Financial Performance - The company recorded revenue of approximately HKD 51,381,000 for the fiscal year ending March 31, 2023, representing a year-on-year increase of about 47.8% compared to HKD 34,757,000 in 2022[9]. - The company incurred a loss of approximately HKD 7,115,000 in the fiscal year, compared to a loss of HKD 1,007,000 in the previous year, primarily due to a decline in gross profit and impairment losses on property, plant, and equipment[9]. - The group's revenue for the year ended March 31, 2023, increased to approximately HKD 51,207,000, up 48.4% from HKD 34,503,000 in 2022[22]. - The cost of sales rose to approximately HKD 39,996,000, an increase of 87.6% from HKD 21,322,000 in the previous year, primarily due to higher parts and labor costs[23]. - The net loss for the year was approximately HKD 7,115,000, compared to HKD 1,007,000 in 2022, attributed to decreased gross profit and increased impairment losses[30]. - The group's operating expenses for the year were approximately HKD 4,185,000, a 93.9% increase from HKD 2,158,000 in 2022, mainly due to rising direct costs[28]. Business Operations - The company operates two frontline service centers and two backend repair centers, with one backend center newly established to handle a new service contract for television and camera repairs[16]. - The company aims to enhance service quality and efficiency while exploring new business opportunities to diversify revenue sources and optimize shareholder returns[11]. - The company plans to develop new value-added services and create new business opportunities to support long-term sustainable growth[17]. - The competitive landscape for mobile phone and personal electronic product repair services in Hong Kong remains intense, but the company believes its industry experience and strong customer relationships will help maintain its market leadership[20]. - The company is committed to improving operational efficiency and cost management to enhance overall productivity and business performance[16]. Economic Outlook - The company is optimistic about future economic prospects, anticipating gradual recovery in the Hong Kong economy and improved overall market sentiment[11]. - The global smartphone market is expected to recover in the short term, driven by the ongoing development of 5G technology, which is projected to account for 62% of global smartphone shipments in 2023[20]. - The group is optimistic about the economic outlook, anticipating gradual recovery from the COVID-19 pandemic in Hong Kong[49]. - The company acknowledges the challenges posed by high inflation, interest rates, and geopolitical risks but remains focused on its core business and long-term growth strategies[16]. Corporate Governance - The company has adopted the Corporate Governance Code to enhance transparency and accountability, ensuring that business activities and decision-making processes are properly regulated[66]. - The board consists of three non-executive directors, one executive director, and three independent non-executive directors, ensuring compliance with the requirement that independent non-executive directors represent at least one-third of the board[67]. - The company emphasizes the importance of good corporate governance as part of its corporate culture, continuously striving to improve governance practices[66]. - The audit committee, established on May 2, 2013, includes three independent non-executive directors and is responsible for reviewing financial statements and risk management systems[86]. - The remuneration committee, also established on May 2, 2013, consists of three independent non-executive directors and recommends overall remuneration policies for the board and senior management[89]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report details the company's sustainable development efforts and corporate social responsibility performance for the fiscal year ending March 31, 2023[117]. - The ESG report focuses on the company's core business in Hong Kong, which includes mobile and personal electronic product repair and refurbishment services[118]. - The board emphasizes that strong environmental, social, and governance (ESG) strategies are key to enhancing investment value and delivering long-term returns to stakeholders[123]. - The company has conducted an importance assessment to identify eight significant ESG issues relevant to its business and stakeholders, based on internal surveys and external expert opinions[130]. - The company aims to integrate sustainability into all aspects of its business, from supply chain management to community development[125]. Employee Management - The total number of employees increased from 132 in 2021/22 to 180 in 2022/23, representing a growth of approximately 36.36%[170]. - The employee turnover rate for males decreased significantly from 130% in 2021/22 to 39% in 2022/23, while for females it dropped from 137% to 31%[170]. - The company emphasizes employee rights and benefits, adhering to labor laws regarding compensation, benefits, and working hours[145]. - A comprehensive performance evaluation system is in place, influencing salary adjustments and promotions based on employee capabilities and performance[147]. - The company is committed to internal training and encourages participation in external seminars to enhance employee knowledge and efficiency[153]. Risk Management - The company faces significant market risks due to intense competition and regulatory environments promoting consumer protection[194]. - Compliance with legal and regulatory standards in telecommunications and financing presents ongoing risks[197]. - The company actively identifies, assesses, and manages climate-related risks, recognizing the financial impacts of climate change on its operations[141]. - The company relies on robust IT infrastructure to support operations and protect sensitive customer data from cybersecurity threats[196]. Community Engagement - The company actively participates in community service and charitable activities, including fundraising for family and child welfare services[165]. - Stakeholder engagement is prioritized, with diverse communication channels established to understand and respond to various stakeholder expectations and requirements[127].
电讯首科(03997) - 2023 - 年度财报