Financial Performance - For the fiscal year ending March 31, 2024, the company recorded a net profit attributable to shareholders of approximately HKD 2.2 million, an increase of about 57.1% compared to HKD 1.4 million for the fiscal year ending March 31, 2023[4]. - Revenue from retail sales of tiles, sanitary ware, and other products decreased by approximately 37.5% to about HKD 58.9 million, down from HKD 94.2 million in the previous fiscal year[4]. - For the fiscal year ending March 31, 2024, the group recorded total revenue of approximately HKD 122.6 million, a decrease of about 20.3% compared to HKD 153.9 million for the previous year[122]. - The group's gross profit was approximately HKD 79.6 million, slightly down by about 1.85% from HKD 81.1 million in the previous year, while the overall product profit margin increased from approximately 52.9% to 65.3%[122]. - The net profit attributable to the owners of the company was approximately HKD 1.7 million, an increase of about 57.1% from HKD 1.4 million in the previous year[122]. - Total revenue for the year ended March 31, 2024, was approximately HKD 122.6 million, down about 20.3% from HKD 153.9 million for the year ended March 31, 2023[151]. - Revenue from the sale of tiles and sanitary ware was approximately HKD 122.1 million, compared to HKD 153.4 million in the previous year, with retail sales at HKD 58.9 million and non-retail sales at HKD 63.2 million[154]. - Non-retail sales increased by approximately 6.6% from HKD 59.3 million to HKD 63.2 million due to efforts to expand sales to non-retail customers[148]. Operational Efficiency and Strategy - The company aims to enhance operational efficiency and explore opportunities to diversify revenue sources to improve financial performance[14]. - The group aims to diversify its revenue sources and enhance financial performance by exploring new opportunities[137]. - The group plans to expand its product range and increase product diversity to meet various customer needs[136]. - The group will continue to monitor changes in the business environment and strive to improve operational efficiency for sustainable development[137]. - The group plans to enhance non-retail sales by strengthening partnerships with existing distributors and project clients, including interior design firms and property developers[183]. Corporate Governance - The company has taken proactive steps to identify candidates who meet relevant regulations for independent non-executive director positions to fill vacancies in the audit and nomination committees[34]. - The company has received a waiver from the Stock Exchange to strictly comply with Listing Rules 3.10(1), 3.21, and 3.27A, extending the period to fill vacancies until August 14, 2024[46]. - The board currently has only two independent non-executive directors, which is below the minimum requirement of three as per Listing Rule 3.10(1)[49]. - The company is committed to ensuring all independent non-executive directors attend future shareholder meetings to comply with governance codes[46]. - The company has appointed Huang Chunping as an independent non-executive director, who will serve until the next annual general meeting[50]. - The board has agreed to recommend the reappointment of the external auditor for the next financial year at the upcoming annual general meeting[70]. - The company is focused on enhancing its corporate governance practices to meet regulatory requirements and improve board diversity[34]. - The audit committee held six meetings during the fiscal year ending March 31, 2024, to review the group's unaudited financial statements for the six months ending September 30, 2023[74]. - The nomination committee held one meeting to assess the board's structure, composition, and performance, ensuring compliance with corporate governance standards[94]. - The company has adopted a board diversity policy to ensure a balance of skills, experience, and diversity to meet business needs[196]. - The audit committee consists of three independent non-executive directors, complying with the requirement of at least three members as per listing rules[195]. - All independent non-executive directors have confirmed their independence positively for the year[196]. - The company has established mechanisms to ensure independent opinions and advice are available to the board[198]. - The board reviews the effectiveness of the mechanisms for independent non-executive directors annually[198]. - The company has a specific inquiry process to confirm the independence of independent non-executive directors[196]. - The company emphasizes the importance of qualifications and time commitment in the recruitment of independent non-executive directors[198]. - The company has a history of appointing directors based on merit and their potential contributions to the board and the company[196]. Financial Position and Risks - As of March 31, 2024, the company had bank borrowings of approximately HKD 92.1 million, an increase from HKD 80.7 million in the previous year[22]. - The company faces currency risk and foreign exchange fluctuations, particularly with the Euro, which may affect profit margins and operational performance[23]. - As of March 31, 2024, the group's debt-to-equity ratio was approximately 0.64 times, compared to 0.63 times in 2023, indicating stable financial leverage[174]. - The group has pledged investment properties valued at approximately HKD 34.3 million and bank deposits of about HKD 15.0 million as collateral for bank borrowings[178]. - The group will continue to monitor foreign currency risks closely and consider hedging significant foreign currency risks as needed[160]. Employee and Cost Management - Employee costs for the fiscal year were approximately HKD 17.4 million, a reduction from HKD 20.6 million in the previous year, attributed to a decrease in the number of employees[6]. - Employee costs for the group were approximately HKD 17.4 million for the year ending March 31, 2024, down from HKD 20.6 million in 2023, reflecting a reduction in workforce from 65 to 51 employees[179]. - Other expenses for the year were approximately HKD 14.8 million, a decrease from HKD 18.6 million in the previous year, primarily due to reduced procurement of inventory[156]. Future Outlook - The company remains cautious about the retail sector outlook, anticipating that fluctuating markets combined with high interest rates will continue to significantly impact retail operations[14]. - The group anticipates an increase in demand for home renovation materials following the Hong Kong government's cancellation of property cooling measures in late February 2024[126]. - The group anticipates an increase in demand for home renovation materials following the Hong Kong government's removal of property transaction restrictions in February 2024[182].
MOS HOUSE(01653) - 2024 - 年度财报