Business Operations - As of March 31, 2022, the company operated 383 convenience stores in Vietnam, covering 8 major cities[15]. - The convenience store business experienced a strong rebound in sales revenue in the first two months of the current fiscal year, following a period of underperformance during the pandemic[14]. - The overall business environment in Vietnam is gradually returning to normal, which is expected to improve the financial performance of the convenience store business in the current and future periods[14]. - The company’s convenience store operations were granted special authorization by the Vietnamese government to continue operating during lockdowns, providing essential goods to the community[12]. - The convenience store business is expected to enter a strong recovery phase, with sales revenue showing a strong rebound in the first two months of the following fiscal year[33]. - The company is expanding its operations in Vietnam, where Circle K is a market leader in convenience stores in terms of store count and brand recognition[79]. Financial Performance - The company recorded total revenue of HKD 1,774,233,000 for the year ending March 31, 2022, compared to HKD 1,614,360,000 in the previous year, reflecting a slight decline in core business revenue due to global market uncertainties[31]. - The company's net profit attributable to shareholders decreased to HKD 18,697,000 for the year ending March 31, 2022, down from HKD 40,212,000 in the previous year, primarily due to unrealized losses on financial assets and impairment losses in the convenience store business[32]. - The convenience store business recorded a net loss of HKD 104,700,000 for the year, an improvement from a loss of HKD 121,760,000 in the previous year, aided by innovative marketing strategies and operational efficiency improvements[33]. - The rice business recorded a pre-tax profit of HKD 126,350,000 for the fiscal year ending March 31, 2022, compared to HKD 132,210,000 in the previous year, reflecting a decrease of approximately 4.5%[36]. - The bad debt amount for the rice business was HKD 27,000, maintaining a low bad debt rate despite economic downturns[36]. - The company proposed a final dividend of HKD 0.012 per share, maintaining the same level as the previous year, resulting in a total dividend of HKD 0.024 per share for the year[21]. Market Strategy and Innovation - The company strategically expanded its premium rice brand, Jinxiang, into the mainland China market, receiving positive feedback and demonstrating strong growth potential[16]. - The company continues to develop its product range, recently launching a new product, "Golden Elephant Microwave Home-style Rice," in collaboration with a well-known food manufacturer[31]. - The company has strengthened its distribution network and marketing strategies to adapt to the unprecedented changes in the retail environment caused by the pandemic[12]. - The company reported that the Hong Kong rice market is highly competitive, prompting a focus on innovative product offerings[16]. - The group is focused on market expansion and product innovation, successfully launching new products in the mainland China market[36]. Corporate Governance - The company is committed to continuous improvement in its corporate governance and compliance with listing rules, ensuring the independence of its non-executive directors[76]. - The company has established appropriate directors' and officers' liability insurance to protect its board members from potential liabilities arising from their roles[79]. - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[117]. - The company has adopted all applicable code provisions from the corporate governance code as part of its governance practices[116]. - The board has three committees: the remuneration committee, audit committee, and nomination committee, each with defined responsibilities approved by the board[125]. Environmental, Social, and Governance (ESG) Practices - The company emphasizes the importance of strong environmental, social, and governance (ESG) practices for sustainable development in its operations[164]. - The company is committed to enhancing financial performance while actively implementing policies for environmental protection and social responsibility[164]. - The ESG report is prepared according to guidelines that emphasize importance, quantification, consistency, and balance[165]. - The company aims to reduce electricity consumption density by 5% and greenhouse gas emissions density by 5% by 2030, with a 10% reduction target for water usage density[180]. - The company has launched Hong Kong's first eco-friendly biodegradable plastic rice bag to contribute to reducing plastic pollution[185]. Risk Management and Economic Outlook - The company continues to monitor risks related to geopolitical tensions, inflation, and potential Federal Reserve policy missteps[55]. - The management believes that the COVID-19 pandemic will soon be better controlled, paving the way for a steady recovery of the global economy[40]. - The company is optimistic about the recovery of the global economy as COVID-19 vaccination programs progress, although it remains cautious about potential challenges from new variants and geopolitical threats[31]. Shareholder Information - Major shareholders include Yuen Loong International Limited holding 32.28% and Chelsey Developments Ltd. holding 14.86% of the company's issued share capital[109]. - The company reported a total of 38,532,000 shares held by director Lin Kuang-Chi, representing approximately 2.27% of the issued share capital[89]. - The company has no preferential rights for existing shareholders regarding the issuance of new shares[100].
金源发展国际实业(00677) - 2022 - 年度财报