Financial Performance - The company reported a revenue decrease of approximately 7.0% for the fiscal year ending March 31, 2023, compared to the previous year[11]. - The company recorded revenue of approximately HKD 73.4 million for the year ended March 31, 2023, a decrease of about 7.0% from HKD 78.9 million for the year ended March 31, 2022[24]. - The profit attributable to the company's owners decreased to approximately HKD 6.1 million, down from HKD 11.4 million, reflecting a decline in gross profit[24]. - Revenue from the sale of LED lighting devices decreased by approximately 10.3%, from HKD 49.3 million to HKD 44.2 million, primarily due to reduced customer budgets for new retail projects in China[26]. - Revenue from integrated LED lighting solution services decreased by approximately 3.8%, from HKD 20.8 million to HKD 20.0 million, remaining stable throughout the year[27]. - Revenue from LED lighting system consulting and maintenance services decreased by approximately 28.6%, from HKD 7.7 million to HKD 5.5 million, mainly due to reduced maintenance service demand from customers[28]. - The company's gross profit decreased by approximately 17.3%, from HKD 41.1 million to HKD 34.0 million, with the gross profit margin declining from approximately 52.1% to 46.3%[34]. - Other income and net gains increased by approximately 22.2%, from HKD 0.9 million to HKD 1.1 million, mainly due to increased government subsidies and interest income[35]. - The cost of sales increased by approximately 4.2%, from HKD 37.8 million to HKD 39.4 million, primarily due to rising material, labor, and indirect costs[33]. - Administrative expenses decreased by approximately HKD 0.8 million or 2.9% to about HKD 27.2 million for the year ended March 31, 2023, primarily due to an increase in R&D expenses and a decrease in salaries and commissions[36]. - Profit attributable to the company's owners decreased to approximately HKD 6.1 million for the year ended March 31, 2023, down from HKD 11.4 million for the year ended March 31, 2022, mainly due to a reduction in revenue and gross profit[41]. Business Strategy and Development - The company launched a 3D printing physical workshop named "dot 3D Factory" to capture a stable market share in the 3D printing sector[11]. - The company aims to enhance its core business while continuously exploring new business opportunities in the future[12]. - The company plans to expand its customer base by seeking new luxury brand clients through its existing network[66]. - The company expects to utilize the remaining unutilized proceeds by March 31, 2024, particularly for expanding 3D printing facilities[62]. - The company is focused on enhancing its core business while exploring new business opportunities amidst a challenging operating environment[66]. - The company aims to become a leading LED lighting solutions provider in Asia, with a focus on retail store renovations in Chinese shopping malls[66]. Financial Position and Equity - Current ratio decreased from 3.8 in 2022 to 3.1 in 2023, and quick ratio decreased from 3.5 to 2.8, primarily due to dividend payments during the year[44][45]. - Cash and bank balances increased to HKD 80.0 million in 2023 from HKD 65.0 million in 2022, with cash in HKD rising to HKD 59.4 million[47]. - Total equity attributable to the company's owners increased to approximately HKD 76.4 million in 2023 from HKD 75.3 million in 2022[49]. - Capital expenditure for the year was approximately HKD 488,000, significantly lower than HKD 4,168,000 in 2022, with no acquisitions of intangible assets[57]. - The company had no significant investments, acquisitions, or disposals of subsidiaries or associates during the year ended March 31, 2023[60]. - The company utilized a total of HKD 29.3 million from the IPO proceeds, with an unutilized amount of HKD 5.4 million as of March 31, 2023[62]. Sustainability and Governance - The company has established a strong governance framework to integrate sustainability issues into its core business operations[76]. - The company has formed an Environmental, Social, and Governance (ESG) Committee to ensure operations align with sustainability principles and manage related risks[76]. - The company has identified key ESG risks, including health and safety, resource usage, and labor standards, and has implemented measures to mitigate these risks[78]. - The company reported no non-compliance issues related to air and greenhouse gas emissions, waste disposal, and labor standards for the fiscal year 2022/2023[81]. - The company emphasizes stakeholder engagement to create value and address sustainability issues, conducting