Corporate Information This section provides an overview of the company's board of directors, committees, and essential corporate details Board of Directors This section lists the Board of Directors of Billion Group Holdings Limited, including executive, non-executive, and independent non-executive directors, as well as the company secretary and compliance officer - Executive Directors: Mr. Li Wai Keung (Chairman and Chief Executive Officer), Mr. To Hoi Bun, Ms. Li Kwai Fong1012 - Non-executive Director: Mr. Yu Tsz Yat (appointed on February 1, 2021, and resigned on June 9, 2021)1012 - Independent Non-executive Directors: Mr. Yu Pui Hang, Ms. Chow Chi Ling, Ms. Yam Hung Yin (appointed on February 1, 2021)1012 - Company Secretary and Compliance Officer: Mr. To Hoi Bun1012 Committees This section details the composition of the company's Audit Committee, Remuneration Committee, and Nomination Committee - Audit Committee Chairman: Ms. Chow Chi Ling1112 - Remuneration Committee Chairman: Mr. Yu Pui Hang1112 - Nomination Committee Chairman: Ms. Yam Hung Yin (appointed on February 1, 2021)1112 Company Details This section provides basic information about the company's auditor, registered office, principal place of business in Hong Kong, share registrar, compliance adviser, legal adviser, principal bankers, company website, and stock code - Auditor: Grant Thornton Hong Kong Limited12 - Registered Office: Cayman Islands1314 - Principal Place of Business in Hong Kong: Unit A-C, 3A/F, Merit Industrial Building, 24-32 Kwai Chung Street, Tsuen Wan, Hong Kong1314 - Stock Code: 85451415 Chairman's Statement This report outlines the company's operational environment, challenges, and strategic direction amidst the impact of the COVID-19 pandemic Business Environment and Challenges The Chairman's report highlights a challenging business environment due to the COVID-19 pandemic, severely impacting physical cash flow, with the company strengthening online sales but facing challenges from RMB appreciation, rising raw material and labor costs, and water/power supply restrictions in Guangdong - The COVID-19 pandemic severely damaged the physical retail industry, prompting the company to strengthen online sales to reduce reliance1721 - Cost pressures: RMB appreciation, sharp increases in raw material prices, labor shortages, and rising salaries significantly impacted costs1821 - Supply chain restrictions: Abnormal weather conditions severely affected water and power supply in Guangdong Province, impacting production and shipment speeds1922 Future Strategy Facing a severe operating environment, the company plans to adopt a conservative development approach over the next 1-2 years, focusing on product quality and reducing high-risk investments to maintain stable performance and growth momentum among peers - A conservative development approach will be adopted for the next 1-2 years, continuing to maintain market competitiveness through product quality2022 - High-risk investments will be reduced to maintain relatively stable performance and development compared to peers2022 Management Discussion and Analysis This section reviews the group's business performance, financial results, operational health, use of proceeds, and contingent liabilities for the fiscal year Business Review The Group primarily engages in the design, marketing, distribution, and retail of toys and related products, with ODM toy sales slightly decreasing but remaining the main revenue source in FY2021, while distribution of imported toys saw significant growth and sales of proprietary licensed toys slightly decreased - The Group's principal business involves the design, marketing, distribution, and retail of toys and related products2427 FY2021 Revenue and Profit Margin Changes by Business Segment | Business Segment | 2021 Revenue (HKD) | 2020 Revenue (HKD) | Revenue Change (%) | 2021 Profit Margin (%) | 2020 Profit Margin (%) | Profit Margin Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales of ODM Toys | 134,054,000 | 136,829,000 | -2.0% | 14.9% | 18.1% | -17.7% | | Distribution of Imported Toys and Related Products | 44,297,000 | 36,669,000 | +20.8% | - | - | - | | Sales of Proprietary Licensed Toys and Related Products | 33,116,000 | 33,467,000 | -1.0% | - | - | - | - The decrease in ODM toy profit margin was primarily due to suppliers passing on increased labor and raw material costs to the Group2629 - In the imported toy distribution business, high-end robot collectible figures were a high-growth category3134 Financial Analysis The Group's revenue for FY2021 increased slightly by 2.2%, primarily driven by the imported toy distribution business, but rising cost of sales led to a 10.0% decrease in gross profit, with gross margin falling from 20.4% to 18.0%; administrative expenses increased due to forfeiture of trade deposits from cancelled