Business Performance - The company experienced a strong recovery in its advertising and media business, concluding the year with an outstanding performance in Q4 despite initial challenges due to COVID-19 lockdowns[6]. - The company reported improved profit margins and an excellent performance in Q4, indicating a positive outlook for revenue growth in both media and e-commerce segments[10]. - The company's revenue decreased by 10.3% from approximately HKD 751.4 million in the fiscal year 2020 to approximately HKD 674.2 million in the fiscal year 2021[20]. - The digital media segment generated revenue of approximately HKD 447.4 million, a decrease of about 5.5% from approximately HKD 473.5 million in the previous fiscal year[22]. - The e-commerce segment's revenue fell by approximately 18.4% from about HKD 277.8 million in the fiscal year 2020 to approximately HKD 226.8 million in the fiscal year 2021[28]. - The company recorded a strong revenue of HKD 200.9 million in Q4 of the fiscal year 2021, representing a 6.9% increase from Q3 and a 45.3% increase year-over-year[20]. E-commerce and Product Expansion - E-commerce and retail operations expanded significantly, introducing new product categories such as lifestyle products, collectible toys, and home goods, driven by consumer trends during the pandemic[7]. - The company has expanded its product offerings to include home goods, toys, and other lifestyle products, receiving positive customer feedback[28]. - The company has expanded its distribution channels to new regions, including the recent launch of HBX in Korea and Japan, enhancing local product accessibility[7]. Digital Strategy and Advertising - The company aims to enhance its digital advertising strategies, anticipating continued growth in this area as brands shift focus towards digital marketing[6]. - The company is committed to producing more video content on platforms like TikTok and YouTube to engage with its growing audience[5]. - The company’s digital content targets young audiences, covering trends in fashion, lifestyle, technology, art, and culture through various media platforms[12]. Future Plans and Developments - The company plans to launch the Hypebeast ecosystem in the second half of the fiscal year 2022, integrating its various divisions to provide a seamless one-stop service for users[8]. - A flagship store in New York City’s Chinatown is set to open in the second half of fiscal year 2022, serving as the North American headquarters and a physical space for cultural activities[10]. - The company plans to open a flagship retail store in New York City in the second half of the fiscal year 2022 to enhance brand visibility and community building[17]. - The company will establish entities in Singapore and South Korea in the next fiscal year to support its digital media segment and retail operations[17]. Financial Management and Performance - The group's revenue cost decreased by approximately 8.6% from about HKD 372.1 million in FY2020 to about HKD 340.1 million in FY2021, primarily due to lower sales and inventory levels related to e-commerce operations[31]. - Gross profit decreased by approximately 11.9% from about HKD 379.3 million in FY2020 to about HKD 334.1 million in FY2021, with the overall gross margin slightly declining from approximately 50.5% to about 49.6%[32]. - Sales and marketing expenses decreased by approximately 29.0% from about HKD 158.8 million in FY2020 to about HKD 112.8 million in FY2021, representing about 16.7% of revenue, down from approximately 21.1%[36]. - Administrative and operating expenses slightly decreased by about 0.8% from approximately HKD 126.0 million in FY2020 to about HKD 125.0 million in FY2021, with the percentage of revenue increasing from about 16.8% to approximately 18.5%[37]. - The group's profit and total comprehensive income increased by 13.4% from about HKD 65.7 million in FY2020 to about HKD 74.5 million in FY2021, driven by effective cost control and recovery from the COVID-19 pandemic[42]. Corporate Governance - The company is committed to maintaining high levels of corporate governance to build trust with shareholders and stakeholders[82]. - The board has confirmed compliance with the corporate governance code for the year ending March 31, 2021, except for specific provisions regarding the separation of roles between the chairman and CEO[82]. - The board consists of three independent non-executive directors, representing over one-third of the board members, with at least one possessing appropriate professional qualifications in accounting or finance[94]. - The company has purchased directors and officers liability insurance to protect against legal actions taken against directors[96]. - The chairman and CEO, Mr. Ma, holds both positions, which the board believes provides strong leadership and effective management[92]. - The board is responsible for overseeing the company's overall management and ensuring alignment with shareholder interests[89]. Employee Management and Well-being - The group employed a total of 363 employees, a decrease from 401 employees as of March 31, 2020[65]. - Employee costs for the year ended March 31, 2021, were approximately HKD 142.5 million, down from approximately HKD 170.4 million for the year ended March 31, 2020[65]. - The employee turnover rate increased to 40% in 2021 from 33% in 2020, indicating a significant rise in employee departures[197]. - The company maintains a competitive compensation package, including medical benefits and stock option plans to attract and retain talent[189]. - The health and safety policy is aligned with occupational safety guidelines, aiming to provide a safe and healthy work environment for employees[198]. Environmental and Social Responsibility - The total greenhouse gas emissions for the reporting period were 172,652.75 kg CO2 equivalent, a decrease of approximately 59% compared to the previous year[152]. - The greenhouse gas emissions per employee were 475.63 kg CO2 equivalent, down from 1,041.69 kg CO2 equivalent in the previous year, reflecting a 54% reduction[155]. - The total waste generated during the reporting period was approximately 9.98 tons, a significant decrease from 13.15 tons in the previous year[160]. - The company has implemented environmental policies to minimize emissions, energy consumption, and waste generation[151]. - The company encourages employees to adopt waste reduction practices, resulting in a significant decrease in non-hazardous waste[160].
HYPEBEAST(00150) - 2021 - 年度财报