Financial Performance - For the fiscal year ending March 31, 2021, the group's revenue was HKD 2.275 billion, a decrease of 22.5% compared to HKD 2.937 billion in the previous year[10]. - Net profit attributable to equity shareholders was HKD 468 million, down 28.5% from HKD 645 million in the previous year[10]. - The group's retail revenue in Hong Kong decreased by 30.9% due to the ongoing COVID-19 pandemic and low consumer sentiment[16]. - In Taiwan, the group achieved over 300% profit growth, driven by improved consumer sentiment and effective cost control[16]. - In China, the group's retail sales grew by 109%, with physical store sales increasing by 90% and online sales surging by 325%[16]. - The group's revenue for the fiscal year ending March 31, 2021, was HKD 2.2755 billion, a decrease of 22.5%[66]. - Net profit attributable to equity shareholders was HKD 468 million, down 28.5% from HKD 645.8 million in the previous year[66]. - Retail revenue in Hong Kong decreased by 30.9% due to the ongoing COVID-19 pandemic and lack of tourists[68]. - The group achieved over 300% profit growth in Taiwan, driven by improved consumer sentiment and cost control[68]. - In China, retail sales increased by 109%, with physical store sales up 90% and online sales up 325%, turning the business profitable[68]. Retail Operations - The group currently operates a total of 64 retail stores, with 76.5% of sales coming from Hong Kong, 19.6% from Taiwan, and 3.9% from other regions[16]. - The group's retail network consists of 64 stores, with 7 in Hong Kong, 32 in China, and 25 in Taiwan[68]. - The group remains cautious about the retail environment in Hong Kong due to potential COVID-19 outbreaks and high unemployment rates[20]. - Future focus will be on expanding the physical store network and online business in China, capitalizing on significant growth opportunities[20]. - The outlook for the retail environment in Hong Kong remains pessimistic due to potential COVID-19 outbreaks and high unemployment rates[72]. - The group plans to focus on expanding its physical store network and online business in China, capitalizing on significant growth opportunities[72]. Cash and Financial Position - The group has a cash balance of HKD 2.423 billion, positioning it well to navigate the challenging retail environment[26]. - The group holds a cash net amount of HKD 2.423 billion, positioning it well to face upcoming economic challenges[73]. - As of March 31, 2021, the group's net current financial resources amounted to HKD 2.224 billion, compared to HKD 2.263 billion the previous year[97]. - The group's cash and bank balances were HKD 3.0735 billion, down from HKD 3.332 billion in the previous year[97]. - The current ratio (current assets to current liabilities) was 2.4 times, an increase from 2.3 times the previous year[99]. - The capital to debt ratio was zero times, consistent with the previous year[99]. Dividends and Shareholder Matters - The proposed final dividend is HKD 0.27 per share, with a total dividend yield of 8.45% based on the closing price of HKD 4.14 on March 31, 2021[11]. - The company will hold its annual general meeting on August 9, 2021, to review the financial statements for the year ending March 31, 2021[33]. - The board recommends the distribution of a final dividend for the year ending March 31, 2021[34]. - The company seeks approval for the re-election of directors and determination of their remuneration[35]. - The board is authorized to issue additional shares not exceeding 20% of the company's issued share capital as of the date of the resolution[37]. - The company seeks approval to repurchase shares not exceeding 10% of the company's issued share capital as of the date of the resolution[42]. - The company has no current plans to issue any new ordinary shares[51]. - The existing general mandate for share repurchase and issuance will expire and is being sought for renewal[51]. Corporate Governance - The company has established a director and officer liability insurance to cover actions taken by directors during the year[105]. - The company is led by a diverse board with extensive experience in finance and management, including members with backgrounds in accounting and investment banking[109][110][111]. - The board of directors includes independent non-executive members with significant experience in various industries, enhancing corporate governance[112][113][114]. - The company is preparing for the upcoming annual general meeting where three directors are up for re-election[104]. - The company has a commitment to ensuring compliance with the Securities and Futures Ordinance regarding the disclosure of director interests[116]. - The independent auditor confirmed that there were no findings suggesting that the continuing connected transactions were not approved by the board[156]. - The company has adhered to the corporate governance code principles throughout the fiscal year ending March 31, 2021, except for the CEO's responsibilities being fulfilled by the group executive chairman[166]. - The board of directors held a total of four regular meetings and two special meetings during the fiscal year ending March 31, 2021[171]. - The independent auditor, KPMG, is willing to accept reappointment at the upcoming annual general meeting[162]. - The company has implemented the standard code for securities transactions by directors and confirmed compliance for the fiscal year ending March 31, 2021[167]. - The company is committed to maintaining high-quality corporate governance to enhance shareholder value and protect shareholder rights[166]. - The board includes both executive and independent non-executive directors, ensuring a balance of interests[168]. - The company has established procedures to review its business operations regularly to safeguard its interests against competitive businesses[157]. - The board of directors is responsible for overall strategy, long-term goals, and significant acquisitions and asset sales[172]. - All directors participated in appropriate continuous professional development during the year ending March 31, 2021[173]. - The company has three independent non-executive directors, all of whom are considered independent according to the listing rules[186]. - The remuneration committee held one meeting during the year ending March 31, 2021, with full attendance from its members[190]. - The company acknowledges its responsibility to prepare consolidated financial statements that fairly reflect the group's financial position[184]. - The chairman and CEO roles are separated to ensure clear distinction in responsibilities[185]. - The board reviews corporate governance policies to ensure compliance with legal and regulatory requirements[183]. - The company has adopted a shareholder communication policy to enhance relationships with shareholders[180]. Remuneration and Committees - The remuneration committee is tasked with reviewing and approving the remuneration policies for all directors and senior management[190]. - The remuneration policy aims to align the compensation of executive directors and senior management with their performance and the company's objectives, including base salary, discretionary bonuses, retirement plan contributions, and stock options[194]. - The Nomination Committee held one regular meeting during the year ended March 31, 2021, with all members present[200]. - The committee reviewed the diversity policy of the board members and assessed the structure, size, and composition of the board to align with the company's strategy[200]. - The independent non-executive directors' remuneration is proposed by the remuneration committee and reviewed by the board for shareholder approval at the annual general meeting[194]. - The remuneration committee evaluated the performance of executive directors and made recommendations regarding their compensation for the year ended March 31, 2021[194]. - The company considers market benchmarks when determining the remuneration levels for both executive and independent non-executive directors[194]. - The Nomination Committee assessed the independence of independent non-executive directors and confirmed their compliance with the independence criteria[200]. - The remuneration paid to each director for the year ended March 31, 2021, is detailed in the financial statements[195]. - The company adopted a nomination policy outlining the methods and procedures for identifying and evaluating candidates for the board[200]. - The committee will seek recommendations or hire professional search firms to assist in identifying suitable candidates when no qualified candidates are available[200].
迪生创建(00113) - 2021 - 年度财报