orders, while finance costs decreased due to lower bank loan interest FY2021 Key Financial Indicators Changes | Indicator | 2021 (HKD) | 2020 (HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 211,467,000 | 206,965,000 | +2.2% | | Cost of Sales | 173,503,000 | 164,783,000 | +5.3% | | Gross Profit | 37,964,000 | 42,182,000 | -10.0% | | Gross Margin | 18.0% | 20.4% | -2.4 percentage points | | Net Other Income | 6,477,000 | 6,254,000 | +3.6% | | Selling Expenses | 5,649,000 | 6,882,000 | -17.9% | | Administrative Expenses | 25,975,000 | 24,515,000 | +6.0% | | Finance Costs | 196,000 | 348,000 | -43.7% | | Income Tax Expense | 3,694,000 | 3,874,000 | -4.6% | - The increase in cost of sales included an inventory write-down of approximately HKD 1,078,0003943 - The decrease in selling expenses was primarily due to the cancellation of local and overseas exhibition activities caused by the COVID-19 pandemic4246 - The increase in administrative expenses was mainly due to the forfeiture of trade deposits of approximately HKD 2,318,000 resulting from cancelled orders with incurred mold costs5054 - The decrease in finance costs was primarily due to reduced interest on bank loans5155 Operational & Financial Health The Group had no definite major investment and capital asset plans for FY2021 but invested in a joint venture for protective product manufacturing; the Group's financial position remains sound with a gearing ratio of 0.02 times, a slight increase in staff headcount, and higher total staff costs, with the Board not recommending a dividend payout - There are no definite major investment and capital asset plans for the future, but the company has invested HKD 3,000,000 in a joint venture (30% stake) to produce protective products596062 Gearing Ratio and Staff Costs | Indicator | As at March 31, 2021 | As at March 31, 2020 | | :--- | :--- | :--- | | Gearing Ratio | 0.02 times | 0.02 times | | Number of Employees | 39 persons | 38 persons | | Total Staff Costs | HKD 14,301,000 | HKD 12,646,000 | - The Group's financial position is good and sound, with sufficient bank balances and cash to meet funding requirements6163 - The Group primarily faces foreign exchange risks from USD, JPY, and RMB, but currently has no foreign currency hedging policy, with management closely monitoring the situation6670 - As of March 31, 2021, buildings with a total carrying amount of approximately HKD 6,246,000 were mortgaged as collateral for bank financing6771 - The Board does not recommend the payment of a dividend for the year ended March 31, 20216973 Use of Proceeds The company fully utilized the net proceeds from its listing, approximately HKD 57.9 million, in FY2021, primarily for expanding its proprietary licensed toy product portfolio, enhancing its overseas distribution network, strengthening human resources, and improving IT systems and warehouse renovation - The net proceeds from the listing, approximately HKD 57,900,000, were fully utilized during the year75 Use of Listing Proceeds | Purpose | Total Planned Amount (HK$'000) | Actual Amount Used as at March 31, 2021 (HK$'000) | | :--- | :--- | :--- | | Expanding proprietary licensed toy and related product portfolio | 46,200 | 46,200 | | Enhancing overseas distribution network | 3,600 | 3,600 | | Further strengthening human resources | 6,000 | 6,000 | | Further improving IT systems and warehouse renovation | 2,100 | 2,100 | | Total | 57,900 | 57,900 | Contingent Liabilities As of March 31, 2021, the Group had no significant contingent liabilities - As at March 31, 2021, the Group had no significant contingent liabilities (2020: nil)7778 Directors and Senior Management Profile This section provides biographical details, responsibilities, and professional experience of the company's executive, non-executive, and independent non-executive directors, as well as senior management Executive Directors This section introduces the backgrounds, responsibilities, and industry experience of Mr. Li Wai Keung (Chairman and Chief Executive Officer), Mr. To Hoi Bun (Executive Director and Company Secretary), and Ms. Li Kwai Fong (Executive Director and General Manager) - Mr. Li Wai Keung (41 years old): Founder of the Group, Chairman and Chief Executive Officer, responsible for overall business development, financial and strategic planning, with over 15 years of experience in the ACG toy industry8083 - Mr. To Hoi Bun (47 years old): Executive Director and Company Secretary, responsible for financial reporting, planning, treasury, and financial management, with over 20 years of experience in accounting and financial management828486 - Ms. Li Kwai Fong (35 years old): Executive Director and General Manager, primarily responsible for managing the Group's general operations87 Non-executive Director This section introduces the background of Mr. Yu Tsz Yat, who was appointed as a