Financial Performance - For the fiscal year ending March 31, 2024, the company's revenue decreased significantly by 20.7% to approximately HKD 149.7 million compared to the previous year[15]. - The company reported a loss attributable to owners of HKD 17.6 million, compared to a loss of HKD 5.0 million in the same period last year[16]. - The increase in losses was primarily due to a decline in gross profit following reduced revenue, increased impairment losses on receivables, and higher depreciation and rent costs from relocating offices[16]. - The company faced significant losses due to the bankruptcy of a major customer at the end of 2023, marking a notable event in recent years[15]. - The group reported a net loss of approximately HKD 17,599,000 for the year ended March 31, 2024, with current liabilities exceeding current assets by about HKD 7,063,000[174]. - The company reported a pre-tax loss of HKD 17,402,000 in 2024, compared to a loss of HKD 4,947,000 in 2023, indicating a worsening financial performance[197]. - The company incurred a loss of HKD 17,599,000 during the year, contributing to a cumulative loss of HKD 31,183,000 by March 31, 2024[195]. - Basic and diluted loss per share was HKD 4.40, compared to HKD 1.24 in the previous year, reflecting a worsening financial position[190]. Revenue and Profitability - The group's revenue for the reporting period was approximately HKD 118.8 million, a decrease of about 20.7% compared to HKD 149.7 million in the same period last year[22]. - Gross profit decreased from approximately HKD 32.6 million to about HKD 27.2 million, representing a decline of approximately 16.5%[30]. - Revenue decreased to HKD 118.83 million from HKD 149.75 million year-on-year, while gross profit fell to HKD 27.23 million from HKD 32.61 million[54]. - Other income decreased by approximately 80.5% to about HKD 0.5 million, primarily due to the absence of government subsidies and a reduction in miscellaneous income[32]. Expenses and Costs - Administrative expenses increased by approximately 18.8% to about HKD 25.8 million, mainly due to depreciation of newly acquired properties, plants, and equipment[35]. - Financing costs rose from approximately HKD 0.3 million to about HKD 1.1 million, attributed to increased bank borrowings[37]. - Sales and distribution expenses decreased by about 1.2% to approximately HKD 9.9 million compared to HKD 10.0 million in the previous year[34]. - The company experienced a total comprehensive loss of HKD 17,523,000 for the year, compared to HKD 4,856,000 in the previous year[190]. Strategic Focus and Management - The management is focusing on stricter measures to monitor customer creditworthiness while exploring new business opportunities to compensate for the revenue decline[17]. - The company plans to invest more resources into its sales and marketing teams, expressing confidence in achieving optimistic results in 2024[17]. - The company aims to develop environmentally friendly products to align with sustainable market trends and continue building its own clothing brand[55]. - The management emphasizes the importance of innovation in product development to meet changing consumer demands[58]. Corporate Governance - The company is committed to maintaining high standards of business ethics and corporate governance, which are essential for effective management and business growth[67]. - The board of directors has adopted and complied with the GEM Listing Rules Appendix C1 corporate governance code, ensuring adherence to all provisions during the reporting period[68]. - The board consists of a diverse group of directors with extensive business experience, contributing to effective governance and oversight[72]. - The company has established policies and procedures to ensure compliance with legal and regulatory requirements, maintaining high levels of corporate governance[75]. Risk Factors - The group faces significant customer credit risk due to reliance on several major clients without long-term contracts, which could adversely impact business and financial performance[133]. - Intense competition from South Asian and Southeast Asian manufacturers poses a risk to profitability and financial performance if the group fails to compete effectively[133]. - The majority of suppliers are located in China, making the group vulnerable to any adverse changes in China's economic, political, or social conditions[133]. - The outbreak of COVID-19 may adversely affect the group's operations related to clients in the U.S., France, and Australia[133]. Employee and Diversity - The total employee cost for the reporting period was approximately HKD 20.8 million, down from HKD 21.4 million in the previous year, with a total of 43 full-time employees[52]. - As of March 31, 2024, the group employed 43 staff members, with 76.7% being female, reflecting a slight increase from 77.3% in the previous year[114]. - The board consists of five members, including two executive directors and three independent non-executive directors, with nearly 40% being female, meeting GEM listing rules for diversity[113]. Shareholder Information - The company does not recommend the payment of a final dividend for the reporting period[40]. - The company has established a dividend policy that considers financial conditions, capital levels, future cash needs, and market conditions when determining dividend payments[123]. - Shareholders can propose independent resolutions at the general meeting regarding significant issues, ensuring their rights are protected[115].
爱世纪集团(08507) - 2024 - 年度业绩