Financial Performance - Total revenue for the fiscal year ending March 31, 2024, was HKD 45.718 million, a decrease from HKD 61.225 million in the previous fiscal year[14] - The company's gross profit for the fiscal year is expected to be HKD 13.118 million, down from HKD 18.609 million, indicating a decrease of about 29.5%[176] - The operating loss for the fiscal year is anticipated to be HKD 7.774 million, compared to an operating loss of HKD 6.462 million in the previous year, reflecting a worsening of approximately 20.2%[176] - The total assets of the company as of March 31, 2024, are projected to be HKD 26.744 million, a significant decrease from HKD 36.250 million in the previous year, representing a decline of about 26.4%[176] - The total liabilities are expected to be HKD 5.243 million, down from HKD 7.161 million, indicating a reduction of approximately 26.8%[176] - The company experienced a significant drop in home goods export revenue from approximately HKD 53.2 million in the previous fiscal year to about HKD 40.9 million this year, a decrease of around 23.1%[179] - Revenue from self-branded products in China fell from approximately HKD 3.3 million to HKD 1.8 million, a decline of about 45.5%[180] - The e-commerce business generated sales of approximately HKD 3.1 million, a decrease of about 35.3% from approximately HKD 4.7 million in the fiscal year 2023[185] - Revenue from proprietary brand products fell to approximately HKD 1.8 million, down about 46.3% from approximately HKD 3.3 million in the fiscal year 2023[185] - Total revenue for the year decreased by approximately HKD 15.5 million or about 25.3%, with a gross profit of approximately HKD 13.1 million, down about HKD 5.5 million from the fiscal year 2023[199] - The gross profit margin declined from approximately 30.4% in the fiscal year 2023 to about 28.7% in the current year[199] - The company recorded a loss attributable to owners of approximately HKD 7.8 million, compared to a loss of approximately HKD 6.6 million in the fiscal year 2023[199] - The sales cost decreased by approximately 23.5% from about HKD 42.6 million in the fiscal year 2023 to approximately HKD 32.6 million in the current year, aligning with the revenue decline[187] - E-commerce and proprietary brand product businesses contributed approximately 6.7% and 3.9% to the total revenue, respectively[185] - The overall performance was adversely affected by the COVID-19 pandemic and regional military conflicts, particularly impacting the consumer market in Europe[199] - The company anticipates a challenging operating environment ahead, with significant uncertainty, but remains cautiously optimistic about future orders from major clients once inventory issues are resolved[181] - Future outlook remains cautious due to ongoing global economic uncertainties and potential market risks[199] Employee and Labor Practices - Employee count decreased from 36 to 33, with a turnover rate of 42% compared to 44% in the previous year[29] - The employee turnover rate for those under 30 years old was 167%, indicating a significant challenge in retaining younger talent[29] - The total number of employees in Hong Kong and China was 14 and 19, respectively, as of March 31, 2024[29] - The company employed 33 employees as of March 31, 2024, including executive directors but excluding independent non-executive directors[52] - Training participation increased to 44 employees (133%) in 2024 from 26 employees (72%) in 2023[59] - Average training hours per employee rose to 2.24 hours in 2024 from 1.31 hours in 2023[59] - The company maintains high labor standards and strictly prohibits any form of child or forced labor[59] - The company reported compliance with labor standards, including measures to avoid child and forced labor in its recruitment practices[122] - The company emphasizes the importance of employee morale and productivity through cultural events during major holidays[78] Environmental Sustainability - Scope 1 emissions accounted for approximately 3% of total greenhouse gas emissions, while Scope 2 emissions represented about 88%[8] - The company aims to align with the Hong Kong government's carbon reduction target of 65% to 70% by 2030, based on 2005 levels[19] - The company has identified climate-related risks and opportunities to prepare for the transition to a low-carbon economy[24] - The company encourages employees, suppliers, and customers to reduce carbon emissions in daily operations whenever possible[25] - The company has set goals for waste reduction and energy efficiency, demonstrating commitment to environmental sustainability[81] - The board of directors emphasizes the importance of sustainable development as a long-term strategic goal, aiming for a 2% reduction in greenhouse gas emissions over the next five years[163] - The company is committed to achieving carbon neutrality by 2050 as part of its sustainability strategy[163] - The company regularly monitors and reviews the impact of climate change on operations as part of its business continuity planning[46] Governance and Compliance - There were no major violations or lawsuits related to corruption against the company or its employees during the reporting period[75] - The company adheres to all relevant laws and regulations regarding intellectual property, ensuring no significant infringements occurred[71] - The company has established measures to protect whistleblowers, ensuring confidentiality and protection from retaliation[77] - The company has a strict code of conduct to prevent corruption, bribery, and fraud within its operations[73] - The company complies with all applicable laws regarding bribery, extortion, fraud, and money laundering in its operational regions[74] - The company has established regular policies to ensure product responsibility meets three major criteria: environmental, social, and governance standards[86] - During the reporting period, the company provided a total of 36 hours of anti-corruption training to all employees in Hong Kong and China[92] - The company has complied with environmental, social, and governance (ESG) reporting guidelines, ensuring adherence to relevant laws and regulations[120] - The company has established policies for managing environmental and social risks in its supply chain, ensuring compliance with significant laws and regulations[124] - The company has implemented policies to ensure consumer data protection and privacy, complying with significant legal requirements[105] - The board and audit committee maintain records of all complaints, including investigation summaries and actions taken, to monitor policy implementation and effectiveness[112] Supply Chain and Procurement - The company conducts annual performance evaluations of suppliers based on price, quality, delivery, and compliance with environmental and social standards[65] - All suppliers during the reporting period were sourced from China, emphasizing local procurement to reduce environmental impact[83] - The company has implemented policies to monitor third-party factories and conducts regular assessments to ensure supply chain sustainability[83] - The largest supplier accounted for 40.3% of total purchases, while the top five suppliers represented 83.6%[157] - The largest customer contributed 26.7% of total sales, with the top five customers making up 64.8%[157] Real Estate and Lease Agreements - The company signed a lease agreement for a property in Shenzhen, China, with a monthly rent of RMB 124,338 (approximately HKD 137,000) for a total area of 1,060 square meters[95] - The total transaction amount under the 2023 and 2024 lease agreements is below HKD 3 million, thus exempting the company from certain GEM listing rules[96] - The company has entered into a lease agreement with Yifeng Industrial for a rental fee of RMB 106,000 per month, effective from April 1, 2024, to March 31, 2025[159] Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position accurately as of March 31, 2024[129] - The auditor's report indicates that there have been no changes in the company's auditor since its listing date[143] - The company has not purchased, sold, or redeemed any of its listed securities during the year[141] - The company has not entered into any management contracts for overall business or any significant part of its operations during the year[156] - There were no related party transactions that constituted connected transactions or continuing connected transactions under the GEM Listing Rules, aside from those disclosed[160] - The company has appropriate insurance arrangements for legal claims against its directors and senior management arising from company activities[140]
舍图控股(08392) - 2024 - 年度财报