创辉珠宝(08537) - 2024 - 年度业绩

Annual Results Highlights Key Financial Data For the fiscal year ended March 31, 2024, the Group turned loss into profit, recording a net profit of approximately HK$1.6 million, compared to a loss of HK$2.2 million in the prior year, with total revenue increasing by 4.0% to HK$142.3 million and gross profit margin improving from 23.5% to 27.5% Key Financial Data for FY2024 | Metric | FY2024 | FY2023 (Restated) | | :--- | :--- | :--- | | Revenue (HK$ million) | Approx. 142.3 | Approx. 136.8 | | Annual Profit/(Loss) (HK$ million) | Profit Approx. 1.6 | Loss Approx. 2.2 | | Gross Profit Margin | Approx. 27.5% | Approx. 23.5% | | Basic Earnings/(Loss) Per Share (HK cents) | Profit Approx. 2.12 | Loss Approx. 2.89 | Dividends The Board of Directors decided not to declare any final dividend for the fiscal year ended March 31, 2024, consistent with the previous fiscal year - The Board of Directors does not recommend the payment of any final dividend for the year ended March 31, 2024 (2023: Nil)[8][10][12] Management Discussion and Analysis Business Outlook Despite the uncertain macroeconomic environment, the Group successfully turned loss into profit this fiscal year, with future plans to expand its jewelry design series and retail network, and enhance social media marketing as the Hong Kong economy improves, aiming for shareholder returns and long-term growth - Despite the volatile market environment, the Group successfully turned loss into profit this year by leveraging its deep market understanding and efficient resource utilization[13][17] - Future strategies include expanding the jewelry design series, increasing retail outlets, and extending marketing efforts to social media[14][17] Business Review The Group is a vertically integrated jeweler headquartered in Hong Kong, selling its own products through 7 retail stores under the 'Chong Fai Jewellery' brand, with main products including gem-set and gold jewelry, alongside wholesale and recycled gold sales - The Group is a vertically integrated jeweler with 7 'Chong Fai Jewellery' retail stores in Hong Kong and production facilities in Shenzhen[19][22] - Core products include gem-set and gold jewelry, with business also encompassing wholesale to other retailers and sales of recycled gold products[20][23] Financial Review Total revenue for the fiscal year increased by 4.0% to HK$142.3 million, primarily driven by a 58.5% surge in recycled gold product trading revenue; despite a decline in jewelry retail revenue, rising gold prices boosted gross profit margins for gold-related businesses, leading to a 22.1% increase in overall gross profit and a margin improvement to 27.5%, while other income significantly decreased due to the absence of prior-year one-off government subsidies Revenue The Group's total revenue increased by 4.0% from HK$136.8 million to HK$142.3 million, primarily driven by a HK$12.7 million increase in recycled gold product trading revenue, partially offset by declines in gem-set jewelry (HK$5.1 million) and pure gold products (HK$2.1 million) sales Total Revenue Change | Fiscal Year | Revenue (HK$ million) | Year-on-Year Change | | :--- | :--- | :--- | | 2024 | 142.3 | +4.0% | | 2023 | 136.8 | - | Revenue by Products Sales of gem-set and gold jewelry products decreased by 8.5% and 3.9% respectively, due to reduced customer traffic in Hong Kong stores as local residents favored mainland consumption, while recycled gold product trading revenue surged by 58.5%, benefiting from global gold prices reaching historical highs in 2024 Revenue Change by Product Category (FY2024 vs FY2023) | Product Category | 2024 Revenue (HK$ million) | Year-on-Year Change | | :--- | :--- | :--- | | Gem-set Jewellery | 55.5 | -8.5% | | Gold Jewellery | 52.4 | -3.9% | | Recycled Gold Product Trading | 34.4 | +58.5% | Revenue by Business (sales channels) Retail business revenue decreased by 7.8% due to reduced customer traffic, while wholesale business revenue grew by 7.7%, and recycled gold product trading business surged by 58.5% driven by high gold prices Revenue Change by Business Channel (FY2024 vs FY2023) | Business Channel | 2024 Revenue (HK$ million) | Year-on-Year Change | | :--- | :--- | :--- | | Retail Business | 95.7 | -7.8% | | Wholesale Business | 12.2 | +7.7% | | Recycled Gold Product Trading | 34.4 | +58.5% | Cost of goods sold, Gross Profit and Gross Profit Margin Despite increased revenue, the cost of goods sold decreased by 1.6% to HK$103.1 million, primarily due to sustained rising gold prices allowing recycled gold and gold jewelry products to be sold at higher prices, thereby improving gross profit margins, leading to a 22.1% increase in overall gross profit to HK$39.2 million and a rise in gross profit margin from 23.5% to 27.5% - Gross profit increased by 22.1% year-on-year, reaching HK$39.2 million[36][39] - Gross profit margin rose from 23.5% in the previous year to 27.5%, primarily due to rising gold prices enhancing the profitability of gold-related products[36][39] Other Income, Gains, and Expenses Other