Financial Performance - For the fiscal year 2018, Kinetix Systems Holdings Limited recorded revenue of approximately HKD 193.5 million, representing a growth of about 6.9% compared to the previous year[15]. - The gross profit for the same period was approximately HKD 42.9 million, an increase of about 14.4% year-on-year[15]. - The company reported a net loss attributable to shareholders of approximately HKD 9 million, primarily due to increased listing expenses of about HKD 5.5 million and expected credit loss provisions of approximately HKD 8.4 million[15]. - Excluding the special impacts of listing expenses and credit loss provisions, the company achieved a pre-tax profit of approximately HKD 11 million for the fiscal year 2018[15]. - The company recorded a loss attributable to equity shareholders of approximately HKD 9 million for the fiscal year 2018, compared to a profit of approximately HKD 6 million for the fiscal year 2017, marking a significant increase in loss due to provisions for expected credit losses and increased operating costs[39]. - The company recorded a loss of approximately HKD 15 million in fiscal year 2018, an increase in loss compared to a profit of approximately HKD 6 million in fiscal year 2017, primarily due to an increase in expected credit loss provisions of approximately HKD 7.8 million[76]. Revenue Breakdown - Revenue from the IT development solutions segment was approximately HKD 46.7 million for fiscal year 2018, representing a 29.0% increase from approximately HKD 36.2 million in fiscal year 2017, accounting for 24.1% of total revenue[40]. - Revenue from the IT infrastructure solutions segment was approximately HKD 125.3 million for fiscal year 2018, a slight increase of 2.8% from approximately HKD 121.9 million in fiscal year 2017, making up 64.8% of total revenue[41]. - Revenue from the IT maintenance and support services segment decreased by 5.7% to approximately HKD 21.5 million in fiscal year 2018, down from approximately HKD 22.8 million in fiscal year 2017, accounting for 11.1% of total revenue[42]. Strategic Focus and Development - The company plans to continue focusing on the development of its traditional information technology business and advance its expansion plans disclosed in the prospectus dated June 30, 2018[16]. - Kinetix aims to closely monitor macroeconomic issues and trade disputes to mitigate any potential long-term impacts on its performance[16]. - The company plans to utilize approximately HKD 34.1 million raised from the IPO for various strategic initiatives, with only HKD 0.06 million actually utilized by December 31, 2018[48]. - The company aims to develop IT solutions tailored for the financial and insurance industries and expand the application of ERP systems in IT development solutions[46]. - The company intends to enhance its marketing efforts and improve the expertise of its professional team as part of its growth strategy[46]. - The company has established a technology support center to enhance service quality as part of its strategic objectives[46]. Management and Governance - The company has over 20 years of experience in the information technology industry, with key executives holding significant roles in strategy and operations[18]. - The executive team includes individuals with extensive backgrounds in project management and consulting, contributing to the company's operational efficiency[19]. - The company has a strong focus on professional resource management and skill development, with executives having over 17 years of experience in the IT sector[24]. - The independent non-executive directors bring over 24 years of experience in IT management and business development, enhancing the company's strategic oversight[26]. - The company has a diverse board with members holding advanced degrees in engineering, business, and law, ensuring a well-rounded governance structure[28]. - The executive team is responsible for overseeing the delivery of all projects, indicating a strong commitment to project management excellence[19]. - The company emphasizes compliance and sales management, with executives having over 23 years of experience in the IT industry[25]. - The company is committed to maintaining high standards of accountability and resource management through its independent directors[26]. - The executive team has a proven track record in developing business strategies and alternative business models, crucial for future growth[30]. Risks and Challenges - The company acknowledges potential short-term business and financial performance variability due to global economic conditions and increasing competition in the business environment[15]. - The company faces significant risks related to reliance on suppliers for hardware and software, which could adversely affect operational performance if supply is disrupted[53]. - The company may encounter difficulties in retaining skilled personnel, which could significantly hinder its operations and financial performance[9]. - The company anticipates challenges in the global business environment, including potential impacts from geopolitical tensions and trade disputes, which may affect order intake and pricing terms[69]. - The company faces risks related to the quality of hardware and software provided by suppliers, which could adversely affect its business and reputation[5]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules and has complied with it throughout the fiscal year 2018, with some disclosed deviations[110]. - The board consists of four executive directors and three independent non-executive directors, ensuring compliance with GEM listing rules regarding independence[116]. - The company is committed to maintaining good corporate governance practices to enhance stakeholder value and meet increasing expectations[110]. - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the group for effective management[123]. - The remuneration of executive directors is determined by the remuneration committee based on the company's performance and market data[118]. - The independent non-executive directors' remuneration is also reviewed annually by the remuneration committee[121]. - The company will continue to review its corporate governance practices to comply with tightening regulatory requirements[110]. - The Audit Committee consists of independent non-executive directors, with the chairman being Mr. Lin Youxian, and its main responsibilities include reviewing the financial statements and ensuring compliance with applicable accounting standards and GEM listing rules[130]. - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with clear written terms of reference[129]. - The Remuneration Committee, chaired by Mr. Yang Weiqiang, is responsible for recommending remuneration policies for all directors and senior management, ensuring alignment with the company's objectives[138]. - The Audit Committee held two meetings with external auditors during the reporting period to discuss significant audit issues[133]. - The company has complied with GEM listing rules regarding the composition of the Audit Committee, which must consist of at least three members, with the chairman possessing appropriate professional qualifications[133]. - The Nomination Committee, chaired by Mr. Zhang Huajie, aims to implement a formal and transparent procedure for the appointment of board members[141]. - The Audit Committee reviewed the consolidated financial statements for the year ended December 31, 2018, and confirmed compliance with applicable accounting standards[134]. - The Remuneration Committee completed its main tasks, including determining the remuneration of individual executive directors and senior management during the reporting period[140]. - The company emphasizes the importance of continuous professional development for all directors, ensuring they are well-informed about the company's operations and responsibilities[128]. - The Audit Committee monitors the effectiveness of the company's risk management and internal control systems, including financial reporting and internal audit procedures[134]. - The board completed a review of the diversity policy and its implementation, focusing on gender, age, and professional industry diversity[146]. - The board's composition includes a mix of genders and age groups, with specific attention to independent non-executive directors[151]. - The company secretary received no less than 15 hours of relevant professional training during the fiscal year 2018[163]. - The external auditor received a total of HKD 268,000 for audit services and HKD 304,000 for non-audit services during the fiscal year 2018[165]. - The board is committed to maintaining an effective internal control system, with an independent internal control consultant appointed to review the system annually[169]. - The board is responsible for ensuring the monitoring of risk management and internal control frameworks[169]. - The nomination committee evaluates candidates based on a range of diversity criteria, including but not limited to gender, age, and cultural background[146]. - The board meetings and committee meetings were regularly held to review financial and operational performance[153]. - The company is dedicated to appointing candidates based on merit while considering the benefits of board diversity[146]. Shareholder Communication and Reserves - The group has adopted a shareholder communication policy to ensure shareholders are informed about the company and can exercise their rights[173]. - The group did not recommend the payment of a final dividend for the fiscal year 2018[188]. - The group's reserves available for distribution to shareholders were approximately HKD 41.8 million as of December 31, 2018[197]. - The group has not entered into any management or administrative contracts concerning its business as of December 31, 2018[200]. - The group has implemented measures to ensure compliance with insider information handling and disclosure regulations[172]. - The board and senior management review the risk management systems and procedures annually to assess their effectiveness[172]. - The group has not purchased, redeemed, or sold any of its listed securities during the year[196].
倢冠控股(08606) - 2018 - 年度财报