Financial Performance - For the fiscal year ending March 31, 2024, the company reported total revenue of HKD 45,718,000, a decrease of 25.3% compared to HKD 61,225,000 in the previous year[10]. - The cost of sales for the same period was HKD 32,600,000, resulting in a gross profit of HKD 13,118,000, which is a decline of 29.5% from HKD 18,609,000 in the prior year[10]. - Operating loss for the year was HKD 7,774,000, compared to an operating profit of HKD 3,394,000 in the fiscal year 2022[10]. - The company recorded a net loss of HKD 7,759,000 for the year, which is an increase in loss from HKD 6,593,000 in the previous year[10]. - Gross profit for the fiscal year was approximately HKD 13.1 million, down about 30.2% from HKD 18.6 million in the previous fiscal year, with a gross margin decline from approximately 30.4% to 28.7%[23]. - The company recorded a loss attributable to shareholders of approximately HKD 7.8 million for the fiscal year, compared to a loss of HKD 6.6 million in the previous fiscal year[30]. - Revenue from home goods exports decreased from approximately HKD 53.2 million in the fiscal year 2023 to about HKD 40.9 million, a decline of approximately 23.1%[19]. - E-commerce revenue fell to approximately HKD 3.1 million, down about 35.3% from HKD 4.7 million in the previous fiscal year[20]. - Revenue from self-branded products decreased to approximately HKD 1.8 million, a decline of about 46.3% from HKD 3.3 million in the previous fiscal year[15]. Assets and Liabilities - Total assets as of March 31, 2024, were approximately HKD 26,744 thousand, down from HKD 36,250 thousand in the previous year[11]. - Total liabilities decreased to approximately HKD 5,243 thousand from HKD 7,161 thousand in the previous year[11]. - As of March 31, 2024, the group's cash and bank balance was approximately HKD 13.7 million, down from HKD 26.0 million as of March 31, 2023[31]. - The total assets of the group as of March 31, 2024, were approximately HKD 26.7 million, compared to HKD 36.3 million as of March 31, 2023[32]. - The group's debt, including lease liabilities, was approximately HKD 0.4 million as of March 31, 2024, down from HKD 1.1 million as of March 31, 2023[31]. - The debt-to-equity ratio as of March 31, 2024, was approximately 1.9%, a decrease of about 1.8% from 3.7% as of March 31, 2023[31]. Operational Strategy - The company plans to focus on market expansion and new product development in the upcoming fiscal year[9]. - The company aims to enhance its operational efficiency to improve profitability moving forward[9]. - The company plans to focus on core strengths in quality products and continue cost control measures to diversify its sales network and customer base[16]. - The board remains cautiously optimistic about the business outlook for the coming year, anticipating that major customers will begin placing orders after resolving inventory surplus issues[16]. - The company is actively involved in product development and market expansion strategies[50]. - The company aims to expand its existing customer base and market share, with a focus on entering new markets[159]. Corporate Governance - The company has a strong emphasis on risk management, with a dedicated committee led by an experienced director[50]. - The management team includes members with advanced degrees in business administration and finance, enhancing their strategic decision-making capabilities[51][59]. - The company is committed to maintaining high standards of corporate governance and investor relations[55]. - The company appointed Mr. Hong Weihao as the Chief Financial Officer in December 2023, with over 20 years of experience in accounting, finance, and auditing[63]. - The board consists of three independent non-executive directors, exceeding the GEM listing rules requirement that at least one-third of the board must be independent[77]. - The company has adopted the corporate governance code as per GEM listing rules and has complied with all applicable code provisions throughout the year[67]. - The company emphasizes accountability through effective management structure and internal control procedures[66]. - The board is responsible for overseeing the business affairs and overall performance management of the group, ensuring necessary financial and human resources support[69]. - The company has established a set of conduct rules for directors regarding securities trading, ensuring compliance with GEM listing rules[68]. - The independent non-executive directors contribute extensive business and financial expertise to the board, enhancing independent judgment[76]. - The company has taken appropriate insurance against potential legal claims faced by directors[78]. - The company has a balanced composition of executive and independent non-executive directors to maintain high independence[72]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their compliance with independence guidelines[77]. - The board is committed to appointing at least three independent non-executive directors, ensuring that at least one-third of the board members are independent non-executive directors[80]. - The nomination