Financial Performance - The group's revenue decreased by 8% to HKD 199 million for the year ended March 31, 2022, compared to HKD 217 million in the previous year[10]. - The company reported a loss attributable to equity holders of HKD 2 million, down from a profit of HKD 5 million in the previous year[10]. - Revenue from mobile phone sales decreased from HKD 148 million to HKD 134 million, with a profit of HKD 3 million compared to HKD 4 million in the previous year[11]. - Revenue from IoT solutions was HKD 62 million, down from HKD 67 million, with a loss of HKD 5 million, unchanged from the previous year[12]. - Total revenue for the year ended March 31, 2022, was HKD 199,096,000, a decrease of 8.4% from HKD 217,122,000 in the previous year[149]. - Gross profit increased to HKD 42,816,000, up 7.2% from HKD 39,744,000 year-on-year[149]. - The company reported a loss attributable to equity holders of HKD 1,943,000 compared to a profit of HKD 4,747,000 in the previous year, marking a significant decline[149]. - The basic and diluted loss per share was HKD (0.16), compared to earnings per share of HKD 0.38 in the previous year[149]. Cash Flow and Financial Position - As of March 31, 2022, the group's cash and bank balances were approximately HKD 28 million, up from HKD 24 million in the previous year, while bank borrowings were HKD 85 million, down from HKD 88 million[16]. - The net cash used in operating activities was HKD 1,843,000, an improvement from HKD 21,476,000 in the previous year[156]. - The company’s cash and bank balances increased to HKD 25,746,000 from HKD 21,080,000, representing a growth of 22.0%[151]. - The company reported a total cash and bank balance of HKD 25,746,000, with bank overdrafts of HKD 14,755,000[159]. - The cash outflow from financing activities was HKD 17,607,000 in 2022, compared to a cash inflow of HKD 25,508,000 in 2021[159]. - The company reported a decrease in cash and cash equivalents of HKD 7,122,000 in 2022, contrasting with an increase of HKD 3,703,000 in 2021[159]. Corporate Governance - The board of directors includes six executive directors and three independent non-executive directors, ensuring a diverse governance structure[40]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, with a commitment to continuous improvement in governance practices[38]. - The chairman and CEO roles are held by the same individual, which the board believes provides strong and consistent leadership for long-term business strategy development[45]. - The company emphasizes the importance of effective communication within the board and compliance with applicable laws and regulations[43]. - The company is committed to ensuring that all directors receive appropriate training to enhance their knowledge and skills[40]. - The company has a structured approach to corporate governance, ensuring that the interests of shareholders, customers, and employees are protected[38]. - The board will continue to review and improve corporate governance practices to ensure prudent decision-making[57]. Environmental and Social Responsibility - The company encourages sustainable resource use and has implemented a 4R policy to minimize environmental impact[67]. - The company received multiple environmental certifications, including the Hong Kong Environmental Excellence Award and the Hong Kong Green Organization Certification[15]. - The company made donations totaling HKD 150,000 during the year[107]. Internal Controls and Audit - The company emphasized the importance of internal controls to ensure the preparation of financial statements free from material misstatement due to fraud or error[141]. - The audit report highlighted the need for ongoing assessment of the company's ability to continue as a going concern[145]. - The audit procedures included evaluating the appropriateness of revenue recognition policies and assessing the reasonableness of budgeted contract costs[136]. - The independent auditor's report was issued on June 24, 2022, confirming the overall fairness of the consolidated financial statements[148]. Market and Operational Insights - The rental market demand is weak, which will put downward pressure on rental income and occupancy rates[15]. - The company plans to develop innovative products in the IoT solutions segment to meet market demand and will continue to implement cost control measures[14]. - The employee turnover rate increased to 5% in 2022, compared to 2% in 2021[77]. Shareholder Information - The company has no dividends declared or proposed for the year ended March 31, 2022[25]. - The company maintains a dividend policy that considers financial performance, cash flow, future expansion plans, and shareholder interests[108]. - As of March 31, 2022, Chairman and CEO Chen Chong-yi holds 659,740,159 shares, representing 52.97% of the company[116]. - Major shareholder Liu Wen-ting holds 681,752,246 shares, representing 54.74% of the company[119].
香港通讯国际控股(00248) - 2022 - 年度财报