annual assessments to prioritize significant ESG matters[83]. - The company plans to explore different engagement methods, such as surveys or focus groups, to enhance stakeholder feedback in the future[86]. - The company has set sustainability goals to monitor and reduce resource usage, maintaining paper and electricity consumption at minimal levels[78]. - The company has implemented flexible working hours to ensure employee safety during peak commuting times amid the COVID-19 pandemic[78]. - The company has established internal guidelines to manage recruitment processes concerning child labor and forced labor[78]. - The company is committed to responsible and fair business practices, with policies governing anti-corruption, supply chain management, and product responsibility[87]. - The group has implemented a zero-tolerance policy towards corruption, including bribery and fraud, with all employees required to report any potential conflicts of interest[88]. - The group has established long-term relationships with suppliers, focusing on timely delivery, quality, and social and environmental responsibility[89]. - All suppliers are subject to regular performance evaluations to ensure compliance with the group's policies and continuous improvement[90]. Employee and Workplace Safety - The group has recorded a total of 139.5 absentee days over the past three years, with no cases of work-related injuries or fatalities[106]. - The group is committed to providing a safe and healthy workplace, offering medical benefits to all employees after a three-month probation period[106]. - The group has established a whistleblowing policy to protect whistleblowers from harm, harassment, and retaliation[88]. - The group emphasizes fair treatment and equal opportunities for all employees, with competitive compensation and attractive benefits[103]. - The company provided a total of 68 hours of training for 35 employees, covering topics such as ethics, accounting, quality management, and the impact of COVID-19 on business and leadership[107]. Environmental Impact - The energy intensity in Hong Kong increased by 17.3% to 3.150 MWh per employee compared to the previous year, attributed to overnight operations of 3D printers[114]. - The greenhouse gas emission intensity per employee in Hong Kong rose by 20.0% to 15.6 tons of CO2 equivalent, while in China, it increased by 73% to 10.4 tons of CO2 equivalent[116]. - The average water consumption per employee in China increased from 0.24 tons to 0.30 tons, while in Hong Kong, it rose from 0.15 tons to 0.16 tons, marking a 6.7% increase[117]. - The total electricity consumption at the Hong Kong headquarters was 110.3 MWh, while the total electricity consumption at the China production facility was 84.8 MWh[113]. - The company implemented various energy-saving measures, including installing high-performance electrical equipment and using natural light, to manage energy consumption[114]. - The total paper consumption at the Hong Kong headquarters was 436.6 kg, with measures in place to encourage recycling and reduce paper usage[113]. - The company reported a total nitrogen oxides (NOx) emission of 6.45 kg for the year 2022/2023, an increase from 5.75 kg in the previous year[122]. - The company aims to continue monitoring and reporting its carbon emissions annually to improve its performance[116]. - Total greenhouse gas emissions amounted to 545.6 tons of CO2 equivalent, with a carbon intensity of 15.6 tons of CO2 equivalent per employee[126]. - The emissions from waste paper processing accounted for 462.2 tons of CO2 equivalent, representing approximately 84.6% of total emissions[126]. - Scope 1 emissions (direct emissions) were 5.1 tons, while Scope 2 emissions (indirect emissions from energy) were 78.3 tons[126]. - The total greenhouse gas emissions for another reporting period were 291.6 tons of CO2 equivalent, with a carbon intensity of 10.4 tons of CO2 equivalent per employee[128]. - The increase in non-hazardous waste generated was 13.0%, totaling 0.87 tons, attributed to increased paper towel usage due to enhanced hygiene practices[132]. - Total greenhouse gas emissions increased to 545.60 tons CO2 equivalent in 2022/2023 from 482.40 tons in 2021/2022, representing a 13.1% increase[147]. - Scope 1 emissions rose to 5.10 tons CO2 equivalent from 4.40 tons, a 15.9% increase[147]. - Scope 2 emissions increased to 78.30 tons CO2 equivalent from 70.50 tons, a 11.4% increase[147]. - Scope 3 emissions saw a significant rise to 462.20 tons CO2 equivalent from 407.50 tons, marking a 13.4% increase[147]. - Direct energy consumption increased to 20.60 MWh from 18.40 