Non-executive Director on February 1, 2021, and resigned on June 9, 2021 - Mr. Yu Tsz Yat (27 years old): Appointed as a Non-executive Director on February 1, 2021, and resigned on June 9, 20218993 Independent Non-executive Directors This section introduces the backgrounds, professional qualifications, and roles in company committees of Mr. Yu Pui Hang, Ms. Chow Chi Ling, and Ms. Yam Hung Yin - Mr. Yu Pui Hang (41 years old): Independent Non-executive Director, Chairman of the Remuneration Committee, and member of the Audit Committee and Corporate Governance Committee, with a legal background959699 - Ms. Chow Chi Ling (38 years old): Independent Non-executive Director, with over 15 years of experience in auditing and financial management, and a practicing accountant of the Hong Kong Institute of Certified Public Accountants101103 - Ms. Yam Hung Yin (53 years old): Appointed as an Independent Non-executive Director on February 1, 2021, with over 10 years of experience in real estate investment development and finance107108112 Company Secretary This section introduces Mr. To Hoi Bun as the Company Secretary, who received professional training during the year - Mr. To Hoi Bun: Financial Controller and Company Secretary, received no less than 15 hours of professional training during the year ended March 31, 2021114117 Senior Management This section introduces the background and responsibilities of Ms. Fu Man Yin, who serves as Marketing Manager, overseeing the Group's sales and marketing activities - Ms. Fu Man Yin (35 years old): Marketing Manager, primarily responsible for overseeing the Group's sales and marketing activities115118 Corporate Governance Report This report details the company's corporate governance framework, board and committee structures, risk management, internal controls, and shareholder relations Corporate Governance Framework The company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules, though the roles of Chairman and Chief Executive Officer are held by the same person, deviating from code provision A.2.1, and the company has adopted a board diversity policy - The company has complied with all applicable Corporate Governance Code provisions, except for a deviation from code provision A.2.1 (where the roles of Chairman and Chief Executive Officer are held by the same person)121122135138 - A Board Diversity Policy has been adopted, considering factors such as gender, age, cultural and educational background, ethnicity, professional experience, skills, knowledge, and length of service124 Board of Directors and Committees The Board of Directors comprises three executive directors and three independent non-executive directors, with independent non-executive directors accounting for 50% of the Board members; the Board holds regular meetings and has established an Audit Committee, Remuneration Committee, and Nomination Committee to assist in fulfilling its responsibilities - The Board consists of three executive directors and three independent non-executive directors, with independent non-executive directors comprising 50% of the total Board members133137 - All directors participated in continuing professional development training to develop and update their knowledge and skills136139141 - Four Board meetings were held during the year, and directors had access to independent professional advice149152 Audit Committee The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing the company's financial information, overseeing the Group's financial reporting system, risk management, and internal control systems, and making recommendations on the appointment of external auditors, having held one meeting during the year - The Audit Committee comprises Ms. Chow Chi Ling (Chairman), Mr. Yu Pui Hang, and Ms. Yam Hung Yin (all independent non-executive directors)158160 - Its primary responsibilities include reviewing financial information, overseeing financial reporting, risk management, and internal control systems, and making recommendations on the appointment of external auditors157160 - One meeting was held during the year to review and approve the annual financial results for the year ended March 31, 2021159160 Remuneration Committee The Remuneration Committee, composed of three independent non-executive directors, is primarily responsible for advising the Board on the overall remuneration policy and structure for all directors and senior management of the Group, and for reviewing performance-based remuneration, having held one meeting during the year - The Remuneration Committee comprises Mr. Yu Pui Hang (Chairman), Ms. Chow Chi Ling, and Ms. Yam Hung Yin (all independent non-executive directors)162165 - Its primary responsibilities are to make recommendations to the Board on the overall remuneration policy and structure for directors and senior management, and to review