Corporate Social Responsibility - E Lighting has been recognized as a "Caring Company" for ten consecutive years, reflecting its commitment to social responsibility and sustainable development[18]. - The Group is actively participating in the "Fluorescent Lamp Recycling Programme" to reduce environmental risks associated with improper disposal of mercury-containing lamps[19]. Market Conditions - The Hong Kong retail market remains challenging, with continuous weak retail sentiment expected in the near term[20]. - The retail market in Hong Kong remains challenging, with weak retail sentiment expected to continue in the near term[40][44]. Financial Performance - For the financial year ended March 31, 2024, the Group's revenue was approximately HK$74,347,000, representing a decrease of approximately 5.8% from HK$78,927,000 in the previous year[29][32]. - The Group recorded a gross profit of approximately HK$39,153,000 and a loss of approximately HK$11,511,000 for the financial year[30][33]. - The Group's revenue for the financial year was approximately HK$74,347,000, a decrease of approximately 5.8% from HK$78,927,000 in the previous year, primarily due to weak retail market sentiment[48]. - The gross profit was approximately HK$39,153,000, representing a decrease of approximately 7.5% from HK$42,308,000, with an overall gross profit margin of approximately 52.7%[49]. - Selling and distribution expenses were approximately HK$27,271,000, a decrease of approximately 3.7% from HK$28,318,000, mainly due to reduced depreciation on right-of-use assets[50]. - Administrative and other expenses were approximately HK$14,469,000, a decrease of approximately 15.4% from HK$17,094,000, primarily due to a reduction in staff costs[51]. - The Group recorded a loss of approximately HK$11,511,000 during the financial year, compared to a loss of HK$6,845,000 in the previous year[52]. - As of March 31, 2024, the Group's net assets were approximately HK$8,689,000[30][33]. - As of March 31, 2024, the Group had cash and bank balances of approximately HK$5,894,000, a decrease from HK$9,938,000 in 2023[105]. - The Group's total equity attributable to owners amounted to approximately HK$8,689,000 as of March 31, 2024, down from HK$20,200,000 in 2023[112]. - The Group had no bank borrowings as of March 31, 2024, maintaining a gearing ratio of nil[105]. - Total remuneration for the Group for the financial year was approximately HK$17,827,000, compared to HK$20,212,000 in 2023[125]. - The Group did not have any significant capital commitments as of March 31, 2024[123]. - The Board does not recommend the payment of any dividend for the financial year, consistent with 2023[124]. - The Group had 47 employees as of March 31, 2024, an increase from 46 employees in 2023[125]. - There were no material contingent liabilities as of March 31, 2024[113]. Strategic Initiatives - E Lighting plans to maintain a flexible and tailored sales and marketing strategy to enhance its market position by accurately procuring suitable products for the domestic market[20]. - The Group aims to stabilize growth through cautious strategic planning and optimization of its product mix[41][45]. - The Group will continue to monitor business environment trends and adjust product strategies accordingly[28][40]. - The Group's proactive measures include strengthening cost and cash flow control to address market changes[28][39]. - The Group expresses cautious confidence in its future development, leveraging global trends in energy saving and environmental protection[23][42]. - The Group is actively promoting smart home and related products while seeking more opportunities in these businesses[41]. - The Group will adopt cautious strategies and closely control expenditures to maintain competitiveness[23][42]. Tenancy Agreements - The renewal of the tenancy agreement for Tsuen Wan Shop 310 was finalized on May 2, 2023, with an effective date of June 22, 2023, for a term of three years[59]. - The total consideration for the renewal of the tenancy agreement is not less than HK$1,155,000 for the three-year term[61]. - The renewal of the tenancy agreement is considered a discloseable transaction under GEM Listing Rules, exceeding 5% but below 25% in applicable percentage ratios[65]. - The renewal of the tenancy agreement for Kowloon Bay Shop has an effective date of June 23, 2023, and will last for two years until June 22, 2025[72]. - The total consideration for the renewal is not less than HK$1,992,000, which represents the aggregate monthly basic rental for the two-year term[72]. - The tenant is also subject to an additional turnover rental of 15% of the monthly gross receipts exceeding the basic rental[72]. - The renewal agreement is considered a discloseable transaction under GEM Listing Rules, as the applicable percentage ratios exceed 5% but are below 25%[76]. - The terms of the renewal were determined after arm's length negotiations and are deemed fair and reasonable by the Board[74]. - The renewal of the tenancy agreement for Tsuen Wan Shop 312 was finalized on July 5, 2023, with a similar structure to the Kowloon Bay Shop agreement[82]. - The renewal agreements are aimed at ensuring stable operations without incurring additional