Financial Performance - For the fiscal year ending April 30, 2024, the company reported revenue of HKD 1,469,606,000, a decrease from HKD 1,692,403,000 in 2023[6] - The company incurred a loss attributable to equity holders of HKD (29,812,000) for 2024, compared to a profit of HKD 49,565,000 in 2023[6] - Total assets decreased to HKD 886,305,000 in 2024 from HKD 917,091,000 in 2023[6] - The company's net asset value was HKD 490,991,000 in 2024, down from HKD 533,543,000 in 2023[6] - The basic loss per share for 2024 was HKD (4.47), compared to earnings of HKD 7.44 per share in 2023[6] - Revenue decreased by 13.2% to HKD 1,469,606,000 (2023: HKD 1,692,403,000) [9] - The company recorded a loss of HKD 29,812,000 (2023: profit of HKD 49,565,000) [9] - Basic loss per share was HKD 0.0447 (2023: basic earnings of HKD 0.0744) [9] - The company reported a total of approximately HKD 131,338,000 in paid-up capital surplus as of April 30, 2024, unchanged from 2023, and retained earnings available for distribution decreased to approximately HKD 10,962,000 from HKD 17,624,000 in 2023[43] - The company did not declare any interim or final dividends for the year ending April 30, 2024 (2023: final dividend of HKD 0.01 per share) [10] Operational Metrics - The gross profit margin improved to 39.4% in 2024 from 38.0% in 2023[6] - The EBITDA margin decreased significantly to 0.3% in 2024 from 5.7% in 2023[6] - The current ratio was 1.03 in 2024, down from 1.13 in 2023[6] - The interest coverage ratio dropped to 7 in 2024 from 136 in 2023[6] - The debt-to-equity ratio increased to 0.05 in 2024 from 0.01 in 2023[6] - Cash inflow from operating activities was HKD 160,930,000 (2023: HKD 211,497,000) [9] - The net cash inflow from operating activities was HKD 160,930,000, a decline of 23.9% from HKD 211,497,000 in the previous year[21] - The group’s inventory as of April 30, 2024, was HKD 151,303,000, an increase of 4.9% from HKD 144,282,000 in 2023[18] Retail Segment Performance - Retail segment revenue fell by approximately 12.6% to HKD 1,422,887,000 (2023: HKD 1,628,415,000) [13] - Retail segment gross profit decreased by 10.3% to HKD 573,835,000 (2023: HKD 639,772,000) [13] - Operating profit for retail business dropped by 84% to HKD 15,981,000 (2023: HKD 100,703,000) [14] - The retail market in Hong Kong is facing unprecedented challenges, with various retailers experiencing significant declines in sales, including essential consumer goods retailers[26] - The company is unable to predict when the retail market will bottom out and expects the current situation to persist for a considerable time[26] Strategic Initiatives - All major investment plans and non-essential expenditures will be frozen to achieve maximum cost-saving effects[26] - The management is reviewing the operational data of each 759 store to determine future lease renewal arrangements and is exploring rent adjustments with landlords[26] - The company aims to diversify its product sources by actively seeking new suppliers globally, targeting direct bulk orders to minimize import costs[26] - The procurement team is tasked with sourcing new products to enhance customer choices and shopping experience[26] - The company believes that maintaining quality and affordability will garner strong customer support in the local market[26] Governance and Compliance - The company has adopted the corporate governance code and has complied with its principles, with one exception regarding the roles of the chairman and CEO[58] - The company’s board of directors includes independent non-executive directors who have been assessed for their independence, ensuring they provide valuable contributions to the company[45] - The company has established a risk management and internal control system to prevent significant misstatements, losses, errors, fraud, and corruption[76] - The audit committee is composed of 3 independent non-executive directors, ensuring appropriate professional qualifications and experience in accounting and corporate finance[74] Environmental and Social Responsibility - The group prioritizes environmental protection, focusing on waste management, packaging materials, and energy conservation in its operations[91] - The group has established a sustainability working group led by executive directors to coordinate sustainability activities across the organization[88] - The company is committed to sustainable development and aims to provide quality and affordable essential goods to the local community[87] - The group has not reported any significant violations of environmental protection laws during the reporting period[91] Employee Relations - The company emphasizes equal opportunity employment and regularly reviews compensation to attract and retain employees[42] - The average monthly employee turnover rate was 4.5%, slightly down from 4.6% in 2023, with a turnover rate of 4.7% for female employees and 4.0% for male employees[104] - The company employed a total of 821 employees as of April 30, 2024, down from 837 in 2023, with 729 full-time and 92 part-time employees[103] - The training participation rate for retail employees increased to 90% in 2024 from 81% in 2023, with an average training duration of 1.5 hours per employee[53] Financial Risks and Management - The company does not currently hedge any financial risks, as it regularly monitors its exposure to various financial risks[142] - The group has no significant liquidity risk, supported by available bank financing and cash reserves[151] - The debt-to-equity ratio as of April 30, 2024, is 0.05, compared to 0.01 as of April 30, 2023, indicating a slight increase in leverage[156] - If market interest rates increase or decrease by 50 basis points, the annual after-tax loss is expected to change by HKD 250,000, reflecting the impact of interest income and expenses[155]
CEC INT'L HOLD(00759) - 2024 - 年度财报