Financial Performance - For the fiscal year ending March 31, 2021, the revenue from continuing operations decreased by 47.9% to HKD 136,356,000 from HKD 261,772,000 in the previous fiscal year[7]. - The loss from continuing operations increased by 48.6% to HKD 209,376,000, compared to HKD 140,889,000 in the previous fiscal year, primarily due to the severe market conditions caused by the COVID-19 pandemic[8]. - The loss per share for the fiscal year was HKD 3.46, up from HKD 2.33 in the previous fiscal year[9]. - The group reported a net loss of HKD 209.4 million for the fiscal year 2021, compared to a net loss of HKD 140.9 million in the fiscal year 2020[36]. - The group's revenue from continuing operations decreased by 47.9% to HKD 136.4 million for the fiscal year ending March 31, 2021, down from HKD 261.8 million in the previous fiscal year[34]. - Gross profit from continuing operations fell by 77.1% to HKD 21.2 million, with a gross margin decline from 35.4% to 15.5%[34]. - Revenue from Hong Kong decreased by 51.1% from HKD 100,300,000 in the previous year to HKD 49,100,000 in fiscal year 2021[53]. - Revenue from mainland China and Macau contributed 46.7% to total income, with sales dropping 46.2% from HKD 118,300,000 to HKD 63,600,000[53]. - The group recorded a 51.9% decrease in property investment income from mainland China, dropping from HKD 18,300,000 to HKD 8,800,000 due to lower occupancy rates[52]. Strategic Initiatives - The company has established a large sales network across Asia, including 49 retail points and 12 specialty stores[15]. - The management is closely monitoring changes in the Chinese property market and adjusting the leasing strategy for investment properties to capitalize on potential market rent recovery[15]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[19]. - A strategic acquisition of a local competitor is anticipated to enhance the company's product offerings and market reach, expected to close by Q3 2024[19]. - The company aims to enhance its sustainability initiatives, targeting a 50% reduction in carbon emissions by 2025[19]. - The company plans to implement a new digital marketing strategy aimed at increasing customer engagement by 40%[19]. - The company aims to diversify its revenue sources by exploring suitable investment opportunities[56]. Research and Development - Investment in R&D increased by 30%, focusing on innovative technologies to improve product efficiency[19]. Operational Efficiency - Operational efficiency improvements are projected to reduce costs by 15% over the next year[19]. - The inventory turnover period increased from 786 days to 974 days, with inventory decreasing by 15.7% to HKD 307.3 million as of March 31, 2021[38]. - The current ratio improved to 2.3 as of March 31, 2021, compared to 1.4 a year earlier, primarily due to the reclassification of certain liabilities[38]. Corporate Governance - The board of directors consists of members with relevant skills and experience suitable for the company's business needs[80]. - The company has established four committees: audit, remuneration, nomination, and investment, to oversee different areas of the company's affairs[92]. - The company encourages directors to participate in continuous professional development to enhance their knowledge and skills[89]. - The remuneration committee is responsible for recommending the remuneration policy for all directors and senior management, ensuring no individual director participates in determining their own remuneration[98]. - The chairman and CEO positions are held by different individuals to ensure a balance of power and authority within the company[88]. - The company has taken out appropriate insurance to cover potential legal liabilities for directors and senior management[80]. - The company has complied with all code provisions regarding risk management and internal control during the fiscal year[112]. Financial Management - Cash and bank balances as of March 31, 2021, were HKD 108,500,000, up from HKD 43,600,000 a year earlier[59]. - The group's asset-liability ratio was 21.7% as of March 31, 2021, with outstanding bank borrowings of HKD 93,100,000[59]. - The company has a dividend policy that considers actual and expected financial performance, retained earnings, and capital expenditure needs[139]. - The company reported a distributable reserve of approximately HKD 452,074,000 as of March 31, 2021, down from HKD 875,523,000 in 2020, indicating a decrease of about 48.3%[150]. Risk Management - The company has implemented a risk management program that includes risk identification, assessment, management measures, and monitoring[128]. - The management has implemented various controls to analyze the monitoring environment and related risks[117]. - The company aims to provide reasonable assurance regarding the effectiveness of its risk management and internal control systems[111]. Shareholder Relations - The company communicates timely information to shareholders and recognizes the interest of potential investors and investment groups[134]. - Major shareholders include New Horizon Capital Limited, holding 2,078,490,000 shares, representing 34.38% of the company's issued shares[198]. - Sky League Limited is a beneficial owner with 1,294,370,000 shares, accounting for 21.42% of the total shares[198]. - Union Investment Limited holds 1,061,950,000 shares, which is 17.57% of the company's issued shares[198]. Employee Relations - The group has a total of 117 employees as of March 31, 2021, down from 134 employees the previous year[69]. - The company has a whistleblowing policy allowing employees to report potential misconduct confidentially[125].
SINCEREWATCH HK(00444) - 2021 - 年度财报