Financial Performance - The company recorded a sales revenue of HKD 1.43 billion for the fiscal year, representing a year-on-year growth of 16%[12] - Sales revenue increased by 16% to HKD 1,429 million for the year ended June 30, 2021, compared to HKD 1,237 million in the previous fiscal year[18] - Gross profit rose from HKD 180.3 million to HKD 238.0 million, with a gross margin increase from 15% to 17%[19] - The company recorded a profit after tax of HKD 7.1 million for the year ended June 30, 2021, compared to a net loss of HKD 77.5 million in the previous year[25] - Other income net increased significantly from HKD 8.8 million to HKD 56.6 million, primarily due to the sale of a property for HKD 28 million[21] - The financial expenses increased from HKD 5.5 million to HKD 6.8 million, primarily due to increased sales revenue[24] Operational Challenges - The company faced significant operational challenges due to supply chain disruptions, including a more than 100% increase in freight costs compared to pre-pandemic levels[15] - The company’s production capacity was significantly impacted at the beginning of the fiscal year due to pandemic-related lockdowns[15] - The company temporarily halted production lines in Myanmar starting June 2021 due to political instability, with plans to resume once the situation stabilizes[12] - The company anticipates that the impact of the pandemic will continue into 2022, and it is working closely with local governments to implement measures to prevent virus transmission while maintaining production[39] Strategic Initiatives - The company raised HKD 40.4 million through a rights issue in February 2021 to invest in seamless business and increase new capacity[12] - The company implemented measures to improve liquidity and strengthen its balance sheet during the fiscal year[12] - The company is focused on executing key strategies and improving cash flow amid ongoing supply chain disruptions[40] - The company plans to continue monitoring the situation in Myanmar for potential production resumption[12] Market Demand - The demand for seamless products surged, particularly from major customers in the US and Europe, as lockdowns were lifted[15] - The U.S. market accounted for 75% of total sales, while Europe contributed 15% and other markets 10%[17] Corporate Governance - The company is committed to maintaining high standards of corporate governance and has complied with the relevant codes during the year[102] - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors[122] - The independent non-executive directors are required to retire and seek re-election at least once every three years[120] - The company has established clear and specific terms of reference for its board committees, which report their decisions and recommendations to the board[133] Sustainability Initiatives - The company launched an ambitious new sustainability strategy in 2020, focusing on three pillars: caring for the earth, empowering employees, and building communities[191] - The sustainability framework aligns with the United Nations Sustainable Development Goals, addressing global challenges and aiming for a sustainable future[191] - The company is committed to reducing its carbon footprint and promoting a circular economy as part of its sustainability initiatives[192] - The company emphasizes the importance of good environmental, social, and governance performance to meet stakeholder expectations[181] Employee Relations - The company is committed to developing and nurturing talent, providing training and development opportunities for employees[53] - The company provides reasonable wages and benefits to employees, with additional perks such as annual dinners, outings, and holiday gifts, along with support for employees facing difficulties[198] - The company conducts annual assessments of employee performance, rewarding outstanding performers with bonuses[198] Shareholder Communication - The company has adopted a "Shareholder Communication Policy" to ensure appropriate, equal, and timely access to balanced and easily understandable information for shareholders[172] - The company is committed to maintaining open communication with institutional investors and analysts to enhance understanding of its management and financial status[171] Related Transactions - The company has engaged in continuous related transactions with Van de Velde (VdV) for 39 years, with VdV holding approximately 25.66% of the company's issued share capital[63] - The total annual cap for related transactions with VdV for the fiscal years ending June 30, 2021, 2022, and 2023 is set at HKD 160 million, HKD 170 million, and HKD 180 million respectively[64] - For the fiscal year ending June 30, 2021, the company sold women's lingerie to VdV amounting to HKD 97,114 thousand, which is below the annual cap of HKD 160,000 thousand[66] Audit and Compliance - The audit committee reviewed the group's accounting principles and financial performance for the year ended June 30, 2021[105] - KPMG was the auditor for the consolidated financial statements for the year ended June 30, 2021, and will be proposed for reappointment at the upcoming annual general meeting[106] - The audit committee reviewed the internal control and risk management systems, ensuring their effectiveness throughout the year[137]
黛丽斯国际(00333) - 2021 - 年度财报