Financial Performance - The company reported a revenue of HKD 500 million for the fiscal year ended March 31, 2020, representing a 10% increase compared to the previous year[2]. - Revenue decreased to $269,818,000 in 2020 from $360,675,000 in 2019, representing a decline of 25.2%[8]. - The Group's revenue declined by 25.2% to HK$269,818,000 compared to the previous year[13]. - The Group's revenue for the year dropped by 25.2% to HK$269,818,000 (2019: HK$360,675,000) and overall gross profit margin declined to 51.6% (2019: 66.8%)[23]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to HKD 560 million[2]. - The company reported a significant increase in revenue, achieving a total of $500 million, representing a 20% growth year-over-year[174]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 25%[174]. Profitability and Loss - Gross profit was $139,337,000 with a gross profit margin of 51.6%, down from $240,771,000 and 66.8% in the previous year[8]. - Operating loss increased to $(154,540,000) with an operating margin of -57.3%, compared to $(85,414,000) and -23.7% in 2019[8]. - Net loss attributable to equity shareholders was $(87,125,000), resulting in a net loss margin of -32.3%, compared to a profit of $90,189,000 and a margin of 25.0% in 2019[8]. - Loss attributable to equity shareholders was HK$87,125,000, including non-cash items such as impairment losses and valuation losses[13]. - The Group's net loss attributable to equity shareholders was HK$87,125,000, a significant decline from a profit of HK$90,189,000 in the previous year[19]. - The Group's EBITDA margin declined to 18.9% (2019: 31.9%) with EBITDA of HK$51,064,000[19]. - The Group's net profit margin was 15%, up from 12% in the previous year[174]. Assets and Liabilities - Total assets decreased to $725,132,000 from $919,985,000 in 2019, a decline of 21.2%[8]. - Total liabilities decreased to $167,298,000 from $215,417,000, a reduction of 22.4%[8]. - Shareholders' equity decreased to $538,095,000 from $682,314,000, reflecting a decrease of 21.1%[8]. - Cash and bank deposits less short-term bank loans showed a negative balance of $(14,896,000), improving from $(61,708,000) in 2019[8]. - Cash and bank deposits less bank overdrafts decreased to HK$146,011,000 (2019: HK$315,124,000)[22]. - The Group's net assets as of 31 March 2020 were HK$557,834,000, down from HK$704,568,000 in 2019, with a gearing ratio of 0.210 compared to 0.010 in the previous year[33]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by 2022[2]. - New product launches contributed to a 20% increase in sales in the last quarter, with the introduction of three new brands[2]. - The company is considering strategic acquisitions to enhance its product portfolio, with potential targets identified[174]. - Market expansion plans include entering two new countries, which are projected to increase market share by 5%[174]. Technology and Investment - Investment in technology development increased by 30%, focusing on enhancing e-commerce capabilities[2]. - The company is investing in new technology development with a budget allocation of $10 million for R&D[174]. Corporate Governance - The Board comprises seven executive directors and four independent non-executive directors as of March 31, 2020, which will change to six executive directors and three independent non-executive directors after April 16, 2020[53]. - The independent non-executive directors represent at least one-third of the Board, providing diverse expertise and guidance[53]. - The Company has complied with the Corporate Governance Code throughout the financial year, except for the deviation regarding non-executive directors' specific terms[51]. - The Board is responsible for setting overall objectives and strategic directions, monitoring financial performance, and making key decisions regarding major transactions and risk management[52]. Risk Management - The Risk Management Committee oversees the design, implementation, and monitoring of the risk management and internal control systems of the Group[92]. - The Board has overall responsibility for the risk management framework and believes the Group's risk management and internal control systems are effective and adequate[112]. - Proactive measures have been taken by the Group to monitor changes in government policies and legislation to mitigate risks[40]. Employee and Social Responsibility - The Group emphasizes the importance of employee contribution and support for continued business success, promoting equal opportunities in recruitment, compensation, training, and promotion[37]. - The Group actively supports various charitable organizations and encourages employees to participate in volunteer activities, demonstrating corporate social responsibility[37]. - The Group has implemented various measures to reduce costs and overheads to preserve working capital amid uncertainties in the global economic environment[34]. Inventory Management - As of March 31, 2020, the Group's inventories amounted to HK$59,798,000, carried at the lower of cost and net realizable value[188]. - The Group regularly reviews its inventory portfolio to identify items that may need to be discounted to increase sales chances[188]. - Management's estimates of unsold inventory at the end of each season and necessary markdowns involve significant judgments and assumptions[192]. Audit and Compliance - The audit committee consists of three independent non-executive directors who regularly review the effectiveness of internal control systems and the annual report[149]. - The auditor's objective is to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[200]. - The financial statements were prepared in compliance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[182].
YGM TRADING(00375) - 2020 - 年度财报