performance-based remuneration163165 - One meeting was held during the year165166 Nomination Committee The Nomination Committee, composed of three independent non-executive directors, is primarily responsible for reviewing the Board's structure, size, composition, and diversity at least annually, identifying suitable candidates for Board membership, and assessing the independence of independent non-executive directors, having held one meeting during the year - The Nomination Committee comprises Ms. Yam Hung Yin (Chairman), Mr. Yu Pui Hang, and Ms. Chow Chi Ling (all independent non-executive directors)168171 - Its primary responsibilities include reviewing the Board's structure, size, composition, and diversity at least annually, identifying qualified members, and assessing the independence of independent non-executive directors169170 - One meeting was held during the year171172 Risk Management and Internal Control The Board is directly responsible for the Group's internal control and risk management systems, and engages external independent professional consultants for annual reviews to ensure their effectiveness and adequacy, with the Board deeming the Group's resources, staff qualifications, and training programs to be sufficient - The Board is directly responsible for establishing, maintaining, and reviewing the Group's internal control and risk management systems and their effectiveness174178 - The company has engaged external independent professional consultants to review the effectiveness and adequacy of its risk management and internal control systems174178 - The Board considers the Group's risk management and internal control systems to be adequate and effective for the current year175179 - The resources, qualifications, experience of staff, and training programs and budgets for the accounting and financial reporting functions are all considered adequate175179 Shareholder and Investor Relations The company is committed to maintaining a highly transparent investor communication policy, regularly publishing financial information, and ensuring fair and equitable treatment for all shareholders; the Annual General Meeting will provide a direct communication opportunity between the Board and shareholders, with voting conducted by poll - The company is committed to maintaining high transparency, regularly holding briefings and meetings with institutional investors and analysts186192 - Financial information and all shareholder corporate communications are available on the company's website and are updated promptly and regularly187193 - The Board and management ensure shareholder rights and that all shareholders are treated fairly and equitably188193 - The Annual General Meeting will provide a direct communication opportunity between the Board and shareholders, with voting conducted by poll189194195 - Any shareholder holding 10% or more of the share capital has the right to request the Board to convene an extraordinary general meeting in writing197200 - Shareholders should submit inquiries in writing (including email, fax, and mail) and provide sufficient contact details198201 Corporate Governance Functions The Board is responsible for performing various corporate governance functions, including formulating and reviewing corporate governance policies, overseeing director and senior management training, monitoring compliance with legal and regulatory requirements, establishing codes of conduct and compliance manuals, and reviewing corporate governance report disclosures - Formulating and reviewing the company's policies and practices on corporate governance206 - Reviewing and monitoring the training and continuous professional development of directors and senior management206 - Reviewing and monitoring the company's compliance policies and practices with legal and regulatory requirements206 - Establishing, reviewing, and monitoring codes of conduct and compliance manuals applicable to employees and directors206 - Reviewing the company's compliance with the Corporate Governance Code and the disclosures in the Corporate Governance Report206 Report of the Directors This report covers general corporate information, financial performance, shareholder and director details, corporate governance, ESG initiatives, and auditor information General Information The report confirms the company was incorporated in the Cayman Islands on November 16, 2016, with its principal business being investment holding and its main subsidiaries engaged in the design, marketing, distribution, and retail of toys and related products; there were no significant changes in the nature of business during the year, and the Group complied with relevant laws and regulations - The company was incorporated as a limited liability company in the Cayman Islands on November 16, 2016208214 - The company's principal business is investment