Financial Performance - The group's revenue increased by approximately 34.6% to about HKD 183.0 million for the year ended March 31, 2022, compared to approximately HKD 136.0 million in the previous year[12]. - Net profit for the year rose by approximately 80.6% to about HKD 19.5 million, up from approximately HKD 10.8 million in the previous year[12]. - Sales to other users increased by approximately HKD 34.4 million, while sales to Indonesian and Philippine users rose by approximately HKD 12.6 million[12]. - The gross profit increased by approximately HKD 13.5 million or 29.5% to about HKD 59.2 million, compared to approximately HKD 45.7 million in the previous year[18]. - Overall gross margin decreased from approximately 33.6% to about 32.3% due to a higher proportion of sales to other users, which have a lower gross margin[18]. - Other income decreased by approximately 65.9% to about HKD 1.5 million, down from approximately HKD 4.4 million in the previous year[19]. Expenses and Assets - Sales and distribution expenses for the year were approximately HKD 23.6 million, an increase of about 8.3% compared to HKD 21.8 million in the previous year[5]. - Administrative expenses decreased by approximately 12.9% to about HKD 13.5 million from HKD 15.5 million in the previous year, primarily due to a reduction in employee costs[23]. - Inventory decreased to approximately HKD 96.7 million from HKD 118.9 million, a reduction of about HKD 22.2 million due to decreased procurement[27]. - Current assets net value increased to approximately HKD 159.2 million from HKD 137.7 million, with the current ratio rising from about 5.1 times to approximately 18.3 times[29]. - The group had no bank and other borrowings as of March 31, 2022, down from approximately HKD 18.9 million in the previous year[30]. Tax and Compliance - The effective tax rate for the year was approximately 16.5%, up from 13.4% in the previous year, with income tax expenses of about HKD 3.8 million compared to HKD 1.7 million previously[25]. - The company has confirmed compliance with the applicable code provisions throughout the year[67]. Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices[67]. - The board believes that high standards of corporate governance are essential for safeguarding shareholder interests and enhancing corporate value[67]. - The company has established written guidelines for employees likely to possess unpublished sensitive price information regarding securities trading[69]. - The company has a strong board leadership that ensures objective decision-making[70]. - The company has implemented a standard code for directors' securities trading as per the listing rules[68]. - The company has a dedicated audit committee, remuneration committee, and nomination committee to oversee various governance aspects[66]. Risk Management - The company has implemented various policies and procedures to ensure effective risk management and compliance with applicable laws and regulations in Hong Kong[121]. - An independent professional advisor has been appointed to conduct regular reviews of the risk management and internal control systems[125]. - The company has established a whistleblowing procedure for employees to confidentially raise concerns regarding financial reporting or internal controls[125]. - The directors are aware of their responsibility for preparing the company's financial statements for the year[131]. Shareholder Relations - The company emphasizes effective communication with shareholders to strengthen investor relations and keep them informed about business performance and strategies[145]. - The company has a shareholder communication policy in place to address shareholder concerns and will regularly review its effectiveness[146]. Shareholding Structure - As of March 31, 2022, the beneficial ownership of Mr. Xiao amounted to 281,070,000 shares, representing approximately 70.26% of the company's total issued shares of 400,000,000[184]. - The company has not entered into any significant contracts with its controlling shareholders during the year[194]. - The company confirms that there were no breaches of the non-competition agreement by the controlling shareholder during the year[193]. Committees and Meetings - The board held five board meetings, three audit committee meetings, one remuneration committee meeting, one nomination committee meeting, and one annual general meeting during the year[116]. - The Audit Committee held three meetings during the year to review interim and annual financial performance, compliance controls, and risk management systems[89].
恒月控股(01723) - 2022 - 年度财报