Economic Performance - For the fiscal year ending March 31, 2023, China's GDP reached 121 trillion RMB, with a growth rate of 3%[8]. - The company reported that the ongoing COVID-19 pandemic and geopolitical tensions have significantly impacted its business operations and market expansion efforts[11]. - The outlook for the coming year anticipates new opportunities for CRM business development as demand increases, despite ongoing economic pressures[29]. - The company's revenue for 2023 was HKD 139,978,000, a decrease of 22.4% compared to HKD 180,316,000 in 2022[80]. - Gross profit for 2023 was HKD 6,432,000, down 27.4% from HKD 8,857,000 in 2022[80]. - The company reported a loss before tax of HKD 11,815,000 in 2023, an improvement from a loss of HKD 21,196,000 in 2022[80]. - Total assets decreased to HKD 150,605,000 in 2023 from HKD 179,142,000 in 2022, a decline of 16.0%[80]. - The company's total liabilities decreased to HKD 68,218,000 in 2023 from HKD 84,688,000 in 2022, a reduction of 19.5%[80]. - Net assets were reported at HKD 82,387,000 in 2023, down from HKD 94,454,000 in 2022, reflecting a decrease of 12.7%[80]. Business Operations - As of December 31, 2022, there were over 10,000 KM of operational urban rail transit lines across 55 cities in mainland China, with 5 new cities added in 2022[12]. - The company aims to expand its domestic and international CRM business following the easing of pandemic restrictions in China[9]. - The company is focused on enhancing technological innovation and driving development strategies in response to government policies[8]. - The company is adapting its operations to comply with local government requirements while ensuring employee safety[9]. - The company is committed to stabilizing its CRM services despite the pressures from demand contraction and supply shocks in the market[12]. - The group is upgrading and developing its CA-SIM products and related mobile applications to be compatible with 5G network specifications, with expected launch by the end of 2023[45]. - The company terminated its POS equipment business development due to lower-than-expected market prospects and ongoing impacts from the pandemic[46]. - The company focuses on CRM business and rail transit passenger information systems as its main operations[156]. Financial Performance - The group's CRM business sales amounted to approximately HKD 80,932,000, a decrease of about 29% compared to HKD 114,267,000 in the same period last year[16]. - The rail transit sales were approximately HKD 59,046,000, down about 11% from HKD 66,049,000 year-on-year[16]. - The total sales for the group were approximately HKD 139,978,000, representing a decrease of about 22% from HKD 180,316,000 in the previous year[16]. - The group reported a gross profit of approximately HKD 6,432,000 and a loss attributable to equity holders of approximately HKD 11,815,000 for the year ending March 31, 2023[17]. - Sales expenses were approximately HKD 9,909,000, a reduction of about 23% compared to the previous year[18]. - Administrative expenses were approximately HKD 9,037,000, down about 20% year-on-year[20]. - Other income and net gains increased by approximately 247% to about HKD 5,782,000, mainly due to higher bank interest income[21]. - The group achieved approximately HKD 130,933,000 in sales in China, accounting for about 93% of total sales for the year[23]. Employee and Workforce - The total employee cost for the fiscal year was approximately HKD 20.19 million, a decrease from HKD 23.39 million in the previous year[53]. - The company has 180 employees as of March 31, 2023, an increase from 177 employees in the previous year[53]. - The group has a high employee turnover rate of 57%, attributed to pandemic-related disruptions in production[200]. - The male employee count is 132 (73.33%), with a turnover rate of 46.97%, while the female employee count is 48 (26.67%) with a turnover rate of 83.33%[200]. - Employee compensation is aligned with market standards and includes discretionary bonuses based on individual performance[196]. - The group provides various social insurance benefits for domestic employees, including pension and medical insurance, in compliance with local regulations[196]. - The majority of employees work a five-day week, with paid annual leave based on their position and tenure[199]. - The group recognizes the importance of a diverse workforce for maintaining competitive advantage[200]. Corporate Governance - The board does not recommend the distribution of a final dividend for the year ending March 31, 2023[73]. - The company has complied with GEM Listing Rules regarding corporate governance and related party transactions during the review period[105][104]. - The board consists of six directors, ensuring a balance of authority and independence among the chairman and CEO[114][113]. - The independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules[116]. - The board reviews its corporate governance policies annually to ensure relevance and compliance with regulations[138]. - The company has established formal and transparent policies to protect shareholder interests, adhering to all principles and provisions of the corporate governance code[111]. - The audit committee is composed of three independent non-executive directors, ensuring oversight of financial controls and risk management[136]. - The board has adopted a diversity policy, aiming to appoint at least one female director by December 31, 2024, as there are currently no female directors[130]. Environmental, Social, and Governance (ESG) - The ESG report outlines the company's commitment to environmental, social, and governance responsibilities from April 1, 2022, to March 31, 2023[151]. - The company aims to reduce carbon emissions and enhance product environmental design through close collaboration with suppliers and customers[166]. - The company has established a framework for implementing ESG plans across different functions within the group[160]. - The total greenhouse gas emissions for the reporting period were 126.26 tons, a decrease from 147.21 tons in the previous year, representing a reduction of approximately 14.2%[179]. - The company has not incurred any significant fines for environmental law violations during the reporting period[176]. - The company has implemented a fuel-saving action plan, resulting in reduced gasoline consumption due to better trip planning and vehicle maintenance[177]. - The company emphasizes research and innovation, energy efficiency, and strict quality assurance in its operations[158]. - The company has integrated ergonomic elements into assembly processes to improve productivity and reduce physical strain on employees[177]. Risk Management - The company has implemented an internal control system to identify and mitigate operational and information technology risks[56]. - The group continues to monitor foreign currency risks, particularly with USD and HKD, without implementing hedging measures[36]. - The company faces various risks, which are detailed on page 14 of the annual report, and investors are advised to consult professionals before making investment decisions[71].
国联通信(08060) - 2023 - 年度财报