Revenue Performance - Retail segment revenue was HKD 155,100,000, a decrease from HKD 195,000,000 in 2023, accounting for 90.4% of total revenue[1] - Revenue from "European Furniture" and "European Furniture Prestige Store" totaled HKD 78,000,000, down from HKD 110,000,000 in 2023, representing 50.3% of total retail revenue[1] - Total revenue decreased to HKD 171.6 million for the year ended March 31, 2024, down from HKD 216.1 million in 2023, representing a decline of approximately 20.6%[43] - The group reported external customer revenue of HKD 171,638,000 for the year ended March 31, 2024, compared to HKD 216,148,000 for the previous year, indicating a decrease of approximately 20.6%[84] - Revenue from furniture sales decreased to HKD 171,638,000 in 2024, down 20.6% from HKD 216,148,000 in 2023[95] Profit and Loss - The group reported a total loss of HKD 25,006,000 for the year, compared to a loss of HKD 21,017,000 in 2023[16] - The company recorded a net loss of HKD 25 million for the year, compared to a net loss of HKD 21 million in 2023, reflecting an increase in losses of approximately 19%[55] - Basic loss per share was HKD 3.13, compared to HKD 2.63 in 2023, representing a deterioration of about 19.1%[55] - The group reported a pre-tax loss of HKD 25,006,000 for the year 2024, compared to a loss of HKD 21,017,000 in 2023, indicating an increase in losses of approximately 19%[101] Cost Management - The total employee cost for the year was HKD 43,600,000, a decrease from HKD 45,900,000 in 2023, with the number of employees reduced to 126 from 133[14] - The cost of goods sold decreased to HKD 71,979,000 in 2024 from HKD 82,964,000 in 2023, reflecting a reduction of approximately 13.2%[88] - Depreciation of property, plant, and equipment decreased to HKD 2,435,000 in 2024 from HKD 5,909,000 in 2023, a reduction of approximately 58.8%[88] - The group’s trade payables decreased to HKD 2,285,000 in 2024 from HKD 5,199,000 in 2023, reflecting a decrease of about 56.1%[107] Financial Position - Cash and cash equivalents were HKD 43,400,000, down from HKD 62,100,000 in 2023, with no bank borrowings reported[13] - The group maintained a zero debt ratio, indicating strong financial stability[13] - Current assets and current liabilities as of March 31, 2024, were approximately HKD 105,700,000 and HKD 65,000,000, respectively, resulting in a current ratio of 1.6, down from 1.8 in 2023[65] - Non-current assets decreased from HKD 68,052,000 in 2023 to HKD 39,473,000 in 2024, reflecting a reduction of approximately 42.2%[69] - The group’s net asset value decreased from HKD 89,717,000 in 2023 to HKD 64,711,000 in 2024, a decline of about 28%[71] Market and Brand Strategy - The company aims to enhance brand awareness through various promotional activities, including social media engagement and seasonal promotions[53] - The group has implemented a diversified marketing strategy to enhance its market presence and customer engagement[64] - The group’s "European Treasure" brand has been awarded the "Hong Kong Brand Logo" for ten consecutive years since 2014, indicating strong brand recognition in the market[61] - The company operates a total of 24 sales points under various brand names, focusing on furniture and bedding products[57] - The company has established over 100 distributors in Hong Kong and Macau for its wholesale business, covering its own brand and other international brands[54] Operational Developments - The group opened a new "European Treasure" store in Tuen Mun during the year, expanding its retail presence[10] - The flagship store "European Furniture Prestige Store" in Hung Hom has a total floor area of approximately 21,700 square feet[10] - The group operates a total of 24 retail outlets, including 3 "European Furniture" showrooms, 5 "at • home" stores, and 6 "Simmons" stores, along with 9 "European Treasure" stores and counters in department stores[63] - The group’s "at • home" store received the "Quality Service Leader Quarterly Award" for the furniture and home goods category from the Hong Kong Retail Management Association for the period from April to June 2023[75] Employee Incentives - The group has adopted a share option scheme to incentivize employees, details of which will be included in the annual report[25] - The group’s management emphasized strict control over overdue receivables, with senior management reviewing outstanding debts regularly[92] Market Challenges - The furniture retail sales value index has not fully recovered to normal levels, indicating ongoing challenges in market demand[56] - Other income and gains totaled HKD 4,271,000 in 2024, a decline of 36.7% from HKD 6,749,000 in 2023, primarily due to the absence of government subsidies received in the previous year[96] - Trade receivables, net of impairment, amounted to HKD 3,901,000 in 2024, an increase from HKD 3,085,000 in 2023, indicating a rise in overdue accounts[101]
欧化(01711) - 2024 - 年度业绩