Financial Performance - The group recorded a revenue growth of approximately 5.4% to HKD 111.8 million for the year ended March 31, 2019, compared to HKD 106.1 million in 2018[13] - The loss attributable to equity holders was approximately HKD 8.1 million, an increase from HKD 1.1 million in 2018, primarily due to increased listing expenses of about HKD 14.6 million[13] - For the fiscal year ended March 31, 2019, the group recorded total revenue of approximately HKD 111.8 million, an increase of about 5.3% from HKD 106.1 million in 2018[21] - Merchant acquiring transaction fee income was approximately HKD 86.3 million, up about 5.9% from HKD 81.5 million in 2018[21] - The cost of services provided totaled approximately HKD 79.2 million, reflecting an increase of about 4.6% compared to HKD 75.7 million in 2018[23] - Gross profit for the fiscal year was approximately HKD 32.6 million, representing an increase of about 7.2% from HKD 30.4 million in 2018[24] - General administrative expenses rose to approximately HKD 11.8 million, a significant increase of about 42.2% from HKD 8.3 million in 2018[25] - The group recorded a net loss attributable to owners of approximately HKD 8.1 million, compared to a net loss of HKD 1.1 million in 2018[28] Business Operations - The group’s revenue sources include merchant acquiring transaction fee income, foreign exchange discount income, and marketing and distribution service income[19] - The company’s merchant acquiring business processes transactions through sales points, charging a percentage based on transaction value[19] - The foreign exchange discount income is derived from daily settlements with UnionPay International, benefiting from favorable exchange rates[19] - The group will continue to closely monitor market conditions and adjust its business strategies in response to fluctuations in transaction values from its merchant network[19] - The group is actively seeking business opportunities to promote and sustain future development for better returns to shareholders[14] Cash Flow and Capital Management - The funds raised from the listing have strengthened the group's cash flow and will be used to implement future plans and business strategies outlined in the prospectus[13] - As of March 31, 2019, the group had current assets of approximately HKD 112.0 million, up from HKD 74.3 million in 2018[31] - The total assets and total liabilities were approximately HKD 137.0 million and HKD 54.4 million, respectively, compared to HKD 88.0 million and HKD 56.3 million in 2018[31] - The net proceeds from the share offering amounted to approximately HKD 51.1 million, with HKD 17.3 million already utilized and a remaining balance of HKD 33.8 million[41] Employee and Talent Management - The total employee cost for the year ending March 31, 2019, was approximately HKD 5.8 million, an increase from HKD 3.6 million in the previous year[42] - The company employed a total of 23 employees as of March 31, 2019, up from 20 employees a year earlier[42] - The company has a strategy to recruit new talent with a budget of HKD 2.2 million, which remains unspent[41] Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules since its listing date on October 16, 2018[64] - The board of directors consists of 2 executive directors, 1 non-executive director, and 3 independent non-executive directors, ensuring a diverse and experienced leadership team[67] - The company has complied with the corporate governance code applicable from the listing date until March 31, 2019[65] - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the company due to the founder's extensive experience[77] - The company has appointed at least three independent non-executive directors as required by GEM listing rules, ensuring compliance with independence guidelines[78] - The board has established a diversity policy to enhance the composition of its members based on various factors including gender, age, and professional experience[73] - The company has maintained a high attendance rate at board meetings, with all directors present at 100% of the meetings held[75] Environmental and Social Responsibility - The group reported a total greenhouse gas emission of 34,161 kg CO2e for the year ended March 31, 2019, with a density of 1,485 kg CO2e per person[113] - The group has implemented energy efficiency measures, including the installation of high-performance electrical equipment and encouraging employees to turn off unnecessary devices[114] - The group focuses on sustainable development and adheres to the environmental, social, and governance reporting guidelines as per GEM listing rules[105] - The company is committed to maintaining a zero-discrimination work environment and complies with relevant labor laws[131] - The group actively encourages community engagement and employee volunteerism to contribute to local development[137] Customer Concentration - The largest customer accounted for approximately 47.6% of the total revenue for the year ended March 31, 2019, compared to 48.4% in 2018[151] - The top five customers contributed about 80.6% of the total revenue for the year ended March 31, 2019, down from 81.9% in 2018[151] Compliance and Legal Matters - The company has made appropriate insurance arrangements to cover any legal actions against directors, reviewed annually[173] - The company has no significant violations of applicable laws and regulations that would materially affect its business and operations for the year ending March 31, 2019[176] - The company has not recorded any work-related injuries or lost days due to accidents[126] - The company has not issued any bonds for the year ended March 31, 2019[154] Future Plans and Allocations - The allocation of net proceeds includes HKD 12.8 million for increasing inventory and enhancing the functionality of smart point-of-sale terminals, with only HKD 0.7 million utilized[41] - HKD 8.1 million is designated for further development of the acquiring host system, with HKD 5.5 million already spent, leaving HKD 2.6 million remaining[41] - The company plans to expand its marketing activities with an allocation of HKD 1.2 million, which has not yet been utilized[41] - Expansion into Cambodia is supported by an allocation of HKD 6.6 million, which has not yet been utilized[41]
东方支付集团控股(08613) - 2019 - 年度财报