Financial Performance - The group's revenue for the year ended March 31, 2024, was HKD 33.9 million, a decrease of 9.4% from HKD 37.4 million in 2023[10] - The group recorded a net loss attributable to shareholders of approximately HKD 14.7 million for the year[10] - The annual gross profit was approximately HKD 26.2 million, down 8.7% from HKD 28.7 million in 2023, with a gross margin of 77.1%[17] - The net loss for the reporting year was approximately HKD 14.7 million, compared to a net loss of HKD 6.1 million in 2023, primarily due to a decline in sales and increased impairment losses[17] - The group's consolidated revenue for the reporting year was approximately HKD 33.9 million, a decrease of 9.4% compared to HKD 37.4 million in 2023[17] Cost Management and Financial Stability - The group focused on cost reduction and management of expenses, including rent negotiations and wage control, to maintain financial stability[10] - The group maintains a prudent approach to risk management and financial stability amid ongoing market challenges[12] - The financing costs increased by 33.3% to approximately HKD 4.4 million due to higher interest on secured mortgage loans and revolving loans[23] - Current liabilities net value increased by approximately HKD 4.5 million or 69.2% to about HKD 11.0 million, attributed to the increase in the current portion of bank borrowings[28] - Cash and bank balances increased by approximately HKD 0.6 million or 26.1% to about HKD 2.9 million[28] Retail Environment and Sales Channels - The retail environment in Hong Kong remains challenging due to local consumers preferring to shop in the Greater Bay Area[16] - Indirect sales through HKTVmall increased, helping to offset some losses from traditional stores and counters[10] - Approximately 250,000 Hong Kong residents cross into mainland China daily on weekends, impacting local retail consumption[16] Product and Market Development - The board remains cautiously optimistic about the group's future, emphasizing the importance of expanding product range and customer base[12] - The group plans to explore new product development and collaborations to diversify revenue sources[12] - Tea leaves accounted for 94.9% of total revenue, with Pu-erh tea being the best-selling product, contributing 35.7% of total sales[18] Environmental Responsibility - The company has not set specific environmental goals due to minimal resource usage in its tea retail business, but it is committed to reducing resource consumption and greenhouse gas emissions[60] - The group reported a decrease in electricity consumption from 139,529 kWh in 2023 to 134,770 kWh in 2024, attributed to a temporary store closure for renovations[74] - The greenhouse gas emissions from purchased electricity decreased from 82,885 kg CO2 in 2023 to 77,886 kg CO2 in 2024, reflecting the group's commitment to improving energy efficiency[74] - The water consumption reduced from 439 cubic meters in 2023 to 387 cubic meters in 2024, benefiting from implemented water-saving measures[79] - The group has set a goal to maintain or further reduce resource consumption levels while expanding its business operations[77] Employee Management and Training - The employee turnover rate improved to 22% in 2024 from 25% in 2023, indicating a reduction in employee attrition[96] - The total number of employees decreased from 55 in 2023 to 51 in 2024, a reduction of approximately 7.3%[93] - A total of 51 employees were reported, with 4 employees receiving training, representing 8% of the workforce[104] - Female employees accounted for 100% of the trained employees, while frontline staff also represented 100% of the trained group[104] Corporate Governance - The board consists of 6 members, including 3 executive directors and 3 independent non-executive directors, ensuring compliance with GEM listing rules[127] - The company has implemented strict anti-corruption policies and conducted regular fraud risk assessments[119] - The company has established a whistleblowing system to report fraud or corruption concerns[120] - The board has adopted a diversity policy for board member nominations, considering various factors such as gender, age, race, and industry experience[130] - The company recognizes the importance of ongoing training for directors to enhance corporate governance quality, with all directors participating in professional development during the reporting year[135] Risk Management - The company has established a comprehensive occupational health and safety management system to prevent workplace injuries and illnesses[97] - The management is closely monitoring new regulations to assess potential risks and ensure compliance, which may impact operational costs[89] - The board is responsible for the risk management and internal control systems, which are reviewed annually for effectiveness[185] Community Engagement - The group sponsored approximately HKD 11,864 for community and charitable activities during the reporting year[122] - The group actively promotes traditional tea culture through social media platforms[123] Supplier Management - The group has established a supplier management policy, with 80% of suppliers located in Hong Kong, up from 71% in the previous year[111] - The total number of suppliers increased from 21 in 2023 to 25 in 2024, indicating an expansion of supplier relationships[111] Audit and Financial Reporting - The audit committee conducted four meetings in the reporting year to review quarterly, interim, and annual financial statements[172] - The audit committee is responsible for monitoring the relationship with external auditors and ensuring their independence and objectivity[169] - The company has adopted appropriate accounting policies and ensured compliance with relevant financial reporting standards[174]
英记茶庄集团(08241) - 2024 - 年度财报