Financial Performance - The group recorded a revenue decline of approximately 84.6% to HKD 12.4 million for the fiscal year ending March 31, 2021, compared to HKD 80.5 million in 2020[28]. - The loss attributable to equity holders of the company was approximately HKD 30.7 million, up from HKD 5.6 million in 2020, primarily due to a significant decrease in spending by Chinese tourists in Thailand[28]. - Total revenue for the merchant acquiring business was approximately HKD 12.4 million, a decrease of about 84.6% compared to HKD 80.5 million in the previous year[38]. - Merchant acquiring transaction fee income was approximately HKD 9.9 million, down about 83.9% from HKD 61.5 million in the previous year[38]. - Gross profit for the year was approximately HKD 4.5 million, a decrease of about 82.4% from HKD 25.4 million in the previous year, with a gross margin increase to 36.2% from 31.6%[42]. - The company recorded a net loss attributable to owners of approximately HKD 30.7 million, compared to a net loss of HKD 5.6 million in the previous year[50]. - Financing costs increased to approximately HKD 2.9 million from HKD 0.6 million in the previous year, primarily due to interest expenses from convertible bonds issued in June 2020[49]. Operational Adjustments - The company will remain vigilant regarding the developments of the COVID-19 pandemic and assess its impact on financial conditions and operational performance[29]. - The company aims to maintain business stability and adapt necessary actions in response to the ongoing pandemic[29]. - The company has not launched promotional activities in Thailand due to the pandemic but has recruited talent in China to support marketing efforts[65]. - The company has not made any significant investments, acquisitions, or disposals during the year[55]. - The company has completed the development of its payment gateway system, which includes improvements to the QR code payment system and maintenance of the UPOP gateway system[65]. - The company planned to purchase approximately 2,400 new smart point-of-sale terminals for deployment in Cambodia and as backups for Thai merchants, but operations in Cambodia have not yet commenced due to the COVID-19 pandemic[65]. Revenue Sources - The group has three main sources of revenue: merchant acquiring transaction fee income, foreign exchange discount income, and marketing and distribution service income[35]. - The foreign exchange discount income is derived from daily settlements with UnionPay International, which provides favorable exchange rates for specified transaction values[35]. Corporate Governance - The company has adopted the corporate governance code and has complied with it since the listing date on October 16, 2018[93]. - The company reported compliance with the corporate governance code for the fiscal year ending March 31, 2021[94]. - The board of directors has a diverse membership policy, considering factors such as gender, age, and professional experience[100]. - The chairman and CEO roles have been separated since December 1, 2020, enhancing corporate governance compliance[105]. - The company has established an Audit Committee consisting of three independent non-executive directors, ensuring compliance with GEM Listing Rules[107]. - The company confirmed the independence of all independent non-executive directors in accordance with GEM Listing Rules, ensuring compliance with independence guidelines[109]. - The Remuneration Committee held one meeting during the year, reviewing the company's remuneration policies and assessing the performance of executive directors and senior management[111]. - The Nomination Committee also held one meeting during the year, reviewing the board's structure, size, and diversity[115]. - The company has adopted appropriate insurance arrangements covering any legal actions against directors, in compliance with corporate governance codes[127]. - The board is responsible for the company's corporate governance duties and has reviewed the company's governance policies and compliance with GEM Listing Rules[127]. Risk Management - The company faces significant risks, including reliance on China UnionPay as a major supplier and customer, which could adversely affect operations and profitability if cooperation ceases[59]. - The company continues to monitor foreign exchange risks closely and will consider additional applicable derivatives as necessary[61]. - The company has engaged an independent internal control consultant to review its risk management and internal control systems[135]. Employee and Community Engagement - As of March 31, 2021, the group employed a total of 29 employees, a slight decrease from 30 employees as of March 31, 2020[73]. - Total employee costs for the year were approximately HKD 12.5 million, compared to approximately HKD 9.8 million in 2020, reflecting a year-over-year increase of about 27.8%[73]. - The company has a competitive compensation package and offers medical insurance and extended statutory leave[153]. - The company actively encourages employee participation in community service and seeks partnerships for community activities and charitable work[165]. Environmental Impact - Total energy consumption for 2020-2021 was 32,304 kWh, a decrease from 39,815 kWh in 2019-2020[161]. - Total greenhouse gas emissions for 2020-2021 were 28.18 tons of CO2 equivalent, down from 38.51 tons in 2019-2020[161]. - The company has implemented measures to reduce emissions and has documented the results achieved[167]. - The company has a recycling program in place for used batteries, electronic waste, and printer cartridges[160]. - The company has policies in place for effective resource usage, including energy and water[173]. Communication and Stakeholder Relations - The company has maintained open communication channels with stakeholders to address their needs during the pandemic[144]. - The company has established multiple communication channels to ensure shareholders and potential investors receive timely and balanced information[138].
东方支付集团控股(08613) - 2021 - 年度财报