Financial Performance - For the fiscal year 2020, Kinetix Systems Holdings Limited reported revenue of approximately HKD 282.4 million, an increase of about 31.0% compared to the fiscal year 2019[13]. - The gross profit for the fiscal year 2020 was approximately HKD 47.6 million, reflecting a growth of about 27.6% year-over-year[13]. - The net profit attributable to the owners of the company for the fiscal year 2020 was approximately HKD 10.3 million[13]. - The company recorded a profit attributable to equity shareholders of approximately HKD 10.3 million for the fiscal year 2020, compared to HKD 2.2 million in fiscal year 2019, representing a significant increase[36]. - Revenue from the IT infrastructure solutions segment was approximately HKD 133.3 million, accounting for about 47.2% of total revenue for fiscal year 2020, an increase of approximately 7.9% from HKD 123.5 million in fiscal year 2019[37]. - Revenue from the IT development solutions segment was approximately HKD 74.6 million, representing about 26.4% of total revenue for fiscal year 2020, a substantial increase of approximately 39.4% from HKD 53.5 million in fiscal year 2019[38]. - Revenue from the IT maintenance and support services segment decreased to approximately HKD 27.7 million, accounting for about 9.8% of total revenue for fiscal year 2020, down approximately 3.1% from HKD 28.6 million in fiscal year 2019[39]. - Revenue from the e-commerce business involving entertainment products surged to approximately HKD 46.9 million, representing about 16.6% of total revenue for fiscal year 2020, a dramatic increase of approximately 369.0% from HKD 10 million in fiscal year 2019[40]. - The group's revenue for the fiscal year 2020 was approximately HKD 2,824 million, an increase of about HKD 668 million or 31.0% compared to fiscal year 2019 (approximately HKD 2,156 million)[64]. - Gross profit for the fiscal year 2020 was approximately HKD 476 million, an increase of about HKD 103 million or 27.6% compared to fiscal year 2019 (approximately HKD 373 million)[65]. Business Strategy and Development - The company anticipates that global and local economic uncertainties, along with the COVID-19 pandemic, may adversely affect its business and overall short-term performance[14]. - The company aims to strategically develop its business to mitigate these impacts and continue seeking new opportunities for diversification[14]. - The company plans to accelerate the integration of IT infrastructure and development solutions, participating in more smart city infrastructure projects in China and overseas[14]. - The company intends to enter the smart mobility sector through the development of Mobility as a Service (MaaS) solutions[14]. - The company plans to develop IT solutions tailored for the financial and insurance industries as part of its ongoing business strategy[41]. - The company aims to expand the application of Enterprise Resource Planning (ERP) systems within its IT development solutions services[41]. - The company is focused on providing cloud computing and Internet of Things (IoT) products as part of its future strategy[41]. - The company plans to develop a technical support center to improve service quality[41]. Financial Management and Capital Allocation - The actual net proceeds from the IPO amounted to approximately HKD 34.10 million, with HKD 14.43 million utilized by December 31, 2020[43]. - The company allocated HKD 3.56 million for developing IT solutions tailored for the financial and insurance industries, which was fully utilized by the end of 2020[43]. - HKD 5.50 million was designated for providing cloud computing and IoT products, with only HKD 2.34 million utilized by December 31, 2020[43]. - The company plans to utilize the remaining funds by December 31, 2021, with HKD 6.81 million expected for cloud computing and IoT products[43]. - The expansion of the ERP system in IT development solutions was allocated HKD 1.17 million, with HKD 0.57 million utilized by the end of 2020[43]. - Marketing efforts received HKD 2.34 million, but only HKD 0.12 million was utilized by December 31, 2020, indicating a delay in marketing activities due to COVID-19[46]. - The company faced delays in the application of funds due to macroeconomic conditions and uncertainties from the COVID-19 pandemic[46]. - The group plans to utilize its capital for operational and expansion plans as outlined in the prospectus[73]. Corporate Governance - The board believes that the company has complied with the corporate governance code throughout the 2020 fiscal year, with some deviations noted[89]. - The company has adopted and complied with the corporate governance code as per GEM Listing Rules Appendix 15, with the board believing it has adhered to the code during the 2020 financial year, except for certain deviations noted[101]. - The board is