Financial Performance - The group's revenue for the fiscal year 2024 decreased by approximately 11.0% to about HKD 69.8 million, down from approximately HKD 78.4 million for the corresponding year[165]. - The group reported a total employer contribution of HKD 288,000 for the 2024 fiscal year, down from HKD 380,000 in the 2023 fiscal year, reflecting a decrease of approximately 24.2%[51]. - The pre-tax loss for the group decreased by approximately 23.3% to about HKD 4.6 million, compared to approximately HKD 6.0 million for the corresponding year[169]. - The group's sales cost increased by approximately 2.4% to about HKD 55.4 million, while gross profit decreased by approximately 40.3% to about HKD 14.5 million, resulting in a gross margin drop from 31.0% to 20.8%[109]. - The revenue for the fiscal year ending March 31, 2024, decreased by approximately HKD 8.6 million compared to the previous year, attributed to ongoing challenges from COVID-19 and market volatility[139]. Cost Management - Administrative and other expenses reduced by approximately 46.2% from about HKD 20.8 million to about HKD 11.2 million, primarily due to cost control measures[6]. - The group's sales and distribution costs decreased by approximately 43.4% from about HKD 12.9 million to about HKD 7.3 million[6]. - The financing cost decreased by approximately 8.1% to about HKD 509,000 due to reduced lease liabilities interest[143]. Capital and Investment - The company plans to raise approximately HKD 55.5 million through a rights issue of 158,643,540 shares at a subscription price of HKD 0.35 per share[24]. - Estimated net proceeds from the rights issue, after deducting costs and expenses, will be approximately HKD 54.3 million[24]. - Approximately HKD 15.4 million from the rights issue will be allocated for rent and management fees over the next 12 months[24]. - The company anticipates exploring various suitable investment opportunities to diversify its business and enhance overall development for better financial returns for shareholders in 2024/2025[10]. Corporate Governance - The board of directors is responsible for overseeing the management and overall performance of the group, ensuring necessary financial and human resources are in place to achieve its goals[61]. - The company has established appropriate insurance arrangements for potential legal claims against directors[39]. - All independent non-executive directors have confirmed their independence in writing, complying with GEM Listing Rules[64]. - The board has set the group's values and standards, and is responsible for formulating business and investment plans and strategies[61]. - The company has independent non-executive directors with extensive operational and financial expertise, contributing to various board committees[38]. - The company has established a Remuneration Committee, effective from January 26, 2018, which currently includes three independent non-executive directors[95]. - The company has set up a Nomination Committee, effective from January 26, 2018, to identify and recommend suitable candidates for board membership[100]. - The board consists of six directors, with independent non-executive directors making up 50% of the board members[200]. - The company emphasizes the importance of good corporate governance to enhance shareholder value[196]. - The company secretary has reminded directors to attend shareholder meetings for effective communication with shareholders[197]. Employee Management - The company aims to provide the most competitive treatment for employees, ensuring fair treatment based on qualifications, experience, responsibilities, and performance[50]. - The company has a commitment to maintaining a safe and equal working environment for all employees[50]. - The group employed approximately 34 staff as of March 31, 2024, down from 46 in 2023[188]. - The company reported that no stock options were granted, exercised, canceled, or lapsed during the year, and there are no unexercised stock options or convertible securities as of March 31, 2024[47]. Strategic Direction - The company aims to reduce physical retail presence in Hong Kong while expanding its online business, reflecting a shift in consumer shopping behavior post-pandemic[137]. - The company plans to enhance its online and social media distribution channels to drive future growth and maintain sustainable and profitable retail operations[110]. - The group has implemented strategic measures to adjust its product mix to align with customer preferences and market trends[110]. - The group is increasing sales efforts for third-party brands alongside its own brand to enhance market presence[110]. - The company is reviewing its existing asset structure and business strategies to adapt to current economic uncertainties and challenges[145]. - The board anticipates that the group's business performance will be impacted by the ongoing COVID-19 pandemic and geopolitical tensions, predicting continued pressure in the coming year[170]. Financial Position - The current ratio as of March 31, 2024, was 1.1, down from 1.3 on March 31, 2023[12]. - The debt-to-asset ratio was approximately 1.3 as of March 31, 2024, compared to 1.1 on March 31, 2023[12]. - As of March 31, 2024, the group had cash and bank balances of approximately HKD 4.4 million, an increase from HKD 1.4 million on March 31, 2023[147]. - The total equity attributable to the company's owners as of March 31, 2024, was approximately HKD 5.8 million, down from HKD 10.4 million on March 31, 2023[148]. - The group has no significant contingent liabilities as of March 31, 2024, consistent with the previous year[157]. - The group has not utilized any financial instruments for hedging purposes in the fiscal year 2024, consistent with the previous fiscal year[148]. - As of March 31, 2024, the group had other borrowings of approximately HKD 11.7 million, unchanged from March 31, 2023[147].
民信国际控股(08456) - 2024 - 年度财报