Revenue Performance - The group's revenue increased by 38.5% from approximately HKD 66.3 million for the year ended April 30, 2023, to approximately HKD 91.8 million for the current year, driven by increased sales orders from a major client targeting the US market [14]. - Revenue from the traditional business segment decreased by 19.0% to approximately HKD 121.0 million due to weakened purchasing demand from brands and retailers amid a sluggish global economy [26]. - The group recorded approximately HKD 1.9 million in revenue from its new institutional catering service, reflecting a successful start and high customer satisfaction [30]. - The group recorded a revenue increase of 38.5% from approximately HKD 66.3 million to about HKD 91.8 million in the traditional segment, driven by increased sales orders from a major client targeting the US market [55]. Financial Performance - The group reported a net loss of approximately HKD 17.1 million for the year, compared to a net loss of about HKD 16.4 million for the previous year, primarily due to decreased revenue and reduced procurement orders from a major UK client [62]. - The group recorded a net realized loss of HKD 1.6 million on financial assets measured at fair value through profit or loss for the current year [34]. - The group’s basic loss per share increased to approximately HKD 0.536 from HKD 0.513 in the previous year, consistent with the increase in net loss attributable to shareholders [63]. - The group’s cost of sales decreased by 20.0% to approximately HKD 104.6 million, down from HKD 130.7 million in the previous year, aligning with the decrease in revenue [58]. Operational Efficiency - The group's administrative expenses decreased by approximately 2.8% from about HKD 17.7 million to around HKD 17.2 million, mainly due to optimized logistics team costs [61]. - The sales and distribution expenses increased by approximately 11.6% from about HKD 13.8 million to around HKD 15.4 million, attributed to higher marketing expenses [61]. - The group aims to enhance its customized integrated clothing design and procurement services to better meet existing and potential customer commitments [27]. - The group will continue to explore and optimize its supplier base to strengthen supply chain management services and improve gross margins [27]. Community Investment - The group will focus on five key areas for community investment: education, health and welfare, environmental protection, social inclusion and diversity, and community development [66]. - Investment in education includes scholarships, mentoring programs, school infrastructure development, and skills training to enhance community capabilities [66]. - The group aims to improve community members' quality of life through healthcare, disease prevention, and mental health support initiatives [66]. - Environmental projects supported include tree planting, clean energy activities, waste management programs, and biodiversity protection [66]. - The group is committed to creating a more inclusive society by investing in activities that promote diversity, equity, and inclusion within communities [66]. Compliance and Governance - The company has established an internal management team to oversee compliance with data protection regulations, with no complaints related to customer data breaches received during the reporting year [89]. - The company is committed to high-quality corporate governance and transparency, adhering to the corporate governance code [125]. - The roles of the chairman and CEO are held by the same individual, which deviates from the corporate governance code [125]. - The company strictly adheres to labor laws and regulations in Hong Kong and regularly reviews and improves employee benefits [130]. - The company complies with all relevant laws and regulations related to environmental protection, health and safety, and working conditions [129]. Risk Management - The company faces significant operational risks, particularly reliance on major clients without long-term contracts, leading to revenue uncertainty [110]. - The company operates in a highly competitive market, which may result in reduced market share and profit margins [110]. - There is a risk of credit issues with clients, potentially affecting the company's ability to collect payments [110]. - Fluctuations in raw material prices and supply quality may increase costs, impacting overall supply [110]. Employee and Workforce - The company reported a total employee benefit expenditure of approximately HKD 11,200,000 and HKD 12,000,000 for the years ending April 30, 2024, and 2023, respectively [103]. - The company employs 46 and 44 employees as of April 30, 2024, and 2023, respectively, indicating a slight increase in workforce [103]. Board and Committee Activities - The board consists of two executive directors and three independent non-executive directors, ensuring a balance of power and authority [175]. - The audit and risk management committee has reviewed the company's financial statements for the year, confirming compliance with applicable accounting principles and full disclosure [165]. - The Nomination Committee has met once since April 30, 2024, to assess the board's structure, diversity, and composition [193]. - The company has adopted a board diversity policy that considers gender, age, cultural and educational background, and professional experience [184].
桦欣控股(01657) - 2024 - 年度业绩