Financial Performance - For the fiscal year ending March 31, 2023, Novacon Technology Group reported revenue of approximately HKD 52.6 million, a 5% increase from HKD 50.0 million in the previous year[8]. - The company's profit for the same period was approximately HKD 5.7 million, a decline of about 49% from HKD 11.2 million in the prior year, primarily due to impairment losses and increased employee benefits[8]. - Revenue from licensing and maintenance services increased by about 6% to approximately HKD 41.5 million, up from approximately HKD 39.2 million in the previous year[26]. - Revenue from initial setup and customization services slightly increased by about 2% to approximately HKD 11.1 million[26]. - Other net income for the year ended March 31, 2023, was approximately HKD 1.8 million, an increase of about 403% compared to HKD 0.4 million for the year ended March 31, 2022, primarily due to government subsidies and interest income from fixed deposits[29]. - Profit attributable to owners of the company decreased by approximately 49% to HKD 5.7 million for the year ended March 31, 2023, from HKD 11.2 million for the year ended March 31, 2022, due to increased expenses and reduced tax expenses[44]. - The effective tax rate for the year ended March 31, 2023, was approximately 17.6%, down from 19.6% for the year ended March 31, 2022, primarily due to a decrease in profit before tax[43]. Business Strategy and Expansion - Novacon has focused on expanding its professional team and retaining IT talent, establishing a subsidiary in Shenzhen to enhance its IT capabilities[9]. - To increase revenue, Novacon is expanding its services to include fintech, having established two new companies in May 2023 focused on precious metals and blockchain-based trading activities[10]. - Novacon aims to diversify its business and mitigate risks by exploring new business opportunities in the fintech market[10]. - The company plans to establish a research and development center to support its long-term growth strategy in the fintech sector[25]. - The company is committed to enhancing its financial trading solutions and expanding its market presence through selective acquisitions and strategic initiatives[74]. Operational Challenges and Risk Management - The company acknowledges the ongoing challenges posed by the global economic environment, including the residual effects of the COVID-19 pandemic and rising interest rates[9]. - The group has identified several key risks, including R&D risk, customer retention risk, and supplier concentration risk, which could significantly impact its business and financial performance[48]. - The group has implemented measures to mitigate risks associated with customer retention and supplier performance, including competitive compensation and regular evaluations[49]. - The group evaluates credit risk levels related to clients at least once a year through financial and contract asset impairment assessments[171]. Employee and Talent Management - Employee benefits expenses increased by approximately 14% to HKD 22.8 million for the year ended March 31, 2023, from HKD 19.9 million for the year ended March 31, 2022, mainly due to increased employee costs of about HKD 3.4 million[33]. - The group emphasizes employee training and development, providing regular training to ensure employees are updated with the latest knowledge and skills relevant to their roles[167]. - The group has a commitment to maintaining a safe and motivating work environment for employees, with comprehensive onboarding for new hires regarding workplace safety[167]. Corporate Governance and Compliance - The board of directors consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[190]. - The company has adopted good corporate governance principles as outlined in the GEM Listing Rules[188]. - The roles of the Chairman and CEO are clearly separated, with Mr. Wei Ming serving as Chairman and Mr. Zhong Jiu Gen as CEO, ensuring effective corporate governance[199]. - All independent non-executive directors have confirmed their independence according to GEM Listing Rules[195]. Financial Position and Assets - As of March 31, 2023, the group's net current assets amounted to approximately HKD 70.3 million, an increase from HKD 67.7 million in 2022[47]. - The group's current assets were approximately HKD 77.5 million as of March 31, 2023, compared to HKD 72.1 million in 2022, with cash and cash equivalents accounting for about HKD 61.4 million[47]. - The group has no interest-bearing borrowings as of March 31, 2023, resulting in a net debt to total capital ratio of zero[47]. Shareholder Information and Stock Options - The company has not granted or canceled any stock options as of March 31, 2023[144]. - The stock option plan was adopted on March 29, 2019, to incentivize and reward eligible participants[135]. - The maximum number of stock options available for future grants is 12,800,000 shares, accounting for 3.2% of the total issued shares[141]. - The company aims to retain and attract talented employees through the stock option plan[136]. Client and Supplier Relationships - The group had 28 clients as of March 31, 2023, down from 30 in 2022, with the top five clients accounting for approximately 55.8% of total sales[169]. - The procurement amount from the top five suppliers represented about 82.2% of total procurement for the year ending March 31, 2023, compared to 80.0% in 2022, with the largest supplier accounting for approximately 33.6%[173]. - The group did not experience any supply shortages or delays during the year ending March 31, 2023[174]. Research and Development - The company has made significant progress in developing cloud-native versions of its financial trading solutions, including GES EX and GES IX[68]. - The company has allocated approximately HKD 4.1 million for basic market data subscriptions and corporate datasets, with an additional HKD 1.5 million for cloud server hosting services, and HKD 4.4 million for hiring 5 R&D personnel[70]. - The company plans to continue its focus on research and development, with expectations to complete certain projects by July 2023[74].
连成科技集团(08635) - 2023 - 年度财报