Financial Performance - For the fiscal year ending March 31, 2024, total revenue was HKD 125,647,000, an increase from HKD 98,212,000 in the previous year, representing a growth of approximately 28%[2] - The gross loss for the year was HKD 19,026,000, slightly improved from a gross loss of HKD 20,722,000 in the prior year[2] - Other income and gains significantly increased to HKD 26,630,000 from HKD 3,718,000, marking a substantial rise[2] - Total comprehensive expenses for the year amounted to HKD 209,019,000, down from HKD 305,987,000, indicating a reduction of about 31.7%[3] - The net loss attributable to the company was HKD 195,842,000, compared to a loss of HKD 275,579,000 in the previous year, reflecting an improvement of approximately 29%[3] - Basic and diluted loss per share improved to HKD 3.26 from HKD 4.54 year-over-year[3] - The company reported a pre-tax loss of HKD 195,848,000, compared to a loss of HKD 275,523,000 in the previous period, indicating an improvement[15] - The group reported a loss of HKD 195.8 million for the fiscal year ending March 31, 2024, a decrease of HKD 79.7 million or 28.9% from the previous year's loss of HKD 275.6 million[123] - The company's loss for the fiscal year 2024 decreased by 28.9% to HKD 195,842,000, compared to HKD 275,579,000 in fiscal year 2023, mainly due to reduced impairment losses on properties, plants, and equipment[192] Revenue Sources - Revenue from Franck Muller products accounted for 85.9% of total revenue for the year ended March 31, 2024, and 88.4% for the year ended March 31, 2023[28] - Revenue from Hong Kong, mainland China, and Macau totaled HKD 106,700,000, accounting for 84.9% of the group's total revenue for fiscal year 2024[78] - Revenue from Hong Kong increased by 96.4% to HKD 93,300,000 from HKD 47,500,000 in the previous fiscal year, representing 74.3% of the group's total revenue[79] - Revenue contribution from mainland China and Macau decreased from 31.2% in fiscal year 2023 to 10.7% in fiscal year 2024, with sales dropping by 56.4% to HKD 13,400,000 from HKD 30,700,000[80] - The wholesale segment generated revenue of HKD 78,101,000, while retail sales contributed HKD 29,708,000[56] Assets and Liabilities - The company reported total liabilities of HKD 232,049,000, a decrease from HKD 264,508,000 in the previous year[4] - The total assets of the company amounted to HKD 555,882 thousand, while total liabilities were HKD (523,126) thousand[53] - The total assets of the company amounted to HKD 776,145,000, while total liabilities were HKD 534,701,000[54] - The group's cash and bank balances totaled HKD 29.1 million as of March 31, 2024, compared to HKD 65.5 million on March 31, 2023[127] - The asset-to-liability ratio (net debt divided by equity) was 748.9% as of March 31, 2024, with outstanding loans and borrowings amounting to HKD 242.3 million[127] - The company's total liabilities increased from HKD 270,193,000 in 2023 to HKD 291,077,000 in 2024[182] Inventory and Expenses - Inventory as of March 31, 2024, consisted of 91.0% finished goods, down from 99.5% in the previous year[41] - The company's inventory significantly decreased from HKD 178,130,000 in 2023 to HKD 44,495,000 in 2024[182] - The total employee costs for fiscal year 2024 amounted to HKD 47,756,000, up from HKD 39,558,000 in fiscal year 2023, reflecting a significant increase in salaries and benefits[1] - The company reported a total of HKD 144,673,000 in total expenses for fiscal year 2024, compared to HKD 118,934,000 in fiscal year 2023[1] Legal and Regulatory Matters - The company is seeking damages of CHF 71,400,000 (approximately HKD 619,400,000) due to a breach of the exclusive distribution agreement in China, Hong Kong, Macau, and Taiwan[23] - The company is currently facing legal disputes regarding the termination of exclusive distribution agreements, which may impact future earnings[45] - The company has been involved in arbitration proceedings regarding claims and counterclaims related to distribution agreements, with hearings scheduled for September 30, 2024[97] - The independent auditor's report does not express an opinion due to significant uncertainties affecting the group's ability to continue as a going concern[155] Strategic Initiatives - The company is actively taking measures to enhance profitability and control operating costs, including negotiating rent reductions[10] - The company continues to focus on expanding its distribution of luxury watch brands in Hong Kong, Macau, Taiwan, and mainland China[5] - The group aims to strengthen its distribution network and explore new market opportunities in other Asian countries[125] - The group continues to seek potential opportunities to diversify its business and revenue sources to mitigate risks and uncertainties[85] - The company has been actively enhancing brand visibility through various marketing strategies and events to attract attention to its luxury watch brands[105] Financial Reporting and Governance - The management anticipates that the application of revised Hong Kong Financial Reporting Standards will not have a significant impact on the group's performance and financial position[22] - The group has adopted new and revised Hong Kong Financial Reporting Standards[168] - The audit committee has reviewed the consolidated financial statements for the fiscal year ending March 31, 2024, prior to submission to the board of directors[180] - The consolidated financial statements are presented in Hong Kong dollars (HKD), which is the functional currency of the company[197]
SINCEREWATCH HK(00444) - 2024 - 年度业绩