Financial Performance - Revenue for the year reached HK$238.435 million, a 11.0% increase from HK$214.129 million in 2023[8] - Gross profit increased to HK$166.962 million, with a gross profit margin of 70.0%, up from 67.2% in the previous year[8] - Loss from operations reduced to HK$2.309 million, improving the operating margin to -1.0% from -10.1%[8] - The company reported a net loss attributable to equity shareholders of HK$5.121 million, compared to a loss of HK$13.771 million in 2023[8] - Cash generated from operations was HK$40.830 million, an increase from HK$38.938 million in the previous year[8] - Total assets decreased to HK$571.613 million, while total liabilities increased slightly to HK$113.200 million[8] - The Group's revenue increased to HK$238.4 million in 2024, representing a growth of 11.4% compared to HK$214.1 million in 2023[33] - Gross profit rose significantly by 16.1% to HK$167.0 million, with the gross profit margin improving to 70.0% from 67.2%[33] - Loss from operations decreased dramatically to HK$2.3 million, down from HK$21.7 million in the previous year, indicating an improvement of 89.3%[34] - The loss attributable to equity shareholders reduced to HK$5.1 million, a 62.8% decrease from HK$13.8 million in 2023[34] - Cash generated from operations increased by 4.9% to HK$40.8 million, compared to HK$38.9 million in the previous year[31] - Total assets decreased by 2.1% to HK$571.6 million, while total liabilities increased by 6.3% to HK$113.2 million[31] Operational Changes - The company decided to terminate retail operations in mainland China due to underperformance, while maintaining brand influence through a licensing agreement[11] - The Group plans to discontinue operations of its Mainland China retail stores in 2024 while maintaining brand presence through a licensing agreement[17] - The distribution network comprised 92 points of sales, a net decrease of 7 from the previous year, indicating a cautious approach to expansion[44] - The Group discontinued the operation of Ashworth retail stores in Mainland China starting from June 1, 2024, due to a licensing agreement with Citimark Trading[99] Brand Performance - The company holds global rights to the Ashworth brand, which saw a 28% improvement in the Hong Kong market[11] - The Hong Kong market for the Ashworth brand saw a positive improvement of 28%, although the Mainland China market did not meet growth expectations[17] - The Group has experienced double-digit growth in the distribution of J. Lindeberg products in Hong Kong and Macau[13] Financial Position - The Group maintains a healthy financial position with cash and bank deposits of HK$103.4 million and no borrowing[16] - As of March 31, 2024, the Group's net assets were HK$458,413,000, down from HK$477,617,000 in 2023, representing a decrease of 4.0%[43] - The Group's cash and bank deposits net of bank overdrafts decreased by HK$14,719,000 to HK$103,397,000 as of March 31, 2024[40] - The Group's gearing ratio at the end of the year was 0.144, up from 0.134 in 2023, indicating a slight increase in financial leverage[43] Income and Dividends - The final dividend per share remained at HK$0.10, consistent with the previous year[8] - Total income from licensing of trademarks increased to HK$19,861,000, a rise of 6.5% from HK$18,644,000 in 2023[45] - The Company has established a dividend policy to guide the Board in determining whether to declare and distribute dividends, allowing shareholders to participate in profits while retaining reserves for future growth[178] - The Board reserves the right to update or modify the Dividend Policy at any time, and it does not constitute a legally binding commitment to pay dividends[190] Corporate Governance - The Company has complied with the Corporate Governance Code throughout the financial year ended 31 March 2024[104] - The Board consists of five executive directors and three independent non-executive directors as of 31 March 2024[106] - The Audit Committee includes three independent non-executive directors and is responsible for overseeing the integrity of the Company's financial statements[114] - The Audit Committee reviewed the financial performance with management and external auditors to ensure compliance with Hong Kong accounting principles[115] - The Company has mechanisms in place to assess the independence of independent non-executive directors annually[112] - The Board has delegated various responsibilities to committees, including the Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee[113] - The Company has adopted a Securities Dealing Code for directors' securities transactions, ensuring compliance with the required standards[157] - The Company has established a whistleblowing policy to facilitate confidential reporting of concerns by employees and external parties[174] Risk Management - The Audit Committee oversees the effectiveness of internal control and risk management, while management is responsible for the design and implementation of these systems[169] - The Company has engaged an external consultant for internal audit services to review the effectiveness of selected internal control processes[173] - The Risk Management Committee coordinates risk management activities and reports at least annually to the Board[169] - The Board believes that the Group's risk management and internal control system is effective and adequate, considering principal risks including material ESG risks[171] Employee and Social Responsibility - The Group is dedicated to ensuring employee health, safety, and welfare, fully complying with occupational health and safety legislation[57] - The Group's commitment to equal opportunity in hiring, compensation, and promotion is based on employee performance and contribution, regardless of nationality or other factors[57] - The Group actively supports various charitable organizations and encourages employee participation in community service, demonstrating corporate social responsibility[66] - The Company recognizes the benefits of a diverse workforce and aims to enhance diversity based on the availability of suitable candidates[136] Market and Economic Outlook - The global economy has achieved growth stability despite geopolitical tensions and fluctuating interest rates, with future predictions indicating a slight uptick driven by cautious expansions in trade and investment[71] - Growth in both developed and emerging economies is expected to be slower than the pre-pandemic decade, highlighting ongoing risks such as potential trade fragmentation[76] - The Group's performance is primarily recorded in Hong Kong dollars, but subsidiaries outside Hong Kong generate revenue and incur expenses in other currencies, which may impact overall performance due to currency fluctuations[74]
YGM TRADING(00375) - 2024 - 年度财报