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长江制衣(00294) - 2024 - 年度财报
00294YANGTZEKIANG(00294)2024-07-31 08:49

Financial Performance - The Group's revenue for the year 2023/24 was HK234,302,000,adecreaseof36234,302,000, a decrease of 36% from HK365,761,000 in 2022/23[7][16][18]. - The overall loss for the Group was HK48,172,000,comparedtoalossofHK48,172,000, compared to a loss of HK23,249,000 in the previous year, representing a 107% increase in losses[7][19]. - Operating profit decreased by 97% to HK653,000fromHK653,000 from HK18,738,000 in the prior year, primarily due to reduced sales orders and losses from the Bangladesh factory[16][18]. - Gross profit fell by 38% to HK44,453,000,withagrossprofitmarginof1944,453,000, with a gross profit margin of 19%, down from 20%[16]. - The core garment business experienced a 36% decline in sales, totaling HK234,302,000 for the fiscal year 2022/23, down from HK365,761,000inthepreviousyear[23].−ThegrouprecordedanoveralllossofHK365,761,000 in the previous year[23]. - The group recorded an overall loss of HK48,172,000 for the fiscal year 2022/23, compared to a loss of HK23,249,000inthepreviousyear[23].CashFlowandAssets−ThecashandbankbalanceswereHK23,249,000 in the previous year[23]. Cash Flow and Assets - The cash and bank balances were HK304,504,000, a slight decrease of 1% from HK306,173,000[16].−Totalassetsdecreasedby8306,173,000[16]. - Total assets decreased by 8% to HK1,094,459,000, while total liabilities decreased by 16% to HK71,271,000[16].−Thereturnontotalassetswas−4.471,271,000[16]. - The return on total assets was -4.4%, a decline of 2.5 percentage points from -1.9%[16]. - The current ratio improved by 9% to 7.3 times, up from 6.7 times[16]. - The group did not have any short-term or long-term borrowings as of March 31, 2024, and 2023[27]. - As of March 31, 2024, the group's cash and cash equivalents and bank deposits amounted to approximately HK304,504,000, slightly down from HK306,173,000in2023[27].MarketConditionsandChallenges−Thegarmentmanufacturingbusinessisexpectedtofacefurtherchallengesduetounstableglobalpoliticalandeconomicconditions[9][13].−ThefactoryinChina,operatingunderExquisiteKnitters(Guangzhou)Limited,facedunfavorableresultsduetoadropingarmentordersandlabordismissalcompensation,leadingtoapessimisticoutlookforthecomingyear[22].−Themanagementispessimisticabouttheresultsforthenextfinancialyearduetoongoingadversefactorsaffectingprofitability,includingweakmarketconditionsandrisingcosts[26].CorporateGovernance−ThecompanyhascompliedwiththeCorporateGovernanceCodethroughoutthefinancialyearendedMarch31,2024[142].−Theboardofdirectorsconsistsofsixexecutivedirectorsandthreeindependentnon−executivedirectorsasofMarch31,2024[144].−TheCompanyhasestablishedmechanismstoensureindependentviewsandinputsareavailabletotheboard[145].−TheCompanycomplieswiththecorporategovernancecodeprovisions,ensuringabalanceddistributionofpowerandauthoritywithintheBoard[156].−TheAuditCommitteereviewedanddiscussedtheinterimandannualresultstoensuretheGroup′sfinancialstatementswerepreparedinaccordancewithaccountingprinciplesgenerallyacceptedinHongKong[169].EmployeeandDiversityPolicies−AsofMarch31,2024,theGrouphadatotalworkforceof277employees,with28306,173,000 in 2023[27]. Market Conditions and Challenges - The garment manufacturing business is expected to face further challenges due to unstable global political and economic conditions[9][13]. - The factory in China, operating under Exquisite Knitters (Guangzhou) Limited, faced unfavorable results due to a drop in garment orders and labor dismissal compensation, leading to a pessimistic outlook for the coming year[22]. - The management is pessimistic about the results for the next financial year due to ongoing adverse factors affecting profitability, including weak market conditions and rising costs[26]. Corporate Governance - The company has complied with the Corporate Governance Code throughout the financial year ended March 31, 2024[142]. - The board of directors consists of six executive directors and three independent non-executive directors as of March 31, 2024[144]. - The Company has established mechanisms to ensure independent views and inputs are available to the board[145]. - The Company complies with the corporate governance code provisions, ensuring a balanced distribution of power and authority within the Board[156]. - The Audit Committee reviewed and discussed the interim and annual results to ensure the Group's financial statements were prepared in accordance with accounting principles generally accepted in Hong Kong[169]. Employee and Diversity Policies - As of March 31, 2024, the Group had a total workforce of 277 employees, with 28% (77) being male and 72% (200) being female[186]. - The Board comprises nine Directors, including two females and three independent non-executive directors, promoting critical review and control of the management process[184]. - The Company aims to have at least two directors of opposite gender and will increase the ratio of female members over time when selecting candidates for Board appointments[183]. - The Nomination Committee conducted an annual review of the implementation and effectiveness of the Board Diversity Policy and is satisfied with its proper implementation[185]. - The Company recognizes the benefits of a diverse workforce and will continue to enhance diversity subject to the availability of suitable candidates[187]. Social Responsibility - The group is committed to upholding high environmental standards and did not identify any material non-compliance related to product safety or environmental performance[37][38]. - The group actively supports charitable organizations and encourages staff participation in various charitable activities, demonstrating its corporate social responsibility[40]. - Charitable donations made by the Group during the year increased to HK12,000 from HK10,000in2023[86].ShareholderInformation−ThefinaldividendrecommendedbytheBoardisHK2centsperordinaryshare,totalingHK10,000 in 2023[86]. Shareholder Information - The final dividend recommended by the Board is HK2 cents per ordinary share, totaling HK4,135,000, consistent with the previous year[84]. - The reserves available for distribution to equity shareholders as of March 31, 2024, amount to HK248,502,000,adecreasefromHK248,502,000, a decrease from HK261,208,000 in 2023[85]. - The largest customer accounted for 15% of the Group's total sales, while the five largest customers collectively represented 51% of total sales, up from 43% in 2023[95]. - The largest supplier accounted for 17% of total purchases, with the five largest suppliers together making up 40% of total purchases, an increase from 37% in 2023[95].