costs related to relocation or renovation[73]. - The landlord for Kowloon Bay Shop is MegaBox Development Company Limited, a wholly-owned subsidiary of Kerry Properties Limited[72]. - The renewal agreements are in line with the nature of the retail business in Hong Kong, which requires periodic leasing of retail spaces[73]. - The company recognizes the value of the right-of-use assets on its consolidated statement of financial position in connection with the lease agreements[75]. - The renewal of the tenancy agreement for Tsuen Wan Shop 312 is effective from September 1, 2023, for a term of three years, ending on August 31, 2026[84]. - The total consideration for the renewal is not less than HK$2,555,000, which represents the aggregate monthly basic rental for the three-year term[84]. - The terms of the renewal were determined after arm's length negotiations and are considered fair and reasonable, aligning with normal commercial terms[86]. - The renewal is recognized as an acquisition of asset under HKFRS 16 "Lease," impacting the consolidated statement of financial position[87]. - The applicable percentage ratios for the lease transaction exceed 5% but are below 25%, classifying it as a discloseable transaction subject to reporting requirements[88]. - The renewal of the tenancy agreement for Wanchai Shop 56 is effective from March 8, 2024, for a term of two years, ending on March 7, 2026[95]. - The total consideration for the Wanchai Shop 56 renewal is not less than HK$2,025,000, representing the aggregate monthly basic rental for the two-year term[95]. - Similar to Tsuen Wan Shop 312, the terms for Wanchai Shop 56 were established after arm's length negotiations and are deemed fair and reasonable[97]. - The renewal of Wanchai Shop 56 is also recognized as an acquisition of asset under HKFRS 16, affecting the financial position of the Group[98]. - The applicable percentage ratios for the Wanchai Shop 56 lease transaction also exceed 5% but are below 25%, making it a discloseable transaction[99]. Management and Governance - The company has a strong management team with diverse expertise in various fields including design, finance, and law[140]. - The group is focused on business development and market expansion strategies[138]. - The company aims to enhance its operational efficiency and resource management through independent oversight[141]. - The management team is committed to maintaining high standards of conduct and performance within the organization[146]. - The company has adopted a code of conduct for securities transactions by Directors, confirming compliance with the Required Standard of Dealings during the Financial Year[167]. - The Board of Directors consists of three executive Directors and three independent non-executive Directors, with all members confirming no material relationships among them[168]. - During the Financial Year, five Board meetings and one general meeting were held, with full attendance from executive Directors[177]. - The company is committed to high standards of corporate governance, complying with the CG Code during the Financial Year[166]. - The principal function of the Board includes approving overall business plans and strategies, and monitoring their implementation[173]. - The company has a fixed term service agreement with two executive Directors for two years, subject to termination provisions and retirement by rotation[181]. - The independent management team is led by senior management with substantial experience in the Group's business[173]. - The company has complied with the code provision requiring the chairman to hold annual meetings with independent non-executive Directors without the presence of other Directors[178]. - The company has a strong focus on compliance with safety requirements for all products sold in retail stores[159]. - The Company has three independent non-executive Directors, complying with Rule 5.05 of the GEM Listing Rules[189]. - Mr. Chung and Mr. Leung possess appropriate professional qualifications or accounting expertise as required by Rule 5.05(2) of the GEM Listing Rules[189]. - The roles of the chairman and the chief executive officer are separated, with Mr. Hue Kwok Chiu as chairman and Mr. Hui Kwok Keung Raymond as CEO[190]. - The Board delegates day-to-day operations to executive Directors and management while reserving key strategic decisions for Board approval[191]. - All Directors participated in continuous professional development during the Financial Year to enhance their knowledge and skills[193]. - The Company has established service agreements for its Directors, with terms of two years and provisions for termination with three months' notice[184][187]. - Directors are subject to retirement by rotation at least once every three years, ensuring compliance with corporate governance standards[186]. - The Company received written confirmations of independence from all independent non-executive Directors, affirming their status[189]. - The Board has the authority to appoint Directors to fill casual vacancies or as additions to the existing Board[185]. - The Company provides training courses and monthly updates to support Directors' professional development[192].
壹照明(08222) - 2024 - 年度财报