万保刚集团(01213) - 2024 - 年度业绩

Performance Summary Consolidated Statement of Profit or Loss For the year ended March 31, 2024, the Group's total revenue decreased by 17.0% to HKD 341 million, leading to a significant narrowing of profit for the year and an expanded loss attributable to owners of the company Consolidated Statement of Profit or Loss Summary (HKD thousands) | Indicator | 2024 | 2023 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 340,579 | 410,421 | -17.0% | | Gross Profit | 89,491 | 106,083 | -15.6% | | Operating Profit | 10,264 | 13,557 | -24.3% | | Profit Before Income Tax | 6,394 | 9,230 | -30.7% | | Profit for the Year | 1,751 | 5,269 | -66.8% | | Loss Attributable to Owners of the Company | (4,891) | (378) | +1194% | | Basic Loss Per Share (HK cents) | (2.45) | (0.19) | +1189% | Consolidated Statement of Comprehensive Income During the year, net other comprehensive expenses of HKD 5.78 million, primarily due to currency translation losses, led to total comprehensive expenses of HKD 4.03 million, with HKD 8.50 million attributable to owners of the company Consolidated Statement of Comprehensive Income/Expenses Summary (HKD thousands) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Profit for the Year | 1,751 | 5,269 | | Other Comprehensive Expenses (net of tax) | (5,777) | (18,764) | | Total Comprehensive Expenses | (4,026) | (13,495) | | Total Comprehensive (Expenses) Attributable to Owners of the Company | (8,502) | (11,752) | Consolidated Statement of Financial Position As of March 31, 2024, the Group's total assets decreased by 14.4% to HKD 274 million, with total liabilities reducing to HKD 107 million and net assets slightly declining to HKD 167 million Consolidated Statement of Financial Position Summary (HKD thousands) | Indicator | 2024 | 2023 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Assets | 273,883 | 320,093 | -14.4% | | Total Liabilities | 107,235 | 147,419 | -27.3% | | Net Assets | 166,648 | 172,674 | -3.5% | | Net Current Assets | 114,643 | 117,653 | -2.6% | | Cash and Bank Balances | 23,658 | 30,434 | -22.3% | Notes to the Consolidated Financial Statements Basis of Preparation and Accounting Policies These consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with the application of new and revised standards and accounting policy changes having no material impact on the Group's financial position or performance - Financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with new and revised standards effective this year having been applied[11][12] - The application of new accounting standards and the change in accounting policy regarding the abolition of the MPF offsetting mechanism did not have a significant impact on the Group's financial position[15][17] Revenue and Segment Information The Group's revenue, primarily from electronic components, computer products, and cosmetics, saw declines across all segments and key geographical markets, with electronic components' 18.1% decrease being the main contributor to the overall revenue reduction Revenue by Business Segment (HKD thousands) | Business Segment | 2024 | 2023 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Sales of electronic components, electrical components and instruments | 223,141 | 272,644 | -18.1% | | Sales of computer products, mobile phone accessories and service income | 67,835 | 80,129 | -15.3% | | Sales of cosmetics | 49,603 | 57,648 | -13.9% | | Total | 340,579 | 410,421 | -17.0% | Revenue by Geographical Region (HKD thousands) | Region | 2024 | 2023 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Hong Kong | 153,179 | 187,121 | -18.1% | | Asia Pacific | 59,697 | 81,436 | -26.7% | | South Africa | 119,448 | 132,145 | -9.6% | | Europe | 7,880 | 8,950 | -12.0% | | Total | 340,579 | 410,421 | -17.0% | - The segment result for the trading of electronic and electrical components business was HKD 10.07 million, representing the Group's primary source of profit, though it decreased from HKD 11.24 million last year[23][24] Dividends The Board recommends a final dividend of HKD 0.5 cents per ordinary share, maintaining the total annual dividend at HKD 1.0 cent per share, amounting to HKD 2 million, consistent with the prior year Dividend Summary | Item | Per Ordinary Share (HK cents) | Total Amount (HKD thousands) | | :--- | :--- | :--- | | Interim dividend paid | 0.5 | 1,000 | | Proposed final dividend | 0.5 | 1,000 | | Total for the year | 1.0 | 2,000 | Management Discussion and Analysis Financial Performance Review During the review year, the Group's turnover decreased by 16.8% to HKD 341 million, leading to an expanded loss attributable to shareholders, despite effective control over operating expenses which decreased by 16.3% - Turnover decreased by 16.8% to approximately HKD 341 million, and loss attributable to shareholders expanded to HKD 4.9 