Financial Performance - The company's revenue decreased by 57.5% from approximately HKD 126.5 million in the year ended March 31, 2020, to approximately HKD 53.8 million in the year ended March 31, 2021[8]. - Gross profit fell by 62.3% from approximately HKD 70.1 million to approximately HKD 26.4 million during the same period[8]. - The loss attributable to the company's owners increased from approximately HKD 109.8 million to approximately HKD 279.8 million year-over-year[8]. - Basic and diluted loss per share rose from HKD 0.20 to HKD 0.456[9]. - Adjusted loss per share (excluding certain significant non-recurring or non-operating income and expenses) decreased from a profit of approximately HKD 0.029 to a loss of approximately HKD 0.063[9]. - Total revenue for the year ended March 31, 2021, was approximately HKD 53.8 million, a decrease of about 57.5% compared to the previous year[17]. - Gross profit margin decreased from approximately 55.4% for the year ended March 31, 2020, to about 49.0% for the year ended March 31, 2021[17]. - Other income and gains for the year ended March 31, 2021, amounted to approximately HKD 19.7 million, a decrease of about 57.7% from approximately HKD 5.2 million in the previous year[17]. - Financing costs increased from approximately HKD 18.7 million for the year ended March 31, 2020, to about HKD 55.5 million for the year ended March 31, 2021, an increase of approximately HKD 36.8 million[17]. - Other expenses rose from approximately HKD 108.6 million for the year ended March 31, 2020, to about HKD 278.2 million for the year ended March 31, 2021[20]. - The company reported a loss attributable to owners of approximately HKD 279.8 million for the year ended March 31, 2021, an increase of about 154.9% from a loss of HKD 109.8 million for the previous year[51]. - Adjusted loss attributable to owners, excluding certain significant non-recurring or non-operating income and expenses, was approximately HKD 38.5 million, a decrease of about 339.7% from a profit of HKD 16.1 million in the prior year[54]. - The company's EBITDA decreased from a loss of approximately HKD 95.7 million for the year ended March 31, 2020, to a loss of approximately HKD 251.2 million for the year ended March 31, 2021[51]. Assets and Liabilities - Total assets decreased from HKD 650.6 million to HKD 404.9 million[6]. - Total liabilities increased slightly from HKD 335.5 million to HKD 350.3 million[6]. - Current assets decreased by 37.9% to approximately HKD 242.9 million as of March 31, 2021, compared to approximately HKD 391.3 million as of March 31, 2020[56]. - The company's net assets decreased by 82.7% to approximately HKD 54.5 million as of March 31, 2021, from approximately HKD 315.1 million as of March 31, 2020[56]. - The company's current ratio decreased from approximately 1.3 times as of March 31, 2020, to about 0.7 times as of March 31, 2021[56]. - The total amount of outstanding notes and borrowings was approximately HKD 159.0 million as of March 31, 2021, down from approximately HKD 184.6 million as of March 31, 2020[56]. Credit Risk and Provisions - Expected credit loss provisions for financial assets increased from approximately HKD 51.0 million to about HKD 156.6 million during the same period[24]. - The increase in expected credit loss provisions was primarily due to the impact of COVID-19 and the aging of trade receivables[24]. - The company faced increased default risk and credit risk due to adverse macroeconomic conditions[24]. - The company has adjusted provisions based on forward-looking factors related to debtors and the economic environment[24]. - The company reported a significant increase in default exposure due to the ongoing economic uncertainties[24]. - As of March 31, 2021, the expected credit loss for trade receivables and receivables from finance leases was HKD 156.6 million, reflecting a significant increase compared to the previous year due to the adverse impact of COVID-19 on cash flows of customers[32]. - The expected loss rates for overdue trade receivables increased dramatically, with rates for overdue but not impaired receivables rising from 2.85% in 2020 to 24.70% in 2021[27]. - The expected loss rate for receivables due within one year surged from 2.03% in 2020 to 28.50% in 2021, indicating a worsening collection outlook[27]. - The expected loss rate for receivables overdue for more than 365 days increased from 29.59% in 2020 to 60.39% in 2021, highlighting deteriorating recoverability[27]. - Management noted that multinational companies delayed payments to customers, which in turn delayed customer payments to the group, exacerbating cash flow issues[31]. - The expected loss rates were adjusted based on historical default rates and current economic conditions, indicating a proactive approach to managing credit risk[27]. Operational Challenges and Future Outlook - The company aims to strengthen its market position in the green technology sector amid ongoing challenges from the COVID-19 pandemic[12]. - The management expresses optimism for improved performance in 2021, anticipating more opportunities[13]. - The company continues to enhance its systems and equipment to solidify its market position in the green technology industry[12]. - The company anticipates a challenging operating environment in 2021 due to the ongoing COVID-19 pandemic, which has led to multiple lockdowns in key markets[76]. - The company is exploring methods to improve its financial condition and has planned arrangements that require necessary