MWh, a 6.5% increase[149]. - Indirect energy consumption rose to 110.25 MWh from 99.40 MWh, a 10.4% increase[149]. - Total water consumption was 5.71 tons, up from 5.58 tons, indicating a 2.3% increase[149]. - Total hazardous waste generated remained at 0 tons, indicating no change[151]. - Non-hazardous waste increased to 0.88 tons from 0.77 tons, a 14.3% increase[151]. - Greenhouse gas density per employee increased to 15.60 tons CO2 equivalent from 13.00 tons, a 20% increase[147]. - The company has implemented policies to reduce significant impacts on the environment and natural resources[157]. Corporate Governance - The company has established a code of conduct for directors regarding securities trading, confirming compliance for the fiscal year ending March 31, 2023[164]. - The board of directors is responsible for overseeing the management and overall performance of the company, ensuring necessary financial and human resources are in place[165]. - The company has identified significant climate-related issues and has taken actions to address them[158]. - The company has a policy in place to prevent child labor and forced labor, with measures described for reviewing recruitment practices[159]. - The company has a community investment policy focusing on areas such as education, environment, and health, with resources allocated accordingly[161]. - The company is committed to enhancing corporate governance practices and regularly reviews its governance framework to ensure compliance with legal requirements[162]. - The board consists of five directors, including three independent non-executive directors, ensuring over one-third of the board is independent[171]. - The company has adopted a board diversity policy, aiming to appoint at least one female director by December 31, 2024, to enhance gender diversity[175]. - No corruption lawsuits have been filed against the group or its employees during the year, emphasizing the importance of integrity and compliance with laws[177]. - The company has established a whistleblowing mechanism to maintain integrity and transparency, encouraging employees to report suspicious activities anonymously[178]. - Independent non-executive directors have signed appointment letters for a term of three years, with annual confirmations of their independence[181]. - The board of directors held a total of 4 meetings during the fiscal year ending March 31, 2023, with an average attendance rate of 100%[182]. - The audit committee conducted 5 meetings, reviewing the company's audited consolidated financial performance and compliance with corporate governance codes[185]. - The remuneration committee held 1 meeting to review the remuneration policies for all directors and senior management, ensuring no director participated in determining their own remuneration[187]. - The independent auditor's fee for the annual audit service was HKD 610,000 for the year ending March 31, 2023, an increase from HKD 598,000 in the previous year[190]. - The company has no internal audit function but has engaged an external professional firm to conduct internal audits, with the board directly responsible for internal controls[192]. - The risk management and internal control systems were reviewed and deemed effective, with recommendations from the external firm adopted by the board[193]. - The company has established three committees: audit, remuneration, and nomination, to oversee specific areas of governance[184]. - The nomination committee held 1 meeting to review the board's structure and recommend candidates for directorship[189]. - The company has a total of 2 senior management members with annual remuneration ranging from HKD 1,000,001 to HKD 1,500,000[188]. - The audit committee is chaired by Mr. Li Zhenhong, ensuring oversight of financial reporting and risk management[185]. - The company has established procedures for handling and disclosing insider information, ensuring compliance with GEM listing rules[194]. - The board confirms responsibility for preparing the consolidated financial statements in accordance with statutory requirements and applicable accounting standards[196]. - The company adopted a dividend policy on January 30, 2019, allowing shareholders to share in profits while retaining funds for future growth opportunities[198]. - Factors considered by the board when determining dividend payments include actual and expected financial performance, retained earnings, and capital expenditure needs[200]. - The company secretary has undergone no less than 15 hours of relevant professional training in compliance with GEM listing rules[197].
英马斯集团(08136) - 2023 - 年度财报