Financial Performance - The group's revenue increased by approximately HKD 23.9 million or 26.5% to approximately HKD 114.2 million for the fiscal year ending March 31, 2022, compared to HKD 90.3 million for the previous year[6]. - Gross profit decreased slightly by HKD 0.1 million to approximately HKD 22.9 million, with a gross margin decline from 25.5% to 20.1%[7]. - The loss attributable to owners of the company increased by approximately HKD 94.6 million or 6.3 times to HKD 109.7 million for the fiscal year ending March 31, 2022, compared to HKD 15.1 million for the previous year[7]. - The company reported a basic loss per share of HKD 0.09 for the fiscal year ending March 31, 2022, compared to HKD 0.01 in the previous year[8]. - The group recorded revenue of approximately HKD 114.2 million for the year, an increase of about HKD 23.9 million or 26.5% compared to the previous year's revenue of HKD 90.3 million[37]. Liquidity and Financial Ratios - The current ratio decreased from 1.0 in 2021 to 0.8 in 2022, indicating a decline in short-term liquidity[6]. - The debt-to-equity ratio increased significantly to 69.7% in 2022 from 43.8% in 2021, reflecting higher leverage[6]. - As of March 31, 2022, the company's current ratio was approximately 0.8, down from 1.0 in 2021, indicating a decline in short-term financial health[83]. - The debt-to-equity ratio as of March 31, 2022, was 70%, significantly higher than 44% in 2021, reflecting increased leverage[83]. Cash Flow and Expenditures - Operating cash flow for the year was negative at HKD 8.039 million, compared to negative HKD 7.726 million in the previous year[6]. - Capital expenditures increased to HKD 10.702 million in 2022 from HKD 2.251 million in 2021, indicating a focus on investment[6]. - The group invested approximately HKD 9.8 million in the initial capital expenditure for the data center business, which included the purchase of high-end computer equipment and leasing renovations[27]. Revenue Segmentation - The group's control systems business recorded external revenue of HKD 47.3 million in FY2022, up from HKD 39.5 million in FY2021[22]. - The building intelligence segment's external revenue increased to HKD 60.4 million in FY2022, compared to HKD 50.8 million in FY2021[26]. - The control systems business generated revenue of HKD 47.3 million, accounting for 41.5% of total revenue, while the building intelligence business contributed HKD 60.4 million, or 52.9%[38]. Credit Loss Provisions - The group recognized an expected credit loss provision of HKD 62.9 million in FY2022, a significant increase from HKD 4.6 million in FY2021[5]. - Expected credit loss provisions for trade receivables and loans amounted to HKD 62.9 million in FY2022, compared to a reversal of HKD 4.6 million in FY2021[49]. - The company has made specific provisions for expected credit losses of HKD 10.1 million for Debtor 1 and HKD 12.6 million for Debtor 2 due to uncertainties in recovering these amounts[60]. Employee Costs and Compensation - Employee costs for the year amounted to approximately HKD 22.5 million, an increase of about HKD 8.8 million or 64.2% compared to approximately HKD 13.7 million in the previous year[90]. - The group reviews its employee compensation policy annually, considering factors such as individual performance and industry standards[92]. - Continuous training programs are conducted for employees to enhance their skills and knowledge, including both internal and external courses[93]. Business Strategy and Future Outlook - The group anticipates a decline in revenue for the next fiscal year due to lockdown measures in China, but remains optimistic about the future of its control systems and building intelligence businesses[5]. - The group aims to identify new investment or acquisition opportunities to expand or diversify its business for long-term benefits[17]. - The group plans to propose a new share option scheme to incentivize employees, executives, or senior staff[92]. Governance and Compliance - The company has complied with all relevant laws and regulations, with no significant violations reported as of March 31, 2022[121]. - The company has adopted the Corporate Governance Code and believes it has complied with all applicable provisions for the year ended March 31, 2022, except for specific clauses[174]. - The board consists of two executive directors and three independent non-executive directors as of March 31, 2022[179]. Risk Management - The group faces various risks, including market risks related to its customer base in China, which may impact financial performance[111]. - The group has established preventive and emergency measures to mitigate operational risks and ensure effective control procedures[113]. - Financial risks related to exchange rates, interest rates, and liquidity are acknowledged and discussed in the financial statements[114].
协同通信(01613) - 2022 - 年度财报