Financial Performance - Hypebeast's e-commerce platform HBX generated over 70% of total profits for the fiscal year 2020 from six core markets: the United States, China, Hong Kong, South Korea, Japan, and Taiwan[7]. - The company's revenue increased from approximately HKD 672.2 million for the year ended March 31, 2019, to approximately HKD 751.4 million for the year ended March 31, 2020, representing a growth of about 11.8%[27]. - The digital media segment's revenue rose from approximately HKD 430.7 million to approximately HKD 473.5 million, an increase of about HKD 42.8 million, primarily due to an 8.8% increase in average contract value[28]. - The e-commerce segment's revenue increased by approximately 15.0% from about HKD 241.5 million to approximately HKD 277.8 million, driven by a 5.0% increase in customer orders[29]. - The overall gross profit increased from approximately HKD 335.4 million to approximately HKD 379.3 million, a rise of about 13.1%[32]. - Total profit and comprehensive income rose by approximately 6.3% from HKD 61.8 million to HKD 65.7 million, driven by increased revenue and effective cost management[40]. Operational Strategies - Hypebeast is focusing on innovative content development and marketing strategies to adapt to changing consumer habits post-COVID-19, aiming to minimize the impact of the pandemic on its operations[6]. - The company is actively exploring emerging markets to drive growth and diversify revenue sources during the pandemic[7]. - The company aims to diversify its revenue sources by increasing engagement with non-traditional clients, particularly those less affected by COVID-19, to enhance contract growth[22]. - The company plans to strengthen its digital media production capabilities to improve the quality and quantity of internal editorial and sales content, expecting to generate more revenue through its integrated digital platform[18]. - The company intends to expand its online business into the offline world, leveraging its unique insights into street fashion and youth trends[18]. Digital Media and E-commerce Growth - The digital media segment produces and distributes content targeting young audiences across various platforms, including Hypebeast, Hypebae, and Popbee, as well as popular social media channels[12]. - The e-commerce segment, HBX, continued to grow despite challenges posed by COVID-19, with strong sales growth in the first half of the fiscal year[23]. - The company recorded a total of 16,800,000 unique visitors on its website platform and 24,700,000 followers on social media, representing year-on-year increases of approximately 21.2% and 14.7% respectively[19]. - The average contract value in the digital media segment increased by approximately 8.8% year-on-year, while the number of contracts decreased by 8.3% due to disruptions in service delivery caused by COVID-19[21]. Corporate Governance - The company emphasizes high standards of corporate governance, aligning with the corporate governance code as of March 31, 2020[77]. - The board of directors has confirmed compliance with the trading standards since April 1, 2019, with no non-compliance incidents reported[78]. - The board consists of five members, including one executive director and four independent non-executive directors, ensuring a balance of experience and independent judgment[80]. - The board has established three committees: Audit, Remuneration, and Nomination, each with clear written terms of reference[93]. - The company has adopted a board diversity policy to enhance diversity at the board level, considering factors such as gender, age, and professional experience[100]. Environmental, Social, and Governance (ESG) Initiatives - The group presented its Environmental, Social, and Governance (ESG) report for the fiscal year ending March 31, 2020, highlighting significant operational impacts[120]. - The group received the "Outstanding Environmental Partner" award at the Bank of China Hong Kong Corporate Environmental Awards 2019, recognizing its efforts in environmental protection[132]. - The materiality matrix indicates that climate change and customer health and safety are among the most important issues for both stakeholders and the business[144]. - The group aims to integrate sustainable practices into its operations, focusing on energy efficiency and waste reduction measures[132]. - The company encourages employees to adopt waste reduction practices, such as using recycled paper and reusable utensils[154]. Employee and Workforce Management - The total number of employees increased from 306 in 2019 to 401 in 2020, representing a growth of approximately 31%[189]. - The overall employee turnover rate decreased from 37% in 2019 to 33% in 2020[191]. - The company updated its employee medical insurance plan to increase outpatient claim amounts and expand coverage for health checks and dental services in response to COVID-19[200]. - The total employee cost for the year ending March 31, 2020, was approximately HKD 170,400,000, an increase from approximately HKD 118,500,000 for the previous year[60]. Risk Management - The board is responsible for assessing and determining the group's environmental, social, and governance risks, ensuring effective management and internal control systems are in place[134]. - The company recognizes various operational risks, including reliance on digital media content and e-commerce suppliers[62]. - The board has established a risk management and internal control system to assess and manage risks associated with achieving strategic goals[109].
HYPEBEAST(00150) - 2020 - 年度财报