million[42] - The Group successfully controlled costs, with total operating expenses decreasing by 16.3% and general and administrative expenses by 20.9%[44] - The Group's total number of employees decreased from 386 to 358, a reduction of approximately 7.3%[44][45] Business Segment Review All three core business segments faced challenges this year, with electronic and electrical components trading revenue decreasing by 18.3%, computer business revenue by 15%, and cosmetics and online retail revenue by 12.3% due to market demand contraction and conservative consumer spending Percentage of Total Turnover and Gross Profit Margin by Business Segment | Business Segment | Percentage of Total Turnover | Gross Profit Margin (2024) | Gross Profit Margin (2023) | | :--- | :--- | :--- | :--- | | Electronic and Electrical Components Trading | ~66% | 29.5% | 28.0% | | Computer Business | ~19% | 19.8% | 19.3% | | Cosmetics and Online Retail | ~15% | 20.8% | 24.8% | - Electronic components trading business: Revenue decreased by 18.3% to HKD 223 million, primarily due to the electronic components market being in a downturn cycle with shrinking demand[47] - Computer business: Total revenue decreased by 15% to HKD 68 million, but gross profit margin slightly increased due to flexible marketing strategies[50] - Cosmetics and online retail business: Revenue decreased by 12.3% to HKD 50 million, and the retail store in Tseung Kwan O was closed, but online retail business continued to grow[51] Development Strategies and Outlook The Group anticipates ongoing challenges from geopolitical and macroeconomic uncertainties, with potential improvements by late 2024, and will implement strategic measures including leveraging its new South Africa headquarters, enhancing brand image, and focusing on online retail to achieve performance improvements - Macroeconomic factors such as geopolitical tensions, inflation, and high interest rates are expected to continue bringing uncertainty, with potential improvements by late 2024[53] - The new headquarters in South Africa has commenced operations and is expected to enhance the product distribution network and logistics efficiency, contributing positively to long-term profitability[53] - Strategic priorities include: the computer business focusing on strengthening brand image and developing innovative products; and maintaining optimism for the cosmetics and online retail business prospects[53] Liquidity and Capital Management Liquidity and Financial Resources As of March 31, 2024, the Group's liquidity improved with a current ratio of 2.2, holding approximately HKD 24 million in cash and HKD 115 million in net current assets, supported by HKD 63 million in unutilized bank financing facilities Liquidity Indicators | Indicator | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Cash and Bank Balances | Approx. HKD 24 million | Approx. HKD 30 million | | Net Current Assets | Approx. HKD 115 million | Approx. HKD 118 million | | Current Ratio | Approx. 2.2 | Approx. 1.9 | - The Group obtained bank financing facilities totaling approximately HKD 89 million from several banks, of which approximately HKD 63 million remains unutilized[57] Capital Structure and Risk Management As of March 31, 2024, the Group's capital structure improved with net borrowings decreasing to HKD 38 million and the net debt-to-equity ratio falling from 29% to 25%, while foreign exchange risk is considered minimal - The Group's total short-term bank loans amounted to approximately HKD 26 million, with interest rates ranging from 3.08% to 12.4% per annum[58] - The net debt-to-equity ratio (calculated as net borrowings divided by total equity) decreased from 29% in the prior year to 25%[60] - The directors consider the Group's exposure to foreign exchange risk to be minimal, and no hedging measures have been taken at present[61] Other Disclosures Employees and Remuneration Policy As of March 31, 2024, the Group employed 358 full-time staff globally, with remuneration policies based on performance, merit, and market conditions, including MPF, medical insurance, and performance bonuses - As of March 31, 2024, the Group employed a total of 358 full-time staff[64] Corporate Governance and Compliance During the reporting period, the company generally complied with the Corporate Governance Code, with a noted deviation regarding the non-rotation of the Chairman and Vice Chairman, an arrangement the Board believes ensures business continuity, and the Audit Committee has reviewed the annual results - The company complied with the Corporate Governance Code, but with a deviation: the Chairman and Vice Chairman are not required to retire by rotation at least once every three years[70] - The Audit Committee, comprising three independent non-executive directors, has reviewed the annual results for the year[72]