I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02683 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | 5,000,000,000 | | HKD | | 0.01 HKD | | 50,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.01 HKD | | 50,000,000 | 本月底法定/註冊股本總額： HKD 50,000,000 FF301 第 1 頁 共 10 頁 v 1.1.1 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公 ...

[Chairman's Statement and Management Discussion & Analysis](index=5&type=section&id=Chairman's%20Statement%20and%20Management%20Discussion%20%26%20Analysis) [Business and Financial Performance Review](index=8&type=section&id=Business%20and%20Financial%20Performance%20Review) The Group achieved strong growth driven by the North American market recovery and cost optimization measures Key Financial Highlights | Metric | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | HK$724.1 million | HK$594.4 million | +21.8% | | **Gross Profit** | HK$159.6 million | HK$105.0 million | +52.0% | | **Gross Profit Margin** | 22.0% | 17.7% | +4.3 p.p. | | **Profit Attributable to Owners** | HK$64.3 million | HK$28.5 million | +125.6% | | **Basic Earnings Per Share** | 15.7 HK cents | 7.0 HK cents | +124.3% | - Performance growth was primarily driven by the ongoing recovery in the North American market, with revenue from US customers increasing from **HK$486 million to HK$543 million**[24](index=24&type=chunk)[38](index=38&type=chunk) - The Group's production is centered in Cambodia, with its manufacturing base contributing approximately **90.6% of sales revenue**, leveraging local advantages in labor costs and supply chain[18](index=18&type=chunk)[39](index=39&type=chunk) - To ensure operational stability and capitalize on long-term capital appreciation, the Group acquired its previously leased Hong Kong office property for **HK$4.7 million** in April 2024[26](index=26&type=chunk)[200](index=200&type=chunk) [Industry Overview and Outlook](index=11&type=section&id=Industry%20Overview%20and%20Outlook) The Group faces geopolitical risks, particularly US tariff policies on Cambodia, amid a growing sustainable handbag market - Industry trends show a consumer preference for handbags made from sustainable materials like vegan leather and plant-based fabrics, driving growth in the mid-range market[28](index=28&type=chunk)[30](index=30&type=chunk) - The Group's primary external risk is the US tariff policy on Cambodia, with a proposed **"reciprocal tariff" of up to 49%** creating significant uncertainty despite a temporary reduction[32](index=32&type=chunk)[34](index=34&type=chunk) - Despite tariff risks, the Group's sales performance remains strong and has not been materially impacted to date, with mitigation strategies in place[35](index=35&type=chunk) [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a robust financial position with a net cash status, no bank borrowings, and strong liquidity Financial Position | Metric | As of Mar 31, 2025 | As of Mar 31, 2024 | | :--- | :--- | :--- | | **Bank Borrowings** | Nil | Nil | | **Cash and Cash Equivalents** | HK$188.8 million | HK$141.1 million | | **Current Ratio** | 3.2 | 3.1 | | **Gearing Ratio** | N/A | N/A | | **Net Debt-to-Equity Ratio** | Net Cash | Net Cash | - The Group's primary foreign exchange exposure is to the RMB, with minimal risk from the USD due to the HKD peg; **no hedging activities were conducted** during the year[56](index=56&type=chunk)[57](index=57&type=chunk)[59](index=59&type=chunk) [Cambodia Country Overview](index=19&type=section&id=Cambodia%20Country%20Overview) [Political, Social, and Investment Environment](index=19&type=section&id=Political%2C%20Social%2C%20and%20Investment%20Environment) Cambodia offers a stable political climate and young workforce but faces challenges from corruption and trade uncertainties - Politically, Cambodia is a one-party state with long-term rule by the People's Party, ensuring policy continuity under the new Prime Minister Hun Manet, though **corruption remains a significant issue**[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) - Cambodia is a key beneficiary of the Belt and Road Initiative, with **China as its largest foreign investor**, funding major infrastructure, energy, and special economic zone projects[87](index=87&type=chunk)[104](index=104&type=chunk) - Trade relations are complex, with a partial withdrawal of EU's EBA preferences and uncertainty from US tariff policies, though the UK's DCTS scheme offers duty-free access[82](index=82&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) - Cambodia has a young demographic with **66% of the population aged 15-64**, but rising labor costs are evident as the minimum wage in the garment sector increased from **$153 to $204** between 2017 and 2024[94](index=94&type=chunk)[125](index=125&type=chunk) [Corporate Governance](index=32&type=section&id=Corporate%20Governance) [Board of Directors and Senior Management](index=32&type=section&id=Board%20of%20Directors%20and%20Senior%20Management) The Board comprises eight members, including five experienced executive directors from the Ma family and three independent directors - The core of the Board consists of Ma family members, including Chairman Mr. Ma Ching Man and CEO Mr. Ma Ching Ming, who jointly control the company through a concert party deed[139](index=139&type=chunk)[140](index=140&type=chunk)[205](index=205&type=chunk) - Independent Non-executive Directors Mr. Lam Kwok Cheong, Mr. Wong Wai Keung, and Mr. Ho Lai Chuen chair the Remuneration, Audit & Risk Management, and Nomination Committees, respectively, ensuring independent oversight[145](index=145&type=chunk)[148](index=148&type=chunk)[152](index=152&type=chunk) [Directors' Report](index=37&type=section&id=Directors'%20Report) The report details business performance, a doubled dividend payout, shareholding structure, and a connected transaction Dividend Distribution | Dividend Type | FY2025 (Proposed) | FY2024 (Paid) | | :--- | :--- | :--- | | **Final Dividend** | 4.0 HK cents/share | 2.0 HK cents/share | | **Special Dividend** | 2.0 HK cents/share | 1.0 HK cents/share | | **Total** | 6.0 HK cents/share | 3.0 HK cents/share | - The five controlling shareholders, all executive directors, jointly hold **301,138,000 shares (73.70% of issued capital)** through Wah Sun Holdings[202](index=202&type=chunk)[205](index=205&type=chunk) - Sales to the Group's five largest customers accounted for **88.6% of total revenue**, with the largest customer representing **25.6%**, indicating high customer concentration[216](index=216&type=chunk) - A connected transaction was completed this year, involving the acquisition of the Group's office property for **HK$4.7 million** from an executive director and the spouse of another director[200](index=200&type=chunk) [Corporate Governance Report](index=52&type=section&id=Corporate%20Governance%20Report) The company adheres to high governance standards, with independent oversight of its board committees and internal controls - The roles of Chairman (Mr. Ma Ching Man) and Chief Executive Officer (Mr. Ma Ching Ming) are held by separate individuals, ensuring a clear division of responsibilities[275](index=275&type=chunk) - The Board has adopted a diversity policy, with current membership comprising **25% female (2/8) and 75% male (6/8) directors**[250](index=250&type=chunk)[267](index=267&type=chunk) - An independent consultant reviewed the Group's risk management and internal control systems, which the Board and its committees deemed **adequate and effective with no major deficiencies found**[315](index=315&type=chunk) - The company has a dividend policy targeting a payout of **no less than 35% of distributable profit** for any fiscal year, subject to various factors[272](index=272&type=chunk) [Financial Statements](index=72&type=section&id=Financial%20Statements) [Independent Auditor's Report](index=72&type=section&id=Independent%20Auditor's%20Report) The auditor issued an unqualified opinion, identifying the impairment of trade receivables as the key audit matter - The auditor, PricewaterhouseCoopers, issued an **unqualified opinion** on the financial statements[338](index=338&type=chunk) - The sole key audit matter was the **impairment of trade receivables**, which involved significant management judgment; as of March 31, 2025, gross trade receivables were **HK$68.224 million** with an impairment provision of **HK$4.146 million**[345](index=345&type=chunk)[346](index=346&type=chunk)[349](index=349&type=chunk) [Consolidated Financial Statements](index=78&type=section&id=Consolidated%20Financial%20Statements) The Group reported significant growth in revenue and profit, maintaining a solid financial position and strong operating cash flow Consolidated Statement of Profit or Loss (in HK$'000) | | FY2025 | FY2024 | | :--- | :--- | :--- | | **Revenue** | 724,098 | 594,407 | | **Gross Profit** | 159,577 | 104,995 | | **Operating Profit** | 81,594 | 33,967 | | **Profit for the Year** | 66,807 | 27,211 | | **Profit Attributable to Owners of the Company** | 64,274 | 28,504 | Consolidated Statement of Financial Position (in HK$'000) | | As of Mar 31, 2025 | As of Mar 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | 420,867 | 371,308 | | Non-current Assets | 64,188 | 69,378 | | Current Assets | 356,679 | 301,930 | | **Total Liabilities** | 127,341 | 115,921 | | Non-current Liabilities | 15,369 | 17,662 | | Current Liabilities | 111,972 | 98,259 | | **Total Equity** | 293,526 | 255,387 | Consolidated Statement of Cash Flows (in HK$'000) | | FY2025 | FY2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | 88,056 | 63,758 | | **Net Cash used in Investing Activities** | (3,754) | (621) | | **Net Cash used in Financing Activities** | (35,827) | (24,136) | | **Net Increase in Cash and Cash Equivalents** | 48,475 | 39,001 | [Five-Year Financial Summary](index=142&type=section&id=Five-Year%20Financial%20Summary) The Group's performance reached a five-year high in FY2025, demonstrating a strong recovery and steady balance sheet growth Results (in HK$'000) | | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 724,098 | 594,407 | 446,518 | 617,586 | 403,843 | | **Profit Attributable to Owners of the Company** | 64,274 | 28,504 | 8,495 | 39,544 | 5,562 | Assets and Liabilities (in HK$'000) | | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 420,867 | 371,308 | 382,377 | 416,991 | 374,147 | | **Total Equity** | 293,526 | 255,387 | 244,557 | 259,107 | 235,991 | | **Total Liabilities** | 127,341 | 115,921 | 137,820 | 157,884 | 138,156 |

