Financial Performance - Revenue for the fiscal year ended March 31, 2019, increased by 7.1% to HKD 414,597,000 from HKD 387,026,000 in the previous fiscal year[5] - Gross profit rose from HKD 140,917,000 to HKD 166,420,000, with gross margin improving from 36.4% to 40.1%[6] - Net loss for the fiscal year increased to HKD 122,831,000, compared to a loss of HKD 59,972,000 in the previous year, primarily due to fair value losses on equity instruments[6] - Loss per share for the fiscal year was HKD 2.06, up from HKD 1.20 in the previous fiscal year[7] - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion for the fiscal year, representing a 15% year-over-year growth[19] - The company has reported a gross margin improvement to 35%, up from 30% in the previous year, due to cost optimization efforts[19] - The company's net loss for the fiscal year was HKD 122.8 million, compared to a net loss of HKD 60 million in the previous year[38] - The earnings per share for the fiscal year was HKD 2.06, up from HKD 1.20 in the previous year[38] Dividends and Reserves - The board did not recommend a final dividend for the fiscal year ended March 31, 2019[8] - The company reported a distributable reserve of approximately HKD 1,014,732,000 as of March 31, 2019, an increase from HKD 863,036,000 in 2017[156] - The company does not recommend the payment of a final dividend for the year ended March 31, 2019[155] Cash and Assets - Cash and bank balances as of March 31, 2019, totaled HKD 81,800,000, with no outstanding bank borrowings[12] - As of March 31, 2019, the group's cash and bank deposits totaled HKD 81,800,000, down from HKD 194,000,000 on March 31, 2018[68] - The net asset value decreased from HKD 544,800,000 on March 31, 2018, to HKD 383,200,000 on March 31, 2019, while total net assets remained stable at HKD 1,061,700,000[73] Market and Growth Strategy - The company aims to strengthen its core capabilities and consolidate its leadership position despite the reported losses[11] - The retail market for luxury watches showed signs of recovery during the fiscal year[11] - User data indicates a growing customer base, with an increase of 25% in active users compared to the previous year, reaching 500,000 active users[19] - The company has set a future outlook with a revenue target of HKD 1.5 billion for the next fiscal year, indicating a projected growth of 25%[19] - New product development includes the launch of a smartwatch line, expected to contribute an additional HKD 200 million in revenue within the first year[19] - The company is expanding its market presence in Southeast Asia, with plans to open 10 new retail locations by the end of the next fiscal year[19] - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance market share by 10%[19] - The company is investing in new technology for digital payment solutions, aiming to increase transaction efficiency by 30%[19] - The management team has outlined a new marketing strategy focusing on digital channels, which is expected to increase brand awareness by 40%[19] Expenses and Cost Management - Sales and distribution costs decreased by 2.7% to HKD 96,700,000, mainly due to reduced rental expenses for specialty stores[15] - General and administrative expenses increased to HKD 108,600,000, driven by higher employee costs and property expenses[15] Customer and Supplier Relations - Sales to the top five customers amounted to HKD 135 million, a 4.5% increase from HKD 129.2 million in the previous year, representing approximately 32.6% of total revenue[42] - The largest customer accounted for 14.0% of total revenue, down from 15.6% in the previous year[42] - The procurement amount from the top five suppliers in the fiscal year 2019 was HKD 297 million, an increase of approximately 12.3% from HKD 264.5 million in 2018[43] - The top five suppliers accounted for approximately 98.6% of the total procurement amount in fiscal year 2019, down from 99.3% in 2018[43] Regional Performance - The total revenue from Hong Kong, mainland China, and Macau was HKD 357.8 million, representing 86.3% of the group's total revenue in fiscal year 2019[57] - Revenue from Hong Kong decreased by HKD 28.4 million to HKD 185.6 million, a decline of 13.3% compared to HKD 214 million in the previous year[58] - Revenue from mainland China and Macau increased by 23.3% to HKD 172.2 million, up from HKD 139.6 million in the previous year, contributing 41.5% to total revenue[60] - The profit from the mainland China and Macau market increased by HKD 14 million or 21.1% to HKD 80.5 million in fiscal year 2019[61] - Revenue from other Asian regions (Taiwan, Singapore, and South Korea) rose by 82.5% to HKD 30.1 million, compared to HKD 16.5 million in the previous year[62] - The group recorded a profit of HKD 10.6 million from other Asian regions, an increase of 96.0% from HKD 5.4 million in the previous year[63] - The group reported a revenue of HKD 26.7 million from property investments in mainland China, a 57.8% increase from HKD 16.9 million in the previous year[64] Corporate Governance - The board of directors consists of nine members, including five executive directors and four independent non-executive directors, ensuring compliance with listing rules[95] - The company has adopted corporate governance standards in line with the Hong Kong Stock Exchange's requirements, ensuring high governance standards[91] - The company has received annual independent confirmations from its independent directors, affirming their independence as per regulatory guidelines[97] - The company is committed to maintaining compliance with legal and regulatory requirements, as part of its corporate governance practices[95] - The company has implemented a code of conduct and compliance manual applicable to directors and employees, enhancing governance practices[95] - The board is responsible for reviewing and monitoring the company's governance policies and practices, ensuring alignment with business objectives[95] - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee to oversee various affairs[106] - The Audit Committee held three meetings during the year, reviewing the financial statements for the year ended March 31, 2019, and providing recommendations to the board[108] - The Remuneration Committee held one meeting during the year, reviewing and recommending the remuneration packages for executive directors and senior management[112] - The company encourages directors to participate in continuous professional development, with all directors attending three relevant training sessions during the year[104] - The Nomination Committee was established to review the board's structure and diversity, ensuring a diverse range of expertise, particularly in management, financial control, business development, and human resources[114] - The company has adopted a nomination policy to enhance the diversity of the board, considering factors such as gender, age, and professional experience[114] Risk Management and Compliance - The company has implemented a risk management process that includes risk identification, assessment, management measures, and monitoring[137] - The company has complied with all relevant codes regarding risk management and internal controls during the fiscal year[126] - The board is responsible for ensuring the establishment and maintenance of effective risk management and internal control systems[124] - The company has established appropriate monitoring procedures to ensure comprehensive, accurate, and timely recording of accounting and management information[134] - The company conducts monthly comparisons of financial performance against budgets and forecasts, with updates provided to all directors[134] - The company has a whistleblowing policy allowing employees to report potential misconduct confidentially, which is reviewed by the audit committee[136] Environmental Commitment - The board of directors emphasizes a commitment to sustainability, with plans to reduce carbon emissions by 20% over the next three years[19] - The company has implemented waste management and resource-saving measures to reduce environmental impact, reflecting its commitment to sustainable business growth[197]
SINCEREWATCH HK(00444) - 2019 - 年度财报