Operations and Services - The group operates approximately 1,301 non-franchised public buses and 449 luxury cars as of March 31, 2022[27]. - The acquisition of 100% of the shares of Trade Travel (Hong Kong) Limited in 1997 established the group as the largest tourism bus service provider in Hong Kong[28]. - The group has developed a network of six 24-hour cross-border shuttle bus routes since 2004, connecting designated locations in Hong Kong with the Huanggang Port[29]. - The group acquired 100% of the shares of the Youlian Group and the Huikang Group in 2016 and 2018, further solidifying its position in the non-franchised bus market in Hong Kong[30]. - The group became the sole operator of the Hong Kong-Zhuhai-Macao Bridge shuttle bus service after successfully bidding for the project[32]. Financial Performance - The total revenue for the year ended March 31, 2022, was HKD 1,202,051,000, an increase from HKD 1,083,879,000 in the previous year[41]. - The revenue from cross-border services between mainland China and Hong Kong was HKD 5,193,000, down from HKD 10,491,000 in the previous year[41]. - The local bus service revenue increased to HKD 755,920,000 from HKD 729,018,000 year-on-year[41]. - The company reported a net loss of HKD 136,000,000 for the year, compared to a loss of HKD 43,744,000 in the previous year[41]. - The revenue from the mainland China business segment was HKD 209,734,000, up from HKD 185,589,000 in the previous year[41]. - The fleet size for non-franchised buses was 1,301, a slight decrease from 1,357 in the previous year[41]. Growth and Expansion - The company has confidence in future growth due to the implementation of national policies such as the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative[36]. - The company has expanded its investment in the tourism sector by acquiring a 67.8% stake in the tourism development company in 2017[34]. - User data showed a 20% increase in active users across the company's platforms, reaching 2 million active users by the end of the fiscal year[50]. - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10% to 12% based on current market trends and user acquisition strategies[50]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on enhancing user experience and expanding service offerings[50]. - The company is actively pursuing market expansion in mainland China, targeting a 25% increase in market share within the next two years[51]. Cost Control and Financial Management - The company will continue to implement cost control measures to mitigate the financial impact of the pandemic[63]. - The increase in loss was primarily due to a reduction in government subsidies from approximately HKD 242 million in the previous year to about HKD 34 million this year[62]. - Excluding the non-recurring government subsidies, the company's performance would have improved by approximately 40.6% or about HKD 116 million year-on-year due to increased revenue and effective cost control measures[62]. - The group has implemented cost control measures to mitigate financial impacts due to ongoing travel restrictions[69]. - The management plans to adjust business strategies and implement cost control measures to mitigate financial impacts from external risks due to ongoing pandemic uncertainties[79]. Debt and Financial Position - As of March 31, 2022, the total outstanding debt amounted to approximately HKD 1,934 million, compared to HKD 1,911 million in the previous year[82]. - The debt-to-equity ratio as of March 31, 2022, was approximately 88.4%, an increase from 84.4% in the previous year[82]. - The total liabilities amounted to HKD (2,925,623,000), an increase from HKD (2,863,374,000) in the previous year[162]. Governance and Compliance - The board of directors is composed of at least three independent non-executive directors, with one possessing appropriate professional qualifications or relevant financial management expertise[100]. - The audit committee, consisting of three independent non-executive directors, held two meetings during the year ending March 31, 2022, to review the company's financial statements and internal controls[107]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, to oversee specific areas of governance[104]. - The company has adopted a board diversity policy aimed at enhancing competitive advantage through increased diversity in board composition[112]. - The company confirmed its responsibility for preparing financial statements that fairly reflect its financial position for the year ended March 31, 2022[132]. Operational Challenges - The group faced significant operational challenges, as indicated by the substantial increase in losses compared to the previous fiscal year[161]. - Local transportation service revenue increased significantly due to a rebound in passenger flow, while cross-border transport services faced unprecedented challenges due to ongoing travel restrictions[63]. Shareholder Information - The company has available reserves for distribution amounting to approximately HKD 72,047,000 as of March 31, 2022[169]. - The five largest customers accounted for less than 18% of the total revenue, while the largest supplier accounted for approximately 25% of total purchases[171]. - The company does not recommend the distribution of a final dividend for the year ending March 31, 2022[59].
冠忠巴士集团(00306) - 2022 - 年度财报