holding, with its major subsidiaries primarily engaged in the design, marketing, distribution, and retail of toys and related products209215 - There were no significant changes in the nature of the Group's principal business during the year209215 - To the best of the Board's knowledge, during the year, the Group had no material breaches or non-compliance with applicable laws and regulations that would have a significant impact on the Group's business and operations211217 Financial Performance and Position The report mentions the Group's FY2021 results are disclosed in the consolidated financial statements, with the Board not recommending a dividend payout; it also provides details on changes in property, plant, and equipment, and notes the company's distributable reserves are approximately HKD 138,000 - The Group's results for the year are presented in the consolidated financial statements, and the directors do not recommend the payment of a dividend (2020: nil)212218 - Details of changes in the Group's property, plant, and equipment are set out in note 11 to the consolidated financial statements221227 - As at March 31, 2021, the company's distributable reserves were approximately HKD 138,000 (2020: approximately HKD 240,000)224230 - Details of the Group's bank borrowings are set out in note 21 to the consolidated financial statements226232 Shareholder and Director Information The report discloses key customer and supplier information, confirms no pre-emptive rights, and maintains sufficient public float; it details Board members, confirms the independence of independent non-executive directors, and outlines director service contracts and remuneration policies, also disclosing directors' and substantial shareholders' interests and short positions, and the absence of competing businesses and compliance adviser interests - For the year ended March 31, 2021, the Group's top five customers and largest customer accounted for approximately 74.8% and 63.9% of total revenue, respectively234237 - Purchases from the Group's top five suppliers accounted for approximately 63.4% of the Group's total purchases for the fiscal year, including approximately 17.9% from the largest supplier234237 - There are no pre-emptive rights under the company's articles of association or Cayman Islands law235238 - The company has maintained the percentage of public float as required by the GEM Listing Rules236239 - Each executive director has entered into a service agreement with the company for an initial term of three years with automatic renewal; non-executive directors have a fixed term of two years245246249250 - The company has received confirmation of independence from each independent non-executive director and considers all independent non-executive directors to be independent253257 - Remuneration for executive directors, independent non-executive directors, and senior management is received in the form of director's fees, salaries, benefits in kind, and/or discretionary bonuses, with reference to comparable companies, time commitment, and Group performance264269 Directors' and Chief Executive's Interests in the Company's Shares | Director Name | Nature of Interest/Capacity | Number of Ordinary Shares Held | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | Mr. Li Wai Keung | Interest in controlled corporation | 425,000,000 (L) | 42.50% | Substantial Shareholders' Interests in the Company's Shares | Shareholder Name/Name | Nature of Interest/Capacity | Number of Ordinary Shares Held | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | Infinite Force Holdings Ltd | Beneficial owner | 425,000,000 (L) | 42.50% | | Ms. Fong Wing Yan | Spouse's interest | 425,000,000 (L) | 42.50% | - No director holds any interest in any business that competes or may compete, directly or indirectly, with the Group's business283287 - The controlling shareholder has confirmed to the company its compliance with the terms and undertakings of the non-competition deed292295 Corporate Governance and ESG The report reiterates the company's commitment to maintaining good corporate governance and compliance with the GEM Listing Rules' code provisions, and the Group's dedication to promoting long-term sustainable development for employees, environmental protection, and corporate social responsibility - The company and its management are committed to maintaining good corporate governance and have applied and complied with the code provisions set out in the Corporate Governance Report in Appendix 15 of the GEM Listing Rules293296 - The Group is committed to continuously promoting the long-term, stable, and sustainable development of employees, environmental protection, and social responsibility294297 Auditor Information The Audit Committee has reviewed the Group's consolidated financial statements and discussed audit, internal control, and financial