Vico International : Annual Report 2022 (ENG)

CONTENTS

CORPORATE INFORMATION	2
STATEMENT FROM THE CHAIRMAN	3
MANAGEMENT DISCUSSION AND ANALYSIS	4
BIOGRAPHICAL DETAILS OF DIRECTORS AND SENIOR MANAGEMENT	10
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT	16
CORPORATE GOVERNANCE REPORT	47
DIRECTORS' REPORT	63
INDEPENDENT AUDITOR'S REPORT	75
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND	80
OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	81
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	83
CONSOLIDATED STATEMENT OF CASH FLOWS	84
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	86
FINANCIAL SUMMARY	144

CORPORATE INFORMATION

BOARD OF DIRECTORS

Executive Directors

Mr. HUI Pui Sing (Chairman) Ms. TONG Man Wah

Mr. HUI Yip Ho Eric (Chief Executive Officer) Ms. HUI Wing Man Rebecca

Mr. KONG Man Ho

Non-executive Director

Mr. WONG Chun Man

Independent non-executive Directors

Mr. LEUNG Ho Chi

Mr. CHAN Ching Sum

Mr. TSE Yung Hoi

AUDIT COMMITTEE

Mr. LEUNG Ho Chi (Chairman)

Mr. CHAN Ching Sum

Mr. TSE Yung Hoi

REMUNERATION COMMITTEE

Mr. LEUNG Ho Chi (Chairman)

Mr. HUI Yip Ho Eric

Mr. TSE Yung Hoi

NOMINATION COMMITTEE

Mr. HUI Pui Sing (Chairman)

Mr. LEUNG Ho Chi

Mr. CHAN Ching Sum

AUTHORISED REPRESENTATIVES

Mr. HUI Yip Ho Eric

Mr. KONG Man Ho

COMPANY SECRETARY

Ms. CHAN Sze Ting (ACG, HKACG)

REGISTERED OFFICE

Second Floor, Century Yard, Cricket Square

P.O. Box 902, Grand Cayman, KY1-1103

Cayman Islands

HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS IN HONG KONG

Unit D, 11/F, Billion Plaza II

No. 10 Cheung Yue Street

Cheung Sha Wan, Hong Kong

HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE

Tricor Investor Services Limited

Level 54, Hopewell Centre

183 Queen's Road East, Hong Kong

CAYMAN ISLANDS PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE

Tricor Services (Cayman Islands) Limited

Second Floor, Century Yard, Cricket Square

P.O. Box 902, Grand Cayman, KY1-1103

Cayman Islands

AUDITORS

SHINEWING (HK) CPA Limited

Certified Public Accountants

PRINCIPAL BANKERS

Bank of China (Hong Kong) Limited

Chong Hing Bank Limited

STOCK CODE

1621

COMPANY WEBSITE

www.vicointernational.hk

2	Vico International Holdings Limited

STATEMENT FROM THE CHAIRMAN

Dear Shareholders,

On behalf of the board (the "Board") of directors (the "Directors" and each a "Director") of Vico International Holdings Limited (the "Company"), I am pleased to present the annual report of the Company and its subsidiaries (collectively, the "Group") for the year ended 31 March 2022 (the "Current Period").

The outbreak of Novel Coronavirus ("COVID-19") since early 2020 dealt the hardest blow to local economic activities, continued rise to the challenge during the fifth wave throughout the first quarter of 2022. The government has imposed the strictest social distancing measures greatly reduced desire of citizens of going out. According to an economic letter issued in March 2022 by the Office of the Government Economist, the pandemic is estimated to have caused the Passenger transport to lose around 77.5% of the business, which is HK$39 billion in value. Our sales from fleet cards service and diesel oil were strive to remain steadily. Construction is also another challenged industry during the COVID-19 in Hong Kong, which directly affects the demand for lubricant oil.

While the COVID-19 till continues, signs of recovery are arising. Near 65% of the eligible population in Hong Kong has received at least 3 COVID-19 vaccination doses as of the date of this statement. The Group will continue to develop in line with its business strategy in order to enhance its performance and maintain its long-term value, as it sees opportunities alongside the crisis.

On behalf of the Board, I would like to express my gratitude to the Board of Directors, management team and all staff for their continuous contributions and commitment to the Group. I also take this opportunity to extend our sincere appreciation to the Shareholders for their support and confidence in us. I wish all of us good time and health in the coming year.

HUI Pui Sing

Chairman

Hong Kong, 28 June 2022

Annual Report 2021/2022

3

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS REVIEW

The Group is principally engaged in the distribution of third-party branded petrochemicals, the sales of the self-branded lubricant oil and provides fleet card services in Hong Kong. The petrochemical products of the Group include (i) diesel; (ii) lubricant oil (including self-branded lubricant oil and third-party branded lubricant oil); and (iii) other petrochemicals such as bitumen.

The Group sourced semi-finished lubricant oil in bulk volume and finished lubricant oil from overseas suppliers for the in-house blending and repackaging into wholesale and retail packs for sales in Hong Kong.

The Group is also an authorized reseller of fleet cards. As at 31 March 2022, the Group operated a total number of 51,259 fleet card accounts (2021: 50,606 fleet card accounts).

Leveraging on the Group's experience and competitive strengths, for the Current Period, the Group's revenue, gross profit and net profit was approximately HK$1,369.6 million, HK$43.5 million, and HK$9.2 million, respectively representing increase of 67.8%, decrease of 7.8%, and decrease of 49.7%, respectively as compared with the year ended 31 March 2021 (the "Corresponding Period"). The decrease in profit for the Current Period was mainly attributable to the (i) serious disruptions to the logistics and construction industries due to the outbreak of the COVID-19 pandemic in Hong Kong; (ii) the decrease in the COVID-19 relief and subsidies from the government as compared to the previous year; and (iii) the increase in depreciation of addition property, plant and equipment.

The Group continues to face the challenging of business operation with the impact of COVID-19. Especially the fifth wave of the pandemic is rapid and fierce in Hong Kong. Limit on public gatherings and lockdown had rapidly brought down the traffic volume on the street, the sales from fleet cards service was remain steadily. While, the epidemic controls on vehicles crossing the border between the mainland and Hong Kong is tightened which resulted in the demand of diesel oil is strive to maintain. Lubricant oil plays an important role in construction industry to help the equipment and rigs to run smooth. However, the delay in large-scale construction projects is serious in Hong Kong during the COVID-19 pandemic. Our sales of lubricant oil were dropped significantly.

BUSINESS PROSPECTS

Driven by increased vaccination rates and the implementation of Vaccine Pass in Hong Kong, the economy is hopefully moving towards recovery. Being experienced in the challenges of COVID-19 pandemic, the Group has acted quickly to allocate the resources on the right position of the businesses. The Board believes the worst is finally behind us. The Group has confident to keep moving forward to any different situations to deliver sustainable growth for our shareholders.

4	Vico International Holdings Limited