Financial Performance - For the fiscal year 2019, Hypebeast recorded revenue of approximately HKD 672.2 million, representing a year-on-year growth of about 74.6%, and a net profit of approximately HKD 61.8 million, which is an increase of about 36.7% compared to the previous year[6]. - The company has achieved over 75% year-on-year revenue growth for two consecutive years, demonstrating strong community and customer support[6]. - For the fiscal year ending March 31, 2019, the company's revenue increased to HKD 672.19 million, up from HKD 385.08 million in the previous year, representing a growth of approximately 74.6%[22]. - The gross profit for the fiscal year ending March 31, 2019, was HKD 335.35 million, with a gross margin of 49.9%, compared to a gross profit of HKD 203.89 million and a gross margin of 52.9% in the previous year[22]. - Total profit and comprehensive income increased by approximately 36.7% from HKD 45,200,000 to HKD 61,800,000 for the year ended March 31, 2019, primarily due to increased revenue and effective cost management[37]. - Adjusted net profit, after accounting for one-time legal and professional fees of HKD 7,400,000 and a loss of HKD 3,900,000 from business integration, was approximately HKD 74,100,000, reflecting a 63.9% increase compared to the previous year[37]. E-commerce Growth - The e-commerce platform HBX contributed positively to the group's growth, particularly in brand and product curation, reflecting high consumer spending power[9]. - The number of customer orders on the HBX e-commerce platform increased by approximately 46.7% year-over-year, indicating growing consumer interest[13]. - E-commerce segment revenue grew from approximately HKD 125.2 million to approximately HKD 241.5 million, driven by a 46.7% increase in customer orders and a shift towards higher-end products[24]. - The number of products offered on the e-commerce platform rose from approximately 6,300 to 10,588, an increase of about 4,288 products, reflecting a strategy focused on providing a more curated shopping experience[13]. - The company aims to expand its e-commerce platform and marketing efforts into key markets such as the United States, United Kingdom, Hong Kong, China, and Southeast Asia[16]. Digital Media Strategy - Hypebeast's digital media strategy focuses on developing new platforms to reach a broader user base, including localized content in Traditional Chinese, Simplified Chinese, Japanese, Korean, and French[11]. - Hypebeast aims to continue enhancing its digital media services to attract global brands and advertising partners[11]. - The company relies on digital media content and online retail products to attract visitors and online shoppers[18]. - The business operations depend heavily on internet traffic to the company's website[18]. - The company has developed a creative agency, HYPEMAKER, to provide quality creative services to global clients[78]. Market Expansion - Hypebeast launched its Japan office in March 2019 to expand its audience in the region and strengthen its strategic position in Asia[5]. - The company successfully opened its first offline retail store in Hong Kong, with plans for a landmark store in Manhattan, expected to commence operations in 2020[16]. - The company registered several entities to support its expansion into overseas markets, including COREthree Limited in the British Virgin Islands and Hypebeast Japan in Japan[18]. Corporate Governance - The company has maintained high levels of corporate governance, adhering to GEM listing rules and main board listing rules, with a notable exception regarding the separation of the roles of Chairman and CEO[90]. - The board consists of a mix of executive and independent non-executive directors, ensuring a balance of skills and experience necessary for effective oversight[93]. - The company emphasizes the importance of transparency and accountability in its corporate governance practices, which is crucial for maintaining stakeholder trust[90]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of the company's affairs[104]. - The Audit Committee is composed entirely of independent non-executive directors, ensuring unbiased oversight of financial reporting[105]. Environmental and Social Responsibility - The environmental, social, and governance (ESG) report covers the company's policies and performance from April 1, 2018, to March 31, 2019, focusing on key performance indicators in Hong Kong, Japan, the United States, and the United Kingdom[134]. - The company prioritizes working with suppliers that adhere to strict environmental and sustainability standards[149]. - The company has implemented energy-saving measures, including the installation of energy-efficient appliances in its headquarters[162]. - The company encourages employees to adopt waste reduction practices, such as using recycled paper and reusable utensils[157]. - The company is committed to monitoring emissions levels and implementing mitigation measures as necessary in the future[151]. Employee Management - The group employed a total of 306 employees as of March 31, 2019, compared to 262 employees the previous year, with total employee costs amounting to approximately HKD 121 million, an increase from approximately HKD 93.9 million[69]. - Training participation rate for employees increased significantly, with 100% of general staff receiving training in 2018/2019 compared to 10% in 2017/2018[187]. - The company continues to support employee development through initiatives like the Hypebeast scholarship for professional growth[185]. - The company adheres to local employment laws and regulations, ensuring fair treatment and opportunities for all employees[171]. - The company has no illegal child labor or forced labor practices, ensuring compliance with labor laws[188]. Customer Service - The company has established a customer support representative team to handle inquiries via email, online chat, and phone[199]. - Customer inquiries are generally expected to be answered within 3 to 4 hours[199]. - Customer service managers review and monitor the handling of customer inquiries to ensure quality service[199]. - Customer feedback is reviewed at least weekly to maintain high service standards[199].
HYPEBEAST(00150) - 2019 - 年度财报