Financial Performance - The company reported a revenue decline of approximately 68.5% to HKD 3.9 million for the fiscal year ending March 31, 2022, compared to HKD 12.4 million in 2021[15]. - The net loss attributable to equity holders increased to approximately HKD 38.5 million, up from HKD 30.7 million in the previous year[15]. - The decline in revenue was primarily due to a significant reduction in spending by Chinese tourists in Thailand as a result of the COVID-19 pandemic[15]. - Total revenue for the fiscal year ending March 31, 2022, was approximately HKD 3.9 million, a decrease of about 68.5% from HKD 12.4 million in 2021[22]. - Merchant acquiring transaction fee revenue was approximately HKD 2.4 million, down from HKD 9.9 million in the previous year, representing a decrease of about 75.8%[22]. - Gross profit for the year was approximately HKD 0.3 million, a decline of about 93.5% from HKD 4.5 million in the previous fiscal year, resulting in a gross margin drop from 36.2% to 7.4%[27]. - The company recorded a net loss attributable to owners of approximately HKD 38.5 million, compared to a net loss of HKD 30.7 million in 2021, primarily due to a significant decrease in transaction volume[35]. - General administrative expenses increased by approximately 9.4% to HKD 18.6 million, compared to HKD 17.0 million in 2021[28]. Operational Strategy - The company operates a mature merchant acquiring business in Thailand, providing integrated payment processing services to merchants frequented by Chinese tourists[21]. - The main revenue sources for the company include merchant acquiring transaction fees, foreign exchange discount income, and marketing and distribution service income[21]. - The company continues to explore expansion into local consumption payment and marketing value-added services in the Asia-Pacific region, including Hong Kong, to reduce reliance on the tourism sector[22]. - The company aims to maintain business stability by taking necessary actions in response to the ongoing pandemic[16]. - The company has a joint venture in Singapore that also provides payment processing services to merchants[21]. Management and Governance - The company has a strong management team with extensive experience in technology, finance, and corporate governance[62][63][64][70][72][75]. - The management team includes members with over 20 years of experience in accounting and auditing, enhancing the company's governance[72]. - The company has established a robust framework for independent oversight through its audit, nomination, and remuneration committees[72][75]. - The management team is committed to enhancing corporate governance and providing independent opinions to the board[72][75]. - The company has a diverse board with members who have held significant positions in both public and private sectors[63][70][75]. - The company is focused on expanding its market presence and exploring new business opportunities[63][70]. - The management team is well-educated, with advanced degrees from reputable institutions, contributing to the company's strategic direction[64][72]. Risk Management - The company has a strong focus on risk management and internal controls[93]. - The financial director has extensive experience in accounting, auditing, corporate finance, and company secretarial work[81]. - The company has appointed external independent internal control consultants to review its risk management and internal control systems[123]. - The board is responsible for maintaining an effective risk management and internal control system, which was deemed sufficient and effective for the year[123]. Shareholder Relations - The company has established multiple communication channels with shareholders to ensure timely and balanced information dissemination[126]. - The company is committed to enhancing investor relations and communication with existing and potential investors[126]. - The company has undergone a group restructuring to prepare for its listing on the GEM of the Stock Exchange[135]. Employee and Compensation - The total employee cost for the year was approximately HKD 13.7 million, an increase from HKD 12.5 million in the previous year[58]. - Employee compensation and benefits are in line with market levels, with rewards based on performance and market conditions[59]. - The company has expanded its workforce to 32 employees as of March 31, 2022, up from 29 employees a year earlier[58]. Corporate Governance - The company has complied with the corporate governance code for the fiscal year ending March 31, 2022[87]. - The board of directors is responsible for leading and controlling the group, overseeing business strategies and performance[93]. - The company has established a remuneration committee and an audit committee to enhance corporate governance[86]. - The board has adopted a diversity policy, with one female director currently serving, and aims to consider gender as a factor in future nominations[95]. - The gender ratio among employees, including senior management, is 59:41 as of March 31, 2022[95]. Financial Position - As of March 31, 2022, the company had current assets of approximately HKD 58.1 million, down from HKD 66.6 million in the previous year[36]. - The debt-to-equity ratio as of March 31, 2022, was 83.5%, a significant increase from 38.3% in the previous year[36]. - The company confirmed an impairment loss on other receivables of approximately HKD 2.99 million for the year, compared to none in 2021[30]. - Financing costs for the year were approximately HKD 6.1 million, up from HKD 2.9 million in 2021, mainly due to increased interest expenses on convertible bonds[34]. Dividend Policy - The company has no predetermined dividend payout ratio, and any declaration of dividends will depend on various factors including operating performance and financial condition[136]. - The company did not recommend the distribution of a final dividend for the year, consistent with the previous year where no dividend was declared[137]. - As of March 31, 2022, the company had no distributable reserves calculated under applicable Cayman Islands statutory provisions, compared to HKD 8.7 million in 2021[147]. Market Presence - The company operates primarily in Thailand, focusing on merchant acquiring services, and also provides payment processing services through an associated company in Singapore[132]. - The largest customer accounted for approximately 14.9% of the total revenue, down from 19.3% in 2021, while the top five customers represented about 45.7% of total revenue, compared to 48.8% in 2021[141]. - The largest supplier's costs represented approximately 50.5% of the total service costs, significantly reduced from 100% in 2021, and the top five suppliers accounted for about 97.9% of total service costs, down from two suppliers accounting for 100% in 2021[141].
东方支付集团控股(08613) - 2022 - 年度财报