responsible for the overall management of the group's business and ensuring long-term success while delivering sustainable value to shareholders[103]. - The company has appointed three independent non-executive directors, which constitutes at least one-third of the board members, although the number fell below the required amount after one resignation[106]. - The board will continue to review corporate governance practices to enhance governance standards and comply with increasingly stringent regulatory requirements[102]. - The Audit Committee reviewed the Group's financial statements for the year ended December 31, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[117]. - The Audit Committee held five meetings during the year, in addition to two meetings with external auditors[116]. - The Remuneration Committee recommended compensation policies for all directors and senior management, including benefits and pension rights[124]. - The Remuneration Committee reviewed and approved compensation for individual executive directors and senior management, ensuring alignment with contractual terms[124]. - The Audit Committee monitored the effectiveness of the Group's risk management and internal control systems, including tax strategies and management structure[121]. - The Audit Committee recommended the reappointment of external auditors, DTT, and approved their engagement terms[121]. - The Group's governance policies and compliance with legal regulations were reviewed by the Audit Committee, with recommendations made to the Board[118]. - The Board established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with clear written terms of reference[113]. Risk Management - The group has established risk management policies aimed at identifying, assessing, and managing significant risks related to its business operations[148]. - The company relies on a limited number of suppliers for hardware and software, which poses a risk to operational performance[48]. - The company anticipates challenges in maintaining high-level partnerships with IT product vendors and distributors[51]. - The group will continue to conduct credit assessments and financial evaluations of its clients to mitigate credit risk[74]. Shareholder Information - The group has reserves available for distribution to shareholders amounting to approximately HKD 37.9 million as of December 31, 2020[166]. - The group did not recommend the payment of a final dividend for the fiscal year 2020[159]. - The company has adopted a shareholder communication policy to ensure shareholders are informed about the company and can exercise their rights[149]. Employee and Operational Data - The total employee count increased to 140 as of December 31, 2020, up from 116 in 2019, with total employee costs amounting to approximately HKD 51.3 million in 2020 compared to HKD 38 million in 2019[79]. - The company made charitable donations totaling approximately HKD 1,000 in the 2020 fiscal year, a decrease from approximately HKD 10,000 in 2019[84]. - As of December 31, 2020, the company had capital commitments related to equipment amounting to approximately HKD 300,000, down from HKD 1.6 million in 2019[86]. - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the 2020 fiscal year[86]. Share Option Scheme - The company has not issued, exercised, or canceled any share options under its share option scheme since its adoption on June 22, 2018[81]. - The share option scheme allows for a maximum of 80,000,000 shares to be issued upon exercise, which represents 10% of the shares already issued as of the report date[187]. - The exercise price for each option granted will be determined by the board but must be at least the higher of the closing price on the grant date or the average closing price over the five trading days preceding the grant date[187]. - The company has not granted, exercised, or canceled any options under the share option scheme since its adoption date until December 31, 2020[189]. Ownership Structure - The company is listed on the stock exchange since July 16, 2018, with major shareholder Vigorous King Limited holding approximately 51.88% of the shares, equivalent to 415,000,000 shares[190][195]. - Mr. Yu Pak Lun is the sole owner of Vigorous King Limited, which directly influences the company's ownership structure[192][196]. - Other significant shareholders include Ms. Leung Wai Man and Mr. Leung Kam Hon, each holding 10% of the shares, totaling 80,000,000 shares[195]. - Dalian Xuan Shuo Technology Co., Ltd. holds 20% of the shares, equivalent to 160,000,000 shares, which are convertible bonds that can be converted at an initial conversion price of HKD 0.3[195][199]. - The company has not disclosed any additional significant shareholdings or interests from directors or key executives beyond those mentioned[195][199].
倢冠控股(08606) - 2020 - 年度财报