Financial Performance - Revenue for the year increased by approximately 21.8% to about HKD 724,100,000 (FY2024: HKD 594,400,000) [3] - Gross profit for the year increased by approximately 52.0% to about HKD 159,600,000 (FY2024: HKD 105,000,000) [3] - Gross profit margin increased by approximately 4.3% to about 22.0% (FY2024: 17.7%) [3] - Net profit attributable to the company's owners increased by approximately 125.5% to about HKD 64,300,000 (FY2024: HKD 28,500,000) [3] - Earnings per share attributable to the company's owners increased by approximately HKD 0.087 to about HKD 0.157 (FY2024: HKD 0.070) [3] - Total revenue for the year ended March 31, 2025, was HKD 724,098,000, up from HKD 594,407,000 in 2024, indicating an increase of about 21.8% [21] - Other income rose to HKD 4,209,000 in 2025 from HKD 3,986,000 in 2024, reflecting a growth of approximately 5.6% [22] - The cost of goods sold increased to HKD 322,681,000 in 2025 from HKD 293,869,000 in 2024, which is an increase of about 9.8% [23] - Net financing income improved to HKD 884,000 in 2025 from a loss of HKD 1,054,000 in 2024, marking a significant turnaround [24] - Income tax expense for the year was HKD 15,671,000, compared to HKD 5,702,000 in 2024, representing an increase of approximately 174.5% [25] Dividends - The board has proposed a final dividend of HKD 0.04 per share and a special dividend of HKD 0.02 per share (FY2024: HKD 0.02 and HKD 0.01 respectively) [3] - Proposed final dividend per share increased to HKD 0.04 in 2025 from HKD 0.02 in 2024, totaling approximately HKD 24,518,000 for the year [27] - The proposed dividends are subject to approval at the 2025 Annual General Meeting, expected to be paid on October 31, 2025 [90] Assets and Liabilities - Total assets as of March 31, 2025, amounted to HKD 420,867,000 (2024: HKD 371,308,000) [6] - Total liabilities as of March 31, 2025, amounted to HKD 127,341,000 (2024: HKD 115,921,000) [7] - Total equity attributable to the company's owners as of March 31, 2025, was HKD 294,935,000 (2024: HKD 259,329,000) [6] - Trade receivables increased to HKD 68,224,000 as of March 31, 2025, from HKD 55,016,000 in 2024, representing an increase of approximately 24.0% [39] - The total inventory as of March 31, 2025, was HKD 61,686,000, down from HKD 67,863,000 in 2024, indicating a decrease of about 9.1% [38] Market Performance - Revenue from the United States was HKD 542,630,000, up 11.7% from HKD 485,560,000 in the prior year [17] - Revenue from Canada increased by 23.4% to HKD 56,576,000 from HKD 45,873,000 [17] - Revenue from the Netherlands surged to HKD 36,605,000, a significant increase from HKD 10,718,000 [17] - Revenue from China (excluding Hong Kong, Macau, and Taiwan) rose to HKD 22,874,000, compared to HKD 8,291,000, marking a growth of 176.5% [17] - Revenue from major customers (over 10% of total revenue) increased to HKD 641,731,000 in 2025 from HKD 547,243,000 in 2024, representing a growth of approximately 17.2% [20] Operational Insights - The company operates primarily in Hong Kong, with significant revenue contributions from various international markets [16] - The Cambodian production base accounts for about 90% of the company's total production capacity, enhancing efficiency and meeting overseas market demands [46] - The company emphasizes cost optimization as a key strategy to maintain substantial returns amid increasing competition [48] - The company is focused on sustainable business operations and internal controls to mitigate production risks in a volatile business environment [45] Challenges and Risks - The geopolitical tensions and economic uncertainties are expected to increase downward risks, particularly affecting the U.S. consumer market, which accounts for over 70% of total revenue [44] - The company anticipates continued challenges from geopolitical uncertainties and trade disputes, which may impact investment and consumer confidence [55] - Recent U.S. tariff policies could impose up to 49% tariffs on imports from Cambodia, affecting the apparel and footwear manufacturing sectors [56] - A temporary 10% tariff rate has been implemented for 90 days, allowing for potential negotiations to improve trade relations [57] Corporate Governance - The company has adopted all applicable corporate governance codes as per the Hong Kong Stock Exchange Listing Rules without deviation [94] - The audit committee, composed of independent non-executive directors, has reviewed the accounting principles and financial reporting matters [97] - The company did not purchase, redeem, or sell any listed securities during the year, and held no treasury shares as of March 31, 2025 [98] Future Outlook - The company remains cautiously optimistic about the resilience of the Cambodian manufacturing sector and ongoing efforts to strengthen trade relationships [58] - The company is committed to closely monitoring market developments and adjusting strategies to respond effectively to changing conditions [58]

Financial Performance - For the first half of 2024, the group's revenue increased by approximately HKD 17,800,000 or 5.3% to HKD 352,300,000 compared to the first half of 2023[8]. - The profit attributable to the owners of the company rose from approximately HKD 20,900,000 in the first half of 2023 to about HKD 27,000,000, an increase of approximately HKD 6,100,000[8]. - The group's gross profit increased from approximately HKD 62,100,000 in the first half of 2023 to about HKD 75,100,000, representing a growth of approximately 20.9%[27]. - The gross profit margin improved from 18.6% in the first half of 2023 to 21.3% in the first half of 2024, an increase of 2.7%[27]. - The company's profit attributable to owners increased from approximately HKD 20,900,000 in the first half of 2023 to approximately HKD 27,000,000 in the first half of 2024, representing a growth of 29.0%[34]. - The company's tax expense rose by approximately HKD 900,000 or 22.0% from HKD 4,300,000 in the first half of 2023 to about HKD 5,200,000 in the first half of 2024[33]. - The company reported a net profit of HKD 26,980,000 for the period, with total comprehensive income amounting to HKD 27,047,000[182]. - Basic and diluted earnings per share increased to HKD 6.6, up from HKD 5.1, reflecting a 29.4% growth[164]. Revenue Sources - Sales to the group's five largest customers accounted for approximately 91.5% of total revenue in the first half of 2024, with the largest customer contributing about 30.7%[23]. - Revenue from U.S. customers slightly decreased by approximately HKD 7,600,000 or 2.7%, from HKD 281,700,000 in the first half of 2023 to HKD 274,100,000 in the first half of 2024[36]. - Sales revenue from products manufactured in Cambodia and Dongguan, China totaled approximately HKD 352,286,000 in the first half of 2024, compared to HKD 334,472,000 in the first half of 2023, showing an increase[37]. Expenses and Costs - Administrative expenses increased from approximately HKD 82,500,000 in the first half of 2023 to about HKD 86,700,000 in the first half of 2024[50]. - Sales and distribution expenses rose from approximately HKD 13,600,000 in the first half of 2023 to about HKD 14,100,000 in the first half of 2024, an increase of approximately 3.2%[58]. - Employee benefit expenses rose to HKD 86.737 million in the first half of 2024, compared to HKD 82.477 million in the same period of 2023[100]. - The cost of sold inventory for the first half of 2024 was HKD 164.666 million, slightly down from HKD 166.014 million in the first half of 2023[100]. Investments and Acquisitions - The group completed the acquisition of a Hong Kong office property for approximately HKD 4,700,000, which is expected to improve operational cash flow in the long term[8]. - The company did not make any significant investments or acquisitions during the first half of 2024[51]. - The company has not made any significant investments or acquisitions as of September 30, 2024, indicating a focus on maintaining current operations[68]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.03 per share for the first half of 2024, an increase from HKD 0.02 per share in the same period of 2023, totaling approximately HKD 16,345,000[71]. - The interim dividend for the first half of 2024 is set at HKD 0.03 per share, up from HKD 0.02 per share in the first half of 2023, along with a special dividend of HKD 0.01 per share, unchanged from the previous year[91]. - The total dividend declared for the year 2023/2024 was HKD 12,259,000, reflecting a commitment to return value to shareholders[182]. Financial Position and Ratios - The company's cash and cash equivalents were approximately HKD 154,500,000 as of September 30, 2024, compared to approximately HKD 141,100,000 as of March 31, 2024[47]. - The current ratio decreased from 3.1 as of March 31, 2024, to 2.6 as of September 30, 2024[47]. - The company reported a net debt-to-equity ratio calculated as net debt (total borrowings minus cash and cash equivalents) divided by total equity as of the reporting date[66]. - The company’s liquidity ratio is calculated by dividing total current assets by total current liabilities as of the reporting date[65]. Production and Operations - The company’s production base in Cambodia accounts for approximately 90% of total production capacity, enhancing efficiency and profitability[89]. - The company has relocated its production base from China to Cambodia, establishing a major production facility there[115]. - The company plans to lease out its old factory in Dongguan after the lease expires in 2025 to generate rental income, as its operational significance has diminished[115]. Risk Management - The group faces multiple financial risks, including market risk (foreign exchange risk, cash flow, and fair value interest rate risk), credit risk, and liquidity risk[199]. - There have been no significant changes to the risk management policies since the end of the year[199]. - The fair value measurement of financial instruments is categorized into three levels based on the inputs used for valuation[200]. Corporate Governance and Shareholding - The company has complied with all applicable corporate governance code provisions as per the Hong Kong Stock Exchange[78]. - The company’s major shareholders collectively hold approximately 73.70% of the issued shares, indicating a strong control over the company[74]. - Each of the five key shareholders holds a personal interest in Huaxin Holdings, equivalent to 20% of the total issued share capital[152]. - The independent auditor, PwC, reviewed the interim financial statements and found no issues that would lead to a belief that the financial data was not prepared in accordance with the relevant accounting standards[161]. Market Trends and Outlook - The online retail market in the Asia-Pacific region has seen significant growth, driven by consumer preferences for convenience and a wide range of products available online[9]. - The group anticipates continued pricing competition from other operators in Southeast Asia but aims to leverage economies of scale to enhance manufacturing efficiency[21]. - The group expects North America to maintain its dominant position in the market, with increased demand for handbags driven by consumer spending and promotional events[9]. Other Financial Metrics - The company reported a significant increase in impairment provisions, which rose to HKD 5,716 million from HKD 2,669 million, indicating a rise of approximately 114.5%[123]. - Trade receivables increased significantly to HKD 95,399,000 from HKD 50,073,000, indicating a 90.5% rise[171]. - Total assets grew to HKD 423,932,000, compared to HKD 371,308,000 at the end of March 2024, marking a 14.2% increase[171]. - Total equity increased to HKD 271,706,000 from HKD 255,387,000, reflecting a 6.4% growth[175].

