Financial Performance - Total revenue for the fiscal year 2023 was approximately HKD 1,166.8 million, an increase of about HKD 17.8 million or 1.5% compared to the previous fiscal year[15]. - Profit and total comprehensive income for the fiscal year 2023 amounted to approximately HKD 33.2 million, an increase of about HKD 1.2 million or 3.8% from the previous year[15]. - Revenue from the IT infrastructure solutions segment was approximately HKD 1,033.9 million, up about HKD 7.7 million or 0.8% year-on-year[25]. - Revenue from the IT management services segment was approximately HKD 132.9 million, an increase of about HKD 10.1 million or 8.2% compared to the previous year[25]. - The total cost of sales for the year was approximately HKD 1,045.3 million, an increase of about HKD 29.0 million or 2.9% year-on-year[26]. - Gross profit for the year was approximately HKD 121.6 million, a decrease of about HKD 11.0 million or 8.3% compared to the previous year[27]. - The operating expenses for the year decreased to approximately HKD 90.3 million, down about HKD 2.3 million or 2.5% from the previous year[28]. - As of March 31, 2023, the company had no borrowings, compared to HKD 9.0 million in borrowings the previous year[32]. - The cash and cash equivalents as of March 31, 2023, were approximately HKD 248.3 million, an increase from HKD 232.2 million the previous year[33]. - Total employee costs, including directors' remuneration, amounted to approximately HKD 108.7 million, compared to HKD 111.1 million in the previous year[41]. - The distributable reserves available to shareholders amounted to approximately HKD 75.949 million, an increase from HKD 75.270 million in 2022[160]. Business Strategy and Operations - The company plans to continue exploring the potential applications of AI technology in its business model and solution offerings, particularly in optimizing customer workflows and enhancing productivity[17]. - The company aims to improve resource allocation to overcome external uncertainties in the market, focusing on its four core pillars of business solutions[18]. - The company has completed internal restructuring to integrate its service teams and streamline workflows[18]. - The demand for IT solutions is expected to increase as businesses continue to seek suitable solutions to enhance flexibility, mobility, and efficiency[16]. - The company will actively explore opportunities to incorporate new technologies into its solutions and convert them into revenue sources when the timing is right[17]. - The group plans to focus on its core business and expand its service offerings through partnerships with key suppliers[47]. - The company has participated in various end-user events to promote its latest IT solutions across different industries[8]. Human Resources and Talent Management - The company is committed to providing employee training and diversifying recruitment strategies to retain existing talent amid competitive pressures for high-end talent[18]. - The group continues to face challenges due to a shortage of IT talent and rising labor costs, alongside inflation uncertainties in Hong Kong[47]. - The group has a total of 240 employees as of March 31, 2023, down from 253 employees the previous year[41]. - The company aims to maintain at least the current number of female directors and is committed to improving gender diversity in senior management roles[106]. - The workforce diversity as of March 31, 2023, was 69.5% male and 30.5% female employees[107]. Corporate Governance - The company emphasizes good corporate governance practices, focusing on accountability, transparency, independence, responsibility, and fairness[66]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[70]. - The management team is led by the CEO, who is responsible for executing the strategies set by the board[72]. - The company has adopted the standard code for securities trading by directors as per the listing rules[68]. - The board plans to hold at least four meetings annually to determine overall strategic direction and approve interim and annual results[76]. - The independent non-executive directors bring diverse experience from various sectors, enhancing the board's effectiveness[70]. - The audit committee has been established to oversee the company's financial reporting and compliance[73]. - The company has a strong focus on risk management and long-term value creation for shareholders[72]. - All independent non-executive directors have confirmed their independence according to the listing rules, ensuring the protection of shareholder interests[86]. - The board has established mechanisms to ensure independent viewpoints are obtained, with at least three independent non-executive directors required to be present at all times[88]. - Continuous professional development programs are provided for all directors to enhance their knowledge and skills, ensuring compliance with corporate governance practices[83]. - The board is responsible for leading and controlling the company, overseeing business strategies and ensuring successful operations[93]. Risk Management - The company has a structured process for shareholders to request special meetings, requiring at least 10% of the voting shares[127]. - The board has reviewed the effectiveness of the risk management and internal control systems, finding them sufficient and effective for the year[120]. - The internal audit department is responsible for providing independent confirmation of the effectiveness of the company's risk management and governance procedures[117]. - The company utilizes a risk matrix to assess the significance of identified risks based on their impact, frequency, and likelihood[118]. - Identified risks are evaluated at least annually, with timely reporting of any risk events to management[119]. - The company has allocated resources to enhance its internal control systems and will continue to improve them[120]. - The company has identified key risks including reliance on qualified employees and potential cost overruns in IT infrastructure service contracts[155]. Shareholder Communication and Dividends - The board declared a special dividend of HKD 0.08 per share for 2023, compared to HKD 0.00 per share in the previous year[42]. - The board proposed a final dividend of HKD 0.025 per share for 2023, down from HKD 0.06 per share in the previous year[42]. - The company emphasizes open communication with shareholders and regularly reviews its shareholder communication policy[131]. - The board's report and financial statements for the year are presented to shareholders, highlighting the company's performance and future outlook[140]. - The company has adopted a dividend policy that considers financial performance, shareholder equity, and capital requirements among other factors[137]. Environmental, Social, and Governance (ESG) - The company is committed to environmental, social, and governance (ESG) practices, ensuring compliance with relevant regulations[150]. - The company has made amendments to its articles to allow for electronic or hybrid meetings for shareholder gatherings[135]. - The company's charitable donations for the fiscal year amounted to HKD 2.2 million[198]. Related Party Transactions - The total rent paid by the company to Mr. Yang under the residential lease agreement amounted to HKD 960,000 for the fiscal year ending March 31, 2023[194]. - The total rent paid by the company to Microware Properties under the office lease agreement was HKD 6,427,080 for the fiscal year ending March 31, 2023[194]. - All related party transactions have complied with the disclosure requirements under the Listing Rules Chapter 14A[194].
美高域(01985) - 2023 - 年度财报