Financial Performance - The Group achieved total revenue of approximately HK$1,017 million for the year ended 31 March 2023, representing a decrease of 25.7% compared to the previous year[19]. - Gross profit for the same period was approximately HK$44.7 million, reflecting an increase of 2.8% year-over-year[19]. - Net profit for the year was approximately HK$8.8 million, which is a decrease of 4.3% compared to the previous year, primarily due to increased impairment on trade receivables[19]. - Diesel sales revenue amounted to approximately HK$937.7 million, representing 92.2% of total revenue, down from HK$1,279.7 million (93.4%) in the previous period[27]. - Revenue from lubricant oil sales was approximately HK$36.9 million, accounting for 3.6% of total revenue, down from HK$50.4 million (3.7%) in the previous period[34]. - Revenue from fleet card services was approximately HK$32.4 million, representing 3.2% of total revenue, compared to HK$31.2 million (2.3%) in the previous period[36]. - The cost of sales for the current period was approximately HK$972.3 million, a decrease of 26.7% from HK$1,326.1 million in the corresponding period[48]. - The gross profit margin increased from 3.2% in the corresponding period to 4.4% in the current period[45]. - Selling and distribution expenses decreased by approximately HK$0.7 million or 9.9% to HK$6.4 million, primarily due to a reduction in truck driver wages[50]. - Administrative expenses increased by approximately HK$3.0 million or 11.5% to approximately HK$29.2 million, mainly due to an increase in impairment allowance of trade receivables[53]. - Finance costs rose by approximately HK$0.3 million or 25% to HK$1.5 million, attributed to an increase in bank interest rates[54]. - Income tax expense increased by approximately HK$1.4 million or 51.9% to approximately HK$4.1 million, due to under-provision of tax in the prior year[55]. - Current assets amounted to approximately HK$120.3 million, with current liabilities at approximately HK$54.6 million, resulting in a current ratio of 2.2[75]. - The gearing ratio was 28.4%, down from 37.9% in the previous year[75]. Market and Operational Insights - The Group operated a total of 56,193 fleet card accounts as of 31 March 2023, up from 51,259 accounts in the previous year[18]. - The Group focused on increasing trading volumes of lubricant oil in Dubai amidst market uncertainties due to the pandemic[9]. - The recovery of international trade and tourism is expected to positively impact the demand for fleet card services and diesel oil in Hong Kong[10]. - The construction industry in Hong Kong is anticipated to recover, which would positively affect the demand for lubricant oil in 2023[10]. - The Group's operations maintained stable daily sales of diesel and provision of fleet card services in Hong Kong despite challenges[20]. - The management conducted an in-depth assessment of market demand to adapt to the changing business environment[9]. - The group anticipates gradual recovery in demand for fleet card services and diesel oil as the local economy improves[25]. Management and Governance - The Group's management team has extensive experience in the sales and distribution of petrochemical products, with over 51 years in the industry for the Chairman[89]. - The Chief Executive Officer has 10 years of experience in promoting fleet cards and managing corporate strategies[94]. - The marketing director oversees sales and marketing strategies, contributing to the Group's growth in the petrochemical sector[98]. - The Group's strategic planning and overall business development are led by experienced executives, ensuring effective decision-making[89]. - The company has a diverse board with members holding various professional qualifications, enhancing its governance and strategic decision-making capabilities[111]. - The independent non-executive directors contribute to the audit and remuneration committees, ensuring compliance and accountability within the organization[108]. - The management team includes individuals with significant experience in both local and international financial markets, which supports the company's growth strategy[113]. - The company is focused on expanding its market presence and enhancing its service offerings through strategic appointments and governance improvements[105]. - The board's composition reflects a commitment to maintaining high standards of corporate governance and financial oversight[104]. - The management team is well-equipped to navigate the complexities of the financial landscape, leveraging their extensive backgrounds in finance and investment[103]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development and has published its sixth Environmental, Social and Governance (ESG) report, detailing achievements in promoting sustainability and governance performance[126]. - The ESG report covers sustainability performance and initiatives related to diesel sales, fleet card services, and lubricant oil segments for the period from April 1, 2022, to March 31, 2023[127]. - The Board has adopted the Environmental, Social and Governance Reporting Guide requirements as per the listing rules on the Stock Exchange[128]. - The ESG report highlights the company's commitment to sustainable development and its achievements in environmental, social, and