Financial Performance - The group's consolidated revenue for the fiscal year ended March 31, 2024, was approximately HKD 33.9 million, a decrease of 9.4% compared to HKD 37.4 million in 2023[44]. - The annual gross profit was approximately HKD 26.2 million, down 8.7% from HKD 28.7 million in 2023, with a gross margin of 77.1%, an increase of 0.3% from the previous year[44]. - The net loss attributable to the company's owners for the reporting year was approximately HKD 14.7 million, compared to a net loss of HKD 6.1 million in 2023[44]. - The basic and diluted loss per share for the reporting year was HKD 4.06, compared to HKD 1.68 in 2023[44]. - The company reported a pre-tax loss of HKD 14,682,000 for 2024, compared to a loss of HKD 6,086,000 in 2023, indicating a significant increase in losses[126]. - The company reported a basic loss per share of HKD 0.0407 for 2024, compared to HKD 0.0168 for 2023, indicating a worsening financial position[130]. - The net loss for the year was reported at HKD 6,682 thousand, which was revised to HKD 6,071 thousand post-adjustment, indicating an improvement of HKD 611 thousand[88]. Assets and Liabilities - The net current liabilities at the end of the reporting year were approximately HKD 11.0 million, a 69.2% increase from HKD 6.5 million in 2023[5]. - The total assets less current liabilities amounted to HKD 78.158 million, compared to HKD 92.281 million in 2023[37]. - Non-current liabilities totaled HKD 71.589 million, slightly up from HKD 70.904 million in 2023[37]. - The company's net cash inflow from operating activities was approximately HKD 6,025,000, with expectations for continued improvement in working capital management over the next twelve months[67]. - The group has no significant contingent liabilities as of the end of the reporting year[11]. - The total bank loans due within one year amount to HKD 15,836,000, with a total outstanding balance of HKD 49,586,000 as of March 31, 2024[139]. - The company's equity attributable to owners was approximately HKD 6.6 million, a decrease of approximately HKD 14.8 million or 69.2% from HKD 21.4 million in 2023[191]. Cash Flow and Financing - Cash and bank balances increased to approximately HKD 2.9 million, up 26.1% from HKD 2.3 million in 2023[5]. - The group maintained a close monitoring of inventory levels to avoid sales losses, particularly ensuring sufficient stock of aged Pu-erh tea, which has the highest gross margin[3]. - The company has a total of HKD 35,698,000 in promissory notes as of March 31, 2024, compared to HKD 33,463,000 in 2023[154]. - The company has secured loans of HKD 10,000,000 as of March 31, 2024, up from HKD 5,000,000 in 2023[153]. - The effective annual interest rate ranges from 2.75% to 6.8%, compared to 2.75% to 5.14% in 2023[142]. - The group has available undrawn bank financing of HKD 1.244 million as of March 31, 2024[54]. Operational Highlights - The group did not engage in any significant investments or acquisitions during the reporting year[8][9]. - The group operates a single reportable segment focused on tea product sales, with all revenue generated from Hong Kong[104]. - The main sales product was tea, accounting for 94.9% of total revenue, with Pu-erh tea being the best-selling product[167]. - The company experienced a significant decline in retail revenue, down 94% year-on-year, attributed to Hong Kong consumers preferring to shop in the Greater Bay Area[165]. - The group reported administrative expenses of HKD 31,685 thousand, which were adjusted to HKD 31,074 thousand after the adoption of new accounting guidelines, reflecting a decrease of HKD 611 thousand[88]. Accounting and Compliance - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2023, with no significant impact on the financial statements[56]. - The independent auditor's report did not contain any reservations or emphasis of matter paragraphs[63]. - The company clarified the distinction between changes in accounting policies and changes in accounting estimates, introducing a new definition of accounting estimates[74]. - The group expects that the new accounting revisions will not have a significant impact on the consolidated financial statements, as there are no supplier financing arrangements in place[96]. - The group did not incur any Hong Kong profits tax liabilities for the years ended March 31, 2024, and 2023, as there were no taxable profits[107]. Employee and Operational Costs - Total employee costs amounted to HKD 13.3 million, slightly down from HKD 13.7 million in 2023[10]. - The total employee benefits expenses, including directors' remuneration, were HKD 13,303,000 in 2024, a decrease from HKD 13,674,000 in 2023[128]. - The total lease expenses for the year ended March 31, 2024, were HKD 1,716,000, down from HKD 2,130,000 in the previous year[106]. Future Outlook - The company maintains its ability to secure existing bank financing and has received a commitment for ongoing financial support from a related company for the next twelve months[68]. - The group continues to focus on maintaining a strong and adequate liquidity position[192]. - The group anticipates that the new disclosure requirements related to tax risks under the Pillar Two framework will be implemented starting from April 1, 2023[92].
英记茶庄集团(08241) - 2024 - 年度业绩