Financial Performance - The Group's consolidated revenue for the year ended March 31, 2019, increased to HK$3,028,987,000, up from HK$3,002,437,000 in 2018, representing a growth of approximately 0.9%[20]. - Profit attributable to equity holders of the Company for the year was HK$30,161,000, a significant decrease from HK$347,703,000 in 2018, reflecting a decline of about 91.3%[20]. - Revenue for the year ended March 31, 2019, was HK$3,028,987,000, representing a 0.9% increase from HK$3,002,437,000 in 2018[82]. - Gross profit increased to HK$972,784,000, up 1.0% from HK$962,698,000 in the previous year, maintaining a gross profit margin of 32.1%[82]. - EBITDA for the year was HK$151,326,000, a significant decrease of 67.1% compared to HK$460,309,000 in 2018[82]. - The decline in profit for the year was attributed to the absence of a one-off gain from property disposal recorded in the previous year[20]. Sales and Market Segments - Sales from the Hong Kong segment amounted to HK$2,045,230,000, accounting for 67.5% of total sales, while sales from the Mainland China segment were HK$983,757,000, representing 32.5% of total sales[20]. - Sales revenue from snack items increased by 2.4% to HK$1,301,811,000, continuing to be the major revenue source for the Group[88]. - Confectionery sales revenue rose by 2.3% to HK$582,269,000, driven by a diverse range of products offered[89]. - Sales revenue from ham and sausage items increased by 1.2% to HK$369,125,000, reflecting strong consumer reception[90]. - Beverage and dairy products saw a decline in sales revenue by 15.6% to HK$223,010,000 due to weak market demand[91]. - Food materials/ingredients sales revenue grew by 5.7% to HK$235,048,000, with continued supply to major customers in the food industry[92]. Business Development and Strategy - The Group has been actively promoting Japanese ice-cream, which has been well received by consumers, contributing to maintaining competitiveness and market share[19]. - The Group's food distribution business has been developing steadily, sourcing unique and high-quality products from over 20 countries[29]. - The Group aims to bring pleasant surprises to food lovers in Hong Kong through its multifaceted businesses, including food distribution, manufacturing, and retailing[27]. - The Group is actively developing the Mainland China market while also introducing overseas cuisines to the region[49]. - The Group plans to promote Mainland snacks in overseas markets, recognizing the potential for growth and business opportunities[62]. - The Group's strategy focuses on sourcing global snacks to attract more consumers and enhance its leading market position[60]. Operational Highlights - The Group operates various specialty stores in Hong Kong, including "Okashi Land" for Japanese snacks and "YOKU MOKU" for cookies[28]. - The Group has expanded its factory premises in Tseung Kwan O Industrial Estate by an additional 10,000 square feet to enhance production capacity for products like "Jagabee" fries[36]. - The Group operates 18 processing plants in Hong Kong and Mainland China, producing a diverse range of food products to meet different customer needs[35]. - The Group's strong distribution network covers department stores, supermarkets, convenience stores, and restaurants, enhancing its market presence[28]. - The Group has established a "Japan Ice-cream House" in Tsim Sha Tsui, promoting various renowned Japanese ice-cream brands, which is expected to generate new revenue[34]. Awards and Recognition - The Group has received multiple international accreditations, including "HACCP", "ISO 9001", and "ISO 22000", ensuring high standards in food safety and quality[35]. - The Group has been recognized with multiple awards, including "Meritorious Family-friendly Employers - Special Mention (Gold)" and "Kid's Favourite Brands Award" from Wellcome Supermarket[54]. - The company received multiple awards this year, including the Grand Bauhinia Medal and the Gold Bauhinia Star from the Hong Kong SAR Government[70]. - The company was recognized as a "Caring Company" for over 15 years by the Hong Kong Council of Social Service[73]. - The company was awarded the "Most Influential Listed Company Leader" at the China Securities Golden Bauhinia Awards[70]. Corporate Governance and Compliance - The Group emphasizes customer satisfaction and aims to source new products and produce quality food products for consumers in Hong Kong and Mainland China[124]. - Compliance procedures are in place to ensure adherence to relevant laws and regulations impacting the Group's business operations[113]. - The Group recognizes human resources as important capital and focuses on staff retention and development through performance-based incentives and training programs[115]. - The directors' remuneration is determined based on their duties, responsibilities, performance, and the group's results[155]. - The company has arranged appropriate directors' and officers' liability insurance coverage for its directors and officers[156]. Financial Position and Risk Management - As of March 31, 2019, the Group held cash and cash equivalents of HK$590,979,000 and had banking facilities of HK$2,414,176,000, with 29% utilized[97]. - The Group's gearing ratio was 49% as of March 31, 2019, indicating the proportion of bank borrowings to equity attributable to equity holders[97]. - The Group had capital commitments of HK$2,218,000 for property, plant, and equipment as of March 31, 2019[99]. - The Group does not maintain a foreign currency hedging policy, exposing it to transactional currency risks primarily from sales and purchases in Japanese yen and Renminbi[101]. - The financial risk management objectives and policies are detailed in note 38 of the financial statements, indicating a structured approach to managing financial risks[139].
四洲集团(00374) - 2019 - 年度财报