Company Performance - TREE Holdings Limited reported a strong performance with a focus on lifestyle furniture and home furnishings, establishing itself as a leading company in Hong Kong after eighteen years of operation[11]. - Despite market challenges, TREE Holdings is optimistic about continued economic recovery and aims to leverage growth opportunities to enhance its competitive advantage[14]. - The company will continue to invest in new product development and market expansion strategies to drive future growth[14]. - For FY2023, the total revenue of Tree Holdings Limited was approximately HK$78.2 million, a decrease of approximately HK$17.7 million compared to the previous year[26]. - The Group recorded a loss attributable to equity holders of approximately HK$11.1 million, following a negative impairment of goodwill of approximately HK$14.7 million from the acquisition of Italiving in 2018[26]. - The Group recorded a loss of approximately HK$11.1 million for FY2023, compared to a profit of approximately HK$5.2 million for FY2022[50]. - Revenue decreased to approximately HK$78.2 million for FY2023 from approximately HK$93.0 million for FY2022, representing a decrease of approximately 15.9% due to lower sales of furniture and home accessories[43]. - The total revenue from furniture and home accessories was HK$69.4 million, down from HK$80.9 million in the previous fiscal year[37]. Financial Reporting and Transparency - TREE Holdings is committed to maintaining accurate and complete financial reporting, as confirmed by its directors[3]. - The company’s financial summary and consolidated statements will be available for shareholders, reflecting its commitment to transparency[6]. - The Company does not recommend the payment of any final dividend for FY2023, consistent with FY2022[26]. - The Group's income tax expense decreased from approximately HK$1.8 million in FY2022 to approximately HK$0.9 million in FY2023, primarily due to a reduction in pre-tax losses[98]. - The Company has adopted a code of conduct for securities transactions by Directors, with full compliance reported for FY2023[131]. - The Board is responsible for approving consolidated financial statements and other disclosures required under GEM Listing Rules[136]. Market Environment and Challenges - The economic environment remains challenging post-COVID-19, with increased competition in the retail market due to aggressive discounting by retailers[14]. - The economic environment remains challenging as the market continues to recover from the COVID-19 pandemic[26]. - Future prospects indicate a challenging financial year ahead due to competitive retail market conditions and weak consumer confidence in Hong Kong[18]. Sales and Revenue Breakdown - Direct sales in Hong Kong generated revenue of HK$64.6 million, accounting for 93.1% of total revenue from furniture and home accessories[37]. - Online sales and non-retail sales contributed HK$3.6 million, representing 5.2% of total revenue from furniture and home accessories[37]. - Distribution sales via Shanghai Italiving amounted to HK$1.2 million, accounting for 1.7% of total revenue[37]. - Direct sales revenue for FY2023 was approximately HK$68.2 million, down 7.9% from HK$74.1 million in FY2022[65]. - The company did not generate any revenue from Shanghai Italiving for luxury Italian furniture sales in FY2023, compared to approximately HK$5.5 million in FY2022[65]. - Food and beverage income from TREE Café was approximately HK$3.4 million in FY2023, down from HK$3.8 million in FY2022[65]. Operational and Financial Risks - The Group faces operational risks, including competition in a fragmented market and dependency on customer preferences[81]. - The risk of not entering into long-term contracts with major suppliers exposes the Group to price fluctuations and supply shortages[81]. - The Group is also exposed to financial risks, including credit risk, liquidity risk, and interest rate risk[81]. Corporate Governance - TREE Limited's management emphasizes the importance of good corporate governance to maintain shareholder trust and long-term value creation[131]. - The Company has complied with the Corporate Governance Code during FY2023, except for one provision[131]. - The Board of Directors includes a balanced composition of Executive and Independent Non-Executive Directors to ensure independent judgment[133]. - The Company has established various Board committees to oversee business affairs and performance[133]. - The Company has taken out directors and officers liability insurance to cover liabilities arising from legal actions against the Directors[170]. Future Plans and Strategies - The Group plans to continue focusing on its two TREE retail stores and e-commerce platform in Hong Kong while expanding into furniture rental services[18]. - The company is considering potential acquisitions to bolster its portfolio, with a focus on companies that align with its strategic goals[124]. - The company is investing in R&D, allocating $X million towards the development of new technologies aimed at enhancing user experience[124]. - Market expansion efforts include strategic partnerships with D companies, expected to increase market share by E%[124]. - The Group aims to consolidate and invest to enhance existing revenue streams while identifying new opportunities[18]. Employee and Management Information - Total employees as of March 31, 2023, stood at 72, with remuneration policies based on performance and market conditions[18]. - The management team has extensive experience, with Ms. Or Wai Yan having over 17 years in merchandising and Ms. Lai Kei Yue over 10 years in digital marketing[125][126]. - The roles of Chairman and Chief Executive are currently held by Mr. Tong Tang Joseph, who delegates operational responsibilities to other Executive Directors[172]. Board Activities and Meetings - The Group held four Board meetings and one annual general meeting during FY2023, with all directors attending all Board meetings[138]. - The Audit Committee held four meetings during FY2023 to review the Company's consolidated financial results and internal control systems[179]. - The Board consists of seven members, including three independent non-executive directors and one female member, achieving the target of at least 20% executive directors[174].
齐家控股(08395) - 2023 - 年度业绩