Financial Performance - The company reported a revenue of approximately HKD 207.2 million for the year ended March 31, 2022, a decrease of 25.2% compared to HKD 276.9 million in the previous year[7]. - The apparel business generated revenue of approximately HKD 162.5 million, down 25.3%, while the property investment business recorded revenue of approximately HKD 4 million, a decrease of 2.4%[7]. - The loss attributable to owners of the company was HKD 11.7 million, compared to a profit of HKD 7.6 million in the previous year[7]. - Revenue from the garment business decreased by approximately 25.3% to HKD 162,500,000, down from HKD 217,500,000, primarily due to a decline in African business and ACCAPI business[27]. - The company experienced a 26.5% decrease in revenue from marketing and promotional services, dropping to HKD 40,700,000 from HKD 55,400,000[28]. - Gross profit from the garment business was approximately HKD 21,100,000, a decrease of about 27.5% from HKD 29,100,000 for the previous year, with a gross margin of 13.0%[29]. - The fair value change of investment properties resulted in a net loss of approximately HKD 13,400,000 for the year ended March 31, 2022, compared to a net loss of approximately HKD 3,300,000 for the previous year[35]. Cash Flow and Financial Position - As of March 31, 2022, the group's cash and bank balances totaled approximately HKD 66,100,000, up from approximately HKD 7,600,000 the previous year[43]. - The group completed a rights issue, raising net proceeds of approximately HKD 197,800,000, of which about HKD 160,500,000 was used to repay shareholder loans[48]. - The current ratio improved to approximately 2.5 as of March 31, 2022, compared to approximately 0.9 the previous year, due to a decrease in payables and an increase in cash[50]. - The total bank and other borrowings as of March 31, 2022, were approximately HKD 5,000,000, significantly reduced from approximately HKD 156,600,000 the previous year[59]. - The debt-to-equity ratio improved to approximately 1.7% as of March 31, 2022, down from approximately 134.7% the previous year, reflecting a stronger capital position[50]. Operational Developments - The company expanded its garment business to include procurement, subcontracting, design, sales, and distribution in Hong Kong, particularly under the ACCAPI brand[23]. - The company has been actively developing its marketing department to provide services such as market analysis and product development to external clients[25]. - The group recorded a gross profit of approximately HKD 10,000,000 from its marketing services business during the year, which is a natural extension of its garment business[40]. - The group plans to hold properties to generate rental income while monitoring the performance of the property market in Hong Kong and China for potential restructuring opportunities[40]. Shareholder and Governance Matters - The board did not recommend any dividend payment for the fiscal year ending March 31, 2022, consistent with the previous year[88]. - The group has established a dividend policy aimed at sharing profits with shareholders while ensuring sufficient funds for future growth and operations[89]. - The company has suspended the registration of share transfers from August 17, 2022, to August 22, 2022, to determine shareholders eligible to vote at the annual general meeting[90]. - The company has no significant capital commitments as of March 31, 2022[67]. - The company has no significant contingent liabilities or unresolved litigation as of March 31, 2022[69]. Corporate Governance - The audit committee reviewed the consolidated financial statements for the year ending March 31, 2022, and found them to be prepared in accordance with legal requirements and applicable accounting standards[75]. - The company has adopted the corporate governance code and has applied relevant principles to enhance transparency and accountability[155]. - The independent non-executive directors confirmed their independence according to the listing rules, ensuring governance integrity[149]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[159]. - The company has adopted a board diversity policy, considering factors such as age, experience, cultural background, and professional expertise in its board composition[179]. Audit and Compliance - The Audit Committee held three meetings during the year ending March 31, 2022, reviewing the interim results for the six months ending September 30, 2021, and the annual results for the year ending March 31, 2022[189]. - The Audit Committee is tasked with overseeing the relationship with external auditors and ensuring the independence of the auditors[189]. - The company adheres to Hong Kong Generally Accepted Accounting Principles in preparing its consolidated financial statements[175]. - The company has appointed a new auditor, Xianji, after the resignation of the previous auditor, He Xin, ensuring continuity in audit services[152].
国能国际资产(00918) - 2022 - 年度财报