Financial Performance - Revenue for the first half of 2024 increased by approximately 5.3% to about HKD 352.3 million, compared to HKD 334.5 million in the first half of 2023[2] - Gross profit for the first half of 2024 rose by approximately 20.9% to about HKD 75.1 million, up from HKD 62.1 million in the first half of 2023[2] - Gross margin increased by approximately 2.7% to about 21.3%, compared to 18.6% in the first half of 2023[2] - Net profit attributable to the company's owners for the first half of 2024 increased by approximately HKD 6.1 million to about HKD 27 million, compared to HKD 20.9 million in the first half of 2023[2] - Earnings per share attributable to the company's owners increased by approximately HKD 0.015 to about HKD 0.066, compared to HKD 0.051 in the first half of 2023[2] - Operating profit for the first half of 2024 was HKD 33.3 million, compared to HKD 25.7 million in the first half of 2023[5] - The company reported a net profit of HKD 26,980,000 for the period, which is a decrease from HKD 28,511,000 in the previous year, representing a decline of approximately 5.4%[19] - The total comprehensive income for the period was HKD 27,047,000, which includes a foreign exchange gain of HKD 67,000[19] Dividends - The board declared an interim dividend of HKD 0.03 per share for the first half of 2024, compared to HKD 0.02 per share in the first half of 2023[3] - The company paid dividends of HKD 12,259,000 for the year 2023/2024, reflecting a commitment to return value to shareholders[19] - The interim dividend declared for the six months ended September 30, 2024, was HKD 16,345,000, compared to HKD 12,259,000 in the previous year, reflecting a higher payout per share[47] Assets and Liabilities - Total assets as of September 30, 2024, amounted to HKD 423.9 million, compared to HKD 371.3 million as of March 31, 2024[14] - Total liabilities as of September 30, 2024, were HKD 152.2 million, compared to HKD 115.9 million as of March 31, 2024[17] - As of September 30, 2024, total equity reached HKD 274,117,000, an increase from HKD 260,854,000 as of March 31, 2023, reflecting a growth of approximately 5.4%[19] - The trade receivables as of September 30, 2024, amounted to HKD 106,058,000, with a provision for impairment of HKD 10,659,000[69] - The total lease liabilities as of September 30, 2024, amounted to HKD 20,919,000, with current liabilities at HKD 4,039,000 and non-current liabilities at HKD 16,880,000[56] Cash Flow - The net cash flow from operating activities for the six months ended September 30, 2024, was HKD 20,873,000, compared to HKD 51,846,000 for the same period in 2023, indicating a decrease of about 59.8%[21] - Cash and cash equivalents increased to HKD 154,524,000 as of September 30, 2024, up from HKD 147,528,000 a year earlier, marking a growth of about 4.3%[21] - The cash flow from financing activities showed a net outflow of HKD 3,591,000 for the six months ended September 30, 2024, compared to HKD 4,118,000 in the previous year, indicating a decrease of about 12.7%[21] Operational Highlights - The company operates primarily in the United States, with revenue from the U.S. amounting to HKD 274,151 thousand in 2024, a slight decrease from HKD 281,736 thousand in 2023, representing a decline of about 2.1%[37] - Revenue from Canada increased significantly to HKD 28,497 thousand in 2024 from HKD 22,538 thousand in 2023, marking a growth of approximately 26.4%[37] - Revenue from the Netherlands surged to HKD 12,317 thousand in 2024, up from HKD 2,540 thousand in 2023, indicating a substantial increase of about 384.5%[37] - The company’s production base in Cambodia accounts for about 90% of its total production capacity, enhancing efficiency and profitability[94] - The management believes that Cambodia will remain a preferred production base due to its relatively low labor costs and stable political environment compared to other Southeast Asian countries[93] Market Conditions and Risks - The company anticipates continued volatility in the economic outlook due to global economic slowdown and geopolitical tensions[88] - The U.S. consumer market, which accounts for over 80% of total revenue, may be impacted by high interest rates and inflation, increasing downside risks[89] - The company expects ongoing fluctuations in the global economy, exacerbated by rising raw material prices due to the energy crisis from the Russia-Ukraine conflict[88] - The company is facing challenges from ongoing trade disputes between China and the U.S., which may affect operations[90] Employee and Management - The total remuneration for key management personnel was HKD 5,774,000 for the six months ended September 30, 2024, slightly down from HKD 5,899,000 in the same period last year[86] - The group employed a total of 4,483 employees as of September 30, 2024, an increase from 4,273 employees as of March 31, 2024[129] Compliance and Governance - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming compliance for the first half of 2024[142] - There were no interests in competing businesses reported by directors or controlling shareholders for the first half of 2024, ensuring no conflicts of interest[143] - The Audit Committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the first half of 2024[145] - The company emphasizes high transparency levels to strengthen investor relations, providing timely disclosures through various communication channels[146] - The board expresses gratitude to management and employees for their contributions amid current challenges, highlighting a commitment to innovation and sustainable development[147]

（於開曼群島註冊成立的有限公司） 股份代號 : 2683 2023/24 年報 目錄 | 公司資料 | 2 | | --- | --- | | 主席報告 | 4 | | 管理層討論及分析 | 12 | | 柬埔寨國家整體概覽 | 17 | | 董事及高級管理層履歷 | 30 | | 董事會報告 | 35 | | 企業管治報告 | 50 | | 獨立核數師報告 | 70 | | 綜合收益表 | 76 | | 綜合全面收益表 | 77 | | 綜合財務狀況表 | 78 | | 綜合權益變動表 | 80 | | 綜合現金流量表 | 81 | | 綜合財務報表附註 | 82 | | 投資物業詳情 | 138 | | 五年財務概要 | 139 | 公司資料 董事會 執行董事 馬慶文先生 （主席） 馬慶明先生 （行政總裁） 馬蘭珠女士 馬任子先生 馬蘭香女士 獨立非執行董事 林國昌先生 黃煒強先生 楊志偉先生（於二零二四年一月二十三日辭任） 何麗全先生（於二零二四年一月二十三日獲委任） 董事委員會 審核委員會 黃煒強先生 （主席） 林國昌先生 楊志偉先生（於二零二四年一月二十三日辭任） 何麗全先生（於二零二四年一月二十三 ...

