Financial Performance - For the fiscal year ending March 31, 2024, the company's revenue decreased by approximately 20.7% to about HKD 118.8 million from HKD 149.7 million in the same period last year[7]. - The gross profit declined from approximately HKD 32.6 million to about HKD 27.2 million, while the gross margin increased from approximately 21.8% to about 22.9%[14]. - The loss attributable to the owners of the company increased significantly to approximately HKD 17.6 million from HKD 5.0 million in the previous year, primarily due to decreased revenue and gross profit, increased impairment losses, and higher depreciation and rental expenses[8]. - The company reported a loss before tax of HKD 17,402,000, compared to a loss of HKD 4,947,000 in 2023, representing a significant increase in losses[182]. - Total comprehensive loss for the year was HKD 17,523,000, compared to HKD 4,856,000 in the prior year, indicating a worsening financial position[182]. - Basic and diluted loss per share increased to HKD 4.40 from HKD 1.24, reflecting a higher loss attributable to shareholders[182]. - The group reported a net loss of approximately HKD 17,599,000 for the year ended March 31, 2024, compared to a net loss of HKD 4,955,000 in the previous year[199]. Revenue and Sales - The group's revenue for the reporting period was approximately HKD 118.8 million, a decrease of about 20.7% compared to approximately HKD 149.7 million in the same period last year[15]. - The total sales volume of finished products during the reporting period was 937,441 units, down from 1,237,488 units in the previous year[16]. - The sales revenue breakdown by product category shows that outerwear generated HKD 18.1 million (15.2% of total revenue), while trousers and shorts accounted for HKD 29.2 million (24.5%)[17]. Cost and Expenses - The cost of sales decreased by approximately 21.8% to about HKD 91.6 million from approximately HKD 117.1 million in the previous year[21]. - Administrative expenses increased by approximately 18.8% to about HKD 25.8 million, primarily due to depreciation expenses from newly acquired properties and equipment[27]. - Other income fell by approximately 80.5% to about HKD 0.5 million, primarily due to the absence of government subsidies and a decrease in miscellaneous income[24]. Liquidity and Financial Position - The current ratio decreased from approximately 1.5 times to about 0.8 times, mainly due to a reduction in cash and bank balances[33]. - The capital-to-debt ratio increased to approximately 157.9% from 63.4% in the previous year, indicating a higher reliance on bank borrowings for operational funding[33]. - Current liabilities rose to HKD 42,905,000 from HKD 34,378,000, leading to a negative net current asset position of HKD 7,063,000[184]. - As of March 31, 2024, the group's current liabilities exceeded its current assets by approximately HKD 7,063,000, compared to a net current asset value of HKD 17,486,000 in the previous year[199]. Business Strategy and Market Conditions - The management is focusing on stricter measures to monitor customer creditworthiness while exploring new business opportunities to compensate for the decline in revenue[9]. - The company plans to invest more resources into its sales and marketing teams to achieve optimistic performance in 2024[9]. - The overall retail market environment remains severe, impacting customer behavior and business performance[7]. - The company is continuously reviewing its business strategies and pricing policies to adapt to the challenging market environment[7]. Corporate Governance - The company has adopted and complied with the GEM Listing Rules Appendix C1 corporate governance code, ensuring adherence to all provisions during the reporting period[60]. - The board emphasizes the importance of transparency and accountability for listed companies, aiming to establish and maintain good corporate governance policies and procedures[59]. - The company is committed to maintaining high standards of business ethics and corporate governance in all activities and operations[62]. - The independent non-executive directors provide independent judgment on the group's strategy, performance, resources, and ethical standards[53]. Risk Management - The group faces significant customer credit risk and relies on several major customers without long-term contracts, which could adversely affect business performance[125]. - The group is exposed to intense competition from manufacturers in South Asia and Southeast Asia, which may negatively impact profitability and financial performance if not managed effectively[125]. - The company has a risk management framework in place to mitigate potential risks associated with its operations[98]. Employee and Board Composition - The company employed 43 full-time employees as of March 31, 2024, down from 44 employees a year earlier[44]. - The board consists of five directors, three of whom are independent non-executive directors, exceeding the GEM listing rules requirement of at least one-third independent non-executive directors[76]. - The board currently consists of five members, including two executive directors and three independent non-executive directors, with women making up nearly 40% of the board[105]. Auditor and Financial Reporting - The independent auditor's report indicates that the financial statements fairly reflect the group's financial position as of March 31, 2024[164]. - The audit committee reviewed the consolidated financial statements, confirming compliance with applicable financial reporting standards and GEM listing rules[161]. - The auditor aims to provide reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[176].
爱世纪集团(08507) - 2024 - 年度财报