Financial Performance - The Group's total revenue decreased to HK$171.6 million for the year ended 31 March 2024, down from HK$216.1 million in 2023, representing a decline of approximately 20.6%[11] - Gross profit for the year was HK$99.7 million, compared to HK$133.2 million in the previous year, indicating a decrease of about 25.2%[11] - The Group recorded a net loss of HK$25.0 million for the year, compared to a net loss of HK$21.0 million in 2023, reflecting an increase in losses of approximately 19%[13] - Basic loss per share was HK3.13 cents, compared to HK2.63 cents in the previous year, indicating a worsening of the loss per share[13] - Cash and cash equivalents decreased to HK$43.4 million in 2024 from HK$62.1 million in 2023[55] - Current assets were approximately HK$105.7 million, down from HK$128.2 million in 2023, while current liabilities decreased to HK$65.0 million from HK$69.9 million[56] - The current ratio declined to 1.6 in 2024 from 1.8 in 2023, and the quick ratio decreased to 1.0 from 1.2[56] - The Group maintained a zero gearing ratio, with no bank borrowings reported for both 2023 and 2024[55] - Total staff costs, including Directors' remuneration, were HK$43.6 million in 2024, down from HK$45.9 million in 2023[57] Retail Operations - Retail segment revenue amounted to HK$155.1 million, accounting for 90.4% of total revenue, a slight increase from 90.2% in 2023[12] - The aggregate retail sales revenue of "Ulferts" and "Ulferts Signature" was HK$78.0 million, contributing 50.3% to total retail revenue, down from 56.4% in 2023[12] - The Group operated a total of 24 points-of-sale in Hong Kong as of 31 March 2024, under various trade names including "Ulferts" and "at • home"[22] - The Group operates a total of 24 points of sale (POS) in Hong Kong as of March 31, 2024, including 1 "Ulferts Signature" store, 3 "Ulferts" stores, 5 "at • home" stores, 6 "Slumberland" stores, and 9 "Ulfenbo" stores[38] - "Ulferts Signature" flagship store has a gross floor area of approximately 21,700 square feet, featuring premium brands such as Cornelio Cappellini, Malerba, and Crystal Stone[39] - The Group offers over 50 furniture brands, including international brands like himolla, Gamma, MIDJ, egoitaliano, and MALERBA, focusing on both high-end and mass market segments[34] - "Slumberland" targets up-market customers with premium mattresses, while "Vono" caters to the mass market[32] - "Ulfenbo" has been recognized with the "Hong Kong Top Brand Mark" for ten consecutive years since 2014, focusing on affordable quality products for mass market consumers[33] - The Group's retail strategy includes a comprehensive sales channel with stores located in upscale residential areas and major shopping areas to attract substantial foot traffic[40] - The "at • home" stores are designed to meet the needs of young couples and new families, offering compact furniture suitable for small living spaces[30] Market Conditions - Market conditions remain challenging, with sluggish demand for furniture due to deepening competition and a gloomy property market[14] - The macro environment presents ongoing challenges, with a slow recovery expected in the local property and furniture markets[51] Online and Wholesale Operations - The Group is enhancing its online shopping platforms for "Ulferts", "at • home", and "Ulfenbo" to maximize market coverage and revenue[26] - The Group operates a wholesale business through over 100 dealers in Hong Kong and Macau, focusing on its own brand "Ulfenbo" and British brands "Slumberland" and "Vono" for mattresses and bedding products[44] Management and Governance - The company reported a significant increase in overall management and business strategies under the leadership of Executive Director and Managing Director Chan Chuen Yin, who has over 30 years of experience in operations and business development[63] - The company has a diverse management team with extensive experience across various sectors, including retail, property investment, and entertainment, enhancing its strategic capabilities[67] - The company is focused on corporate governance, with key members like Vanessa Fan overseeing overall corporate management and business strategy, ensuring effective operational policies[72] - The financial management is overseen by Wong Chi Fai, who has over 30 years of experience in finance and management, contributing to the company's strategic planning and development[68] - The company is committed to high standards of corporate governance to ensure accountability, responsibility, and transparency[169] - The Company has adopted a Board Diversity Policy to achieve a diverse Board with a balance of skills, experience, and perspectives[187] - The Board consists of seven Directors, including four Executive Directors and three Independent Non-Executive Directors (INEDs), ensuring a diverse mix of skills and experience[182] - The INEDs' term of appointment is subject to retirement by rotation and re-election provisions, maintaining independence[195] - The Board has established mechanisms to ensure independent views and input are available, enhancing governance effectiveness[183] Corporate Social Responsibility - The company is actively involved in community and youth development initiatives, led by its directors, which aligns with its corporate social responsibility goals[64] Shareholder Information - The Group did not pay any interim dividend to shareholders during the Year, and no final dividend was recommended for the Year[84] - As of March 31, 2024, Mr. Alex Yeung holds 600,000,000 shares, representing 75.00% of the issued voting shares of the Company[121] - The Company has a share option scheme with a mandate limit of 800,000,000 shares, unchanged throughout the year[128] - The remuneration of employees is determined based on individual responsibility, competence, skills, experience, performance, and market pay levels[117] - The Company has no equity-linked agreements other than the Share Option Scheme during the year[129] Compliance and Audit - The Company complied with the disclosure requirements regarding non-exempt continuing connected transactions as per Chapter 14A of the Listing Rules[152] - The independent auditor issued unqualified conclusions regarding the Group's non-exempt continuing connected transactions[154] - The independent non-executive Directors confirmed that the non-exempt continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[158] - Ernst & Young will retire, and a resolution for their reappointment as independent auditor will be proposed at the 2024 AGM[163] - The Company fully complied with all code provisions of the Corporate Governance Code during the Year[170] Workforce Diversity - As of March 31, 2024, the Board's gender diversity includes three female directors, representing 43% of the Board[193] - The total workforce comprises 56% female and 44% male, while senior management consists of 33% female and 67% male[194] - The Company aims to maintain a target of no less than 25% female directors on the Board, reflecting its commitment to gender diversity[193] - The board consists of seven members, with three women, representing 43% gender diversity, exceeding the target of at least 25%[197]
欧化(01711) - 2024 - 年度财报