Financial Performance - Revenue for the year ended March 31, 2022, was HK$501.3 million, representing a 9.8% increase from HK$456.4 million in 2021[11] - Gross profit increased by 19.9% to HK$131.8 million, up from HK$109.9 million in the previous year[11] - Operating profit rose by 29.4% to HK$30.1 million, compared to HK$23.2 million in 2021[11] - Net profit for the year was HK$21.1 million, reflecting a 13.7% increase from HK$18.6 million in 2021[11] - Earnings per share increased to HK$6.6, an 8.2% rise from HK$6.1 in the previous year[11] - Total assets as of March 31, 2022, were HK$355.9 million, a 6.4% increase from HK$334.5 million in 2021[11] - Net assets increased by 8.8% to HK$188.2 million, up from HK$172.9 million in the previous year[11] - The gross margin improved to 26.3%, up from 24.1% in 2021, indicating better cost management[11] Business Segments Performance - Turnover from the Electronic and Electrical Trading Business increased by approximately 22.8% to HK$361 million, while turnover from the Computer Business decreased by approximately 19.6% to HK$78 million[23] - The Group's revenue from the Electronic and Electrical Trading Business was approximately HK$361 million, representing an increase of about 22.8% compared to approximately HK$294 million last year[45] - The gross profit margin for the Electronic and Electrical Trading Business, Computer Business, and Cosmetic and Online Retail Business were approximately 27.1%, 23.3%, and 25.1% respectively for the Reporting Period[44] - The Computer Retail Business recorded a turnover of approximately HK$20 million, a decrease of about 20% from approximately HK$25 million in the previous year[52] - The turnover of the Computer Distribution Business decreased by about 19.4% to approximately HK$58 million, down from approximately HK$72 million last year[52] - The Group's overseas subsidiaries recorded an aggregate turnover of approximately HK$175 million, representing an increase of approximately 28.7% compared to approximately HK$136 million last year[49] - The South African subsidiary recorded turnover of approximately HK$143 million, an increase of about 31.2% from approximately HK$109 million last year[50] - The Electronic and Electrical Trading Business accounted for approximately 72% of the Group's total turnover during the Reporting Period[43] - The Computer Business accounted for approximately 15% of the Group's total turnover during the Reporting Period[43] - The Cosmetic and Online Retail Business accounted for approximately 13% of the Group's total turnover during the Reporting Period[43] Liquidity and Financial Ratios - The company maintained a current ratio of 1.9 and a quick ratio of 0.7, indicating stable liquidity[11] - As of 31st March 2022, the Group's cash and bank balances amounted to approximately HK$37 million, with net current assets of approximately HK$138 million, maintaining a current ratio of approximately 1.9[57] - The Group's total borrowings as of 31st March 2022 were approximately HK$69 million, slightly down from HK$70 million as of 31st March 2021[59] - The Group's net borrowings amounted to approximately HK$62 million as of 31st March 2022, compared to approximately HK$61 million as of 31st March 2021[59] - The net gearing ratio decreased to 33% as of 31st March 2022, down from 35.3% as of 31st March 2021[59] - The Group had banking facilities totaling approximately HK$89 million as of 31st March 2022, with an unused balance of approximately HK$20 million[59] Management and Governance - The Group has a strong governance structure with qualified professionals in key positions, ensuring compliance and strategic oversight[90][94] - The management team is focused on business development and expansion in the Asia Pacific region, leveraging their extensive industry experience[83][86] - The company has independent non-executive directors with extensive experience in accounting, auditing, and financial management, including Dr. Leung with over 35 years of experience[90] - The independent non-executive directors bring diverse backgrounds and expertise, enhancing the company's strategic direction[85][92] - The Group's management structure includes a mix of experienced professionals with backgrounds in finance, business development, and retail[100][102][110][112] - The Company emphasizes transparency, accountability, and independence in its corporate governance practices[119] Risk Management and Internal Controls - The Company has established risk management and internal control systems to identify, analyze, evaluate, and mitigate risks impacting operational efficiency and business objectives[193] - An annual risk identification exercise is conducted to assess the consequences and likelihood of risks, including the development of risk management plans[194] - The internal audit function examines key financial and operational issues, providing findings and recommendations for improvement to the Audit Committee[195] - The Board, supported by the Audit Committee, reviewed the effectiveness of risk management and internal control systems during the reporting period, deeming them adequate[199] Dividend Policy - The Company has adopted a dividend policy, allowing for the declaration of dividends based on the Board's recommendation, subject to various considerations[176] - Factors considered in the dividend declaration include the Group's overall financial condition, future operations, liquidity position, and expected working capital requirements[179] - The Company may decide not to declare dividends for reasons such as maintaining capital structure and reserving capital for opportunities[176] - The Company’s retained earnings and distributable reserves are considered when determining dividend amounts[179] Employee and Management Structure - As of March 31, 2022, the Group had a total of 394 full-time employees, including staff in Hong Kong and overseas subsidiaries[61] - The headcount for the Electronic and Electrical Trading Business increased by approximately 6.1% to 331 full-time employees, while the Computer Business saw a decrease of approximately 7.8% to 47 employees[28] - The total number of executive directors and senior management receiving remuneration in the range of HK$500,001 to HK$1,000,000 is 2, while 11 individuals earn below HK$500,000, totaling 13 persons[162] Audit and Compliance - The consolidated financial statements for the year ended March 31, 2022, were audited by HLB Hodgson Impey Cheng Limited, with a recommendation for re-appointment at the upcoming annual general meeting[188] - The auditors' remuneration for the year ended March 31, 2022, totaled HK$1,120,000, comprising HK$900,000 for audit services and HK$220,000 for non-audit services[192] - All members of the Audit Committee are Independent Non-Executive Directors (INEDs), ensuring compliance with Listing Rules regarding professional qualifications[173]
万保刚集团(01213) - 2022 - 年度财报