Financial Performance - Revenue decreased by 15.8% to HKD 1,692,403,000 (2022: HKD 2,008,967,000) [18] - Annual profit increased by 24.3% to HKD 49,565,000 (2022: HKD 39,884,000) [18] - Basic earnings per share were HKD 0.0744 (2022: HKD 0.0599) [18] - The group recorded consolidated revenue of HKD 1,692,403,000 for the fiscal year 2022/23, a decrease of 15.8% compared to HKD 2,008,967,000 in 2021/22 [22] - The group achieved a profit attributable to equity holders of HKD 49,565,000, an increase of 24.3% from HKD 39,884,000 in the previous year, but a decrease of 22.9% to HKD 30,733,000 when excluding government subsidies [22] Operating Activities - Net cash inflow from operating activities was HKD 211,497,000 (2022: HKD 307,108,000) [18] - Net cash inflow from operating activities was HKD 211,497,000, down 31.1% from HKD 307,108,000 in 2022 [38] Profitability and Margins - Gross profit margin increased by 4 percentage points to 38.0% (2022: 34.0%) [18] - The retail segment's gross profit was HKD 639,772,000, down 5.4% from HKD 676,619,000, with a gross margin improvement to 39.3% from 35.2% [24] Assets and Liabilities - Total assets amounted to HKD 917,091,000 (2022: HKD 919,516,000) [12] - Total liabilities decreased to HKD 383,548,000 (2022: HKD 419,863,000) [12] - Current ratio improved to 1.13 (2022: 0.98) [10] - Interest coverage ratio increased to 136 (2022: 33) [10] - Cash and cash equivalents as of April 30, 2023, amounted to HKD 107,462,000, up from HKD 100,171,000 in 2022, representing a 1.3% increase [33] - Total bank borrowings decreased by 80.9% to HKD 3,517,000 from HKD 18,386,000 in 2022 [33] - The debt-to-equity ratio improved to 0.01 from 0.04 in the previous year, indicating a stronger capital structure [33] Retail Segment Performance - Retail business segment revenue was HKD 1,628,415,000, down 15.3% from HKD 1,922,315,000 in the previous year, accounting for approximately 96.2% of total revenue [24] - The total inventory value for the retail business as of April 30, 2023, was HKD 127,399,000, an increase of 24.6% from HKD 102,212,000 the previous year [25] - The total number of retail stores decreased to 166 from 172, with 6 new openings and 12 closures during the year [28] Employee and Management - The company employed approximately 1,400 staff as of April 30, 2023, a decrease from 1,500 in 2022 [44] - The average monthly employee turnover rate for the reporting period was 4.6%, slightly up from 4.1% in 2022, representing an increase of approximately 0.5 percentage points [198] - The group employed a total of 837 employees in its retail business as of April 30, 2023, a decrease from 855 employees in 2022 [196] - The group has implemented guidelines for health and safety, including regular training to enhance employee safety awareness [199] Corporate Governance - The board consists of three executive directors and three independent non-executive directors, with independent directors making up half of the board [116] - The company has adopted the corporate governance code and has complied with its principles, with one exception regarding the separation of roles between the chairman and CEO [112] - The company has established a remuneration committee to oversee the compensation policies for directors and senior management, ensuring fairness and consistency [129] - The audit committee was established in September 1999 to oversee the financial reporting system and internal controls of the group [140] Sustainability and Environmental Initiatives - The company has been actively involved in sustainability initiatives since the establishment of 759 Ahsin House in 2010, focusing on providing quality and affordable essential goods [163] - The board has integrated environmental, social, and governance (ESG) issues into its regular meetings to monitor sustainability progress and stakeholder engagement [167] - The company recognizes the increasing risks and opportunities associated with climate change, including extreme weather impacts on operations and supply chain disruptions [168] - The company is committed to sustainable development and aims to incorporate sustainability initiatives into daily operations, fostering a culture of environmental and social responsibility among employees [163] Shareholder Communication - The company adopted a shareholder communication policy to ensure shareholders receive comprehensive and understandable information [154] - The company encourages shareholder participation in annual general meetings to facilitate communication with the board [154] - The board encourages shareholder feedback and allows shareholders to raise questions through the company secretary at any time [158] Risk Management - The company has established a risk management system that includes monitoring ESG-related risks and compliance measures [168] - The audit committee expressed satisfaction with PwC's independence, objectivity, qualifications, and audit procedures [143] - No significant issues were found in risk management and internal control during the year ended April 30, 2023 [146]
CEC INT'L HOLD(00759) - 2023 - 年度财报