[41]. - Finance costs increased by approximately 102.3% to approximately HK$348,000 for the year from approximately HK$172,000 in the prior year[42]. Impact of COVID-19 - The previous year was the most challenging for the Group due to the Sino-US trade war, social movements, and the COVID-19 outbreak[16]. - The Group's business and economic activities have been affected to a certain extent due to the COVID-19 outbreak, with further changes in economic conditions potentially impacting financial results[76]. - The overall financial effect of the COVID-19 outbreak cannot be reliably estimated as of the date of the consolidated financial statements[76]. - The Group will continue to monitor the development of the COVID-19 outbreak and evaluate its impact on financial position and operating results[76]. - The Group's strategy focuses on diversifying its business and broadening income sources, particularly in response to the increased demand for medical face masks due to the COVID-19 outbreak[51]. Corporate Governance - The Company is committed to maintaining high standards of corporate governance, believing that this will benefit shareholders in the long term[113]. - The Company has complied with all applicable code provisions of the Corporate Governance Code during the year[113]. - The Company has independent non-executive directors responsible for providing independent judgment on strategy, performance, resources, and conduct standards[99]. - The Company has appointed Independent Non-executive Directors (INEDs) with professional accounting qualifications and financial management experience to enhance the Board's collective knowledge and skills[116]. - The Company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to assist in fulfilling its duties[134]. - The Board consists of three executive Directors and three INEDs, with INEDs accounting for 50% of the Board[120]. - The Company has complied with the Corporate Governance Code, except for a deviation from code provision A.2.1, where the roles of Chairman and Chief Executive Officer are held by the same individual[127]. - The Board is responsible for monitoring the financial performance, risk management, and internal controls of the Group[118]. - The Company has engaged an external independent professional advisory firm to review the effectiveness and adequacy of risk management and internal control systems in Year 2020[164]. - The Company has established a risk management and internal control system as outlined in the corporate governance code section[200]. Employee and Talent Management - The Group plans to recruit more suitable talents to attract individuals interested in toys, aiming for further growth[18]. - As of March 31, 2020, the Group had 38 employees, with total staff costs amounting to approximately HK$13.8 million, an increase from approximately HK$12.8 million in 2019[61]. Investment and Future Plans - The Group plans to invest HK$10 million in a joint venture for manufacturing medical face masks and protective products, with Amuse Luck contributing HK$3 million and Grand View covering approximately HK$7 million for production equipment and renovations[53]. - The joint venture established with Grand View Protective Products Limited will primarily engage in the manufacturing and sale of protective products in Hong Kong and the PRC markets[52]. Shareholder Communication - The Company maintains a high level of transparency in communicating with Shareholders and the investment community, conducting regular briefings and meetings[174]. - Financial information and shareholder communications are regularly updated on the Company's website[175]. - The Company will announce its quarterly, interim, and annual results in a timely manner, well before the deadlines set by the GEM Listing Rules[176]. - The Company regards the annual general meeting as an important event, with all Directors and external auditors expected to attend[182]. - Shareholders holding 10% or more of the Company's total issued share capital can request an extraordinary general meeting within 21 days[184]. - The Company will conduct voting at the annual general meeting by poll, with results announced on the Stock Exchange's website[182]. Financial Position - The Group's gearing ratio decreased to approximately 0.02 times as of March 31, 2020, down from 0.04 times as of March 31, 2019, indicating a stronger financial position due to increased reserves[58]. - The Group has no significant contingent liabilities as of March 31, 2020, maintaining a stable financial outlook[72]. - The net proceeds from the listing of shares on GEM amounted to approximately HK$57.9 million, with HK$34.2 million utilized and HK$23.7 million remaining unutilized as of March 31, 2020[69]. - The Group's building, with a carrying value of HK$6.4 million, was mortgaged to secure banking facilities as of March 31, 2020[60]. Audit and Risk Management - The Audit Committee, consisting of three independent non-executive directors, reviewed the audited consolidated results for the year ended March 31, 2020[148]. - The Audit Committee met at least four times during the financial year to discuss financial reporting and risk management[149]. - The Board considers the risk management and internal control systems of the Group to be adequate and effective for the year[165]. - The Company has arranged appropriate director and officer liability insurance to cover potential legal actions against its directors[138].
佰悦集团(08545) - 2020 - 年度财报