Financial Performance - The group reported a revenue of HKD 41.2 million for the fiscal year ending March 31, 2024, with a gross profit of approximately HKD 30.1 million, resulting in a gross margin of about 73.1%[9] - The company incurred a loss of approximately HKD 27.2 million during the year and has proposed not to declare a final dividend for the fiscal year[9] - For the fiscal year ending March 31, 2024, the group's revenue from women's lingerie products was approximately HKD 38.8 million, a decrease of about 9.3% compared to the previous fiscal year[17] - Total revenue decreased from approximately HKD 44.7 million for the year ending March 31, 2023, to approximately HKD 41.2 million, primarily due to weak retail sales in women's lingerie products driven by soft consumer sentiment in Hong Kong[17] - The group's cost of sales for the fiscal year was approximately HKD 11.0 million, a reduction of about 20.9% from approximately HKD 13.9 million in the previous year[19] - Gross profit decreased by approximately 2.3% from about HKD 30.8 million to approximately HKD 30.1 million for the same period[19] - Selling expenses decreased from approximately HKD 23.6 million to about HKD 20.2 million, mainly due to reduced employee costs and depreciation related to leased retail store assets[20] - The group recorded a pre-tax loss of approximately HKD 27.0 million for the fiscal year, an improvement from a pre-tax loss of approximately HKD 34.7 million in the previous year[22] - The net loss for the fiscal year was approximately HKD 27.2 million, compared to a net loss of approximately HKD 34.7 million for the year ending March 31, 2023[24] Market Conditions and Strategy - The retail market in Hong Kong is expected to remain challenging in the short term due to ongoing weak retail sentiment and external pressures[10] - The company plans to focus resources on women's functional lingerie and health management, aiming to strengthen its local business and expand into the mainland Chinese market[10] - The group intends to develop a health product and service system based on traditional Chinese medicine, targeting chronic disease treatment and health management[10] - The company will continue to monitor market trends and adjust its business strategies accordingly to enhance overall operational efficiency[10] Cost Control and Operational Efficiency - Cost control measures have been implemented, including the closure of underperforming lingerie stores and the cessation of non-core influencer agency services[9] - The group aims to enhance operational efficiency and profitability while focusing on the development of health-related businesses to generate additional returns and expand the revenue base[16] Assets and Liabilities - As of March 31, 2024, the group's total assets decreased by approximately HKD 34.0 million to about HKD 59.4 million (2023: approximately HKD 93.4 million) [37] - The group's total liabilities decreased by approximately HKD 11.7 million to about HKD 68.5 million (2023: approximately HKD 80.2 million) [38] - The group's equity decreased by approximately HKD 22.3 million to a capital deficit of about HKD 9.1 million (2023: approximately HKD 13.2 million) [38] - As of March 31, 2024, the group's net current liabilities were approximately HKD 20.3 million (2023: approximately HKD 11.2 million) [39] - The group's cash and bank balance as of March 31, 2024, was approximately HKD 5.1 million (2023: approximately HKD 25.6 million) [39] Share Issuance and Capital Raising - The group issued a total of 26,314,500 new shares at a price of HKD 0.2 per share, raising approximately HKD 5.1 million for business development and general working capital [41] - The company completed a rights issue on August 19, 2022, issuing 270,000,000 shares at a subscription price of HKD 0.1 per share, raising a total of HKD 27.0 million[58] - The net proceeds from the rights issue, after expenses, amounted to approximately HKD 26.0 million, allocated for business expansion and general working capital[58] - A placement completed on March 20, 2023, involved the successful placement of 110,000,000 shares at a price of HKD 0.15 per share, raising approximately HKD 16.5 million[61] - The net proceeds from the placement were approximately HKD 16.2 million, intended for business expansion and general working capital[61] - The company completed Placement 2 on December 4, 2023, raising approximately HKD 5.3 million, with a net amount of HKD 5.1 million from the placement of 26,314,500 shares at a price of HKD 0.20 per share[65] - The intended use of the net proceeds from Placement 2 includes HKD 2.0 million for developing health-related businesses, HKD 1.6 million for enhancing women's lingerie product operations, and HKD 1.5 million for general working capital[66] - Placement 3 was completed on June 24, 2024, raising approximately HKD 4.2 million, with a net amount of HKD 4.0 million from the placement of 41,832,500 shares at a price of HKD 0.10 per share[69] - The intended use of the net proceeds from Placement 3 includes HKD 1.6 million for developing health-related businesses, HKD 0.8 million for enhancing women's lingerie product operations, and HKD 1.6 million for general working capital[70] Corporate Governance - The company has appointed Ms. Chen Lijun as CEO on July 31, 2023, and Mr. Zheng Sihu as Chairman since July 13, 2022[92] - The board consists of eight members, including five executive directors and three independent non-executive directors, ensuring at least one member has appropriate professional qualifications in accounting or finance[92] - The company has adhered to the corporate governance code during the fiscal year ending March 31, 2024, with some deviations noted[88] - The company emphasizes high standards of corporate governance to protect shareholder interests and enhance long-term shareholder value[87] - The board is responsible for overseeing the company's overall strategy and business performance, including financial performance and risk management systems[91] - The company has implemented a code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules[89] - Continuous professional development is mandatory for all directors to enhance their knowledge and skills, with participation in relevant seminars and training[94] - The company has a commitment to transparency, accountability, and fairness in its corporate governance practices[87] Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the integration of sustainable business practices into daily operations, showcasing its commitment to environmental, social, and governance (ESG) initiatives[142] - The company has established an ESG working group responsible for collecting data and preparing ESG reports, which regularly reports to the board[153] - The board has decided to set environmental goals related to energy and water consumption, aligning with the Chinese government's carbon neutrality vision[152] - The company has successfully met its 5% reduction targets for water consumption density, achieving a density of 7.03 m³/employee by 2024[165] - The total greenhouse gas emissions decreased from 140.86 tons of CO2 equivalent in 2023 to 57.34 tons in 2024, marking a reduction of about 59%[169] - The company has implemented measures to optimize fuel consumption and reduce emissions, including route planning and regular vehicle maintenance[169] - The company has transformed its production base in Shenzhen into a warehouse, leading to a significant reduction in greenhouse gas emissions[172] - The company recognizes the risks posed by climate change and is actively managing these risks through its business continuity plans[194] Employee and Diversity Policies - The group emphasizes the importance of employees as essential assets for business success and growth, fostering a strong and cohesive workforce based on trust, respect, and a healthy work culture[197] - The group maintains a zero-tolerance policy towards any form of discrimination, ensuring that all talent management decisions are based solely on performance and equality[198] - The group is committed to creating a truly inclusive team that reflects the diversity of its customer base, recognizing the value brought by different perspectives and experiences[198]
海纳星空科技(08297) - 2024 - 年度财报