legal and creditor approvals, which could significantly enhance cash flow[76]. - The company aims to maintain the performance of its core business while pursuing expansion strategies to generate stable revenue[77]. Environmental and Sustainability Initiatives - The company emphasizes the importance of green businesses and sustainable development in the post-pandemic recovery, aligning with global trends[77]. - The company aims to become a leading global energy service provider through technological innovation and improved energy efficiency[146]. - The company has reduced carbon emissions by 595,981,135 kg CO2 equivalent, which is comparable to the annual electricity consumption of 96,927 households[155]. - The total energy savings achieved by the company amount to 752,969,092 kWh, contributing to a greener future[155]. - The company has planted 27,373,240 trees as part of its environmental initiatives[155]. - The company aims to become a global service provider for energy efficiency technologies and clean energy solutions, actively investing in new technologies and R&D[152]. - The company has transitioned from a small energy-saving lighting supplier to a leading energy service provider over the past decade[148]. - The company is focused on energy storage solutions to reduce energy costs and reliance on fossil fuels, while enhancing the reliability of renewable energy[149]. - The company has implemented a paper usage reduction strategy, resulting in a decrease to 151 kg in 2021 from 242 kg in 2020, a reduction of 38%[181]. - The company has adopted the "4R" principles (Reduce, Reuse, Recycle, Replace) as part of its environmental management strategy[180]. - The company reported a significant decrease in packaging material usage to 4 tons in 2021 from 23 tons in 2020, a reduction of 83%[181]. - The company has established a green office initiative, promoting a paperless environment and energy-efficient practices[192]. - The company monitored indoor air quality regularly, especially during the COVID-19 pandemic, to ensure a healthy work environment[193]. - The company aims to integrate environmental issues into daily operations and corporate culture, with regular reviews to ensure compliance with sustainability goals[180]. - The company has committed to stopping the use and sale of incandescent bulbs as part of its energy-saving measures[190]. - The company encourages the use of electronic platforms and video conferencing to minimize unnecessary overseas business travel, significantly reducing carbon emissions from air travel[197]. - The company aims to lower transportation emissions by implementing efficient logistics strategies, primarily using sea freight, which has a lower carbon footprint compared to air freight[198]. - The company promotes simple packaging to reduce material usage and encourages the reuse or recycling of packaging materials to minimize waste generation[198]. - The company has implemented chemical waste disposal procedures in accordance with the Waste Disposal Ordinance, significantly reducing the collection of hazardous waste compared to the previous year[199]. - There were no significant environmental pollution incidents reported during the reporting period[199]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the fiscal year ending March 31, 2021[120]. - The audit committee consists of three independent non-executive directors, ensuring compliance with relevant listing rules and corporate governance standards[123]. - The independent non-executive directors confirmed their independence according to the listing rules[87]. - The company has received written annual confirmations of independence from all independent non-executive directors[87]. - The company has no service contracts with directors that require more than one year of notice for termination[88]. - The company has not disclosed any significant legal or regulatory violations impacting its business operations[136]. - The company emphasizes the importance of compliance with legal and regulatory requirements to mitigate operational risks[136]. Shareholding and Capital Structure - The company reported a total of 660,000,000 shares issued as of March 31, 2021[94]. - Huang Wenhui holds 53,249,204 shares, representing 8.07% of the issued share capital[90]. - Lin Zhongze owns 37,514,437 shares, accounting for 5.68% of the total shares[90]. - The company has a total of 5% or more shareholding interests disclosed by major shareholders[96]. - The company’s board composition meets the requirements of the listing rules regarding independent directors[87]. - The company does not recommend any dividend payment for the year ended March 31, 2021, consistent with the previous year[75]. - The company has not made any significant acquisitions or disposals of subsidiaries or associates during the year ended March 31, 2021[60]. - The company has adopted a share option scheme since March 5, 2015, to incentivize eligible participants[103]. - The maximum number of shares that can be issued under the share option scheme is capped at 50,000,000 shares, which is 10% of the total issued shares as of the listing date[107]. - The exercise price for the share options will be determined by the board, with a minimum set at the higher of the closing price on the offer date or the average closing price over the preceding five trading days[107]. - The share option scheme aims to enhance the company's value for shareholders and attract contributions from eligible participants[103].
知行集团控股(01539) - 2021 - 年度财报