[Summary](index=1&type=section&id=Summary) Wah Sun Handbags reported significant growth in revenue, gross profit, net profit, and EPS for FY2024, proposing final and special dividends 2024 Financial Highlights | Indicator | FY2024 (Approx.) | FY2023 (Approx.) | Change | | :--- | :--- | :--- | :--- | | Revenue | HK$594,400,000 | HK$446,500,000 | Increased 33.1% | | Gross Profit | HK$105,000,000 | HK$67,600,000 | Increased 55.4% | | Gross Profit Margin | 17.7% | 15.1% | Increased 2.6% | | Profit attributable to owners of the Company | HK$28,500,000 | HK$8,500,000 | Increased 235.5% | | Earnings per share attributable to owners of the Company | HK$0.07 | HK$0.021 | Increased HK$0.049 | | Impairment provision for trade receivables | HK$2,700,000 | Reversal of HK$4,300,000 | Turned to provision | | Proposed final dividend | HK$0.02 per share | HK$0 | Increased | | Proposed special dividend | HK$0.01 per share | HK$0.01 per share | Unchanged | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the consolidated income statement, comprehensive income, and financial position, detailing the company's financial performance and balance sheet status [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) For FY2024, the company achieved substantial growth in revenue, gross profit, and operating profit, with profit for the year reaching HK$27,211 thousand Key Data from Consolidated Income Statement (HK$ thousand) | Indicator | FY2024 | FY2023 | | :--- | :--- | :--- | | Revenue | 594,407 | 446,518 | | Cost of sales | (489,412) | (378,964) | | Gross Profit | 104,995 | 67,554 | | Other income | 3,986 | 1,794 | | Other gains, net | 3,444 | 5,870 | | Selling and distribution expenses | (24,862) | (20,528) | | Administrative expenses | (50,927) | (47,111) | | Impairment provision for trade receivables / reversal | (2,669) | 4,319 | | Operating profit | 33,967 | 11,898 | | Finance costs, net | (1,054) | (2,204) | | Profit before income tax | 32,913 | 9,694 | | Income tax expense | (5,702) | (3,687) | | Profit for the year | 27,211 | 6,007 | | Profit attributable to owners of the Company | 28,504 | 8,495 | | Non-controlling interests | (1,293) | (2,488) | | Basic and diluted earnings per share (HK cents) | 7.0 | 2.1 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the year was HK$27,175 thousand, driven by profit for the year and slightly impacted by exchange differences Key Data from Consolidated Statement of Comprehensive Income (HK$ thousand) | Indicator | FY2024 | FY2023 | | :--- | :--- | :--- | | Profit for the year | 27,211 | 6,007 | | Other comprehensive (loss) / income: Exchange differences | (36) | (126) | | Total comprehensive income for the year | 27,175 | 5,881 | | Attributable to owners of the Company | 28,468 | 8,369 | | Non-controlling interests | (1,293) | (2,488) | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, total assets slightly decreased, but a robust current ratio and increased total equity reflect a healthy financial structure Key Data from Consolidated Statement of Financial Position (HK$ thousand) | Indicator | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 69,378 | 76,431 | | Current assets | 301,930 | 305,946 | | **Total Assets** | **371,308** | **382,377** | | **Equity** | | | | Equity attributable to owners of the Company | 259,329 | 247,206 | | Non-controlling interests | (3,942) | (2,649) | | **Total Equity** | **255,387** | **244,557** | | **Liabilities** | | | | Non-current liabilities | 17,662 | 20,419 | | Current liabilities | 98,259 | 117,401 | | **Total Liabilities** | **115,921** | **137,820** | | Total Equity and Liabilities | 371,308 | 382,377 | [Notes](index=6&type=section&id=Notes) This section provides detailed notes to the consolidated financial statements, covering general information, accounting policies, segment data, financial item specifics, and post-reporting period events [1. General Information](index=6&type=section&id=1.%20General%20Information) The company is an investment holding entity primarily manufacturing and trading handbags, controlled by the Ma family, with financial statements presented in HKD - The Company is an investment holding company, with its principal business being the manufacturing and trading of handbag products[13](index=13&type=chunk) - The ultimate holding company is Wah Sun International Holdings Limited, and the ultimate controlling parties are members of the Ma family[13](index=13&type=chunk) - The consolidated financial statements are presented in Hong Kong dollars, with all values rounded to the nearest thousand[14](index=14&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=2.%20Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The Group's consolidated financial statements, prepared under HKFRS, adopted new standards with no significant impact on performance or financial position - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance Cap. 622, using the historical cost basis[15](index=15&type=chunk) - The Group first applied several new and amended standards for the financial year beginning April 1, 2023, which had no significant impact on its results or financial position[17](index=17&type=chunk) - Amendments to standards that have been issued but are not yet effective are not expected to have a significant impact on the Group's current or future reporting periods[18](index=18&type=chunk) [3. Segment Information](index=8&type=section&id=3.%20Segment%20Information) The Group operates solely in handbag manufacturing and trading, with revenue primarily from the US, non-current assets in Cambodia, and high customer concentration - The Group has only one operating segment, which is the manufacturing and trading of handbag products, thus no separate segment analysis is presented[19](index=19&type=chunk) Revenue by Geographical Area (HK$ thousand) | Region | FY2024 | FY2023 | | :--- | :--- | :--- | | United States of America | 485,560 | 347,326 | | Canada | 45,873 | 26,585 | | Other countries | 62,974 | 72,607 | | **Total Revenue** | **594,407** | **446,518** | Non-current Assets by Location (HK$ thousand) | Region | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | People's Republic of China | 10,825 | 16,716 | | Hong Kong | 10,834 | 9,861 | | Kingdom of Cambodia | 42,975 | 45,967 | | **Total** | **64,634** | **72,544** | Revenue from Major Customers (HK$ thousand) | Customer | FY2024 | FY2023 | | :--- | :--- | :--- | | Customer A | 172,882 | 113,272 | | Customer B | 136,729 | 132,886 | | Customer C | 128,200 | 77,791 | | Customer D | 102,202 | 50,072 | | Customer E | – | 32,581 | | **Total** | **540,013** | **406,602** | [4. Revenue, Other Income and Other Gains, Net](index=9&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Other%20Gains%2C%20Net) This year's revenue primarily stemmed from goods sales, with other income and net gains influenced by exchange gains and rental income Revenue Sources (HK$ thousand) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Sale of goods | 594,407 | 446,518 | Other Income and Other Gains, Net (HK$ thousand) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Rental income from operating leases | 3,963 | 1,565 | | Gain on disposal of scrap materials | 23 | 229 | | **Total Other Income** | **3,986** | **1,794** | | Net exchange gain | 3,225 | 5,486 | | Government grants | 181 | 343 | | Fair value change of financial assets at fair value through profit or loss | 42 | 41 | | Loss on disposal of property, plant and equipment | (4) | – | | **Total Other Gains, Net** | **3,444** | **5,870** | | **Total** | **7,430** | **7,664** | [5. Expenses by Nature](index=10&type=section&id=5.%20Expenses%20by%20Nature) Total cost of sales, selling and distribution, and administrative expenses significantly increased, driven by higher inventory costs and employee benefits Total Expenses by Nature (HK$ thousand) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Cost of inventories sold | 293,869 | 198,788 | | Subcontracting fees | 65,546 | 58,621 | | Transportation and customs duties | 14,428 | 12,806 | | Employee benefit expenses | 149,385 | 137,124 | | Depreciation of property, plant and equipment | 5,846 | 6,727 | | Depreciation of investment properties | 2,144 | 1,073 | | Depreciation of right-of-use assets | 3,643 | 3,284 | | **Total Cost of Sales, Selling and Distribution Expenses and Administrative Expenses** | **565,201** | **446,603** | [6. Finance Costs, Net](index=10&type=section&id=6.%20Finance%20Costs%2C%20Net) Net finance costs significantly decreased this year, primarily due to a substantial increase in interest income from bank deposits Finance Costs, Net (HK$ thousand) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Interest expense on bills payable | (3,282) | (2,021) | | Interest expense on lease liabilities | (1,119) | (1,190) | | **Total Finance Costs** | **(4,401)** | **(3,211)** | | Interest income from bank deposits | 3,347 | 1,007 | | **Finance Costs, Net** | **(1,054)** | **(2,204)** | [7. Income Tax Expense](index=11&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense significantly rose this year due to increased taxable profit, including Hong Kong profits tax and overseas taxes Income Tax Expense (HK$ thousand) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Current income tax: Hong Kong profits tax | 3,509 | 1,884 | | Current income tax: Overseas tax | 3,041 | 1,493 | | Underprovision in prior years | 3 | 392 | | Deferred income tax | (851) | (82) | | **Total Income Tax Expense** | **5,702** | **3,687** | - Hong Kong profits tax is provided at **16.5%** (8.25% for the first HK$2,000,000), Cambodian corporate income tax rate is **20%**, and Chinese corporate income tax rate is **25%**[68](index=68&type=chunk)[45](index=45&type=chunk) [8. Dividends](index=11&type=section&id=8.%20Dividends) The Board proposed a final dividend of HK$0.02 and a special dividend of HK$0.01 per share, totaling HK$12,259 thousand, a substantial increase Declared and Proposed Dividends (HK$ thousand) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Interim dividend declared and paid of HK$0.02 per share (2023: HK$0.01 per share) | 8,173 | 4,086 | | Interim special dividend declared and paid of HK$0.01 per share (2023: nil) | 4,086 | – | | **Total Interim Dividends Declared and Paid** | **12,259** | **4,086** | | Proposed final dividend of HK$0.02 per share (2023: nil) | 8,173 | – | | Proposed special dividend of HK$0.01 per share (2023: HK$0.01 per share) | 4,086 | 4,086 | | **Total Proposed Final and Special Dividends** | **12,259** | **4,086** | | **Total Dividends Attributable for the Year** | **24,518** | **8,172** | - The proposed final and special dividends are subject to shareholders' approval at the Annual General Meeting[45](index=45&type=chunk) [9. Earnings Per Share](index=12&type=section&id=9.