Financial Performance - The company reported a revenue increase of approximately 115.3% to about HKD 8.4 million for the fiscal year ending March 31, 2023, compared to HKD 3.9 million in 2022[12]. - The loss attributable to equity holders of the company was approximately HKD 32.2 million, a decrease from HKD 38.5 million in the previous year[12]. - The revenue growth was primarily driven by merchant acquiring transaction fee income, foreign exchange discount income, and market promotion and distribution service income[12]. - The total revenue for the year was approximately HKD 8.4 million, an increase from HKD 3.9 million in 2022, driven by a rise in merchant acquiring transaction fee income to HKD 6.0 million from HKD 2.4 million[20]. - The gross profit for the year was approximately HKD 0.6 million, up from HKD 0.3 million in the previous fiscal year, reflecting a gross margin increase from 7.4% to 7.7%[23]. - General administrative expenses rose by approximately 19.4% to HKD 22.1 million, primarily due to increased legal and professional fees as well as research and development expenditures[24]. - The group recorded a net loss attributable to owners of approximately HKD 32.2 million, a decrease from HKD 38.5 million in 2022, mainly due to the net effects of revised convertible bond losses and gains[31]. - The group’s service costs totaled approximately HKD 7.7 million, reflecting a 114.7% increase compared to HKD 3.6 million in 2022, consistent with revenue growth[22]. Business Environment and Risks - The company continues to face uncertainties in the business environment due to the ongoing impact of the COVID-19 pandemic, which may slow down future business prospects[13]. - The group faced significant adverse impacts on revenue due to the ongoing effects of the COVID-19 pandemic, particularly from the suspension of international flights to Thailand[18]. - The group has engaged an IT company to explore payment and marketing value-added services in the Asia-Pacific region, focusing on local consumption and cross-border e-commerce[18]. - The group faces several risks, including reliance on major customers and foreign exchange risks, which could adversely affect operations and profitability[42]. Acquisitions and Investments - The acquisition of bCode scanner completed on March 30, 2023, is expected to enhance the group's service offerings and expand its market reach[19]. - The company completed the acquisition of assets from Mobile Technology Holdings Limited for USD 6,050,000 (approximately HKD 47.5 million) on March 30, 2023[36]. - The acquisition allows the group to expand its service offerings by providing advanced payment services to merchants, facilitating easier acceptance of e-wallet payments[38]. Financial Position and Capital Management - As of March 31, 2023, the group had current assets of approximately HKD 46.9 million, a decrease from HKD 58.1 million as of March 31, 2022[32]. - Total assets and total liabilities as of March 31, 2023, were approximately HKD 111.5 million and HKD 59.1 million, respectively, compared to HKD 82.0 million and HKD 58.5 million in the previous year[32]. - The debt-to-equity ratio as of March 31, 2023, was 33.8%, significantly improved from 83.5% as of March 31, 2022[32]. - The company has revised the allocation of unutilized proceeds, reallocating approximately HKD 5.0 million from the original purposes to operational funding[47]. - The company has identified the need for additional operational funding to maintain business stability amid a challenging operating environment[47]. Shareholder and Capital Raising Activities - The net proceeds from the listing amounted to approximately HKD 51.1 million, with an unutilized net amount of HKD 17.8 million carried forward to the current year[45]. - The company issued 200,000,000 new ordinary shares, representing 20% of the existing issued share capital as of January 31, 2022, and approximately 16.67% post-issuance[54]. - The net proceeds from the subscription amounted to approximately HKD 15,453,000, with HKD 10,817,000 allocated for working capital and HKD 4,636,000 for unspecified investments[55]. - A second subscription of 34,900,000 shares was completed on January 10, 2023, raising approximately HKD 4.65 million, with a subscription price of HKD 0.134 per share, reflecting an 18.79% discount to the closing price on December 22, 2022[57]. - The company plans to use the net proceeds from the placement primarily for debt repayment and general working capital, with approximately HKD 2.6 million allocated for debt repayment and HKD 11.2 million for operational needs[64]. Employee and Management Overview - As of March 31, 2023, the group employed a total of 27 employees, down from 32 employees as of March 31, 2022[65]. - Total employee costs for the year were approximately HKD 14.1 million, compared to HKD 13.7 million in 2022, reflecting an increase of about 2.9%[65]. - The group provides eligible employees with additional benefits, including stock options and training programs[67]. - The executive director, Mr. Tsang, has extensive experience in cross-border mergers and acquisitions, corporate financing, and financial accounting[69]. - The group’s management team includes members with diverse backgrounds in finance, engineering, and technology, enhancing its strategic capabilities[80]. Corporate Governance and Compliance - The company has complied with the GEM listing rules and strengthened its corporate governance framework[88]. - The board has implemented several policies including a shareholder communication policy and a diversity policy for board members[90]. - The company has established a strong corporate governance structure to ensure effective oversight of management, with the roles of Chairman and CEO being separated as per the corporate governance code[115]. - The Audit Committee held four meetings during the year, reviewing the audited financial information for the year ended March 31, 2022, and the unaudited financial information for the subsequent quarters[118]. - The company has established a Compensation Committee to ensure a formal and transparent process for determining the remuneration of directors and senior management[121]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an Environmental, Social, and Governance (ESG) working group to manage and monitor sustainable development performance[165]. - The ESG report covers the period from April 1, 2022, to March 31, 2023, detailing policies and performance related to environmental and social aspects[159]. - The report indicates that the company has complied with all "comply or explain" provisions of the ESG guidelines[163]. - The company emphasizes the importance of sustainability and aims to integrate sustainable practices into daily management, focusing on resource efficiency and environmental performance[179]. - The company has set clear emission reduction targets and will continue to review and update its environmental key performance indicators[179].
东方支付集团控股(08613) - 2023 - 年度财报