Financial Performance - For the fiscal year ending March 31, 2024, the company reported revenue of approximately HKD 268.0 million, a decrease of about 26.7% compared to HKD 365.6 million for the fiscal year ending March 31, 2023[5]. - The profit attributable to equity holders decreased from approximately HKD 64.2 million in the fiscal year 2023 to about HKD 38.7 million in fiscal year 2024, representing a decline of approximately 39.7%[9]. - The company's net profit margin decreased from approximately 17.6% to about 14.4%, a drop of approximately 3.2 percentage points[9]. - Total revenue decreased by approximately HKD 97.6 million (26.7%) from about HKD 365.6 million in FY2023 to about HKD 268.0 million in FY2024, primarily due to a decline in sales of personal care appliances, particularly the hair care series[13]. - Gross profit decreased by approximately HKD 15.0 million (13.3%) to about HKD 97.4 million in FY2024, while gross profit margin increased by approximately 5.6 percentage points to about 36.3%[14]. - Net profit attributable to equity holders decreased by approximately HKD 25.5 million (39.7%) from about HKD 64.2 million in FY2023 to about HKD 38.7 million in FY2024, with net profit margin declining by approximately 3.2 percentage points to about 14.4%[20]. Business Strategy and Development - The decline in sales was primarily due to reduced demand for hair care products from two major customers[9]. - The company is accelerating the development of its OBM (Own Brand Manufacturing) business model and will continue to invest in marketing efforts to promote its personal care and lifestyle electronic products in the Chinese and Hong Kong markets[10]. - The company plans to utilize its extensive technical knowledge and manufacturing capabilities to expand its business into the retail market[10]. - The company aims to enhance the competitiveness of its high-quality products and strengthen R&D capabilities to increase market share in its existing ODM (Original Design Manufacturer) business[5]. - The group continues to develop its own brand of personal care and lifestyle appliances for retail customers[61]. Expenses and Financial Management - Marketing and distribution expenses increased due to the launch of the OBM business, although this was partially offset by slight improvements in product gross margins[9]. - Selling and distribution expenses increased by approximately HKD 16.4 million (approximately 364.4%) to about HKD 20.9 million in FY2024, attributed to marketing and distribution costs for launching self-branded personal care products in China and Hong Kong[15]. - Employee costs totaled approximately HKD 56.6 million in FY2024, down from about HKD 68.1 million in FY2023[30]. - Cash and bank balances as of March 31, 2024, were approximately HKD 253.6 million, compared to about HKD 247.1 million as of March 31, 2023[22]. - The group had no bank borrowings as of March 31, 2024, and maintained an asset-liability ratio of zero[23]. Governance and Management - The management team has over 35 years of experience in the small household appliances and personal care appliances industry[34]. - The company has a strong focus on sales and marketing strategies, with key decisions made by the executive team led by the CEO[34]. - The company has a robust governance structure with independent directors providing oversight and independent opinions[41]. - The independent non-executive director has over 20 years of experience in corporate finance, accounting, and auditing[41]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[134]. Shareholder and Dividend Information - The board does not recommend the payment of a final dividend for FY2024, compared to a final dividend of HKD 0.015 and a special dividend of HKD 0.008 per share for FY2023[32]. - The company reported a total of 468,750,000 shares outstanding, with the largest shareholder holding 36.7% of the equity[35]. - The company has not granted any stock options under the stock option plan since its adoption on August 21, 2020, and there are no unexercised options[98]. Risk Management and Compliance - The risk management system has identified no significant risks based on the assessment conducted for the fiscal year 2023/24[181]. - The internal control system aligns with the COSO 2013 framework, ensuring operational effectiveness and compliance with applicable laws[182]. - The company has implemented measures to ensure the accuracy and timeliness of disclosed information, with no significant internal control deficiencies identified[182]. - The company has adopted a whistleblowing policy to report any misconduct, ensuring confidentiality and protection for whistleblowers[191]. Future Outlook - The management anticipates facing significant challenges in the fiscal year ending March 31, 2025, due to ongoing geopolitical tensions and economic uncertainties[10]. - The company has set a target to launch new products by June 2026, with an expected allocation of HKD 19.3 million for this initiative[131].
科利实业控股(01455) - 2024 - 年度财报