Financial Performance - The group's revenue for the year ending March 31, 2024, decreased by 1.8% to HKD 193,000,000 due to weak consumer sentiment and changes in local spending habits[2]. - For the fiscal year 2023/24, the total revenue was HKD 193.0 million, a decrease of 1.8% compared to HKD 196.6 million in the previous fiscal year[61]. - The net profit for the fiscal year 2023/24 was HKD 142.6 million, resulting in a net profit margin of 73.8%[60]. - Net profit dropped significantly to HKD 1.2 million from HKD 46 million, primarily due to reduced inventory provisions and increased rental expenses[85]. - The group recorded a gain from property sales of HKD 2.6 million for the year, up from HKD 1.5 million in 2023[81]. - The group had no bank borrowings as of March 31, 2024, maintaining a debt-to-asset ratio of zero[88]. - The company did not declare any dividends for the year ending March 31, 2024[161]. Operational Efficiency - The management is committed to improving operational efficiency and cost control to adapt to changing consumer behaviors[5]. - The company is focusing on strategic retail management and cost control to improve operational efficiency moving forward[65]. - The group successfully adjusted rental and employee costs to better align with sales performance[74]. - Cash flow from operating activities decreased by 37.6% to HKD 44.7 million, attributed to rising operating costs[90]. Market Outlook - The group maintains a cautiously optimistic outlook for the retail market in Hong Kong and Macau, anticipating a more pronounced recovery in retail sales as global interest rates decline[5]. - The overall retail atmosphere in Hong Kong remains sluggish, impacting sales performance despite the easing of travel restrictions[73]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of environmental, social, and governance (ESG) strategies for long-term success, with a dedicated team reporting to the board on these matters[8]. - Stakeholder engagement will guide the development of future ESG policies and improvement measures, focusing on key concerns such as plastic use and employee retention[14]. - The company has implemented comprehensive measures to protect personal data, ensuring compliance with applicable laws and regulations[45]. - The company has established a systematic inspection process to monitor product quality, ensuring compliance with environmental and social responsibilities[41]. - The group emphasizes the importance of environmental sustainability and compliance with relevant environmental laws and policies in its operations[156]. Employee Management - As of March 31, 2024, the company has 165 employees in Hong Kong and Macau, a decrease from 183 employees in 2023, representing a reduction of approximately 9.84%[31]. - The employee turnover rate increased to 82% in 2024 from 75% in 2023, indicating a significant rise in employee attrition[32]. - The company provided a total of 1,593 training hours in the review year, down from 1,824 hours in 2023, reflecting a decrease of about 12.66%[35]. - There were no reported workplace injuries during the review year, a significant improvement compared to one injury reported in the previous year, which resulted in 39 lost workdays[34]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[101]. - The company has adopted corporate governance policies to ensure compliance with the Hong Kong Stock Exchange's listing rules, including the appointment of independent non-executive directors[104]. - The board is responsible for risk management and internal control systems, which are reviewed at least annually for effectiveness[130]. - The audit committee reviewed the group's consolidated financial statements and compliance with corporate governance codes[111]. Shareholder Engagement - Regular communication with shareholders and potential investors is maintained to enhance transparency and engagement[142]. - The company has adopted a dividend policy to ensure sustainable business development and provide reasonable returns to shareholders, with factors such as operations, profitability, and overall financial condition considered for dividend declarations[143]. Product and Market Strategy - The group has focused on increasing gross margins by selling more private label products and enhancing brand recognition for "TOUGH" and "SALAD"[3]. - The company plans to enhance its brand assets by focusing on unique and high-quality products, including jackets, handbags, and distressed jeans[5]. - E-commerce is expected to significantly impact the retail sector, with the company aiming to balance physical and digital channels to provide a seamless shopping experience[5]. Inventory and Sales Performance - Same-store sales increased by 11% for the fiscal year, recovering from a decline of 6% in 2023[77]. - The group's offline retail business in Macau saw a strong rebound with same-store sales growth of 49%, compared to a decline of 28% in 2023[74]. - The average inventory turnover days improved to 261 days, a reduction of 28 days compared to 289 days in the previous fiscal year[64].
包浩斯国际(00483) - 2024 - 年度财报