Financial Performance - For the fiscal year ending June 30, 2019, the company's sales revenue decreased by 4% to HKD 1,225 million, down from HKD 1,281 million in the previous fiscal year[29]. - Gross profit decreased from HKD 229.9 million to HKD 198.1 million, with a gross margin decline from 17.9% to 16.2% due to increased manufacturing costs and additional freight expenses[30]. - The number of retail bankruptcies has reached a historic high, significantly impacting major customers and contributing to the decline in sales revenue[29]. - The company recorded a net loss of HKD 62.8 million for the year, compared to a profit of HKD 12.3 million in the previous year[32]. - Cash conversion cycle improved to 57 days from 62 days, with inventory turnover period at 57 days and accounts receivable turnover at 60 days[34][35]. - Capital expenditure for the year was approximately HKD 41 million, primarily for establishing production facilities for innovative technology products and expanding overseas capacity[35]. - Sales and distribution expenses were HKD 35.7 million, down from HKD 36.7 million, reflecting a decrease in revenue[31]. - General and administrative expenses rose to HKD 238.7 million from HKD 187 million, with a 12% increase after excluding one-time restructuring costs[32]. Production and Capacity - The company has accelerated the transfer of production capacity from China to overseas locations due to ongoing US-China trade disputes, resulting in one-time restructuring costs[24]. - The overseas production capacity in Thailand and Cambodia now represents 66% of the company's total capacity, while domestic capacity accounts for the remaining 34%[28]. - The company has experienced a significant imbalance in production capacity utilization, prompting immediate measures to adjust underutilized capacity in China[28]. - The company plans to enhance production capacity in Southeast Asia, particularly in Myanmar, and commence production at a seamless factory in Thailand[43]. Investments and Innovation - The company has made significant investments in factories, machinery, talent, and technology to enhance operational efficiency and product innovation[25]. - The company has successfully launched seamless adhesive bras in the market, showcasing its commitment to product innovation[25]. Governance and Compliance - The company is committed to high standards of corporate governance and has adhered to the relevant codes throughout the year[88]. - The board of directors includes both executive and non-executive members, with specific terms for re-election at the annual general meeting[56]. - The company has maintained compliance with relevant laws and regulations, with no significant adverse effects reported as of June 30, 2019[53]. - The company has established a risk management and internal control system tailored to its business nature and organizational structure[133]. - The internal control system includes a designated management structure with limited authority to achieve business objectives[134]. - The company has adopted a nomination policy that outlines the criteria and procedures for appointing or re-electing directors[132]. Shareholder Information - The company will not declare a final dividend for the year ending June 30, 2019, compared to a dividend of HKD 0.05 per share for the previous year[49]. - The total distributable reserves available to equity shareholders as of June 30, 2019, amounted to HKD 238,710,000, compared to HKD 250,193,000 in 2018[54]. - The company has no provisions in its articles regarding preemptive rights for existing shareholders when issuing new shares[80]. - The company has not reported any changes in its share capital during the fiscal year[54]. Employee Development and Diversity - The company has a commitment to employee development, providing training and competitive compensation to enhance performance aligned with corporate strategy[54]. - The company has a diversity of over 15 nationalities among its employees, promoting an inclusive work environment[174]. - 91% of employees are male, while 9% are female, with 10% in senior management and 1% in middle management[180]. - The average training hours per employee were 5.3 hours during the reporting year, with 80% of training hours allocated to general employees[185]. Environmental, Social, and Governance (ESG) - The company’s environmental, social, and governance (ESG) report is prepared in accordance with the guidelines set by the Hong Kong Stock Exchange, highlighting its commitment to stakeholder expectations[165]. - The company has made adjustments to its ESG disclosures to reflect significant sustainability issues for its stakeholders[166]. - The company confirms that the data and case studies in its reports are accurate and free from misleading statements, taking responsibility for the report's content[167]. Risk Management - The company has implemented a risk assessment, identification, and management system to ensure continuous business development and improvement[154]. - The company’s internal audit department reviews the effectiveness and adequacy of the group's risk management and internal control systems, reporting to the audit committee[137]. Supplier and Customer Relations - The largest supplier accounted for 15% of the group's purchase amount, while the top five suppliers represented 40%[82]. - The largest customer contributed 49% to the group's revenue, with the top five customers accounting for 81%[82]. - The company has established procedures to screen and monitor suppliers to meet internal environmental standards[198].
黛丽斯国际(00333) - 2019 - 年度财报