income significantly decreased from HK$2.3 million to HK$0.7 million, mainly because approximately HK$1.5 million in government pandemic-related subsidies received in FY2023 were no longer available this fiscal year; other net loss was HK$0.5 million, primarily due to fair value losses on financial assets, while selling and distribution costs and general and administrative expenses remained largely stable - Other income decreased by HK$1.6 million, mainly because government subsidies from the 'Employment Support Scheme' (HK$1.2 million) and 'Technology Voucher Programme' (HK$0.3 million) received in the prior year were no longer available this year[37][40] - Other net loss of approximately HK$0.5 million was recorded, compared to a net gain of approximately HK$0.1 million last year, primarily due to net losses on financial assets at fair value through profit or loss[41][45] - Selling and distribution costs slightly increased by 1.0% to HK$20.4 million, while general and administrative expenses remained stable at HK$15.8 million[43][44][47][48] Liquidity and Financial Resources The Group's financial position is robust, with total assets of HK$118.1 million as of March 31, 2024, a debt-to-asset ratio decreasing from 41.1% to 32.1% primarily due to reduced bank borrowings and amounts due to controlling shareholders, and a liquidity ratio improving from 1.64 times to 1.88 times, with no significant contingent liabilities or capital commitments Financial Position and Ratios As of March 31, 2024, the Group's total assets were HK$118.1 million and total liabilities were HK$47.2 million, with total interest-bearing borrowings decreasing to HK$22.8 million, and the current ratio improving from 1.64 times to 1.88 times and the debt-to-asset ratio decreasing from 41.1% to 32.1%, indicating an improved financial structure Key Financial Ratios | Metric | March 31, 2024 | March 31, 2023 (Restated) | | :--- | :--- | :--- | | Total Assets (HK$ million) | 118.1 | 128.3 | | Total Interest-bearing Borrowings (HK$ million) | 22.8 | 28.9 | | Current Ratio (times) | 1.88 | 1.64 | | Debt-to-Asset Ratio | 32.1% | 41.1% | Treasury Policy and Others The Group adopts a prudent treasury policy, holding cash primarily in Hong Kong Dollars with major licensed banks in Hong Kong, and as of March 31, 2024, had no significant contingent liabilities, capital commitments (compared to HK$0.2 million in the prior year), or pledged assets - The Group adopts a prudent financial management approach, with centralized treasury activities and cash primarily held in Hong Kong Dollars with major licensed banks in Hong Kong[58][62] - As of March 31, 2024, the Group had no significant contingent liabilities, capital commitments, or pledged assets[59][60][61] Corporate Governance and Compliance Corporate Governance Practice The Group is committed to maintaining high corporate governance standards, complying with all GEM Listing Rules' Corporate Governance Code provisions during the reporting period, except for the Chairman and Chief Executive Officer roles being held by the same person (Mr. Fu Chun Keung), an arrangement the Board believes is in the Group's best interest - The Group has adopted and complied with the Corporate Governance Code under the GEM Listing Rules, with one deviation: the roles of Chairman and Chief Executive Officer are not separated[67][69] - Mr. Fu Chun Keung, the Group's founder, serves as both Chairman and Chief Executive Officer, an arrangement the Board believes is beneficial for the Group's management given his extensive experience and critical role[68][69] Directors' Securities Transactions and Share Repurchase During the reporting period, all directors confirmed compliance with the company's adopted standards for securities transactions, and neither the company nor any of its subsidiaries purchased, sold, or redeemed any company shares - All directors complied with the required standards for securities transactions during the reporting period[71][76] - For the year ended March 31, 2024, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares[72][77] Event After the Reporting Period On May 28, 2024, the company implemented a share consolidation, merging every 10 issued and unissued shares of HK$0.01 par value into 1 consolidated share of HK$0.1 par value, a resolution approved at the Extraordinary General Meeting on May 24, 2024 - The company completed a share consolidation on May 28, 2024, at a ratio of 10-to-1[75][79] Audit Committee and Auditor's Scope of Work The company has established an Audit Committee comprising three independent non-executive directors, and the financial data in this results announcement has been audited by the Group's external auditor, Grant Thornton Hong Kong Limited, and reviewed by the Audit Committee - The Audit Committee, comprising three independent non-executive directors, has reviewed the audited financial information for the current year[73][74][78] - The company's auditor, Grant Thornton Hong Kong Limited, has reconciled the figures in this preliminary results announcement with