committee will strictly adhere to the independence assessment criteria as per the GEM listing rules, evaluating the independence of all independent non-executive directors annually[81]. - All directors have the right to request further information from management regarding matters discussed in board meetings, and may seek independent advice when necessary[82]. - The board has conducted an annual review of the mechanisms in place to ensure independence and has deemed them to be effectively implemented[83]. - New appointees receive comprehensive onboarding to understand the company's operations and their responsibilities under relevant regulations[84]. - The company provides ongoing training for all directors to enhance their knowledge and understanding of their roles, with costs covered by the company[85]. - The board held four regular meetings this year, with all directors participating in discussions on strategy, operations, and financial performance[86]. - The board diversity policy aims to maintain a balanced mix of skills and experiences, with a commitment to having at least one female board member[89]. - The board will continue to seek opportunities to increase the number of female members in future appointments[90]. - The board consists of two female members, achieving gender diversity as per the company's diversity policy[94]. Shareholder Engagement - The company has adopted a shareholder communication policy to enhance engagement with shareholders, including electronic communication for financial reports and notices[142]. - The company encourages shareholders to participate in annual general meetings and allows for proxy representation if they cannot attend[145]. - The company will issue financial reports and corporate communications electronically, with printed copies available upon request[143]. - The company will hold a general meeting within two months of receiving a valid request from shareholders holding at least 10% of the voting rights[137]. - The company will ensure that any inquiries from shareholders are forwarded to the appropriate board members or management for response[140]. Dividend Policy - The board decided not to recommend any final dividend for the year, consistent with the previous year[46]. - The company has adopted a dividend policy, last updated on August 31, 2022, which allows for dividend distribution based on profitability and operational needs[97]. - The board will consider various factors, including operational performance and future development, before declaring dividends[98]. Risk Management - The company acknowledges various risks and uncertainties, including competition from existing and new competitors in the home goods industry, changes in consumer preferences, and potential changes in trade policies and laws in Europe and other relevant jurisdictions[153]. - The company emphasizes the importance of monitoring risks and taking appropriate actions to mitigate impacts on operations[153]. - The board acknowledges its responsibility for maintaining effective risk management and internal controls to protect shareholder investments[127]. - An external independent consultant was appointed to review the effectiveness and adequacy of the internal control system during the year[127]. - The board conducted an annual review of the risk management and internal control systems, identifying no significant risks[127]. - The company does not currently have an internal audit function, considering its business scale and complexity[128]. Employee Information - The group employed a total of 33 full-time employees as of March 31, 2024, down from 36 as of March 31, 2023[37]. - The total employee benefit expenses for the year were approximately HKD 9.1 million, compared to HKD 9.3 million for the previous year[37]. - The company has established anti-discrimination and equal opportunity policies to ensure fair employment practices[95]. - As of March 31, 2024, the company has 33 employees, with a gender composition of approximately 45.5% male and 54.5% female[95]. Share Structure and Transactions - The company reported a significant ownership structure, with Mr. She holding 611,250,000 shares, representing 61.125% of the total shares[177]. - Ms. Chen holds 86,250,000 shares, accounting for 8.625% of the total shares[177]. - The company has no other individuals or entities holding significant interests in shares or related securities as of March 31, 2024, apart from those disclosed[181]. - There were no significant transactions or arrangements involving directors or major shareholders that could impact the company's business relationships[173]. Lease Agreement - The company entered into a lease agreement for a property in Shenzhen, China, with a total area of 1,060 square meters[200]. - The monthly rent for the leased property is RMB 124,338 (approximately HKD 137,000), which includes applicable land use fees, property tax, management fees, public facility fees, cleaning fees, and central air conditioning fees[200]. - The lease agreement is effective from April 1, 2023, to March 31, 2024, for a duration of 12 months[200].
舍图控股(08392) - 2024 - 年度业绩