Financial Performance - The Group recorded revenue of HK$586,710,000 for the year ended March 31, 2024, representing a 24.1% increase compared to HK$472,625,000 in 2023[12]. - Gross profit for the year was HK$259,321,000, up 12.9% from HK$229,763,000 in the previous year, with an overall gross profit margin decreasing by 4.4 percentage points to 44.2%[12][15]. - The Group reported a loss after tax of HK$40,043,000 for the year, compared to a profit after tax of HK$5,027,000 in 2023[13][16]. - The cosmetics business generated revenue of HK$426,537,000, a 41.4% increase from HK$301,627,000 in the previous year, but recorded a segment loss of HK$19,467,000[18][19]. - The overall gross profit margin decline was attributed to the larger revenue contribution from the cosmetics segment, which experienced a decrease in its gross profit margin[15][19]. - The fashion business recorded a segment loss of HK$3,618,000, compared to a loss of HK$1,437,000 in 2023[22]. Store Operations - As of March 31, 2024, the Group operated 57 cosmetics stores, an increase from 56 stores in the previous year[18][19]. - As of March 31, 2024, the Group operated 60 ladies fashion stores, a decrease from 62 stores in the previous year, with a revenue of HK$160,173,000, down 6.3% from HK$170,998,000 in 2023[22]. - The Group plans to close underperforming stores upon lease expiration and optimize its retail network to reduce overall operating losses[27]. Financial Position - The Group's cash and bank balances were HK$8,537,000 at the end of the reporting period, down from HK$38,097,000 in 2023[34]. - The current ratio was 0.29 as of March 31, 2024, compared to 0.35 in the previous year[37]. - The Group's total bank borrowings amounted to HK$390,454,000, an increase from HK$383,818,000 in 2023[36]. - The amount of assets pledged to secure banking facilities increased to HK$570,010,000 as of March 31, 2024, compared to HK$508,156,000 in 2023[47]. - Guarantees provided by the Group to banks for banking facilities rose to HK$838,857,000 as of March 31, 2024, up from HK$702,809,000 in 2023[48]. Cost and Expenses - The finance cost increased significantly by HK$17,569,000 due to rising bank loan interest rates[13][16]. - Approximately 30% of the Group's procurement costs are in foreign currencies, down from 42% in 2023, indicating a reduction in foreign exchange exposure[46]. Corporate Governance - The Board believes that good corporate governance standards are essential for safeguarding shareholder interests and enhancing corporate value[159]. - The Company has complied with all applicable code provisions of the Corporate Governance Code throughout the year ended March 31, 2024[160]. - The Board includes a balanced composition of executive and non-executive directors, ensuring strong independent judgment[168]. - The Company has established a Board Independence Evaluation Mechanism to ensure a strong independent element on the Board, allowing effective independent judgment[186]. Management and Leadership - Mr. Cheng Chung Man, the chairman, has over 40 years of experience in manufacturing and retail[83]. - Ms. Lam Yuk Sum, the CEO, has over 37 years of experience in fashion design and retail[84]. - The Group's chief financial officer has over 18 years of experience in accounting and auditing[98]. - The company secretary has been with the Group since July 1996 and holds a degree in accountancy[99]. Shareholder Information - The Company's distributable reserves as of March 31, 2024, amounted to HK$104,947,000, down from HK$120,340,000 in 2023[70]. - No interim or final dividends were declared for the year ended March 31, 2024[68]. - The share premium decreased to HK$211,064,000 as of March 31, 2024, from HK$223,654,000 in 2023[70]. - The Group's accumulated losses increased to HK$159,252,000 as of March 31, 2024, compared to HK$156,449,000 in 2023[70]. Compliance and Regulations - The Company is committed to sustainable development and compliance with environmental laws and regulations[60]. - There were no material breaches of applicable laws and regulations that significantly impacted the Group's operations during the year[61]. - The Company has received annual confirmations of independence from all independent non-executive directors[125]. Audit and Financial Reporting - Ernst & Young audited the consolidated financial statements and will offer themselves for re-appointment at the AGM[151]. - The Company has maintained a sufficient public float throughout the year ended March 31, 2024, as required under the Listing Rules[149].
威高国际(01173) - 2024 - 年度财报