Financial Performance - The Group recorded a turnover of approximately HK$169.4 million for the year ended 31 March 2022, a decrease from approximately HK$337.9 million in the previous year, representing a decline of about 50%[15] - Gross profit for the year was approximately HK$43.1 million, down from approximately HK$91.4 million, indicating a decrease of around 53%[15] - The loss for the year was approximately HK$27.2 million, compared to a loss of approximately HK$23.4 million in the previous year, reflecting an increase in loss of about 16%[15] - The Group recorded a revenue of approximately HK$169.4 million and a gross profit of approximately HK$43.1 million for the year ended 31 March 2022, compared to approximately HK$337.9 million and HK$91.4 million for the previous year, resulting in a loss of approximately HK$27.2 million[17] - The gross profit of the financial services business decreased to approximately HK$16.9 million from approximately HK$49.8 million in the last corresponding year, while the finance leasing business gross profit fell to approximately HK$7.6 million from approximately HK$17.0 million[16] - The trading business recorded a turnover of approximately HK$125.9 million with a loss of approximately HK$7.5 million, compared to approximately HK$250.6 million and a loss of approximately HK$6.1 million for the same period in 2021[20] - Interest income for the year ended March 31, 2022, was approximately HK$16.4 million, a decrease from approximately HK$19.1 million in the previous year, resulting in a loss of approximately HK$5.4 million[25] - The finance leasing business had an outstanding principal amount of approximately HK$77.5 million as of March 31, 2022, with a turnover of approximately HK$7.6 million and a loss of approximately HK$1.3 million for the year[30] - The financial services business reported a turnover of approximately HK$19.5 million with a loss of approximately HK$18.1 million for the year ended March 31, 2022, down from approximately HK$51.1 million in revenue and a profit of HK$0.7 million in the previous year[35] Business Strategy and Operations - The financial services business experienced less than satisfactory performance due to plummeting stock markets during the year[10] - The Group diversified into the bond placing market with successful projects completed, aiming to increase exposure and scale of operations within capital markets[10] - The Group plans to actively identify and explore investment and business opportunities to strengthen and broaden its asset and revenue base[10] - Strategies will be reassessed and re-engineered periodically in response to the changing environment[10] - The Group aims to enhance and improve business operations and profitability by cautiously seizing every opportunity[10] - The Group will continue to assess market conditions and adjust business strategies to mitigate credit risk and enhance recovery of outstanding amounts[28] - Management is cautiously optimistic about the recovery of the trading business, anticipating a return to pre-COVID-19 levels as the PRC government emphasizes domestic market strategies[24] - The Group is actively seeking new investment and business opportunities to broaden its asset and revenue base for long-term performance[43] Impairment and Losses - Impairment loss provisions were made for receivables due to the operational and financial impacts on certain customers from the COVID-19 pandemic[9] - An impairment loss on goodwill of approximately HK$71.7 million was recognized, offset by a gain on changes in fair value of other financial assets of approximately HK$74.1 million[17] - The Group provided an impairment loss on finance lease receivables of approximately HK$2.8 million for the year ended March 31, 2022, due to defaults caused by the COVID-19 pandemic[31] - The Group recognized an impairment loss on goodwill of approximately HK$71.7 million due to carrying amounts exceeding recoverable amounts[42] Corporate Governance - The Group's corporate governance practices comply with the Corporate Governance Code for the year ended 31 March 2022[62] - The Board is responsible for the control and leadership of the Group, including monitoring policy matters and significant transactions[63] - The Company has appointed three independent non-executive Directors, with Mr. Chi Chi Hung having appropriate professional qualifications and experience in financial matters[74] - The Chairlady and CEO positions are held by different individuals to maintain independence and balanced decision-making[72] - The Board consists of 2 executive Directors and 3 independent non-executive Directors, providing a balanced set of skills and experiences essential for effective leadership[69] - The Company has established a board diversity policy to enhance diversity at the Board level, considering factors such as talents, skills, experience, and independence[83] - The Company has a structured approach to ensure the continuous professional development and training of Directors[68] - The Company Secretary ensures that Board procedures are followed and activities are conducted efficiently[90] Risk Management - The Group's financial risk factors include credit risk, market risk, and liquidity risk, with management measures detailed in the financial statements[52] - The Board is responsible for establishing and maintaining effective risk management and internal control systems to achieve the Group's objectives[122] - The Group has adopted a complete risk management process, including risk identification, assessment, evaluation, and treatment, ensuring a proactive and systematic approach[127] - The internal control and risk management systems of the Group were deemed effective and adequate based on the Audit Committee's review and recommendations[124] - The Group's risk management system is continuous and involves input from various functional areas across the organization[127] Employee and Workplace Policies - Total employees as of March 31, 2022, decreased to 58 from 66 in 2021, with a gender breakdown of 34 males and 24 females[187] - The overall employee turnover rate during the reporting period was 47%[191] - Competitive remuneration packages are offered, including annual salary increments and discretionary bonuses based on performance[194] - Employee benefits include medical insurance in Hong Kong and contributions to mandatory provident funds and social insurance in China[194] - The Group emphasizes work-life balance and organizes regular employee activities to foster team spirit[196] - A comprehensive occupational health and safety policy is in place, complying with relevant laws and regulations[197] - The Group employs a diverse talent team, ensuring recruitment processes are free from discrimination[189] - Work injuries during the reporting period: 0[199] Environmental, Social, and Governance (ESG) - The Group aims to enhance employee well-being and incorporate environmental considerations into daily operations through green office measures[165] - The Group has set ESG-related targets to monitor sustainability performance and disclose key environmental and social performance indicators[155] - The Group conducts materiality assessments to identify significant ESG issues relevant to its operations[155] - The Group identified 20 ESG-related topics relevant to its business operations based on HKEX listing rules and industry trends[179] - The Board retains ultimate responsibility for overseeing the Group's risk management activities and monitors material ESG risks[170] - Stakeholder engagement includes regular communication with employees, suppliers, customers, and financial institutions[175]
香港潮商集团(02322) - 2022 - 年度财报