Financial Performance - The audited consolidated annual profit for the year ended March 31, 2022, was HKD 167,874,000, a decrease of HKD 44,957,000 or 21% compared to the previous year, primarily due to the absence of government subsidy income and reduced foreign exchange gains [6]. - Excluding the aforementioned factors, the overall profit for the reporting year actually increased by HKD 57,966,000, representing a 53% rise compared to the previous year [6]. - The media business revenue for the group reached HKD 676,039,000, with Oriental Daily's publishing and advertising revenue increasing by HKD 16,991,000, or 3% year-on-year [19]. - Digital media revenue rose to HKD 134,401,000, an increase of HKD 6,882,000, or 5% compared to the previous year, benefiting from the trend of mobile usage and online shopping [19]. - The total loan amount for Oriental Financing was HKD 302,770,000, a 4% increase year-on-year, with total loan interest income reaching HKD 30,612,000, up HKD 9,531,000, or 45% [21]. Assets and Liabilities - As of March 31, 2022, the net current assets amounted to HKD 1,161,939,000, an increase from HKD 1,013,168,000 in 2021, with cash and bank balances totaling HKD 633,593,000 [7]. - The group's property, plant, and equipment had a carrying value of approximately HKD 427,480,000 as of March 31, 2022, representing about 20.8% of the total assets, down from 22.3% in 2021 [194]. - The fair value of investment properties, including those classified as held for sale, is approximately HKD 524,086,000 as of March 31, 2022, compared to HKD 489,998,000 in 2021, representing about 25.5% of the total assets of the group (2021: 23.5%) [197]. Dividends - The company proposed a final dividend of HKD 0.03 per share and a special dividend of HKD 0.03 per share, compared to HKD 0.02 and HKD 0.05 respectively in the previous year, maintaining an annual dividend of HKD 0.09 [10]. - The board has proposed a final dividend of HKD 0.03 per share and a special dividend of HKD 0.03 per share, totaling an expected distribution of HKD 143,876,000 [32]. - The company's distributable reserves for the reporting year amounted to HKD 239,520,000, a decrease of 39.1% from HKD 393,352,000 in 2021 [38]. Operational Highlights - The company reported over 32 million live streaming views on its news platform during the reporting year, indicating strong user engagement [15]. - The revamped "on.cc" platform introduced new features, enhancing user experience and engagement with real-time news and live broadcasts [15]. - The "onCH Video" platform provided continuous news and commentary, gaining popularity for its engaging presentation style during the pandemic [16]. - The "on.net Money18" platform underwent a redesign, improving clarity and user accessibility for financial information, which was well-received by users [16]. Employee and Cost Management - The group has reduced employee numbers from 1,078 to 960, resulting in a decrease in employee costs by HKD 58,336,000, or 13% [21]. - The employee turnover rate for the group was 15% of the total workforce [52]. - The company plans to increase employee training opportunities and compensation to address the higher employee turnover rate attributed to recent immigration trends [155]. Corporate Governance - The company has adopted a corporate governance code to ensure high governance standards and protect shareholder interests [109]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition [113]. - The company has complied with the corporate governance code and adopted most of the recommended best practices as of the fiscal year ending March 31, 2022 [110]. - The board meets at least four times a year, approximately once per quarter, to discuss business performance and strategies [119]. Risk Management - The company has established a comprehensive risk management policy and system to effectively identify, assess, analyze, and mitigate risks associated with strategic, operational, financial reporting, and compliance objectives [151]. - The board confirmed that the risk management and internal control systems are effective and sufficient, with no unusual circumstances or additional risks identified during the annual review [157]. - The internal audit was conducted by an independent professional firm, which evaluated the effectiveness of the internal control system and risk management mechanisms [161]. Environmental and Social Responsibility - The company has implemented various environmental measures, achieving expected goals in pollution reduction and resource utilization [45]. - The company has installed a solar photovoltaic system to reduce carbon emissions and promote renewable energy usage [45]. - The company made charitable donations totaling HKD 1,160,000 during the reporting year, compared to none in 2021 [93]. Shareholder Relations - The company has established a shareholder communication policy to facilitate effective communication and encourage active participation from shareholders [175]. - The company encourages shareholders holding at least 5% of voting rights to request a general meeting and propose agenda items [170]. Audit and Compliance - The independent auditor's report confirmed compliance with ethical standards and the adequacy of audit evidence obtained [187]. - The audit procedures included evaluating the adequacy of the impairment provisions and the reasonableness of the assumptions used in the expected credit loss model [191]. - The audit committee reviewed the accounting standards and practices adopted by the group for the fiscal year [57].
东方企控集团(00018) - 2022 - 年度财报