the Group's audited consolidated financial statements[83][87] Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended March 31, 2024, the Group achieved revenue of HK$142.3 million, a 4.0% year-on-year increase, with gross profit of HK$39.2 million, up 22.1%, ultimately recording an annual profit of HK$1.592 million, successfully reversing the previous year's loss of HK$2.17 million Consolidated Statement of Profit or Loss Summary (HK$'000) | Item | 2024 (HK$'000) | 2023 (Restated) (HK$'000) | | :--- | :--- | :--- | | Revenue | 142,274 | 136,822 | | Gross profit | 39,183 | 32,104 | | Profit/(Loss) before tax | 1,852 | (2,911) | | Profit/(Loss) for the year | 1,592 | (2,170) | | Total comprehensive income/(expense) | 728 | (2,694) | Consolidated Statement of Financial Position As of March 31, 2024, the Group's total assets were HK$118.1 million, a decrease from the prior year, while net current assets increased from HK$33.8 million to HK$38.0 million, and total equity slightly increased to HK$70.9 million, maintaining a stable financial position Consolidated Statement of Financial Position Summary (HK$'000) | Item | March 31, 2024 (HK$'000) | March 31, 2023 (Restated) (HK$'000) | | :--- | :--- | :--- | | Non-current assets | 37,084 | 41,407 | | Current assets | 81,044 | 86,909 | | Total assets | 118,128 | 128,316 | | Current liabilities | 43,076 | 53,152 | | Non-current liabilities | 4,128 | 4,968 | | Total liabilities | 47,204 | 58,120 | | Net assets | 70,924 | 70,196 | | Total equity | 70,924 | 70,196 | Notes to the Consolidated Financial Statements The notes to the financial statements provide supplementary information on key accounting policies, data breakdowns, and significant events, notably the Group's change in accounting policy for long service payment liabilities and retrospective restatement of 2023 comparative data due to the abolition of the MPF-LSP offsetting mechanism in Hong Kong, along with detailed disclosures on revenue composition, aging analysis of receivables and payables, and the post-reporting period share consolidation event 2. Adoption of New and Amended Hong Kong Financial Reporting Standards In response to the abolition of the MPF-LSP offsetting mechanism in Hong Kong, the Group changed its accounting policy for long service payment liabilities in accordance with new HKICPA guidance, applying this change retrospectively and restating 2023 comparative data, affecting various items including selling and distribution costs, administrative expenses, income tax credit, and retained profits - Due to the abolition of the MPF-LSP offsetting mechanism in Hong Kong, the Group changed its relevant accounting policies and retrospectively restated the financial data for FY2023[109][111][115] - The accounting policy change resulted in an increase in the restated loss for the year in FY2023 from HK$1.891 million to HK$2.170 million, and total comprehensive expense from HK$2.529 million to HK$2.694 million[121][122] 3. Revenue and Segment Information The Group treats all operating activities as a single operating segment, with all external customer revenue generated from Hong Kong; by business, jewelry business (retail and wholesale) revenue was HK$107.9 million, and recycled gold product trading revenue was HK$34.4 million Revenue Breakdown by Business (HK$'000) | Business Category | 2024 (HK$'000) | 2023 (HK$'000) | | :--- | :--- | :--- | | Jewellery business | 107,850 | 115,107 | | Recycled gold product trading | 34,424 | 21,715 | | Total | 142,274 | 136,822 | - All of the Group's external customer revenue is generated in Hong Kong[143] 8. Earnings/(Loss) Per Share Basic earnings per share for FY2024 was 2.12 HK cents, calculated considering the 10-to-1 share consolidation implemented in May 2024, with retrospective adjustment to the prior year's loss per share of 2.89 HK cents; diluted earnings per share is the same as basic earnings per share due to the absence of potential dilutive ordinary shares - Basic earnings per share was 2.12 HK cents, compared to a restated basic loss per share of 2.89 HK cents in the prior year[95][159] - The calculation of earnings per share has been retrospectively adjusted to reflect the share consolidation in May 2024[159][160] 10. Dividends The company neither paid nor declared any dividends for the fiscal years ended March 31, 2024, and 2023, nor has it proposed any dividends since the end of the reporting period - For the year ended March 31, 2024, the company neither paid nor declared any dividends[162][164] 11. Trade and Other Receivables & 12. Trade and Other Payables As of March 31, 2024, net trade receivables were HK$1.847 million, with 92% neither past due nor impaired; trade payables were HK$2.160 million, mostly with credit terms within 90 days, though five major suppliers had credit terms up to one year - Net trade receivables amounted to HK$1.847 million, with HK$0.157 million being overdue for more than 90 days[166][168] - Trade payables totaled HK$2.160 million, of which HK$1.708 million were overdue for more than 90 days[181][183]