Financial Performance - The total revenue for the fiscal year ending June 30, 2025, was approximately HKD 578.82 million, a decrease of 27.3% compared to HKD 795.70 million in the previous year[6]. - The loss attributable to the company's owners for the fiscal year was approximately HKD 142.31 million, compared to a loss of HKD 88.52 million in the previous year, resulting in a loss per share of HKD 1.20[6]. - Revenue from the wire and cable business was approximately HKD 187.09 million, down 24.6% from HKD 248.14 million in the previous year, accounting for 32.3% of total revenue[7]. - Revenue from the copper rod business was approximately HKD 376.94 million, a decrease of 29.8% from HKD 537.06 million in the previous year, representing 65.1% of total revenue[7]. - Rental income increased by 40.8% to approximately HKD 14.79 million from HKD 10.50 million in the previous year, accounting for 2.6% of total revenue[12]. - Revenue from the Americas decreased by 10.9% to approximately HKD 27.11 million, while revenue from mainland China and Hong Kong fell by 31.5% to approximately HKD 472.63 million, representing 81.6% of total revenue[8]. Business Strategy and Operations - The company is focusing on maintaining compliance with mining rights in Mongolia and has not initiated large-scale capital investments due to economic volatility and regulatory risks[15]. - The company plans to adjust its market strategy for the copper rod business in response to changes in copper prices and the operating environment[11]. - The group will focus on its core business, consolidating its traditional advantages in power and appliance cables while actively expanding into electric vehicle, robotics, and new energy application cable sectors[16]. - The company plans to enhance its core competitiveness by strengthening its technical team and increasing investment in independent research and development[16]. - Future strategies include optimizing and integrating existing businesses, actively seeking potential business partners, and exploring new business opportunities with growth potential[16]. - The company aims to leverage opportunities in new energy and smart development while maintaining its traditional advantages to create new growth points[16]. - The group will implement a major customer strategy to deepen cooperation with core customers and explore industry transformation paths together[16]. - The company will optimize its management system and improve operational efficiency through lean management to reduce resource waste[16]. Financial Position and Assets - The company recorded a net current liability of approximately HKD 46,000,000 as of June 30, 2024, and is pursuing various avenues to improve its financial position, including the sale of non-core assets[53]. - The estimated cost for the construction of the second phase of the industrial complex is approximately RMB 260,000,000, which poses a financial burden on the company[54]. - The net proceeds from the sale of the property amounted to approximately RMB 68,500,000 (equivalent to HKD 75,350,000) after deducting transaction costs[60]. - RMB 60,000,000 of the proceeds will be used to repay bank loans maturing in April and August 2025, while RMB 8,500,000 will be allocated for general operating funds[60]. - The company has a cash and bank balance of approximately HKD 109,000,000 as of June 30, 2025, compared to HKD 103,000,000 as of June 30, 2024[77]. - The company's capital debt ratio is 0.29 as of June 30, 2025, down from 0.33 as of June 30, 2024, indicating improved financial stability[77]. Risk Management - The group has identified key risks and uncertainties that may directly or indirectly affect its financial condition and operational performance[28]. - The mining business is primarily concentrated in Mongolia, with no large-scale capital investments planned due to market uncertainties[29]. - The group will continue to monitor foreign exchange risks, particularly fluctuations in the Renminbi exchange rate, as most of its business is located in China[30]. - The board ensures robust risk management and internal controls to protect shareholder investments and company assets, reviewing the effectiveness of these systems annually or as needed[199]. - The company has established a risk management framework involving the board, audit committee, and senior management to oversee risk management and internal control systems[200]. - An external independent consultant was hired to review the effectiveness of the risk management and internal control systems in financial, operational, and compliance matters[200]. Corporate Governance - The company has maintained a commitment to corporate governance principles and has adhered to all applicable codes, with some deviations noted[147][150]. - The company’s board consists of seven members, including three executive directors and four independent non-executive directors[163]. - The board is responsible for strategic policy formulation and oversight of management, including monitoring significant transactions[164]. - The chairman and CEO roles are currently held by the same individual, Mr. Zhou, which is noted as a deviation from governance code C.2.1[159]. - The board will continue to review its governance structure to assess the need for separating the roles of chairman and CEO[160]. - The audit committee conducted four meetings in the same fiscal year, with all members present, and reviewed the financial statements ensuring compliance with applicable accounting standards[178]. - The company has implemented a board independence assessment mechanism to ensure independent viewpoints and improve board performance[174][175]. - All independent non-executive directors confirmed their independence in accordance with listing rules[165]. Share Options and Employee Incentives - The company has adopted a share option scheme to reward eligible individuals, including directors and qualified employees, for their contributions[136]. - The total number of shares available for issuance under the stock option plan as of June 30, 2025, is 22,562,661, which is about 19.004% of the total issued shares[120]. - The stock option plan aims to incentivize qualified participants for their contributions to the group's benefits[102]. - The company has received approval from the stock exchange for the listing and trading of shares to be issued upon the exercise of stock options[101]. - The total number of stock options granted under the plan is 11,870,000, with 10,690,000 remaining unexercised after accounting for the lapsed options[114]. Employee and Management Information - The company employed approximately 350 employees as of June 30, 2025, consistent with the previous year[134]. - The company provides continuous professional development for all directors, covering business changes and legal updates[167]. - The Remuneration Committee reviewed the compensation packages for all executive directors and senior management, with no stock options granted under the stock option plan for the year ending June 30, 2025[188]. - The Company Secretary attended multiple professional seminars to update skills and knowledge, ensuring compliance with listing rules by participating in at least 15 hours of relevant professional training[196].
星凯控股(01166) - 2025 - 年度财报