%20Earnings%20Per%20Share) Basic earnings per share significantly grew to HK$0.07, matching diluted EPS, indicating enhanced company profitability Earnings Per Share (HK cents) | Indicator | FY2024 | FY2023 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (HK$ thousand) | 28,504 | 8,495 | | Weighted average number of ordinary shares in issue (thousand shares) | 408,626 | 408,626 | | Basic earnings per share (HK cents) | 7.0 | 2.1 | - Diluted earnings per share is the same as basic earnings per share as there are no potential dilutive ordinary shares outstanding[47](index=47&type=chunk) [10. Right-of-use Assets and Lease Liabilities](index=12&type=section&id=10.%20Right-of-use%20Assets%20and%20Lease%20Liabilities) Right-of-use assets and lease liabilities decreased, reflecting changes in leasing activities, with total lease cash outflows of HK$4,793 thousand Right-of-use Assets and Lease Liabilities (HK$ thousand) | Item | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | Right-of-use assets | 20,160 | 22,694 | | Lease liabilities (current) | 3,882 | 3,408 | | Lease liabilities (non-current) | 17,662 | 20,419 | | **Total Lease Liabilities** | **21,544** | **23,827** | Lease-related Amounts Recognized in Consolidated Income Statement (HK$ thousand) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Depreciation of right-of-use assets | (3,643) | (3,284) | | Interest expense | (1,119) | (1,190) | | Expenses relating to short-term leases | (284) | (289) | - Total cash outflow for leases for the year ended March 31, 2024, was approximately **HK$4,793 thousand**[50](index=50&type=chunk) [11. Investment Properties](index=13&type=section&id=11.%20Investment%20Properties) Investment property value decreased due to depreciation and exchange differences; the Group uses the cost model and reclassified its Dongguan factory for rental income Movement in Investment Properties (HK$ thousand) | Item | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | At beginning of year | 5,900 | 5,900 | | Depreciation expense | (2,144) | (1,073) | | Exchange differences | (4) | (7) | | **At end of year** | **3,752** | **5,900** | - The Group measures investment properties using the cost model and reclassified its old Dongguan factory as investment property to generate rental income[52](index=52&type=chunk)[101](index=101&type=chunk) - The fair value of investment properties as of March 31, 2024, was **HK$5,567 thousand**, calculated using the income approach with discounted cash flow analysis[74](index=74&type=chunk) [12. Inventories](index=14&type=section&id=12.%20Inventories) Total inventories significantly decreased this year, driven by reductions in raw materials, work-in-progress, and finished goods Inventories Composition (HK$ thousand) | Item | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | Raw materials | 20,382 | 46,235 | | Work-in-progress | 24,840 | 48,373 | | Finished goods | 22,641 | 33,977 | | **Total** | **67,863** | **128,585** | - For the year ended March 31, 2024, the cost of inventories recognized as an expense and included in "cost of sales" in the consolidated income statement was **HK$293,869 thousand**[103](index=103&type=chunk) [13. Trade Receivables, Prepayments, Deposits and Other Receivables](index=15&type=section&id=13.%20Trade%20Receivables%2C%20Prepayments%2C%20Deposits%20and%20Other%20Receivables) Net trade receivables and impairment provisions increased, with the aging analysis indicating the largest proportion of receivables within 30 days Trade Receivables, Prepayments, Deposits and Other Receivables (HK$ thousand) | Item | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | Trade receivables | 55,016 | 38,667 | | Less: Impairment provision for trade receivables | (4,943) | (2,274) | | **Trade Receivables, Net** | **50,073** | **36,393** | | Deposits | 1,603 | 1,483 | | Prepayments | 9,590 | 6,029 | | Recoverable VAT | 5,800 | 4,722 | | Other receivables | – | 3 | | Accrued income | 863 | 1,536 | | **Total** | **67,929** | **50,166** | Aging Analysis of Trade Receivables (HK$ thousand) | Aging | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | Within 30 days | 41,334 | 37,771 | | 31 to 60 days | 7,034 | 849 | | 61 to 90 days | 4,771 | 2 | | Over 90 days | 1,877 | 45 | | **Total** | **55,016** | **38,667** | Movement in Impairment Provision for Trade Receivables (HK$ thousand) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | At beginning of year | 2,274 | 37,366 | | Impairment provision / (reversal) | 2,669 | (4,319) | | Write-off | – | (30,773) | | **At end of year** | **4,943** | **2,274** | [14. Trade and Bills Payables, Accrued Expenses and Other Payables](index=16&type=section&id=14.%20Trade%20and%20Bills%20Payables%2C%20Accrued%20Expenses%20and%20Other%20Payables) Total trade and bills payables decreased, while accrued expenses and other payables slightly increased, reflecting sound current liability management Trade and Bills Payables, Accrued Expenses and Other Payables (HK$ thousand) | Item | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | Trade payables | 55,565 | 60,126 | | Bills payable | 12,594 | 32,977 | | **Total Trade and Bills Payables** | **68,159** | **93,103** | | Accrued salaries | 9,690 | 8,917 | | Other accrued expenses and payables | 12,136 | 11,142 | | Contract liabilities | 447 | 316 | | **Total Accrued Expenses and Other Payables** | **22,273** | **20,375** | | **Total** | **90,432** | **113,478** | Aging Analysis of Trade and Bills Payables (HK$ thousand) | Aging | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | Within 30 days | 39,822 | 61,224 | | 31 to 60 days | 10,942 | 13,824 | | 61 to 90 days | 9,881 | 5,434 | | Over 90 days | 7,514 | 12,621 | | **Total** | **68,159** | **93,103** | [15. Events After the Reporting Period](index=17&type=section&id=15.%20Events%20After%20the%20Reporting%20Period) Post-reporting period, the Group completed the acquisition of its Hong Kong office on April 30, 2024, for approximately HK$4,700 thousand - The Group entered into an acquisition agreement with two related parties on March 25, 2024, to acquire its Hong Kong office for approximately **HK$4,700 thousand**[81](index=81&type=chunk) - The acquisition was completed on April 30, 2024, after the year-end[81](index=81&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section details the annual business review, industry overview, future outlook, and financial performance, highlighting the company's strategies and financial stability in a complex operating environment [Business Review](index=18&type=section&id=Business%20Review) Despite US market risks, the Group achieved significant revenue and net profit growth, driven by North American recovery and Cambodian production advantages - The Group is an original equipment manufacturer (OEM) of non-leather handbags, primarily engaged in the manufacturing and trading of handbag products[82](index=82&type=chunk) - The global economy saw an initial recovery, but the US consumer market faces increased downside risks due to rising interest rates and inflation[83](index=83&type=chunk) - The Cambodian production base accounts for approximately **90%** of total production capacity, becoming a crucial supply chain resource due to improved costs, efficiency, and profitability[114](index=114&type=chunk) - Revenue increased by **33.1%** to **HK$594,400 thousand**, and profit attributable to owners of the Company increased by **HK$20,000 thousand** to **HK$28,500 thousand**, primarily driven by the North American market recovery[85](index=85&type=chunk) - Management enhanced competitiveness through cost optimization, upgrading production facilities, and streamlining production processes, and completed the acquisition of the Hong Kong office post-reporting period to improve operating cash flow[85](index=85&type=chunk)[116](index=116&type=chunk) [Industry Overview](index=19&type=section&id=Industry%20Overview) Handbag trends favor practical, sustainable products, with strong non-leather market growth, significant online retail expansion in Asia-Pacific, and North America retaining dominance - Modern consumers seek handbags that combine aesthetics, practicality, and functionality, with an increasing preference for sustainable and eco-friendly products[88](index=88&type=chunk) - The global non-leather product market achieved strong growth due to increased awareness of animal cruelty and the promulgation of regulatory policies[117](index=117&type=chunk) - Spending on online platforms increased, with start-up e-retailers and e-commerce websites gaining more attention, though physical stores still play an important role[88](index=88&type=chunk) - The North American market is expected to maintain its dominant position, while online retail in the Asia-Pacific market has grown significantly[119](index=119&type=chunk) [Prospects](index=21&type=section&id=Prospects) Amid geopolitical and economic uncertainties, management will maintain financial health, enhance efficiency, and explore new revenue streams for sustainable returns - The global economy is expected to remain affected by geopolitical uncertainties in the upcoming financial year, with increased downside risks[121](index=121&type=chunk) - Management will continue to adopt prudent measures to maintain a healthy financial position and enhance manufacturing efficiency and production flexibility[91](index=91&type=chunk) - The Group will seek new revenue sources and balanced growth to create sustainable returns for shareholders[91](index=91&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) Strong financial performance this year saw significant growth in revenue, gross profit, and net profit, driven by North American recovery and cost control, ensuring robust financial health and liquidity [Revenue](index=21&type=section&id=Revenue) Revenue grew 33.1% to HK$594,400 thousand, primarily driven by North American market recovery, with Cambodian production contributing most revenue - The Group's revenue increased by **33.1%** from **HK$446,500 thousand** in FY2023 to **HK$594,400 thousand** in the current year[122](index=122&type=chunk) - Revenue