Financial Performance - The company's revenue decreased by approximately HKD 51.0 million or 25.4% to about HKD 149.9 million for the year ended April 30, 2022, compared to HKD 200.9 million in 2021[13]. - The net profit dropped to approximately HKD 5.7 million, down from HKD 24.1 million in 2021[13]. - For the year ended April 30, 2022, the company's revenue was approximately HKD 149.9 million, a decrease of about HKD 51.0 million or 25.4% compared to the previous year[18]. - Revenue from LED lighting products decreased by approximately HKD 35.4 million or 65.4%, while revenue from LED decorative lights decreased by approximately HKD 15.5 million or 10.6%[18]. - Sales from US customers decreased from approximately HKD 22.8 million to about HKD 15.5 million, a reduction of approximately HKD 7.3 million or 32.0%[19]. - The company's gross profit decreased from approximately HKD 55.2 million to about HKD 33.3 million, a decline of approximately HKD 21.9 million or 39.7%[26]. - The gross profit margin decreased from approximately 27.5% to about 22.2% due to increased sales of lower-margin LED decorative lights[26]. - The company's net profit for the year was approximately HKD 5.7 million, a decrease of about HKD 18.4 million or 76.3% compared to the previous year[33]. - Cash and bank balances as of April 30, 2022, were approximately HKD 57.0 million, down from HKD 58.9 million the previous year[35]. - The current ratio as of April 30, 2022, was 4.4 times, compared to 4.7 times the previous year[35]. Operational Challenges - The manufacturing operations were impacted by city lockdown policies during the Chinese New Year, leading to a temporary halt or low production activity from February to March 2022[11]. - The Cambodian factory has been operational since October 2020, but has not yet achieved full capacity due to the pandemic situation in Cambodia[12]. - The global economic outlook remains affected by the pandemic, prompting the company to adopt a cautious and balanced risk management approach[14]. - The demand for lighting products has significantly increased despite the overall decrease in revenue due to cautious consumer behavior[11]. Strategic Initiatives - The company plans to expand its product portfolio to strengthen its market position both locally and internationally[14]. - The company aims to enhance its reputation and build confidence among overseas customers through the establishment of the Cambodian factory[12]. - Management believes that the global vaccination progress and easing of lockdown measures will be key factors for economic recovery in the second half of 2022[20]. - The group purchased 6 new automatic welding machines and upgraded 15 machines to enhance the production of LED decorative lights[48]. - A total of 11 patent applications and one new patent application were submitted to expand the product portfolio and strengthen product development capabilities[48]. - The group hired 7 new sales personnel to strengthen sales and marketing efforts as of April 30, 2022[51]. Corporate Governance - The board of directors is responsible for leading, controlling, and managing the company, ensuring effective operations and growth to enhance shareholder value[80]. - The board composition as of April 30, 2022, includes 4 executive directors and 3 independent non-executive directors, complying with GEM listing rules[83]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their compliance with GEM listing rules[84]. - The chairman and CEO roles are separated to ensure a balance of power, with the current chairman being Mr. Shao Guoliang and Mr. Shao Chiliang serving as CEO since March 10, 2022[88]. - All directors undergo formal training upon appointment to understand the company's operations and regulatory responsibilities[92]. - The company has established a policy for the appointment and removal of directors, with terms set at two years[89]. - The board regularly reviews the delegated responsibilities to senior management, ensuring major transactions require prior board approval[80]. - Independent non-executive directors contribute to the board by providing diverse business and financial expertise, ensuring checks and balances for the company and shareholders[83]. - The company emphasizes continuous professional development for directors, providing updates on regulatory changes and market developments[92]. - The board has complied with the corporate governance code throughout the fiscal year ending April 30, 2022[81]. Environmental and Social Responsibility - The company has adhered to the "comply or explain" principle of the Environmental, Social, and Governance (ESG) reporting guidelines during the reporting period[155]. - The board believes that good ESG practices can enhance corporate investment value and provide long-term returns to stakeholders[156]. - The company has completed its ESG targets during the reporting period and will regularly review the progress of these targets to continuously improve its environmental performance[156]. - The company has implemented social responsibility standards such as SA8000:2014 in its operational and management policies[176]. - The company has conducted a materiality assessment to identify significant environmental and social issues impacting stakeholders[161]. - The company has not violated any significant environmental laws and regulations related to air and greenhouse gas emissions during the reporting period[177]. - The company encourages employees at all levels to consider environmental protection as an important factor in business decision-making[172]. - The company has completely eliminated all fossil fuel vehicles in its operations, achieving zero direct air emissions during the reporting period[178]. - Total greenhouse gas emissions amounted to 782.6 tons CO₂ equivalent, a decrease from 886.0 tons in 2021, with a greenhouse gas emission intensity of approximately 5.2 tons per million revenue[183]. - The company set a greenhouse gas emission target of 840 tons for the reporting period and successfully met this target[184]. - Energy consumption decreased by 13.9% to 936,361 MWh from 1,087,160 MWh in 2021, with a target of 1,000,000 MWh achieved[194]. - Water consumption also decreased by 13.0% to 12,925 cubic meters, with no issues in obtaining water for daily operations[194]. - The company plans to implement an environmental management system to identify significant environmental impacts and improve overall environmental performance[199]. - The board will lead discussions on climate change and related risks, with policies to be developed to address identified issues[200].
濠亮环球(08118) - 2022 - 年度财报