Business Operations - Elife Holdings Limited is primarily engaged in the supply chain business for branded goods and consumer products in the Greater China region, focusing on brand digitization services[9]. - The Group's licensed branded consumer goods business includes licensed watches and handbags, with established sales channels including direct export and self-operated e-commerce platforms[12]. - During the year ended March 31, 2024, the Group became the exclusive licensee of the Australian brand "ROYAL ELASTICS" in China, expanding its product offerings to include watches and sports shoes[12]. - The Group is actively exploring new product lines such as sports and casual shoes and men's underwear to further expand its business[12]. - The supply chain business focuses on assisting brand suppliers to expand their online and offline sales channels, establishing direct sales channels with end customers (B2C2C)[10]. - The Group offers digital intelligent marketing plans to enhance brand awareness and boost product sales through various online and offline platforms[10]. - The Group is focusing on brand management, promotion, and supply chain services across six major segments: dining, lodging, transportation, travel, shopping, and entertainment[96]. - The Group has successfully expanded its sales channels, transitioning from a traditional B2B model to a B2C2C model, enhancing customer engagement[88]. - The Group is actively exploring investment opportunities in AI-generated applications to enhance existing business processes and commercialize AI technology[100]. Financial Performance - For the year ended March 31, 2024, the Group recorded a turnover of approximately HK$184,086,000, representing a decrease of approximately 23% from HK$238,840,000 in 2023[22]. - The loss for the year attributable to owners of the Company was HK$32,008,000, compared to a loss of HK$21,673,000 in 2023[22]. - The Group's gross profit increased significantly to approximately HK$31,860,000, up from HK$1,867,000 in 2023, marking an increment of approximately 16 times[32]. - Revenue from brand promotion services generated approximately HK$122,408,000 during the year, with a total contract sum of approximately HK$306,714,000[24]. - The cost of sales decreased by approximately 36% to HK$152,226,000 from HK$236,973,000 in 2023[25]. - The total revenue from commodity sales amounted to approximately HK$51,903,000, down from HK$223,759,000 in 2023[23]. - The gross profit margin from sales of commodities improved to 4.6%, up from 0.1% in 2023[32]. - The average gross profit margin for the brand communication services introduced during the year was 23%, generating a gross profit of HK$28,258,000[37]. - The group recorded a net allowance for expected credit losses (ECL) on trade and other receivables of approximately HK$27,767,000, a substantial increase from HK$970,000 in 2023[40]. - The group had a net cash outflow from operating activities of approximately HK$28,939,000, compared to HK$16,398,000 in 2023[45]. - As of March 31, 2024, the group had available cash and cash balances of approximately HK$27,132,000, up from approximately HK$2,283,000 in 2023[45]. - The Group's cash reserves increased to HK$27,132,000, up from HK$2,283,000 in 2023[22]. Corporate Governance - The company complied with all applicable Code Provisions of the Corporate Governance Code for the year ended March 31, 2024, except for the separation of roles between the Chairman and the Chief Executive Officer[125]. - The Board consists of eight Directors, including five executive Directors and three independent non-executive Directors, with two INEDs possessing relevant accounting and financial management expertise[132]. - The company is committed to improving its corporate governance structure and enhancing communication with shareholders[130]. - The independent non-executive Directors provide impartial opinions to protect shareholder interests and ensure high standards of regulatory reporting[131]. - The company has not yet filled the vacant Chairman position since Mr. Zhang Xiaobin's retirement on September 29, 2023, and is actively reviewing its structure[125]. - The company is focused on identifying suitable candidates for independent non-executive Director positions to meet regulatory requirements[128]. - The Board has mechanisms in place to ensure independent views are conveyed for effective decision-making[146]. - The company provides continuous training and development for directors to enhance their knowledge and skills[147]. - The Board collectively oversees the Group's business operations and decision-making, ensuring the execution of business strategies and monitoring financial performance[130]. - The Company has established Board committees, including Audit, Remuneration, and Nomination Committees, with a majority of Independent Non-Executive Directors[192]. Management and Leadership - The management team has seen recent changes, with new appointments in July and November 2023, indicating a strategic shift in leadership[5]. - The company appointed Mr. Chow Chi Fai as Chief Financial Officer in January 2024, who has over 28 years of experience in accounting and finance[121]. - The Chief Executive Officer is responsible for the day-to-day management and ensuring alignment with the Board's strategies and objectives[164]. - The management team is responsible for day-to-day operations under the supervision of the Chief Executive Officer[146]. - The company aims to expand its market presence through strategic partnerships and acquisitions in various sectors[112]. - The management team emphasizes the importance of innovation in new product development and technology advancements[112]. Shareholder and Financial Activities - The group completed a placing of 150,520,000 shares on June 27, 2023, raising approximately HK$14,663,000 for working capital and business development[51]. - A second placing of 180,640,000 shares was completed on November 1, 2023, raising approximately HK$24,640,000 for similar purposes[53]. - The Company completed a Rights Issue on February 15, 2024, issuing 46,323,042 rights shares at a subscription price of HK$0.44 per share, resulting in net proceeds of approximately HK$19,356,000 after expenses[55]. - The net proceeds from the June 2023 Placing were fully utilized, with HK$8,000,000 allocated for working capital and HK$6,663,000 for business development[61]. - The November 2023 Placing generated net proceeds of approximately HK$24,640,000, with HK$2,640,000 used for working capital and HK$22,000,000 for business development[61]. - The company did not recommend a final dividend for the year ended March 31, 2024, consistent with the previous year[44]. Employee and Workforce - The Group had a total of 66 employees as of March 31, 2024, compared to 40 employees in 2023, reflecting a 65% increase in workforce[83]. - The company achieved gender diversity with a workforce comprising 50% male and 50% female employees as of March 31, 2024[139]. - The executive directors have entered into service agreements for an initial term of three years, subject to retirement by rotation and eligibility for re-election[140]. - The independent non-executive directors have also entered into letters of appointment for an initial term of three years, with similar conditions for retirement and re-election[143]. Audit and Risk Management - The Audit Committee consists of three independent non-executive directors, chaired by Mr. Lam Williamson[197]. - The major responsibilities of the Audit Committee include monitoring the integrity of the Company's financial statements and reviewing significant financial reporting judgments[199]. - The Audit Committee is tasked with overseeing the Company's financial reporting system, internal control, and risk management systems[199]. - Recommendations on the appointment, reappointment, and removal of the external auditor are made by the Audit Committee[199]. - The Audit Committee reviews and monitors the external auditor's independence and the effectiveness of the audit process[199]. - The Audit Committee discusses internal control and risk management systems with management to ensure effectiveness[199]. - The terms of reference for the Audit Committee are publicly available on the Company's and Stock Exchange's websites[195].
易生活控股(00223) - 2024 - 年度财报