Financial Performance - The company's consolidated revenue for the year ended March 31, 2024, was approximately HKD 702 million, a slight decrease from HKD 705 million in 2023[10]. - The company reported a loss attributable to owners of HKD 28 million for the year, an improvement from a loss of HKD 31 million in 2023[10]. - The gross profit margin decreased to 10.67% from 15.49% in the previous year, primarily due to intense competition leading to price reductions[10]. - ODM business revenue decreased by 6.53% to HKD 515 million, accounting for 73.36% of total revenue, with significant declines in Europe and the US[11]. - Revenue from the brand eyewear distribution business increased by 22.52% to HKD 185 million, benefiting from economic rebounds in several Asian countries[12]. - The company anticipates a challenging business environment due to high inflation and interest rates, with unstable market demand for eyewear products expected in the short term[21]. - The company reported a pre-tax loss of HKD 39,013,000, compared to a loss of HKD 34,354,000 in the previous year, indicating a worsening financial performance[137]. - Net loss attributable to shareholders for the year was HKD 28,365,000, a reduction from HKD 30,558,000 in the prior year[137]. - Total assets decreased to HKD 1,246,954,000 from HKD 1,345,136,000, reflecting a decline in overall asset value[138][139]. - Current assets decreased to HKD 563,481,000 from HKD 612,410,000, indicating a reduction in liquidity[138]. - The company's cash and cash equivalents decreased to HKD 274,529,000 from HKD 328,760,000, showing a decline in cash reserves[138]. - Total equity decreased to HKD 670,395,000 from HKD 722,369,000, reflecting a decrease in shareholder value[139]. Cash Flow and Investments - The company held cash and bank balances of HKD 275 million as of March 31, 2024, with bank borrowings of approximately HKD 36 million[14]. - The company invested HKD 11,205,000 in property, plant, and equipment, up from HKD 9,163,000 in the previous year, reflecting ongoing capital expenditures[142]. - The company incurred a loss of HKD 2,001,000 from joint ventures, which was not present in the previous year[141]. - The financing activities resulted in a cash outflow of HKD 20,768,000, slightly lower than the outflow of HKD 22,072,000 in the previous year[142]. - The company paid dividends of HKD 7,884,000, consistent with the previous year[142]. Corporate Governance - The board consists of five executive directors and three independent non-executive directors, with independent directors accounting for at least one-third of the board[32]. - The company has adhered to all applicable corporate governance code provisions during the fiscal year ending March 31, 2024[30]. - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code, but the board believes this structure provides effective leadership[36]. - The board held four meetings during the fiscal year, with all directors attending all meetings[33]. - The company has established mechanisms to ensure the independence of the board, including annual reviews and independent professional advice[34]. - The company is committed to maintaining high standards of corporate governance to enhance management and protect shareholder interests[30]. - The board is responsible for formulating company policies and overall strategies while effectively overseeing business management[34]. - The company plans to maintain the current board structure while regularly reviewing its effectiveness to ensure a balance of power[36]. Risk Management - The company has established a structured risk management system to identify, assess, and report risks, ensuring effective internal controls[53]. - The group identified key risks including market risk, credit risk, and liquidity risk, which could impact its operational and financial status[68]. - The company closely monitors foreign exchange risks and utilizes forward contracts to manage risks associated with currency fluctuations[17]. - The risk management system includes regular assessments and action plans for identified risks, ensuring ongoing monitoring and improvement[56]. - No significant deficiencies were found in the risk management and internal control systems during the annual review conducted by the board[54]. Employee and Stakeholder Engagement - The group has approximately 3,200 employees as of March 31, 2024, with compensation based on individual performance and overall business results[18]. - The company emphasizes maintaining diversity and equal opportunity in its employee recruitment process[50]. - The company encourages employees to report any suspected illegal activities or corruption, ensuring anonymity and protection for whistleblowers[59]. - The group is committed to creating long-term value for stakeholders despite the anticipated challenges in the business environment[23]. Shareholder Information - The company plans to declare a special final dividend of HKD 0.015 per share for the year ended March 31, 2024[15]. - The group proposed a final special dividend of HKD 0.015 per share, amounting to approximately HKD 3,942,000[66]. - Major shareholders include United Vision International Limited, Marshvale Investments Limited, and HSBC International Trustee Limited, each holding 141,533,828 shares, representing 53.86% of the issued share capital[98]. - The company has a total of 141,533,828 shares held by The Vision Trust, representing 53.86% of the issued share capital, owned by directors Gu Yiyong and Gu Jiayong[81]. Accounting and Financial Reporting - The consolidated financial statements are prepared based on historical cost, except for certain financial instruments measured at fair value[158]. - The group assesses control over subsidiaries based on three elements, and will reevaluate if any of these elements change[160]. - Revenue from customer contracts is recognized when control of goods or services is transferred to the customer[167]. - The group recognizes revenue from transferred products based on the expected consideration amount, excluding anticipated returns or exchanges[172]. - The group will cease to recognize assets and liabilities of a subsidiary when control is lost, with any resulting gains or losses recorded in profit or loss[162]. - The group evaluates for objective evidence of impairment in joint ventures, conducting impairment tests as necessary[166]. - The group recognizes gains or losses on the sale or disposal of property, plant, and equipment based on the difference between the sale proceeds and the carrying amount of the asset[194].
新兴光学(00125) - 2024 - 年度财报