Financial Performance - The company recorded a net loss of approximately HKD 18.3 million for the fiscal year ending March 31, 2022, compared to a net loss of HKD 7.7 million for the previous fiscal year, representing an increase in net loss of 138.96%[8]. - The increase in net loss was primarily attributed to a decrease in revenue during the fourth quarter due to the fifth wave of COVID-19 in Hong Kong and the absence of government subsidies received in the previous fiscal year amounting to approximately HKD 6.4 million[8]. - Despite the challenges posed by COVID-19, the company still achieved overall revenue growth during the fiscal year[9]. - The company's total revenue increased by approximately HKD 34.5 million or 9.1% from HKD 378.4 million for the year ended March 31, 2021, to HKD 412.9 million for the year ended March 31, 2022[17]. - Revenue from warehousing and other value-added services rose by approximately HKD 25.9 million or 23.6% to approximately HKD 135.6 million for the year ended March 31, 2022, compared to approximately HKD 109.7 million for the previous year[17]. - The net profit margin for the fiscal year ending March 31, 2022, was approximately -4.4%, compared to -2.0% in 2021[143]. - The return on equity for the same period was approximately -33.5%, down from -10.6% in 2021[143]. - The net cash generated from operating activities was approximately HKD 10.4 million, a decrease from HKD 14.6 million in 2021[143]. - Cash and cash equivalents stood at approximately HKD 21.7 million, down from HKD 23.7 million in 2021[143]. Operational Developments - The company plans to continue leveraging its warehouse at the Asia Container Logistics Center as a growth engine, providing storage services and value-added services such as X-ray inspection[9]. - The logistics capabilities have been enhanced with the establishment of the air cargo consolidation warehouse at the Wo Hing Logistics Center, allowing the company to offer one-stop logistics services[14]. - The tightening of COVID-19 control measures in mainland China has restricted normal cross-border transportation services, leading to a shift from land transport to sea or air transport for some logistics arrangements[14]. - The company aims to capitalize on the rising demand for small parcel delivery and postal services driven by the e-commerce boom triggered by COVID-19[14]. - The market remains challenging, and it is expected that market sentiment will take a considerable time to fully recover[14]. Employee and Cost Management - Employee benefits expenses increased by approximately HKD 9.5 million or 20.1% to approximately HKD 56.7 million for the year ended March 31, 2022, primarily due to an increase in average wages and additional staffing for warehousing and value-added services[20]. - Transportation costs increased by approximately HKD 15.0 million or 8.6% to approximately HKD 188.5 million for the year ended March 31, 2022, primarily due to increased service fees paid to external transportation service providers[25]. - Warehousing operating costs rose by approximately HKD 5.4 million or 22.3% to approximately HKD 29.6 million for the year ended March 31, 2022, driven by business growth in warehousing and other value-added services[26]. - Depreciation of property, plant, and equipment increased by approximately HKD 3.1 million or 18.2% to approximately HKD 20.1 million for the year ended March 31, 2022, due to increased depreciation from new office and forklift usage rights[24]. Governance and Management - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[77]. - The company has complied with all corporate governance code provisions during the reporting period, demonstrating adherence to GEM listing rules[74]. - A total of five board meetings were held during the year ending March 31, 2022, with full attendance from executive and non-executive directors[80]. - The company has a strong management team with over 27 years of experience in the logistics industry, enhancing operational oversight and employee training[69]. - The company has appointed at least three independent non-executive directors, exceeding one-third of the board, to ensure independence and proper governance[77]. - The audit committee, nomination committee, and remuneration committee have been established to oversee specific areas of governance[74]. - The company has maintained a robust internal control system, which is crucial for balancing the interests of shareholders, customers, and employees[74]. - The management team is responsible for daily operations and logistics arrangements in both Hong Kong and China, reflecting a strong operational focus[70]. Shareholder and Financial Policies - The board does not intend to declare a final dividend for the year ended March 31, 2022, consistent with the previous year[49]. - The company has adopted a dividend policy to guide the board in determining whether to declare and pay dividends, considering the group's actual and expected financial performance[108]. - The board has the discretion to determine the declaration and payment of dividends, with no predetermined dividend payout ratio established[110]. - The company retains the right to review and amend the dividend policy at any time without creating a binding commitment to pay dividends[110]. - The external auditor's fee for audit services for the year ended March 31, 2022, was approximately HKD 630,000, with no non-audit services provided[113]. - The company has established a shareholder communication policy to enhance effective communication with shareholders and potential investors, which was deemed satisfactory for the year ended March 31, 2022[125]. Risk Management and Compliance - The board of directors is responsible for maintaining effective risk management and internal control systems, which were reviewed and deemed adequate for the year ended March 31, 2022[115]. - The company has confirmed compliance with non-competition agreements by its controlling shareholders since the listing date[186]. - The independent non-executive directors confirmed their independence in accordance with GEM Listing Rules[174]. - The company has not established any arrangements that would allow directors to benefit from purchasing shares or debt securities of the company[181]. - The company has appointed a compliance advisor, Zhi Fu Financing Limited, effective from September 1, 2020[190]. Corporate Social Responsibility - Charitable donations made during the fiscal year amounted to HKD 380,000, an increase from HKD 150,000 in 2021[150]. - The company has implemented green office practices to reduce energy and natural resource consumption, including the use of energy-saving lighting and eco-friendly paper[199].
亚洲速运(08620) - 2022 - 年度财报