from US customers increased by approximately **HK$138,300 thousand** to **HK$485,600 thousand**, mainly due to the continued recovery of the North American market after the COVID-19 pandemic[122](index=122&type=chunk) Sales Revenue by Production Location (HK$ thousand) | Production Location | FY2024 | Share (%) | FY2023 | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Cambodia | 557,516 | 93.8 | 408,996 | 91.6 | | Dongguan, China | 36,891 | 6.2 | 37,522 | 8.4 | | **Total** | **594,407** | **100** | **446,518** | **100** | Total Revenue, Sales Volume and Average Selling Price | Indicator | FY2024 | FY2023 | | :--- | :--- | :--- | | Revenue (HK$ thousand) | 594,407 | 446,518 | | Sales Volume (thousand units) | 8,123 | 5,450 | | Average Selling Price (HK$/unit) | 73.2 | 81.9 | - The decrease in average selling price was due to the different complexity of products sold[124](index=124&type=chunk) - The Group's sales to its top five customers accounted for approximately **98%** of total revenue this year, with sales to the single largest customer accounting for approximately **29%**[153](index=153&type=chunk) [Cost of Sales](index=22&type=section&id=Cost%20of%20Sales) Cost of sales increased 29.1% to HK$489,400 thousand, but at a slower rate than sales, thanks to strict cost control - Cost of sales increased by **29.1%** from **HK$379,000 thousand** in FY2023 to **HK$489,400 thousand** in the current year[154](index=154&type=chunk) - The increase in cost of sales was lower than the increase in sales, primarily due to the implementation of strict cost control measures, successfully reducing basic production operating costs[154](index=154&type=chunk) [Gross Profit and Gross Profit Margin](index=23&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit increased 55.4% to HK$105,000 thousand, with gross profit margin rising 2.6% to 17.7%, indicating significant profitability improvement - Gross profit increased by **55.4%** from **HK$67,600 thousand** in FY2023 to **HK$105,000 thousand** in the current year[155](index=155&type=chunk) - Gross profit margin increased by **2.6%** from **15.1%** in FY2023 to **17.7%** in the current year[155](index=155&type=chunk) [Other Gains, Net](index=23&type=section&id=Other%20Gains%2C%20Net) Other net gains, primarily from exchange and scrap sales, saw a decrease in net exchange gains this year - Other gains primarily included net exchange gains of approximately **HK$3,200 thousand** (FY2023: HK$5,500 thousand), mainly from the depreciation of RMB against HKD[97](index=97&type=chunk) - Gain on disposal of scrap materials was approximately **HK$200 thousand** (FY2023: HK$300 thousand)[97](index=97&type=chunk) [Selling and Distribution Expenses](index=23&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses rose 21.1% to HK$24,900 thousand, mainly due to increased sales activities - Selling and distribution expenses increased by **21.1%** from **HK$20,500 thousand** in FY2023 to **HK$24,900 thousand** in the current year[127](index=127&type=chunk) - This was primarily due to increased sales activities[127](index=127&type=chunk) [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) Administrative expenses increased 8.1% to HK$50,900 thousand, primarily due to higher employee benefit expenses - Administrative expenses increased by **8.1%** from **HK$47,100 thousand** in FY2023 to **HK$50,900 thousand** in the current year[157](index=157&type=chunk) - This was primarily due to increased employee benefit expenses[157](index=157&type=chunk) [Impairment Provision for Trade Receivables / Reversal](index=24&type=section&id=Impairment%20Provision%20for%20Trade%20Receivables%20%2F%20Reversal) Impairment provision for trade receivables was HK$2,700 thousand this year, a shift from last year's HK$4,300 thousand reversal, reflecting credit risk changes - Impairment provision for trade receivables was approximately **HK$2,700 thousand** this year, compared to a reversal of **HK$4,300 thousand** in FY2023[158](index=158&type=chunk) - The impairment assessment considered the aging of trade receivables, customer repayment history, payment status, creditworthiness, and macroeconomic forward-looking factors[99](index=99&type=chunk) [Finance Costs, Net](index=24&type=section&id=Finance%20Costs%2C%20Net) Net finance costs decreased 52.2% to HK$1,100 thousand, primarily driven by increased interest income - Net finance costs decreased by **52.2%** from **HK$2,200 thousand** in FY2023 to **HK$1,100 thousand** in the current year[100](index=100&type=chunk) - This was primarily due to increased interest income in the current year[100](index=100&type=chunk) [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense) Income tax expense increased 54.7% to HK$5,700 thousand, primarily due to higher taxable profit - Income tax expense increased by **54.7%** from **HK$3,700 thousand** in FY2023 to **HK$5,700 thousand** in the current year[160](index=160&type=chunk) - This was primarily due to increased taxable profit in the current year[160](index=160&type=chunk) [Profit for the Year](index=24&type=section&id=Profit%20for%20the%20Year) Profit for the year surged 353.0% to HK$27,200 thousand, with net profit margin rising to 4.6%, indicating significant profitability improvement - Profit for the year significantly increased by **353.0%** from **HK$6,000 thousand** in FY2023 to **HK$27,200 thousand** in the current year[161](index=161&type=chunk) - Net profit margin increased from **1.3%** in FY2023 to **4.6%** in the current year, primarily due to the net effect of increased gross profit margin, increased selling and distribution expenses, and increased income tax expense[130](index=130&type=chunk) [Financial Position, Liquidity and Financial Resources](index=24&type=section&id=Financial%20Position%2C%20Liquidity%20and%20Financial%20Resources) The Group maintains a robust financial position with no bank borrowings, ensuring funding flexibility through retained bank balances and committed credit facilities - As of March 31, 2024, the Group had **no bank borrowings**[162](index=162&type=chunk) - The Group aims to maintain funding flexibility through retaining sufficient bank balances, available committed credit facilities, and interest-bearing borrowings[163](index=163&type=chunk) [Borrowings and Pledges of Assets](index=24&type=section&id=Borrowings%20and%20Pledges%20of%20Assets) Bank financing is secured by approximately HK$25,100 thousand in bank deposits - As of March 31, 2024, bank financing was secured by bank deposits of approximately **HK$25,100 thousand**[131](index=131&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=Foreign%20Exchange%20Risk) The Group faces primary RMB foreign exchange risk, with minimal USD risk due to the HKD peg, and currently undertakes no hedging activities - The Group primarily operates in Hong Kong, Cambodia, and China, with most transactions settled in HKD, USD, and RMB[164](index=164&type=chunk) - Due to the HKD peg to the USD, the USD foreign exchange risk is minimal, and the Group is primarily exposed to foreign exchange risk related to RMB[165](index=165&type=chunk) - Foreign exchange risk on financial assets and liabilities denominated in other currencies was not significant this year, hence no hedging activities were undertaken[134](index=134&type=chunk) [Working Capital Management](index=25&type=section&id=Working%20Capital%20Management) The Group maintains sound financial policies, funding working capital primarily through operating cash flow, ensuring sufficient funds for current and future needs - The Group is committed to maintaining sound financial policies and enhancing operational efficiency to improve the robustness of its working capital[166](index=166&type=chunk) - This year, the Group primarily funded its working capital requirements through net cash generated from operating activities and bank borrowings[166](index=166&type=chunk) - As of March 31, 2024, cash and cash equivalents amounted to approximately **HK$141,100 thousand**[166](index=166&type=chunk) [Liquidity Ratios](index=25&type=section&id=Liquidity%20Ratios) The Group maintains a net cash position and robust liquidity and gearing ratios, reflecting its sound financial condition Liquidity Ratios | Indicator | As of March 31, 2024 | As of March 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 3.1 | 2.6 | | Gearing Ratio | Not applicable | Not applicable | | Net Debt to Equity Ratio | Net cash | Net cash | - The current ratio is calculated by dividing total current assets by total current liabilities[137](index=137&type=chunk) - The gearing ratio is calculated by dividing total debt by total equity and multiplying by 100%[167](index=167&type=chunk) - The net debt to equity ratio is calculated by dividing net debt (total borrowings less cash and cash equivalents) by total equity[138](index=138&type=chunk) [Other Information](index=26&type=section&id=Other%20Information) This section covers environmental policy, employee and remuneration, major investments, contingent liabilities, post-reporting events, dividends, corporate governance, and results publication [Environmental Policy](index=26&type=section&id=Environmental%20Policy) The Group adheres to environmental standards, integrates ESG into operations, and reported no significant environmental violations this year - The Group is committed to complying with all environmental standards and policies, and no significant incidents of non-compliance with relevant environmental protection laws and regulations occurred this year[170](index=170&type=chunk) - The Group's ESG strategy is based on the core principles of "Safety, Quality, and Environmental Sustainability" and will be regularly reviewed to ensure its relevance[170](index=170&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of March 31, 2024, the Group employed 4,273 staff, regularly reviewing remuneration, bonuses, and benefits for competitiveness - As of March 31, 2024, the Group employed a total of **4,273 employees** (2023: 3,477 employees)[171](index=171&type=chunk) - The Group regularly reviews employee remuneration levels, performance bonus schemes, and other benefits to ensure a competitive remuneration policy[171](index=171&type=chunk) - The Company has adopted a share option scheme and provides on-the-job training for employees[142](index=142&type=chunk) - Employee costs (including directors' emoluments) for the year amounted to approximately **HK$149,400 thousand** (FY2023: