Financial Performance - The company's revenue decreased from approximately HKD 114.2 million in the fiscal year ending March 31, 2022, to approximately HKD 60.5 million in the fiscal year ending March 31, 2023, representing a decline of 47.0%[7] - Gross profit fell from approximately HKD 22.9 million in the fiscal year ending March 31, 2022, to approximately HKD 8.9 million in the fiscal year ending March 31, 2023, with a gross margin decrease from 20.1% to 14.8%[7] - The net loss attributable to shareholders decreased from approximately HKD 109.7 million in the fiscal year ending March 31, 2022, to approximately HKD 41.0 million in the fiscal year ending March 31, 2023, a reduction of 62.6%[7] - The company recorded revenue of approximately HKD 60.5 million for the year, a decrease of about HKD 53.7 million or 47.0% compared to the previous year's revenue of approximately HKD 114.2 million[50] - The decrease in revenue was primarily due to the lockdowns in China during the fiscal year 2023, which halted production activities in the Control Systems and Building Intelligence businesses, particularly in the East China region[50] - The company's cost of sales decreased to approximately HKD 51.6 million, a reduction of about HKD 39.6 million or 43.4% from approximately HKD 91.2 million in the previous fiscal year[52] - Gross profit for the fiscal year 2023 was approximately HKD 8.9 million, down about HKD 14.0 million or 61.1% from approximately HKD 22.9 million in the previous fiscal year, with a gross margin of 14.8% compared to 20.1% in fiscal year 2022[53] Cash Flow and Financial Position - Operating cash flow for the fiscal year ending March 31, 2023, was a net cash outflow of HKD 2.716 million, an improvement compared to HKD 7.702 million in the previous year[6] - The company's current ratio decreased to 0.7 in the fiscal year ending March 31, 2023, down from 0.8 in the previous year[6] - Capital expenditures for the fiscal year ending March 31, 2023, were HKD 223 thousand, a significant decrease from HKD 10.702 million in the previous year[6] - The debt-to-equity ratio as of March 31, 2023, was 96%, significantly up from 70% in 2022[75] - The company had outstanding bank borrowings of approximately HKD 62.8 million as of March 31, 2023, down from HKD 72.3 million in 2022[76] Business Segments and Operations - The company's control systems and building intelligence business recorded revenues of HKD 34.0 million and HKD 25.8 million, respectively, for the fiscal year ending March 31, 2023[10] - The control systems division reported external revenue of HKD 34.0 million for the fiscal year 2023, down from HKD 47.3 million in the previous year, reflecting a significant impact from COVID-19 lockdowns[17] - The building intelligence division experienced a decline in external revenue from HKD 60.4 million to HKD 25.8 million due to production halts and rising component costs, resulting in an operating loss of HKD 13.7 million[20] - The data center business incurred a total revenue of HKD 0.8 million in fiscal year 2023, a decrease from HKD 6.5 million in the previous year, leading to a division loss of HKD 3.5 million[22] - Revenue breakdown by business segment for the year includes: Building Intelligence at HKD 25.8 million (42.6%), Control Systems at HKD 34.0 million (56.1%), and Data Centers at HKD 0.8 million (1.3%) [50] Future Outlook and Strategic Initiatives - The company expects performance to improve in the next fiscal year due to the easing of COVID-19 restrictions in China[10] - The company is actively seeking new investment opportunities in the virtual asset trading platform sector to capitalize on emerging market trends[11] - The company aims to improve its financial performance and operational efficiency through the development of new technologies and services in the data center sector[21] - The company is considering restructuring plans for its building intelligence business to improve returns, including asset sales and business reorganization[27] - The company is expanding into virtual asset-related activities through a joint venture, Jade Power, which will operate VATP in Hong Kong[172] Share Capital and Fundraising - The company completed the first placement on January 25, 2022, issuing 58,000,000 shares at a price of HKD 0.25 per share, representing approximately 4.63% of the enlarged issued share capital post-placement[71] - The net proceeds from the first placement amounted to approximately HKD 14.2 million, with a net price per share of about HKD 0.245, intended for general working capital and future investments[71] - The company completed the second placement on October 3, 2022, issuing 49,200,000 shares at a price of HKD 0.25 per share, representing approximately 3.78% of the enlarged issued share capital post-placement[74] - The net proceeds from the second placement were approximately HKD 12.1 million, with a net price per share of about HKD 0.246, also intended for general working capital and future investments[74] - The company completed a new share placement on May 19, 2023, issuing 40,000,000 shares at a price of HKD 0.375 per share, which represents approximately 13.32% of the enlarged issued share capital[171] Governance and Management - The company appointed a new executive director and co-CEO, as well as an independent non-executive director, on May 19, 2023[89] - The company has established an audit committee consisting of three independent non-executive directors to review financial statements[178] - The board consists of two executive directors and three independent non-executive directors as of March 31, 2023, with changes noted by the report date[187] - The company has adopted a board diversity policy, currently comprising eight directors, including two females, with no numerical targets set for gender diversity[188] - The company has established mechanisms to ensure independent viewpoints are obtained and reviewed annually[197] Employee and Operational Management - The group has established stable relationships with major suppliers, ensuring that only materials passing quality tests are procured[123] - The company has implemented a new share option plan to incentivize employees, with no unexercised options remaining as of March 31, 2023[84] - Continuous training programs are provided to enhance the skills and knowledge of employees[148] - The employee compensation policy is reviewed annually, considering individual performance, experience, and industry standards[148] Risk Management - The company faces various risks that could significantly impact its business, financial condition, and growth prospects, including market risks related to China[115] - Financial risks include exposure to exchange rates, interest rates, and liquidity[119] - The company has implemented internal control procedures to ensure compliance with local regulations and listing rules[120] - The company has established preventive and emergency measures to mitigate potential operational losses[118] Legal and Compliance - As of March 31, 2023, the company reported no significant legal violations affecting its business operations[128] - The company has complied with all relevant laws and regulations related to health, safety, and environmental standards[126] - The company has not entered into any non-exempt connected transactions or continuing connected transactions under the Listing Rules as of March 31, 2023[165] Dividend Policy - No dividends were recommended for the year ended March 31, 2023[97] - The company is committed to a sustainable dividend policy that balances shareholder expectations with prudent capital management[200] - Dividend declarations will consider multiple factors including overall operational performance, financial condition, and future expansion plans[200]
协同通信(01613) - 2023 - 年度财报