governance performance[133]. - The reporting period for the ESG report covers from April 1, 2022, to March 31, 2023[130]. - The Board of Directors has established effective risk management and internal control systems to evaluate risks associated with the Group's strategic objectives[143]. - The company emphasizes the importance of stakeholder engagement, maintaining communication with key stakeholders including government, customers, suppliers, and local communities[155]. - The company aims to promote a low-carbon working environment and develop eco-friendly products and services[140]. - The Board approved the ESG report on June 23, 2023, ensuring compliance with relevant guidelines[141]. - The company has implemented consistent statistical methodologies for meaningful comparisons of ESG data over time[137]. - The Chief Operating Officer is responsible for executing the ESG plans and monitoring progress towards achieving ESG targets[151]. - The company encourages employees to raise concerns regarding financial reporting and internal control[142]. - The Board regularly reviews the Group's ESG guidelines and management objectives to identify and manage ESG-related risks and opportunities[150]. - The Group is committed to supporting 8 of the 17 United Nations Sustainable Development Goals, focusing on global challenges such as poverty, inequality, and climate change[161]. - During the reporting period, there were no non-compliance issues with relevant laws and regulations, including the Air Pollution Control Ordinance and the Waste Disposal Ordinance in Hong Kong[168]. Community Engagement and Corporate Social Responsibility - The Group engages with stakeholders through various communication channels, including annual reports, company website, and general meetings for shareholders and investors[157]. - Customer satisfaction surveys and hotlines are utilized to gather feedback from customers, ensuring their needs are addressed[160]. - The Group conducts quarterly business review meetings with business partners to strengthen collaboration and improve operational efficiency[160]. - Charity and volunteering activities are organized to engage with the local community, enhancing corporate social responsibility[160]. - The Group actively raises awareness of environmental protection in the workplace through electronic leaflets and green posters[172]. Environmental Protection and Sustainability Efforts - The Group aims to protect the environment by implementing "Green Operations," which includes regular maintenance of production equipment and encouraging employees to take carbon reduction actions[169]. - Energy and water-saving initiatives are in place to conserve natural resources, with regular reviews of daily routines to enhance resource efficiency[167]. - The company has implemented energy-saving measures, including installing T5 fluorescent tubes and LED lights, and maintaining office temperatures between 24 to 26 degrees Celsius to reduce energy consumption[6]. - The company aims to integrate electric vehicles into its fleet to lower carbon dioxide emissions and optimize delivery routes for fuel savings and emission reduction[16]. - The company has adopted TCFD recommendations to manage climate-related risks and has established a top-down risk management system for operational risks[177][184]. - The company is focused on minimizing unnecessary materials in packaging and avoiding over-packaging throughout the supply chain to reduce waste disposal[185]. - The company has set carbon footprint targets and action plans at the department level to implement carbon reduction strategies[196]. - The company has joined "Earth Hour 2023" to enhance staff understanding of low carbon office operations and energy-saving habits[176]. - The company regularly checks its sewage system and production facilities to prevent wastewater leakage[15]. - The company promotes the use of low-emission vehicles that comply with Euro V or above standards[12]. - The company has established disaster emergency plans and conducts regular emergency drills to improve disaster protection levels[194]. - The company is redirecting financial losses arising from climate-related risks via insurance[185]. - Severe rainstorms and floods may increase operational and maintenance costs for the Group, particularly affecting product delivery fleet[198]. - Consumers are increasingly likely to switch to products with lower carbon emissions and smaller carbon footprints due to climate change[199]. - The Group is widening its product range by introducing more low SAPS and environmentally friendly products[200]. - The Group is implementing reusable packaging for products to enhance eco-friendliness[200]. - Discounts are being offered to consumers who bring in reusable containers[200]. - The Group is actively adopting green office initiatives to promote energy conservation and sustainability[200]. - Regular checks on the drainage system are conducted to mitigate potential operational disruptions[200]. - Employee education on energy conservation and climate vulnerability is being encouraged across departments[200]. - Financial losses are being reduced through insurance measures[200]. - Stakeholder concerns are being attentively listened to and responded to by the Group[199].
域高国际控股(01621) - 2023 - 年度财报