Financial Performance - Revenue for the year ended March 31, 2022, was HK$2,728,763,000, representing a 16% increase from HK$2,360,553,000 in 2021[18]. - Profit before tax decreased by 12% to HK$238,568,000 from HK$270,802,000 in the previous year[18]. - Profit attributable to equity holders of the Company increased by 5% to HK$213,309,000 compared to HK$203,021,000 in 2021[18]. - Total assets rose by 1% to HK$4,429,327,000 from HK$4,378,438,000[18]. - Shareholders' funds increased by 7% to HK$3,209,049,000 from HK$2,996,532,000[18]. - Basic earnings per share improved by 5% to 33.8 HK cents from 32.2 HK cents[18]. - Cash dividends per share also increased by 5% to 16.8 HK cents from 16.0 HK cents[18]. - Net assets per share rose by 6% to HK$5.1 from HK$4.8[18]. - Return on average shareholders' funds decreased to 6.9% from 7.2%[18]. - Return on average total assets declined to 4.8% from 5.2%[18]. Market Performance - The Group's primary market, China, experienced mild turnover growth due to COVID-19 outbreaks and geopolitical tensions affecting exports[27]. - The international turnover recorded material growth despite geopolitical instabilities in the second half of the financial year[27]. - The Group's turnover in Mainland China reached HK$1,987 million, reflecting a 5% increase from HK$1,891 million in the previous year, despite a significant 38% growth in the first half of the financial year[51][52]. - The Taiwan market saw a remarkable 35% growth in turnover, reaching HK$132 million, up from HK$98 million in the previous year, driven by recovering consumption in developed countries[56][59]. - International turnover grew by 64% to HK$610 million, compared to HK$372 million in the previous year, benefiting from the recovery in the European and U.S. markets[61]. Product Development and Innovation - The Group successfully launched the MK6e "Evolution" series, maintaining a similar sales ratio in the small-to-medium tonnage segment[27]. - The company plans to invest more resources into R&D for new products, including the upcoming MK6.6/A "Artisan" series, enhancing the hot-selling MK6 production line[27]. - The Group plans to focus on developing the next generation of advanced two-platen injection moulding machines to enhance production efficiency for customers in the electric vehicle and environmental sectors[31][40]. - The Group's new product, the MK6.6/A Artisan Edition, aims to enhance customer competitiveness and adapt to various application scenarios[58]. - The Group is set to launch the new MK6.6/A "Artisan" models, enhancing the popular MK6 product line to provide better, more affordable options for a wider range of applications[62]. Challenges and Risks - The first half of the financial year experienced robust growth due to strong internal demand and exports in China, while the second half faced significant challenges from global economic shocks and geopolitical tensions[36][40]. - The Group's production capacity was severely impacted by COVID-19 lockdowns in major Chinese cities, particularly in Shenzhen, which disrupted logistics and deliveries[39][40]. - The overall market environment remains uncertain due to ongoing geopolitical tensions and economic instability, which the Group aims to address through strategic realignment and new product development[30][31]. - The Group faced challenges from rising raw material prices and supply chain disruptions due to COVID-19 lockdowns, impacting production and logistics[51][52]. - Economic indicators in China showed a GDP growth rate of only 4.8%, leading to a downward revision of the annual GDP growth target to 5.5%[48]. Corporate Governance - The company has complied with all code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules, except for specific deviations regarding director retirement and separation of roles[121]. - The board consists of two executive directors and four independent non-executive directors, ensuring a diverse governance structure[125]. - The Company has adopted a Code of Conduct for Securities Transactions by Directors, ensuring compliance with the required standards throughout the year ended 31 March 2022[153]. - The Company has a strong commitment to maintaining high standards of corporate governance to safeguard shareholder interests and enhance performance[121]. - The Company has established appropriate policies to assess and manage risks in pursuit of its strategic objectives[135]. Management and Leadership - Ms. Lai Yuen Chiang has been with the Group since 1988 and became the Chairman in April 2018, overseeing management and business development[107]. - Mr. Stephen Hau Leung Chung joined the Group in 2001 and serves as the Group Chief Officer for Strategy, Sales, and Marketing, bringing over 14 years of experience in various sectors[108]. - The company has a strong board with members holding significant positions in various industries, enhancing its strategic direction and governance[110]. - The Group's leadership is focused on strategic growth and market expansion, leveraging the expertise of its directors[110]. - The board includes independent non-executive directors with extensive backgrounds in finance and management, ensuring diverse perspectives in decision-making[112]. Environmental and Social Responsibility - The Group's environmental policy focuses on minimizing operational impacts on the environment and promoting clean production[94]. - The Group has implemented training programs to raise environmental protection awareness among employees and engage suppliers and customers in environmental initiatives[98]. - The Group's procurement policy is based on maintaining good relationships and communications with high-quality suppliers as strategic partners[89]. - The Group remains committed to compliance with relevant laws and regulations across its operations in Mainland China, Hong Kong, and Taiwan[100]. Financial Management - The Group recorded a net cash position of HK$678 million as of March 31, 2022, down from HK$1,129 million, representing a decrease of HK$451 million[72]. - The Group's income tax expense decreased to HK$25 million from HK$66 million in the previous year, a reduction of HK$41 million[72]. - Capital commitments as of March 31, 2022, amounted to HK$13 million, primarily for upgrading industrial facilities and purchasing production equipment in Mainland China[80]. - The Group's borrowings in Japanese yen were HK$22 million as of March 31, 2022, down from HK$24 million in the previous year[82]. - The Group has pledged bank deposits of HK$27 million as of March 31, 2022, compared to HK$52 million in the previous year[77].
震雄集团(00057) - 2022 - 年度财报