reporting matters; Grant Thornton Hong Kong Limited has audited the consolidated financial statements, and a resolution for their re-appointment will be proposed - The Audit Committee has reviewed the Group's consolidated financial statements, adopted accounting principles and practices with management, and discussed audit, internal control, and financial reporting matters300302 - The consolidated financial statements have been audited by Grant Thornton Hong Kong Limited, and a resolution for their re-appointment will be proposed for shareholders' approval at the upcoming Annual General Meeting301303 Independent Auditor's Report This report presents the auditor's opinion on the consolidated financial statements, highlights key audit matters, and clarifies responsibilities Auditor's Opinion The auditor issued an unmodified opinion on the consolidated financial statements of Billion Group Holdings Limited for the year ended March 31, 2021, deeming them to present a true and fair view of the Group's financial position, financial performance, and cash flows in accordance with Hong Kong Financial Reporting Standards - The auditor issued an unmodified opinion on the consolidated financial statements307308 - The consolidated financial statements present a true and fair view of the Group's financial position, financial performance, and cash flows in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance307308 Key Audit Matters The report identifies revenue recognition timing and the impairment assessment of trade receivables and bills receivable as key audit matters, as these involve significant management judgment and potential risks of misstatement - Revenue recognition timing was identified as a key audit matter because various sales contracts may contain different terms and conditions that increase the risk of error, and revenue is a key performance indicator for the Group, potentially subject to manipulation to achieve desired targets317318319323 - The impairment assessment of trade receivables and bills receivable was identified as a key audit matter due to the significant level of management judgment involved in determining the provision for lifetime expected credit losses and the materiality of trade receivables and bills receivable in the consolidated financial statements331334335 Responsibilities The report clarifies that the Board is responsible for the preparation of financial statements and internal controls, while the auditor is responsible for forming an independent audit opinion and communicating the audit scope, timing, and significant findings to the Audit Committee - Directors are responsible for preparing consolidated financial statements that give a true and fair view in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance, and for internal controls342345 - The auditor's objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes an opinion348350 - The auditor communicates with the Audit Committee regarding the planned scope and timing of the audit, significant audit findings, including any significant deficiencies in internal control352355 Consolidated Financial Statements This section presents the group's consolidated financial statements, including the statement of profit or loss, comprehensive income, financial position, changes in equity, cash flows, and detailed notes Consolidated Statement of Profit or Loss The Group's revenue for FY2021 increased by 2.2% to HKD 211.47 million, but rising cost of sales led to a 10.0% decrease in gross profit; operating profit slightly increased by 7.7% to HKD 12.57 million, and profit for the year grew by 16.5% to HKD 8.68 million Key Data from Consolidated Statement of Profit or Loss | Indicator | 2021 (HK$'000) | 2020 (HK$'000) | | :--- | :--- | :--- | | Revenue | 211,467 | 206,965 | | Cost of Sales | (173,503) | (164,783) | | Gross Profit | 37,964 | 42,182 | | Operating Profit | 12,567 | 11,672 | | Profit Before Tax | 12,371 | 11,324 | | Profit for the Year | 8,677 | 7,450 | | Basic and Diluted EPS (cents) | 0.87 | 0.75 | Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's profit for the year in FY2021 was HKD 8.68 million, with zero other comprehensive income for the year, resulting in total comprehensive income for the year being the same as the profit for the year Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2021 (HK$'000) | 2020 (HK$'000) | | :--- | :--- | :--- | | Profit for the Year | 8,677 | 7,450 | | Other Comprehensive Income for the Year | – | (26) | | Total Comprehensive Income for the Year | 8,677 | 7,424 | Consolidated Statement of Financial Position As of March 31, 2021, the Group's total assets less current liabilities were HKD 180 million, and net assets were HKD 179 million; non-current assets significantly increased, primarily due to the addition of investment properties, while net current assets