Financial Performance - Revenue for the year ended March 31, 2024, was approximately HKD 54.3 million, a decrease of 24.3% from HKD 71.7 million in 2023[2] - Gross profit for the same period was approximately HKD 7.5 million, down from HKD 8.8 million in 2023, reflecting a decline of 15.3%[2] - The net loss for the year was approximately HKD 24.4 million, an improvement from a net loss of HKD 31.3 million in 2023, representing a reduction of 22.5%[2] - Basic and diluted loss per share was approximately HKD 2.9 cents, compared to HKD 3.7 cents in 2023, indicating a decrease of 21.6%[2] - The company reported a loss attributable to owners of HKD 24,444,000 for 2024, compared to a loss of HKD 31,284,000 in 2023, representing a decrease in loss of approximately 22.5%[33] - Total employee costs decreased to HKD 26,318,000 in 2024 from HKD 33,973,000 in 2023, reflecting a reduction of about 22.6%[31] - Other income decreased by approximately 63.6% from HKD 1.1 million to HKD 0.4 million, primarily due to reductions in government subsidies, rental income, and interest income from receivables[57] Assets and Liabilities - Total assets decreased to HKD 69.2 million in 2024 from HKD 65.7 million in 2023, an increase of 5.7%[7] - Current liabilities increased significantly to HKD 58.7 million in 2024 from HKD 36.0 million in 2023, a rise of 62.4%[7] - The company’s equity decreased to HKD 46.5 million in 2024 from HKD 72.6 million in 2023, a decline of 36.0%[8] - Total borrowings increased to HKD 16,599,000 in 2024 from HKD 9,260,000 in 2023, marking an increase of approximately 79.5%[39] - The current ratio decreased from approximately 1.8 times as of March 31, 2023, to about 1.2 times as of March 31, 2024, mainly due to increases in other payables and borrowings[67] - The debt-to-equity ratio increased to 48.3% as of March 31, 2024, compared to 21.0% as of March 31, 2023, due to increased borrowings and a decrease in total equity[67] Revenue Breakdown - Sales of bridal gowns amounted to HKD 4,285,000 in 2024, down from HKD 6,320,000 in 2023, representing a decline of 32.4%[24] - Revenue from the United States market was HKD 22,548,000 in 2024, a decrease of 23.4% from HKD 29,482,000 in 2023[25] - Major customer A contributed HKD 11,002,000 in revenue for 2024, down 24.3% from HKD 14,498,000 in 2023[29] - Revenue from the sale of bridesmaid dresses decreased by approximately HKD 9.8 million, while revenue from special occasion dresses and accessories decreased by approximately HKD 3.8 million and HKD 3.5 million, respectively[51] Corporate Governance - The board did not recommend a final dividend for the year, consistent with the previous year[2] - The company has not declared or recommended any dividends for the years ended March 31, 2024, and 2023[31] - The board believes that good corporate governance standards are essential for protecting shareholder interests and enhancing corporate value[83] - The audit committee reviewed the group's audited financial performance for the year ended March 31, 2024, including accounting principles and internal controls[88] - The board of directors consists of four executive directors and four independent non-executive directors, indicating a balanced governance structure[94] - The presence of both executive and independent directors suggests a commitment to corporate governance and accountability[94] - The governance structure may facilitate effective oversight of financial performance and risk management[94] Strategic Initiatives - The group is actively seeking new business opportunities to diversify its revenue sources and reduce risks due to the ongoing US-China trade disputes and the impact of COVID-19[48] - The group is negotiating with a well-known discount retailer in China to develop procurement and distribution businesses, aiming to expand its customer base and revenue in the Chinese market[48] - The company is focused on maintaining a strong leadership team to drive strategic initiatives and performance[94] - The company is positioned to leverage its leadership team for market expansion and innovation[94] Operational Insights - The company’s operations are primarily focused on garment manufacturing and trading, with no independent financial information provided beyond overall performance[26] - The company has established long-term relationships with major bridesmaid dress customers, becoming their exclusive supplier, which supports its market position in China[44] - The company has not applied any new financial reporting standards that have been issued but are not yet effective, indicating no significant impact on the consolidated financial statements[17] - The company expects that the application of the revised accounting standards will not lead to a reclassification of liabilities as of March 31, 2024[20] - The company has clarified that the classification of liabilities should be based on rights existing at the reporting date, not management's intentions[19] - The revised accounting standards will take effect for annual periods beginning on or after January 1, 2024, allowing for early application[20] Employee and Cost Management - The total employee cost for the year ended March 31, 2024, was approximately HKD 26,300,000, a decrease from HKD 34,000,000 for the year ended March 31, 2023, with a total of 227 employees as of March 31, 2024, compared to 246 employees a year earlier[75] - The company implemented cost control measures throughout the year to cope with prolonged business setbacks[48] - The company’s depreciation of right-of-use assets increased to HKD 2,753,000 in 2024 from HKD 1,146,000 in 2023, an increase of approximately 140.5%[31] Future Outlook - The company is expected to provide further insights into its operational strategies in future announcements[94] - The announcement date is June 28, 2024, which may align with upcoming financial reporting or strategic updates[94] - The company will hold its annual general meeting on August 26, 2024[79] - The group did not engage in any significant acquisitions or disposals of subsidiaries or associates during the year ended March 31, 2024[71] - There were no significant investments held by the group as of March 31, 2024, consistent with the previous year[72] - The group has no major capital commitments as of March 31, 2024, unchanged from the previous year[76] - There were no significant contingent liabilities as of March 31, 2024, similar to the previous year[77] - The company entered into a subscription agreement on May 23, 2024, for the issuance of 168,480,000 subscription shares at a price of HKD 0.1 per share[74]
嘉艺控股(01025) - 2024 - 年度业绩