Financial Performance - Turnover for the year ended March 31, 2024, was HK$2,655 million, a decrease of 4.1% compared to HK$2,768 million in the previous year[10]. - Profit attributable to owners of the company for the year was a loss of HK$374 million, compared to a loss of HK$71 million in the previous year[10]. - Earnings per share for the year was a loss of HK$1.50, compared to a loss of HK$0.29 in the previous year[10]. - The company reported total equity of HK$553 million, down from HK$893 million in the previous year[10]. - The net gearing ratio increased to 109%, compared to 51% in the previous year[10]. - Cash and cash equivalents decreased to HK$180 million from HK$348 million in the previous year[10]. - Market capitalization as of the reporting date was HK$212 million, down from HK$336 million in the previous year[10]. - The gross profit margin decreased to 29.6% for the Year, down from 35.1% for the year ended 31 March 2023, due to an increasing sales mix of 24 karat gold products[35]. - The Group incurred an additional restructuring cost of approximately HK$75 million during the Year as part of cost control measures[36]. - The loss attributable to owners of the Company was HK$374.2 million for the Year, compared to a loss of HK$71.4 million for Year 2022/23, resulting in a loss per share of 150.2 HK cents[40]. - The Group's net debt position increased to approximately HK$602.3 million as of March 31, 2024, compared to HK$459.1 million as of March 31, 2023, resulting in a net gearing ratio of 108.9%[78]. - The Group's cash and bank balances decreased to HK$474.1 million as of March 31, 2024, from HK$714.5 million in the previous year[73]. Market Conditions and Strategy - The Group experienced a challenging year for the financial year ended March 31, 2024, with significant impacts from geopolitical tensions and high inflation affecting consumer spending behavior[34]. - There was a notable decline in consumer demand for natural diamond jewellery products, particularly in the Mainland China market, which adversely affected the Group's performance[34]. - The Group's strategy has shifted focus towards the 24-karat gold jewellery business, driven by substantial market demand for pure gold as a safe investment[26]. - The transition from self-operated stores to an aggressive franchising network expansion aims to create a resilient business model for sustainable long-term growth[26]. - Profit margins were diminished due to the adjustment of the sales mix towards 24-karat gold products, which have a relatively lower profit margin compared to natural diamonds[34]. - The Group aims to enhance its retail store network through franchising and optimize the product mix to improve profitability amid economic uncertainties[70]. - The Group plans to enhance its 24 karat gold inventory for a more balanced inventory mix based on the latest sales trends[54]. - The Group closed 5 non-performing retail shops in Hong Kong during the Year to address the downturn in retail sales[42]. - The Group expects sales performance in Hong Kong and Macau to improve progressively due to the extension of the Individual Visit Scheme to 8 additional cities in Mainland China[48]. - The Group observed a decline in turnover of its franchising stores in Mainland China, primarily due to a significant drop in market demand for natural diamond jewellery[49]. - The Group's franchising network in Mainland China experienced a slowdown, leading to a decrease in turnover due to a significant decline in demand for natural diamonds[63]. - E-business turnover in Mainland China showed a mild year-on-year decline, while Hong Kong recorded a slight increase through the TSL e-shop platform[65]. Corporate Governance and Management - Tse Sui Luen, the founder of the Group, has over 52 years of experience in the jewellery industry, providing strategic advice and facilitating business development through strong networks[86][87]. - Annie Yau, the Chairman and CEO, has over 31 years of management experience and has modernized the Group's management through business process reengineering since joining in 2002[93][95]. - The Group's management team includes independent non-executive directors with extensive experience in various industries, enhancing governance and strategic oversight[100][104]. - The Company has received annual confirmations of independence from each of the independent non-executive Directors, and they are still considered independent as of the report date[189]. - No Director proposed for re-election at the 2024 AGM has a service contract that is not determinable within one year without compensation other than statutory compensation[192]. - Directors' fees are subject to Shareholders' approval at general meetings, while other emoluments are determined by the Board based on Directors' duties and the Group's performance[193]. - The emolument policy for employees is established by the Human Resources Department, with salaries based on qualifications and experience[194]. - The emoluments of independent non-executive Directors are decided by the Board, considering comparable companies and responsibilities[195]. - Details of Directors' remuneration for the Year are provided in note 9 to the consolidated financial statements[198]. Corporate Social Responsibility and Sustainability - The Group actively embraces corporate social responsibility and sustainability, with initiatives documented in an Environmental, Social, and Governance Report[29]. - The Group's commitment to employee and customer well-being includes stringent health and work standards across all workplaces and stores[29]. - The TSL Foundation was established to preserve traditional jewelry-making techniques and promote sustainability in the jewelry industry[125]. - TSLF has expanded its support to cultivate various talents for the development of creative industries in Hong Kong[125]. - During the pandemic, TSLF sponsored various physical concerts in Hong Kong, including a concert for lyricist Mr. Cheng Kwok Kong in May 2023[131]. - TSLF aims to bring hope and address mental health concerns through cultural initiatives during challenging times[131]. - The organization actively contributes to the preservation of Cantopop culture, which peaked from the 1980s to the 2000s[127]. - Advances in information technology have made the preservation of Cantopop more accessible through digital and streaming platforms[129]. - TSLF focuses on educating the public about astronomy developments for the Chinese community[126]. - The foundation's efforts in Cantopop preservation play a vital role in sustaining Hong Kong's cultural heritage[129]. - TSLF has been recognized for its contributions to the local music industry, celebrating significant figures like Mr. Cheng[131]. - The foundation's initiatives reflect a commitment to cultural sustainability and community engagement in Hong Kong[125]. Dividend Policy - The company did not declare any dividend for the year, maintaining a dividend payout ratio of Nil[10]. - No interim dividend was declared during the year, and no final dividend is recommended for the year, maintaining a total dividend of Nil for 2022/23[153]. - The Board has adopted a dividend policy to ensure adequate cash reserves for working capital and future growth while considering shareholder value[155]. - The Company does not have a pre-determined dividend payout ratio, allowing the Board discretion in declaring dividends[155]. - The Company aims to maintain sufficient cash reserves while evaluating dividend declarations based on various factors[155]. - The Company emphasizes the importance of shareholder value in its dividend policy[155]. Operational Adjustments - The total number of employees decreased to approximately 1,891 as of March 31, 2024, down from 2,360 a year earlier, reflecting adjustments to business strategies[80]. - The Group has implemented various measures to stabilize its financial situation, particularly focusing on profitability and cash flow[26]. - The Group remains committed to diversifying online sales channels and maximizing returns from digital commerce trends[66]. - The Group will continue to prioritize cost control measures and maintain adequate cash flow to meet operational needs[71]. - The principal activity of the Company is investment holding, with details of subsidiaries outlined in the financial statements[149]. - The financial statements cover pages 89 to 236 of the annual report, providing comprehensive financial data[153]. - The Directors presented their report along with the audited consolidated financial statements for the year[148].
谢瑞麟(00417) - 2024 - 年度财报