decreased, mainly due to a reduction in bank deposits and cash Key Data from Consolidated Statement of Financial Position | Indicator | 2021 (HK$'000) | 2020 (HK$'000) | | :--- | :--- | :--- | | Non-current Assets | 56,196 | 27,627 | | Current Assets | 165,174 | 177,331 | | Current Liabilities | 41,363 | 31,223 | | Non-current Liabilities | 1,136 | 3,541 | | Net Assets | 178,871 | 170,194 | | Total Equity | 178,871 | 170,194 | - Investment properties increased from nil in 2020 to HKD 32,000,000 in 2021367 - Bank deposits and cash decreased from HKD 115,102,000 in 2020 to HKD 86,961,000 in 2021367 Consolidated Statement of Changes in Equity As of March 31, 2021, the Group's total equity was HKD 179 million, representing a 5.1% increase from the previous year; profit for the year of HKD 8.68 million was fully allocated to retained earnings, while share capital and share premium remained unchanged Key Data from Consolidated Statement of Changes in Equity | Indicator | 2021 (HK$'000) | 2020 (HK$'000) | | :--- | :--- | :--- | | Share Capital | 10,000 | 10,000 | | Share Premium | 66,991 | 66,991 | | Retained Earnings | 101,751 | 93,074 | | Total Equity | 178,871 | 170,194 | - Profit for the year of HKD 8,677,000 was fully credited to retained earnings373 Consolidated Statement of Cash Flows The Group's net cash from operating activities for FY2021 was HKD 14.82 million, net cash used in investing activities was HKD 44.28 million, and net cash used in financing activities was HKD 3.60 million, resulting in a net decrease in cash and cash equivalents of HKD 33.06 million Key Data from Consolidated Statement of Cash Flows | Activity Type | 2021 (HK$'000) | 2020 (HK$'000) | | :--- | :--- | :--- | | Net cash from operating activities | 14,817 | 8,289 | | Net cash used in investing activities | (44,277) | 9,193 | | Net cash used in financing activities | (3,599) | (5,892) | | Net (decrease)/increase in cash and cash equivalents | (33,059) | 11,590 | | Cash and cash equivalents at end of period | 72,043 | 105,102 | - Cash outflow from investing activities primarily included the acquisition of investment properties for HKD 31,698,000 and capital injection into a joint venture for HKD 3,006,000378 Notes to the Consolidated Financial Statements The financial statement notes provide detailed explanations of the Group's accounting policies, including the adoption of newly revised Hong Kong Financial Reporting Standards, key sources of estimation uncertainty, revenue and segment reporting, other income, directors' emoluments, earnings per share, investment properties, investments in subsidiaries, interests in joint ventures, inventories, receivables, financial assets, bank deposits, payables, contract liabilities, bank borrowings, lease liabilities, income tax, capital and reserves, financial risk management, capital commitments, and related party transactions - The Group has initially applied certain new and amended Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, including the amendment to HKFRS 16 "COVID-19-Related Rent Concessions"394400 - Key sources of estimation uncertainty include the estimated useful lives of property, plant and equipment, impairment of trade and other receivables, and fair value estimation of investment properties622623626 - Revenue primarily derives from the sale of ODM toys, distribution of imported toys and related products, and sale of proprietary licensed toys and related products, with revenue recognized when products are delivered to and accepted by customers580584586 Net Other Income | Item | 2021 (HK$'000) | 2020 (HK$'000) | | :--- | :--- | :--- | | Bank interest income | 559 | 1,313 | | Compensation income | 1,138 | 1,113 | | COVID-19-related rent concessions received | 219 | – | | Net exchange gain | 795 | 605 | | Government grants | 1,980 | – | | Management fee income | 1,364 | 1,838 | | Rental income | 16 | 114 | | Total | 6,477 | 6,254 | - Government grants of HKD 1,980,000 were recognized in FY2021, with HKD 1,660,000 related to the "Employment Support Scheme" and HKD 320,000 related to the Retail Sector Subsidy Scheme652 Total Directors' Emoluments | Year | Total Directors' Emoluments (HK$'000) | | :--- | :--- | | 2021 | 6,791 | | 2020 | 4,969 | - Basic and diluted earnings per share are calculated based on profit for the year of HKD 8,677,000 and 1,000,000,000 ordinary shares, amounting to 0.87 cents672 - As at March 31, 2021, the carrying amount of investment properties was HKD 32,000,000 (2020: nil)626114 - The Group's investment cost in Grand Amuse Development Limited, a private company incorporated in Hong Kong, was HKD 3,006,000 for a 30% stake, primarily engaged in the manufacturing and sale of protective products5962708710714 - Inventories are measured at the lower of cost and net realizable value, with an inventory write-down of HKD 1,078,000 in FY2021548717 Net