Financial Performance - Revenue for the year ended March 31, 2019, was HK$360,675,000, a decrease from HK$575,690,000 in 2018[8]. - Gross profit was HK$240,771,000, with a gross profit margin of 66.8%, up from 61.2% in the previous year[8]. - The company reported an operating loss of HK$85,414,000, resulting in an operating margin of -23.7%[8]. - Net profit attributable to equity shareholders was HK$90,189,000, with a net profit margin of 25.0%[8]. - Basic earnings per share for the year was HK$0.54, down from HK$0.91 in 2018[8]. - The profit attributable to equity shareholders was HK$90,189,000, down 40.3% from HK$151,023,000 in the previous year[24]. - The Group's EBITDA was HK$115,217,000, a decrease of 30.6% from HK$165,956,000 in the previous year, with an EBITDA margin of 31.9%[24]. - Total garment sales, the Group's core business, amounted to HK$281,360,000, down 40.3% from HK$471,169,000 in 2018[38]. - Total operating expenses decreased to HK$322,259,000, down 28.8% from HK$452,494,000 in 2018[44]. Assets and Liabilities - Total assets amounted to HK$919,985,000, while total liabilities were HK$215,417,000[8]. - The Group's total assets decreased by 4.4% to HK$919,985,000, while total liabilities increased by 1.0% to HK$215,417,000[24]. - Shareholders' equity decreased to HK$682,314,000 from HK$721,752,000 in the previous year[8]. - The net cash position at the end of the year was HK$315,124,000, representing a 34.4% increase from HK$234,486,000 in the previous year[24][19]. - The Group's net assets as of 31 March 2019 were HK$704,568,000, a decrease from HK$748,649,000 in 2018[52]. Dividends - The company declared an interim dividend of HK$0.20 per share and a final dividend of HK$0.20 per share[8]. - The Board will consider financial results, cash flow, business conditions, future operations, capital requirements, shareholder interests, and any restrictions before declaring dividends[201]. - The Company has established a Dividend Policy to guide the Board in determining dividend declarations and levels[200]. - The Company will continually review its Dividend Policy and reserves the right to amend it at any time[201]. Market Conditions - The retail environment remains challenging due to the Sino-US trade war and high rental costs, impacting future performance[19][25]. - The retail climate in the Group's operating markets remains challenging, particularly due to the trade war between China and the U.S. and high rental costs[68][69]. - Continuing adverse economic conditions may adversely affect the Group's financial position, potential income, asset value, and liabilities[104]. Corporate Governance - The company has adopted the Corporate Governance Code set out in Appendix 14 of the Listing Rules, with a deviation from code provision A.4.1 regarding non-executive directors' specific terms[131]. - The Board comprises seven executive directors and four independent non-executive directors, with independent non-executive directors representing at least one-third of the Board[138]. - The Company is committed to developing and reviewing its corporate governance policies and practices[152]. - The Audit Committee, comprising four independent non-executive directors, is responsible for overseeing the integrity of the Company's financial statements[163]. Risk Management - The Risk Management Committee oversees the design, implementation, and monitoring of the Group's risk management and internal control systems[198]. - The risk management and internal control systems of the group are deemed effective and sufficient by the board[200]. - Action plans have been developed for major risks, with designated risk owners assigned[199]. - The company aims to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[199]. Employee and Community Engagement - The Group actively supports various charitable organizations and encourages employee participation in community service[91]. - As of March 31, 2019, the Group had approximately 500 employees, maintaining competitive remuneration packages including medical subsidies and retirement contributions[122]. - The management discussion highlights the importance of employee contributions and the commitment to equal opportunities across various employment aspects[82][83]. Business Strategy - The Group is actively seeking new opportunities despite the ongoing challenges in the retail and wholesaling sectors[13]. - Management is adopting a very cautious approach to further expansion and development strategies amid ongoing market challenges[68][69]. - The Group promotes fair and open competition to develop long-term relationships with suppliers based on mutual trust[123].
YGM TRADING(00375) - 2019 - 年度财报