Revenue Performance - For FY2024, the company's total revenue was approximately HK$65.0 million, a decrease of about HK$13.2 million or 16.9% from approximately HK$78.2 million in FY2023, primarily due to declines in furniture and home accessories sales as well as commission income [24]. - Revenue from direct sales for FY2024 was approximately HK$56.3 million, representing a decrease of approximately HK$11.9 million or 17.4% from approximately HK$68.2 million in FY2023 [13]. - Commission income for FY2024 was approximately HK$3.8 million, a decrease of approximately HK$1.5 million or 27.5% from approximately HK$5.3 million in FY2023, mainly due to a drop in retail sales affected by poor economic sentiment in Mainland China [13]. - Revenue from distribution sales amounted to approximately HK$1.1 million for FY2024, a decrease of approximately HK$0.1 million or 6.9% from approximately HK$1.2 million in FY2023 [13]. - The revenue from commission income decreased significantly, contributing to the overall revenue decline [31]. - The Group's revenue from distribution sales increased to approximately 47.4% for FY2024 from approximately 44.8% for FY2023 [37]. - The Group's revenue decreased from approximately HK$78.2 million in FY2023 to approximately HK$65.0 million in FY2024, a decline of about 16.9% due to reduced sales in furniture and home accessories as well as decreased commission income [183]. Profitability and Loss - The overall gross profit margin of the Group decreased from approximately 66.0% to 64.4% [36]. - The Group recorded a loss for the year attributable to equity holders of approximately HK$8.6 million, after a negative impairment of goodwill of approximately HK$8.7 million [36]. - The overall gross profit decreased to approximately HK$41.9 million for FY2024 from approximately HK$51.6 million for FY2023, representing a decline of about 19.5% [49]. - The gross profit margin for the sale of furniture and home accessories dropped to approximately 61.9% for FY2024 from approximately 63.7% for FY2023 [37]. - The Group recorded a loss of approximately HK$17.3 million for FY2024 compared to a loss of approximately HK$10.0 million in FY2023 [190]. - The provision for impairment of goodwill was approximately HK$8.7 million as of 31 March 2024, down from approximately HK$14.7 million in FY2023 [187]. Economic Impact - The overall economic conditions in Mainland China have significantly impacted the company's sales performance, particularly in the retail sector [13]. - The retail business in Hong Kong is facing challenges due to a significant downturn in the property and retail markets [36]. Strategic Focus and Future Plans - The company is focused on expanding its market presence and enhancing its product offerings to recover from the revenue declines experienced in FY2024 [24]. - The company plans to leverage the recovery from COVID-19 restrictions to boost its food and beverage segment moving forward [13]. - Future strategies may include exploring new product lines and enhancing online sales channels to adapt to changing consumer behaviors [24]. - The management is considering options to minimize losses and improve financial results in the retail sector [54]. - The Group is investing more resources into online business operations to adapt to changing market conditions [57]. - The Group's strategic focus includes innovative strategies to optimize costs and enhance operational efficiency [57]. Board and Governance - The Board has achieved its diversity targets during FY2024, comprising eight directors, including three independent non-executive directors and one female member [72]. - The Audit Committee held four meetings during FY2024, reviewing the Company's consolidated financial results and recommending the re-appointment of Grant Thornton as the external auditor [79]. - The Company aims to maintain at least 20% of the Board members as Executive Directors, along with a minimum of one female member [72]. - The Audit Committee is responsible for overseeing financial reporting, internal control, and risk management systems [77]. - The Company has established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of its affairs [74]. - The Board Diversity Policy emphasizes the importance of diverse perspectives in supporting the execution of the Company's business strategy [72]. Financial Reporting and Accounting Policies - The consolidated financial statements include the financial results of the Company and its subsidiaries up to March 31 each year [92]. - The Group eliminates intra-group transactions, balances, and unrealized gains and losses in preparing consolidated financial statements [94]. - The Group's financial reporting date is set at March 31, 2024, for the fiscal year [2][104]. - For the year ended March 31, 2024, the Group's financial statements were audited by Grant Thornton, which provided both audit and non-audit services [117]. - The Group measures the loss allowance for loan receivables and other receivables equal to 12-month expected credit loss (ECL), unless there has been a significant increase in credit risk since initial recognition, in which case lifetime ECL is recognized [110]. - The Group recognizes revenue from furniture sales at the point of delivery when control is transferred to customers [139]. - The Group follows a 5-step process for revenue recognition, ensuring compliance with accounting standards [139]. Expenses and Costs - Selling and marketing expenses amounted to approximately HK$30.4 million for FY2024, representing a decrease of approximately HK$1.7 million or about 5.3% from approximately HK$32.1 million in FY2023 [184]. - Finance costs increased by approximately HK$0.9 million or 109.4% from approximately HK$0.8 million in FY2023 to approximately HK$1.7 million in FY2024, primarily due to increased bank borrowings and effective interest rates [187]. - The Group's administrative expenses included various costs such as staff costs, professional fees, and depreciation, although specific figures were not provided in the extracted content [186].
齐家控股(08395) - 2024 - 年度财报