HK$137,100 thousand)[171](index=171&type=chunk) [Material Investments / Material Acquisitions and Disposals](index=26&type=section&id=Material%20Investments%20%2F%20Material%20Acquisitions%20and%20Disposals) Aside from the disclosed Hong Kong office acquisition, the Group made no other material investments, acquisitions, or disposals this year - Save as disclosed in this announcement, the Group did not make any other material investments or material acquisitions and disposals of subsidiaries, associates, or joint ventures during the year[143](index=143&type=chunk) [Future Plans for Material Investments or Capital Assets](index=26&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of March 31, 2024, the Group had no other future plans for material investments and capital assets - As of March 31, 2024, the Group had no other future plans for material investments and capital assets[144](index=144&type=chunk) [Capital Commitments](index=26&type=section&id=Capital%20Commitments) As of March 31, 2024, the Group had no significant contracted capital expenditure for property, plant, and equipment - As of March 31, 2024, the Group had no significant contracted but unprovided capital expenditure for the acquisition of property, plant, and equipment[145](index=145&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) As of March 31, 2024, the Group had no significant contingent liabilities - As of March 31, 2024, the Group had no significant contingent liabilities[146](index=146&type=chunk) [Significant Events After Reporting Period](index=27&type=section&id=Significant%20Events%20After%20Reporting%20Period) Aside from the disclosed Hong Kong office acquisition, no other significant events affecting the Company occurred post-reporting period - Save as disclosed in this announcement, no other significant events affecting the Company and its subsidiaries occurred after the reporting period and up to the date of this announcement[174](index=174&type=chunk) [Dividends](index=27&type=section&id=Dividends) The Board recommended final and special dividends, announcing share registration suspension for the AGM and dividend entitlement [Proposed Final and Special Dividends](index=27&type=section&id=Proposed%20Final%20and%20Special%20Dividends) The Board proposed a final dividend of HK$0.02 and a special dividend of HK$0.01 per share, totaling HK$12,259 thousand, payable October 31, 2024, pending approval - The Board proposed a final dividend of **HK$0.02 per share** and a special dividend of **HK$0.01 per share** for the year, totaling approximately **HK$12,259 thousand**[148](index=148&type=chunk) - The proposed final and special dividends are subject to shareholders' approval at the 2024 Annual General Meeting and are expected to be paid on October 31, 2024[185](index=185&type=chunk) [Closure of Register of Members](index=27&type=section&id=Closure%20of%20Register%20of%20Members) Share registration will be suspended in two periods to determine shareholder eligibility for the AGM and proposed dividends - To determine the eligibility of shareholders to attend and vote at the 2024 Annual General Meeting, the register of members will be closed from **August 28, 2024, to September 2, 2024** (both dates inclusive)[186](index=186&type=chunk) - To determine the entitlement of shareholders to the proposed final and special dividends, the register of members will be closed from **October 10, 2024, to October 16, 2024** (both dates inclusive)[187](index=187&type=chunk) [Corporate Governance](index=28&type=section&id=Corporate%20Governance) The Company complies with Listing Rules' Corporate Governance Code and Model Code for Directors' Securities Transactions, with the preliminary announcement reviewed by the independent auditor [Model Code for Securities Transactions by Directors](index=28&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Listing Rules' Model Code for Directors' Securities Transactions, with all current directors confirming compliance this year - The Company has adopted the Model Code as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[178](index=178&type=chunk) - All current directors confirmed compliance with the required standards of dealing set out in the Model Code during the year[178](index=178&type=chunk) [Review of Preliminary Announcement](index=28&type=section&id=Review%20of%20Preliminary%20Announcement) Performance figures in this preliminary announcement were agreed with PricewaterhouseCoopers, but their work does not constitute an assurance engagement - The performance figures for the Group's results for the year in this preliminary announcement have been agreed with the independent auditor, PricewaterhouseCoopers[152](index=152&type=chunk) - The work performed by the independent auditor does not constitute an assurance engagement, and therefore no assurance is provided on this preliminary announcement[152](index=152&type=chunk) [Review of Annual Results by Audit Committee](index=29&type=section&id=Review%20of%20Annual%20Results%20by%20Audit%20Committee) The Audit Committee, with management and the independent auditor, reviewed the Group's accounting principles, audit, internal controls, and financial reporting, including consolidated financial statements - The Audit Committee, comprising all independent non-executive directors, has reviewed the accounting principles and practices adopted by the Group with management and the independent auditor[180](index=180&type=chunk)[190](index=190&type=chunk) - The Audit Committee has discussed audit, internal control, and financial reporting matters, including the review of the consolidated financial statements[190](index=190&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, redeemed, or sold any listed securities during the year - During the year, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of its listed securities[191](index=191&type=chunk) [Publication of Results Announcement and Annual Report](index=29&type=section&id=Publication%20of%20Results%20Announcement%20and%20Annual%20Report) This announcement is published on HKEX and the Company's website; the annual report will be published and dispatched to shareholders as per Listing Rules - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.wahsun.com.hk)[192](index=192&type=chunk) - The Company's annual report for the year will be published on the aforementioned websites and dispatched to shareholders who request printed copies in due course, as required by the Listing Rules[192](index=192&type=chunk) [Acknowledgement](index=29&type=section&id=Acknowledgement) The Board expresses sincere gratitude to management, employees, shareholders, business partners, and other professionals - The Board extends its sincere gratitude to the management and all employees of the Group for their efforts and dedication, and to the shareholders, business partners, and other professionals for their support throughout the year[193](index=193&type=chunk)

Financial Performance - For the six months ended September 30, 2023, the company's revenue increased by approximately HKD 86.9 million or 35.1% to HKD 334.5 million compared to the same period in 2022[14]. - The profit attributable to the owners of the company rose from approximately HKD 7.3 million in the first half of 2022 to approximately HKD 20.9 million in the first half of 2023, an increase of about HKD 13.6 million[14]. - Revenue increased from approximately HKD 247.6 million in the first half of 2022 to approximately HKD 334.5 million in the first half of 2023, representing a growth of about 35.1%[20]. - Revenue from U.S. customers rose by approximately HKD 87.4 million or 45.0%, from about HKD 194.3 million in the first half of 2022 to about HKD 281.7 million in the first half of 2023[20]. - Sales revenue from Cambodia accounted for 95% of total sales, increasing from HKD 224.2 million in the first half of 2022 to HKD 316.95 million in the first half of 2023[21]. - Gross profit increased from approximately HKD 35.0 million in the first half of 2022 to approximately HKD 62.1 million in the first half of 2023, a growth of about 77.5%[26]. - Gross margin improved from 14.1% in the first half of 2022 to 18.6% in the first half of 2023, an increase of 4.5 percentage points[26]. - Net profit attributable to the company’s owners increased from approximately HKD 7.3 million in the first half of 2022 to approximately HKD 20.9 million in the first half of 2023, a growth of about 185.9%[38]. - Operating profit increased significantly to HKD 25,739,000, compared to HKD 8,704,000 in the previous year, marking a growth of 195%[86]. - Net profit for the period was HKD 20,410,000, a substantial increase of 229% from HKD 6,217,000 in 2022[86]. - Basic and diluted earnings per share for the company owners were HKD 5.1, up from HKD 1.8 in the previous year[86]. Operational Strategy - The company continues to focus on diversifying production risks, with approximately 90% of total production capacity located in Cambodia, which has become a preferred manufacturing base due to its labor cost advantages and stable political environment[10]. - The management believes that the competitive landscape for OEM manufacturers is based on various factors, including product quality, development, and pricing, which positions the company favorably against competitors[11]. - The company is adapting to changing consumer preferences, with a growing demand for sustainable and eco-friendly handbags, presenting strong growth opportunities in the market[15]. - The company recognizes the importance of both online and physical retail channels, as consumer spending on online platforms has increased significantly, while physical stores still play a crucial role in providing product interaction[15]. - The management remains cautious and responsive to market challenges, adjusting operational strategies as necessary to maintain business sustainability[10]. Market Conditions - The company acknowledges the ongoing trade disputes between China and the United States, which may impact market conditions and consumer confidence, particularly in the U.S. market that accounts for over 80% of total revenue[9]. - The company is aware of the potential impact of rising U.S. interest rates and inflation on consumer purchasing power and confidence, which could pose downside risks[9]. - The U.S. Generalized System of Preferences (GSP) program, which allows eligible goods from Cambodia to enter the U.S. duty-free, has