Financial Performance - The total revenue for the fiscal year ending March 31, 2024, was HKD 516.8 million, a decrease of 31.4% compared to HKD 753.2 million in the previous year[6]. - The company reported a loss attributable to shareholders of HKD 12.8 million, compared to a profit of HKD 19.7 million in the same period last year[6]. - The EBITDA for the year was HKD 1,561,000, a substantial decline from HKD 39,905,000 in 2023[22][23]. - The pre-tax operating loss for 2024 was HKD 15,597,000, compared to a pre-tax operating profit of HKD 24,231,000 in 2023[24]. - The gross profit for the same period was HKD 105,819,000, down 34.5% from HKD 161,442,000 year-over-year[196]. - The company incurred a net loss of HKD 13,989,000 for the year, contrasting with a profit of HKD 18,800,000 in the previous year[198]. - Basic and diluted loss per share was HKD 2.8, compared to earnings of HKD 4.4 per share in the prior year[196]. - The total comprehensive loss for the year amounted to HKD 16,435,000, compared to a total comprehensive income of HKD 12,937,000 in the previous year[198]. Market Performance - Sales in the North American market decreased by 50.3%, accounting for 42.7% of total revenue, primarily due to reduced consumer demand and high inventory levels[6]. - Sales in the Asian region, mainly to China, showed stable performance, contributing 53.7% to total revenue, despite challenges in the domestic consumption market[7]. - North American market sales decreased by 50.3% to HKD 220.9 million, with sales in the U.S. and Canada at HKD 135.6 million and HKD 85.3 million, reflecting declines of 48.0% and 53.6% respectively[39]. - The overall economic uncertainty and high interest rates have led to a significant decline in consumer spending on non-essential items, with Canadian sales dropping to HKD 85.3 million, down 53.6% from HKD 183.7 million in 2023[41]. Cost Management - The cost of sales as a percentage of total revenue increased to 79.5% in 2024 from 78.6% in 2023, an increase of 0.9 percentage points attributed to adverse global and regional economic conditions[15]. - Distribution expenses decreased by 7.9% year-on-year to HKD 55,307,000, with significant reductions in freight and handling fees by 43.8% and employee costs by 15.3%[16]. - Administrative expenses slightly decreased by 2.9% to HKD 76,798,000, primarily due to reduced employee performance bonuses and overall cost control measures[19]. Strategic Initiatives - The company is focusing on product and process innovation, supply chain management, and enhancing retail omnichannel capabilities to improve efficiency and customer satisfaction[8]. - The management is implementing strict measures to control operating costs and exploring lean production opportunities to maintain competitiveness[7]. - The company plans to strengthen strategic partnerships with existing customers while expanding its product, market, and customer base[8]. - The group has implemented flexible production capacity allocation and optimized supply chain management to mitigate the impact of reduced orders and declining profits[32]. Consumer Behavior and Trends - The consumer price index in China rose only 0.2% in 2023, indicating weak domestic demand and declining consumer confidence[35]. - The group has focused on enhancing online sales and digital marketing strategies to adapt to changing consumer behaviors post-pandemic, resulting in a strong recovery in online sales in the second half of the year[33]. - The group has closely monitored consumer demand and adjusted product offerings and marketing strategies to resonate with cautious consumer sentiment[36]. Corporate Governance - The group maintains a commitment to corporate governance, adhering to the principles and code provisions set out in the Hong Kong Stock Exchange's Corporate Governance Code[64]. - The board consists of three executive directors and five independent non-executive directors, all of whom are confirmed to be independent[69]. - The company has adopted a standard code for securities trading by directors, confirming compliance for the entire fiscal year ending March 31, 2024[71]. - The board has established committees including the Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of the company's affairs[76]. Risk Management - The company has established a risk management system to identify, assess, and manage various risks, including financial, operational, and regulatory risks[94]. - The board reviews the effectiveness of the risk management and internal control systems annually, ensuring they are adequate and effective for the company's operations[96]. - The company encourages employees to report any concerns regarding financial reporting or internal controls, promoting a culture of transparency[97]. Employee and Stakeholder Engagement - The group recognizes the importance of employee retention and satisfaction, providing career development opportunities and competitive compensation packages[61]. - The company has a strong focus on stakeholder engagement, collecting feedback from customers, employees, and suppliers to inform business practices[131]. - The company is committed to ensuring fair procurement practices with suppliers[131]. Financial Position - As of March 31, 2024, the group's cash level was HKD 269,300,000, down from HKD 295,300,000 a year earlier[53]. - The total bank borrowings amounted to HKD 51,400,000 as of March 31, 2024, compared to HKD 54,500,000 a year prior[53]. - The asset-to-equity ratio was 13.3% as of March 31, 2024, indicating a stable financial position[53]. - The group’s capital expenditure for the year was HKD 2,100,000, up from HKD 1,800,000 in the previous year, primarily for upgrading production facilities[52].
同得仕(集团)(00518) - 2024 - 年度财报