Trade and Bills Receivables | Indicator | 2021 (HK$'000) | 2020 (HK$'000) | | :--- | :--- | :--- | | Gross trade and bills receivables | 10,480 | 7,604 | | Less: Provision for expected credit losses | (4) | (186) | | Net | 10,476 | 7,418 | - The credit risk of trade receivables is primarily influenced by the individual characteristics of each customer, rather than by industry or country802806 - As at March 31, 2021, 94% of the total trade receivables were from the Group's largest customer, and 95% were from the top five customers802806 Bank Deposits and Cash | Item | 2021 (HK$'000) | 2020 (HK$'000) | | :--- | :--- | :--- | | Bank and cash on hand | 54,715 | 60,235 | | Bank deposits with original maturity within three months | 17,328 | 44,867 | | Bank deposits with original maturity over three months | 14,918 | 10,000 | | Total | 86,961 | 115,102 | Trade and Other Payables | Item | 2021 (HK$'000) | 2020 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 4,186 | 3,653 | | Other payables and accrued expenses | 5,131 | 3,185 | | Total | 9,317 | 6,838 | - Contract liabilities primarily arise from customer deposits paid before goods delivery, increasing to HKD 24,002,000 in 2021, mainly due to receiving more manufacturing orders748749750 - Bank borrowings are primarily calculated at floating interest rates ranging from 1.41% to 2.83% per annum (2020: 2.55% to 4.00%)753754 - As at March 31, 2021, there were no contracted but unprovided capital commitments for capital injection into a joint venture (2020: HKD 3,000,000)867 - Key related party transactions include key management personnel compensation and amounts due to directors, with these balances being unsecured, interest-free, and repayable on demand869872 - As at March 31, 2021, the company's immediate parent company was Infinite Force Holdings Limited, and the ultimate controlling party was Mr. Li Wai Keung878880 Particulars of Properties This section provides a detailed schedule of the group's properties, including their locations, ownership interests, floor areas, and current uses Group Properties This section lists the details of the Group's principal properties held as of March 31, 2021, including director's quarters, warehouses, and investment properties, along with their locations, percentage of interest held by the Group, floor area, and current use Principal Properties Held by the Group | Property | Location | Group Interest (%) | Floor Area (sq ft) | Use | | :--- | :--- | :--- | :--- | :--- | | Director's quarter | Unit C, 59/F, Tower 2, The Cairn, 18 Yeung Uk Road, Tsuen Wan, New Territories, Hong Kong | 100% | 744 | Director's quarter | | Warehouse | Workshop 1, 14/F, Wang Lung Industrial Building, 11 Lung Tak Street, Tsuen Wan, New Territories, Hong Kong | 100% | 1,759 | Warehouse | | Investment properties | Workshops 1, 2, 3, 4 on 28/F; and Car Park No. 7 on 1/F, On Tai International Centre, 120 Texaco Road, Tsuen Wan, New Territories, Hong Kong | 100% | 6,808 | Investment properties | Financial Summary This section offers a five-year financial overview, summarizing key performance indicators, assets, and liabilities for the group Five-Year Financial Highlights This section provides a summary of Billion Group's financial results, assets, and liabilities for the past five fiscal years (2017-2021), including key financial indicators such as revenue, gross profit, profit before tax, profit for the year, earnings per share, non-current assets, current assets, current liabilities, non-current liabilities, and net assets Five-Year Financial Summary | Indicator | 2021 (HK$'000) | 2020 (HK$'000) | 2019 (HK$'000) | 2018 (HK$'000) | 2017 (HK$'000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 211,467 | 206,965 | 182,583 | 132,025 | 136,888 | | Cost of Sales | (173,503) | (164,783) | (137,423) | (95,733) | (96,766) | | Gross Profit | 37,964 | 42,182 | 45,160 | 36,292 | 40,122 | | Operating Expenses | (25,593) | (30,858) | (24,661) | (15,522) | (24,383) | | Profit Before Tax | 12,371 | 11,324 | 20,499 | 20,770 | 15,739 | | Income Tax Expense | (3,694) | (3,874) | (5,378) | (3,860) | (4,467) | | Profit for the Year | 8,677 | 7,450 | 15,121 | 16,910 | 11,272 | | Basic and Diluted EPS (cents) | 0.87 | 0.75 | 1.58 | 2.25 | 1.50 | | Non-current Assets | 56,196 | 27,627 | 26,857 | 25,408 | 22,968 | | Current Assets | 165,174 | 177,331 | 162,892 | 66,885 | 64,679 | | Current Liabilities | 41,363 | 31,223 | 26,208 | 20,891 | 27,272 | | Total Assets Less Current Liabilities | 180,007 | 173,735 | 163,541 | 71,402 | 60,375 | | Non-current Liabilities | 1,136 | 3,541 | 771 | 770 | 653 | | Net Assets | 178,871 | 170,194 | 162,770 | 70,632 | 59,722 | | Share Capital | 10,000 | 10,000 | 10,000 | – | – | | Reserves | 168,871 | 160,194 | 152,770 | 70,632 | 59,722 | | Total Equity | 178,871 | 170,194 | 162,770 | 70,632 | 59,722 |
佰悦集团(08545) - 2021 - 年度财报