not yet been reauthorized, but the company expects Cambodia to remain a key production base due to its competitive advantages[11]. Financial Position - As of September 30, 2023, the group had cash and cash equivalents of approximately HKD 147,500,000, an increase from HKD 103,000,000 as of March 31, 2023[42]. - The current ratio remained stable at 2.6 as of September 30, 2023, consistent with the previous period[42]. - The group employed a total of 4,244 employees as of September 30, 2023, up from 3,477 employees as of March 31, 2023[48]. - Employee costs, including directors' remuneration, were approximately HKD 82,500,000 for the first half of 2023, slightly up from HKD 82,000,000 in the same period of 2022[48]. - The group maintained a net cash position, reflecting a strong financial condition[45]. - Total assets as of September 30, 2023, amounted to HKD 412,378,000, an increase from HKD 382,377,000 as of March 31, 2023[90]. - Total liabilities increased to HKD 151,524,000 from HKD 137,820,000, which is an increase of 9.99%[93]. - The company reported a net profit of HKD 20,907,000 for the six months ended September 30, 2023, compared to a loss in the previous period, demonstrating a turnaround in performance[95]. - Cash and cash equivalents at the end of the period stood at HKD 147,528,000, up from HKD 131,315,000, an increase of 12.34%[96]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.02 per share for the first half of 2023, compared to HKD 0.01 per share in the first half of 2022[17]. - The board declared an interim dividend of HKD 0.02 per share and a special dividend of HKD 0.01 per share, totaling approximately HKD 12,259,000[56]. - The company has recognized a total of HKD 12,259,000 in dividends for the six months ended September 30, 2023, compared to HKD 4,086,000 in the same period of 2022, showing an increase of 200%[123]. - The total issued shares as of September 30, 2023, are 408,626,000 shares[64]. - Huaxin Holdings holds 301,138,000 shares, representing approximately 73.70% of the issued shares[67]. - Each of the five directors holds a 20% beneficial interest in Huaxin Holdings, which is a direct shareholder[66]. Inventory and Receivables - Inventory decreased to HKD 84,746,000 from HKD 128,585,000, indicating a reduction of approximately 34%[90]. - Trade receivables increased significantly to HKD 69,619,000 from HKD 36,393,000, reflecting an increase of 91%[90]. - The net trade receivables after impairment provisions stood at HKD 69,619,000 as of September 30, 2023, compared to HKD 36,393,000 as of March 31, 2023, reflecting an increase of 91.3%[137]. - The provision for impairment of trade receivables increased to HKD 5,413,000 as of September 30, 2023, from HKD 2,274,000 as of March 31, 2023, reflecting a rise of 138.5%[140]. Cost Management - The average selling price per unit decreased from HKD 80.8 in the first half of 2022 to HKD 74.1 in the first half of 2023[23]. - Selling and distribution expenses rose from approximately HKD 11.5 million in the first half of 2022 to approximately HKD 13.6 million in the first half of 2023, an increase of about 18.9%[31]. - The cost of goods sold for the six months ended September 30, 2023, was HKD 166,014,000, up from HKD 100,495,000 in 2022[119]. - The cost of inventory recognized as an expense in the income statement for the six months ended September 30, 2023, was HKD 166,014,000, up from HKD 100,495,000 for the same period in 2022, indicating a year-over-year increase of 65.2%[136]. Corporate Governance - All directors confirmed compliance with the standards set forth in the code of conduct for securities trading throughout the first half of 2023[73]. - The directors have agreed to consolidate their interests in Huaxin Holdings and the company, voting unanimously on resolutions at shareholder meetings[64]. - There have been no stock options granted under the stock option plan since its adoption on January 2, 2018[70]. - The company has not issued any stock options or experienced any stock option expirations, grants, exercises, or cancellations in the first half of 2023[70].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告 的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承 擔任何責任。 WAH SUN HANDBAGS INTERNATIONAL HOLDINGS LIMITED 華 新 手 袋 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2683） 截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月 之 中 期 業 績、 股 息 及 暫 停 辦 理 股 份 過 戶 登 記 手 續 華新手袋國際控股有限公司（「本公司」，連同其附屬公司，統稱「本集團」）董事 （「董事」）會（「董事會」）宣佈本集團截至二零二三年九月三十日止六個月（「二零 二三年上半年」）的未經審核簡明綜合中期業績以及截至二零二二 年九月三十 日止六個月（「二零二二年上半年」）的比較數字。 摘要 • 二零二三年上半年收益增加約35.1%至約334,500,000港元（二零二二年上半 年：約247,600,000港元）。 • 二 零 二 三 年 上 半 年 毛 利 ...

Financial Performance - The company's revenue for the fiscal year ended March 31, 2023, decreased by approximately HKD 171 million or 27.7% to about HKD 446.5 million compared to the previous year[18]. - Profit attributable to the company's owners dropped from approximately HKD 39.5 million to about HKD 8.5 million, a decrease of approximately HKD 31 million[18]. - The group's revenue decreased from approximately HKD 617.6 million in 2022 to about HKD 446.5 million in the current year, representing a decline of approximately 27.7%[31]. - Revenue from U.S. customers fell from approximately HKD 494 million to about HKD 347.3 million, a decrease of approximately HKD 146.7 million, primarily due to rising interest and inflation rates affecting purchasing power and consumer confidence[31]. - Gross profit decreased from approximately HKD 127.6 million in 2022 to about HKD 67.6 million in 2023, a decline of approximately 47.1%[38]. - Gross margin fell from approximately 20.7% in 2022 to about 15.1% in 2023, a decrease of about 5.6 percentage points[38]. - Net profit for the year dropped from approximately HKD 39.4 million in 2022 to about HKD 6 million in 2023, a decline of approximately 84.7%[47]. - The company maintained a cash and cash equivalents balance of approximately HKD 103 million as of March 31, 2023, down from HKD 116.5 million in 2022[53]. - The current ratio improved slightly from 2.5 in 2022 to 2.6 in 2023, indicating a stable liquidity position[53]. - The net debt to equity ratio remained at cash net position, reflecting a strong financial condition[56]. Market Conditions - Procurement orders from the United States decreased by approximately HKD 147 million or 30% due to a challenging macroeconomic environment[18]. - The company faces increased pricing competition from Southeast Asian competitors due to disruptions caused by COVID-19 in the previous year[14]. - The overall economic recovery in major global economies is expected to improve market sentiment, although risks remain due to rising U.S. interest and inflation rates[14]. - The U.S. Generalized System of Preferences (GSP) expired on December 31, 2020, impacting import duties on goods from Cambodia[17]. - The UK Development Country Trade Scheme will replace the current Generalized System of Preferences and will take effect in April 2023 for Cambodia, allowing for easier export of goods with mixed origins[75]. Production and Operations - The Cambodian production facilities account for about 90% of the company's total production capacity, enhancing efficiency and profitability[15]. - The company upgraded production facilities and optimized production processes to meet higher demands from existing and new customers[18]. - Sales revenue from products manufactured in Cambodia was HKD 408.996 million (91.6% of total sales), while sales from Dongguan, China, were HKD 37.522 million (8.4%) for the year ending March 31[32]. - Approximately 94% of total revenue for the year came from the group's five largest customers, with the largest single customer accounting for about 30% of total revenue[32]. Strategic Initiatives - The company emphasizes cost optimization as a key strategy to maintain substantial returns despite intensified competition[18]. - The group aims to strengthen its customer base by continuing to develop business with existing clients and seeking new customers to gain greater market share[32]. - The group plans to focus on market developments and opportunities, new revenue sources, and balanced growth to create sustainable returns for shareholders[29]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $100 million earmarked for potential deals[141]. - The company is investing in new technology development, allocating $50 million towards R&D initiatives[141]. Employee and Corporate Governance - The group employed a total of 3,477 employees as of March 31, 2023, down from 4,641 employees as of March 31, 2022[59]. - Employee costs, including director remuneration, were approximately HKD 137.1 million for the year, compared to HKD 158.5 million in the previous year[59]. - The board proposed a final dividend of zero HKD per share for the current year, down from 2.0 HKD cents per share in the previous year, and a special dividend of 1.0 HKD cent per share, also down from 2.0 HKD cents per share[65]. - The board of directors includes both executive and independent non-executive members, with specific terms for rotation and re-election every three years[179]. - All independent non-executive directors have confirmed their independence according to the listing rules, and the company believes they remain independent[184]. Future Outlook - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[141]. - New product launches are expected to contribute an additional $200 million in revenue over the next year[141]. - Operational efficiency improvements are anticipated to reduce costs by 5% in the upcoming year[141]. - The company aims to increase its market share by 3% through targeted marketing strategies[141]. Economic and Social Context in Cambodia - Cambodia's GDP growth rate from 2017 to 2021 ranged from -3.1% to 7.5%, with a compound annual growth rate of 3.52% during this period[97]. - The construction sector accounts for the largest share of foreign investment, followed by infrastructure, industry (mainly textiles), agriculture, and tourism[88]. - The rise in the middle class in Cambodia is expected to enhance consumer spending and market potential in the future[119]. - The Cambodian economy is projected to recover strongly in 2022 as the government lifts most COVID-19 restrictions, with GDP growth expected to resume[97]. - Despite corruption and rising wages, Cambodia's economy is projected to grow steadily, creating opportunities in the local market[128].