Mixed Results for Company’s First Financial Year Under New Companies Ordinance

Overview

[Company Name], a newly formed entity, has released its financial statements for its first year under the new Companies Ordinance (CO). The company’s performance was mixed, with revenue and profit margins showing improvement in some areas but decline in others.

Revenue Growth

Revenue grew by [X]% to HK$[Y] million, driven primarily by increases in sales from the company’s [Product/Service] division. This growth was attributed to strategic investments in innovation and customer service.

Profit Margins Decline

However, profit margins declined by [X]% due to higher operating costs and increased competition in the market. The company’s net profit stood at HK$[Z] million, a decrease of [X]% compared to the previous year.

Auditor’s Report

The company’s auditors, [Auditor Name], issued an unqualified audit opinion on the financial statements, stating that they were prepared in accordance with the Hong Kong Financial Reporting Standards (HKFRS).

Change in Auditor Appointment

The company announced that it had terminated the appointment of its previous auditor, [Previous Auditor Name], effective [Date]. The termination was due to a disagreement over the audit process. In accordance with the new CO, [Previous Auditor Name] delivered a statement explaining its reasons for resigning.

New Auditor Appointment

[Company Name] has appointed [New Auditor Name] as its new auditor, effective [Date]. The new auditor will be responsible for conducting the company’s audit for the next financial year.

Conclusion

While [Company Name]’s first financial year under the new CO has been marked by some challenges, the company remains optimistic about its prospects and is committed to continuing to innovate and grow in a competitive market.