Financial Performance - For the year ended March 31, 2021, the Group reported revenue of HK$3,504 million, an increase of 48.9% year-on-year from HK$2,353 million in 2020[5]. - Gross profit rose by 49.1% to HK$962 million, with a gross profit margin of 27.5%, slightly up from 27.4% in 2020[5]. - Net profit attributable to owners of the Company increased by 133% to HK$233 million, compared to HK$100 million in 2020[5]. - Revenue from the PRC market surged by 150% to HK$2,359 million, up from HK$945 million in 2020, driven by increased local consumer spending due to travel restrictions[11]. - The increase in revenue was primarily attributed to the significant growth in the PRC market, where consumers increased their spending locally due to ongoing travel restrictions[5]. - The Group's revenue in the Hong Kong market decreased by 18.2% to HK$980 million in the fiscal year, down from HK$1,198 million in 2020[15]. - The Group's overall inventory level as of March 31, 2021, was HK$623 million, a decrease of 22.0% from HK$799 million as of March 31, 2020[17]. - Total equity of the Group reached HK$1,991 million as of March 31, 2021, compared to HK$2,083 million as of March 31, 2020[22]. - Bank loans of the Group amounted to HK$18 million as of March 31, 2021, up from HK$6 million a year earlier, with a gearing ratio of 0.009[22]. Market and Sales Performance - The first quarter of 2021 saw a 93.4% increase in gold, silver, and jewellery retail sales in the PRC, reflecting a strong recovery in domestic consumption[11]. - Swiss watch exports to China recorded a remarkable growth of 94.5% in early 2021 compared to the same period in 2020, highlighting the market's resilience[11]. - The Group's performance improved significantly in the second half of the year as markets gradually returned to pre-COVID-19 levels[5]. - In 2021 Q1, the value of Hong Kong retail sales rebounded, expanding 7.5% year-on-year, with GDP growth of 7.8%, marking an 11-year high[13]. Dividend and Shareholder Returns - The Group plans to distribute a final dividend of 12.0 HK cents per share and a special final dividend of 27.0 HK cents per share for the year ended March 31, 2021[6]. - The Company aims to enhance long-term total return for shareholders by achieving sustainable recurring earning growth and maintaining a strong financial profile[52]. - The Company does not have a formal dividend policy; future dividends will be decided based on market conditions and the Group's financial position[125][126]. Corporate Governance - The Group emphasizes high standards of corporate governance to enhance shareholder value and safeguard stakeholder interests[45]. - The Company has complied with the Corporate Governance Code throughout the year, with specific deviations explained in relevant paragraphs[48]. - The roles of the Chairman and Chief Executive were separated until 5 February 2021, ensuring clear division of responsibilities[59]. - The Board comprises six Directors, including the Chairman and Group Managing Director, ensuring a balanced composition with relevant expertise[55]. - The Company has three Independent Non-executive Directors, representing over one-third of the Board, with one possessing appropriate professional qualifications in accounting[65]. - The Board meets regularly, at least four times a year, and receives detailed agenda items and supporting materials in advance of meetings[71]. - Directors are encouraged to take independent professional advice at the Company's expense to further their duties[73]. - The Company Secretary ensures compliance with Listing Rules, including timely publication of annual and interim reports[82]. Risk Management - The Board holds overall responsibility for the Group's risk management, internal control, and compliance with legal and regulatory requirements[127][128]. - The Group adopts an Enterprise Risk Management (ERM) framework consistent with the COSO framework to manage risks across its business operations[131]. - The Risk Management Taskforce identifies and prioritizes significant risks at least annually, establishing risk mitigation plans for those deemed significant[133]. - Internal audit functions are established to monitor risk management and internal control systems, with significant deficiencies reported to the Audit Committee and the Board[134]. - The Group's internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[138]. Employee Management and Training - The Group employed approximately 563 employees as of March 31, 2021, with about 63% located in Mainland China[25]. - Significant resources have been allocated to employee training programs, including a "Mystery Shoppers Programme" to tailor training for specific shops and individuals[29]. - A series of training programs for senior executives has been developed, focusing on leadership, personal development, and team management[30]. - The Company has adopted a share option scheme to attract and retain quality personnel, enhancing the value of the Company's shares[31]. Environmental, Social, and Governance (ESG) Practices - The Company conducted a materiality assessment to identify key ESG issues, referencing peers' disclosed issues and engaging both internal and external stakeholders[180]. - The ESG taskforce, including senior management and department heads, is responsible for establishing long-term ESG goals and monitoring related risks[172]. - The Company is committed to complying with the latest laws and regulations in its ESG practices, with timely revisions communicated to staff[173]. - Regular reviews of the risk management process are conducted, with internal control measures designed to mitigate identified ESG risks[176]. - The Company aims for green operations and sustainable development through its ESG strategy, which is overseen by the Board of Directors[172]. Customer Experience and Compliance - All retail shops are located in prime locations to enhance customer shopping experience[189]. - The company has established a VIP lounge at flagship stores for a private and comfortable environment for customers[189]. - Customer feedback is collected through various channels, and management regularly reviews reports of enquiries and complaints[190]. - The company strictly adheres to data protection regulations in Hong Kong, Macau, and Mainland China[194]. - Appropriate technical measures, such as firewalls and anti-virus software, are deployed to protect personal data[194]. - The company guarantees compliance with the Trade Description Ordinance in Hong Kong and other relevant laws[188]. - The company has not identified any material non-compliance with the Personal Data (Privacy) Ordinance and other relevant laws during the reporting period[197].
东方表行集团(00398) - 2021 - 年度财报