Financial Performance - The company recorded total revenue of approximately HKD 630.2 million for the fiscal year ending March 31, 2025, a slight increase of 0.3% from approximately HKD 628.1 million in the previous year[10]. - Revenue from the distribution business decreased by approximately HKD 24.2 million or 5.8% to about HKD 389.5 million, primarily due to a weak economic environment and reduced demand[13]. - Revenue from the system integration solutions business increased by approximately HKD 26.3 million or 12.3% to about HKD 240.7 million, driven by increased demand for cloud-related applications and system services[13]. - The company reported a net loss of approximately HKD 10.3 million, an improvement of 31.3% compared to a net loss of approximately HKD 15 million in the previous year[10]. - Gross profit decreased by 13.5% to approximately HKD 61.4 million, with an overall gross margin declining from 11.3% to 9.7% due to intensified market competition and pricing pressures[10]. - Sales and service costs increased by approximately HKD 11.7 million or 2.1% to about HKD 568.8 million, consistent with the decrease in revenue during the same period[17]. - Other income and net gains remained stable at approximately HKD 1 million for both the previous and current year[19]. - Impairment losses under the expected credit loss model decreased from approximately HKD 14.3 million to HKD 4.5 million[22]. - Selling and distribution expenses decreased by approximately HKD 9.6 million or 26.5% to about HKD 26.6 million, primarily due to reduced commissions paid to employees[23]. - Administrative expenses increased by approximately HKD 2.9 million or 8.4% to about HKD 37.4 million, mainly due to strategic planning-related employee costs and legal and professional fees[24]. - The net loss for the year decreased by approximately HKD 4.7 million or 31.3% to about HKD 10.3 million[27]. - Bank borrowings decreased by approximately HKD 11.7 million or 19.5% to about HKD 48.2 million[33]. - The net debt-to-equity ratio improved from approximately 29.6% to 23.6%[33]. - Capital expenditure for property and equipment was HKD 100,000, down from HKD 1.5 million in the previous year[37]. - The company's distributable reserves as of March 31, 2025, amount to approximately HKD 92.8 million, down from HKD 103.1 million in 2024[83]. Strategic Initiatives - The company plans to deepen its "cloud-network-edge" integration strategy and accelerate the commercialization of hyper-converged infrastructure and AI platforms in the upcoming fiscal year[11]. - The company aims to leverage opportunities from the Greater Bay Area's data center construction to promote smart city and digital government solutions[11]. - The demand for cloud services is expected to continue growing as organizations adopt online productivity and collaboration services to enhance operational efficiency[14]. - The company is addressing challenges such as talent shortages and rapid technological changes by strengthening talent development initiatives in collaboration with local vocational schools and industry associations[11]. - The company plans to fully utilize the remaining funds for expanding its IT distribution business and system integration solutions by March 31, 2026[80]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[125]. - The company has adopted the corporate governance code as the basis for its governance practices[125]. - The board of directors comprises ten members, including four executive directors, two non-executive directors, and four independent non-executive directors[130]. - The audit committee consists of three independent non-executive directors, ensuring compliance with accounting principles and policies[121]. - The board has established a remuneration committee to oversee the compensation policies for all directors and senior management[104]. - The company has established a risk management and internal control system to manage risks associated with achieving business objectives[170]. - The board is responsible for evaluating the effectiveness of the risk management and internal control systems annually[173]. - The company has adopted a dividend policy without a predetermined payout ratio, allowing the board to propose dividends based on financial conditions[190]. - The company encourages shareholder participation in annual general meetings and supports proxy voting for those unable to attend[191]. - The company has established multiple channels for ongoing communication with shareholders, including annual general meetings and its website[187]. Employee and Management - The group employed approximately 179 employees as of March 31, 2025, with employee costs including performance-related bonuses and director remuneration amounting to approximately HKD 71,500,000, an increase from HKD 57,800,000 in the previous year[48]. - The company is currently seeking suitable candidates for system integration solutions, with recruitment timelines delayed compared to the original prospectus[86]. - The management team is focused on enhancing operational efficiency and strategic planning to drive growth[195]. - The company has a strong management team with over 15 years of experience in the IT service industry, led by Mr. Ye Jiawei, the founder[196]. - The company has purchased directors' liability insurance to protect against potential claims[105]. Compliance and Legal Matters - The group has maintained compliance with relevant laws and regulations that significantly impact its business operations during the year[58]. - The group has not faced any significant disputes with employees, suppliers, or customers during the year[60]. - There were no non-compliance incidents related to bribery or corruption reported during the year[174]. - The company has not provided any loans or guarantees to directors, senior management, or controlling shareholders during the year[84]. - The company has not engaged in any stock-linked agreements during the year[98]. - There were no significant related party transactions during the year that required disclosure under the listing rules[113]. Shareholder Information - No final dividend is recommended for the current year, consistent with the previous year[42]. - The board does not recommend the payment of a final dividend for the year, consistent with the previous year[63]. - The upcoming annual general meeting is scheduled for September 12, 2025[73]. - The company has established a share option scheme effective December 29, 2022, but no options were granted during the year, and there were no unexercised options as of March 31, 2025[49]. - The new share option plan allows for a maximum of 62,500,000 shares to be issued, representing 10% of the total shares outstanding as of the report date[87]. - The company has established a policy for reviewing its dividend policy periodically[72]. Environmental and Social Responsibility - The company is committed to environmental protection and has implemented policies to minimize its environmental impact[57]. - The group reported charitable donations of approximately HKD 250,000 for the year[120].
数科集团(02350) - 2025 - 年度财报