Financial Performance - The group reported a pre-tax operating loss of HKD 15,600,000 for the year, compared to a pre-tax operating profit of HKD 24,200,000 in 2023[1]. - The group's pre-tax loss, excluding tax, was HKD 13,300,000, down from a pre-tax profit of HKD 22,900,000 in 2023[2]. - The group reported a comprehensive loss of HKD 16.44 million for the year, compared to a comprehensive income of HKD 12.94 million in the previous year[48]. - The group reported a loss of HKD 13,989,000 for the year ending March 31, 2024, compared to a profit of HKD 18,800,000 in the previous year[58]. - Revenue for the year was HKD 516,783,000, a decrease from HKD 753,214,000 in the previous year, representing a decline of approximately 31.4%[66]. - The gross profit decreased to HKD 105,819,000 from HKD 161,442,000, indicating a significant reduction in profitability[67]. - The company recorded a loss attributable to owners of HKD 12,796,000 for the fiscal year, compared to a profit of HKD 19,718,000 in the previous year[112]. - The company’s EBITDA for the fiscal year was HKD 1,561,000, a significant decrease from HKD 39,905,000 in the previous year[130]. Sales and Market Performance - Retail sales in Asia increased by 2.2% to HKD 277,700,000, with sales in the Chinese market contributing HKD 258,900,000, representing over 93.2% of total Asian sales[10]. - Sales in the North American market saw a significant decline of 48.0% due to weakened consumer demand and inventory challenges[13]. - The group's retail sales stabilized at HKD 201,600,000 for the year, reflecting a growth of 4.0% after a 12.0% decline in the first half of the year[15]. - The group’s operating segments reported revenue as follows: China HKD 258,911,000, USA HKD 135,620,000, Canada HKD 85,255,000, and others HKD 36,997,000[79]. - North American sales decreased by 50.3% year-on-year to HKD 220,900,000, with sales in the US and Canada dropping by 48.0% and 53.6% respectively, accounting for 26.2% and 16.5% of total revenue[140]. - Domestic brand customer sales in China increased by 9.9% to HKD 56,600,000, up from HKD 51,500,000 in the previous year[159]. Inventory and Cost Management - Inventory increased significantly to HKD 99.64 million in 2024 from HKD 65.27 million in 2023, indicating a 52.7% rise[51]. - Inventory turnover period increased by 39 days to 71 days, up from 32 days in the previous year, primarily due to higher inventory levels to meet increased order volumes[63]. - The inventory turnover period increased to 71 days in 2024 from 32 days in 2023, indicating a slowdown in inventory movement[150]. - The total operating expenses decreased by 7.9% to HKD 55,307,000 in 2024 from HKD 60,044,000 in 2023, with significant reductions in freight and handling fees by 43.8%[110]. - Distribution expenses fell by 7.9% to HKD 55,300,000, as the company continued to expand its digital presence and closed underperforming retail stores[125]. - Administrative expenses decreased by 2.9% to HKD 76,800,000, attributed to reduced employee performance bonuses and overall cost control measures[126]. Cash Flow and Financial Position - As of March 31, 2024, the group's cash level was HKD 269.3 million, down from HKD 295.3 million on March 31, 2023, with pledged bank deposits of HKD 101.1 million[36]. - The total bank borrowings as of March 31, 2024, amounted to HKD 51.4 million, a decrease from HKD 54.5 million on March 31, 2023, resulting in a debt-to-equity ratio of 13.3%[36]. - The group's cash balance, excluding pledged bank deposits, was HKD 116.8 million as of March 31, 2024, down from HKD 130.1 million in 2023[37]. - The accounts receivable, net of credit loss provisions, amounted to HKD 86,379,000 as of March 31, 2024, compared to HKD 89,401,000 in 2023[104]. - The company’s total liabilities increased, with accounts payable aging analysis showing HKD 66,440,000 due within 90 days as of March 31, 2024, compared to HKD 44,983,000 in 2023[105]. Strategic Initiatives and Future Outlook - The group aims to enhance its digital and data capabilities to adapt to changing consumer behaviors and improve its omnichannel profitability[17]. - The group plans to leverage synergies with retail operations to expand product offerings and meet diverse customer needs in the domestic brand market[16]. - The group is focused on maintaining strong cash flow and effective working capital management to support future strategic initiatives[18]. - The company is focusing on enhancing online presence and brand awareness through various digital channels, including WeChat, Taobao, and TikTok[143]. - The company is implementing cost control measures and optimizing inventory management to maintain profitability amid market uncertainties[144]. - The company plans to enhance manufacturing platform efficiency and flexibility to address challenges posed by global trade conflicts and fluctuating demand in key export markets[173]. - The company aims to achieve customer-centric organic growth by meeting diverse demands and manufacturing requirements of global brand clients[173]. Economic and Market Conditions - The overall economic recovery in China is under pressure, with GDP growth at 5.2% and consumer confidence declining, impacting retail demand[158]. - The overall economic uncertainty and high-interest rate environment continue to suppress business sentiment among customers, leading to cautious inventory management and reduced production orders[170]. - In 2023, the U.S. apparel import volume decreased by 22.0%, reflecting weakened consumer demand for clothing products due to rising living costs and inflationary pressures[160]. Corporate Governance - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange listing rules throughout the year[168]. - The audit committee, including four independent non-executive directors, reviewed the company's accounting policies and financial reporting matters[167].
同得仕(集团)(00518) - 2024 - 年度业绩