Financial Performance - Revenue for the year ended March 31, 2021, was HK$422.5 million, a decrease of 17.2% from HK$510.4 million in the previous year[10] - Profit attributable to shareholders for the same period was HK$10.8 million, down 4.9% from HK$11.3 million in the prior year[10] - Basic earnings per share decreased to HK1.79 cents from HK1.89 cents, reflecting a decline of 5.3%[10] - Operating profit for the year was HK$16.7 million, down 24.3% from HK$22.1 million in the previous year[10] - Overall gross profit decreased by 23.3% to HK$158.6 million from HK$206.7 million in the previous year, with gross profit margin declining to 37.5% from 40.5%[61] - Revenue from the architectural builders' hardware, bathroom collections and others segment decreased by 17.2% to HK$322.3 million compared to HK$389.4 million in 2020[59] - Revenue from the kitchen collection and furniture segment also decreased by 17.2% to HK$100.2 million from HK$121.0 million in 2020[60] - Cash and cash equivalents increased to approximately HK$103.0 million from HK$83.4 million in 2020[67] - The gearing ratio increased to 7.4% from 1.1% in 2020, with interest-bearing borrowings rising to HK$66.6 million from HK$10.7 million[67] - The Group's total staff costs, including Directors' emoluments, amounted to HK$57,330,000 for the year ended March 31, 2021, compared to HK$75,151,000 in 2020[188] Dividends - The company declared an interim dividend of HK0.5 cents per share, reduced from HK1.0 cent in the previous year[10] - A final dividend of HK$0.5 cents per share is recommended for the year ended March 31, 2021, totaling HK$3,003,000, consistent with the previous year[92] - The company declared an interim dividend of HK$0.5 cents per share for the six months ended September 30, 2020, totaling HK$3,003,000, down from HK$6,006,000 the previous year[91] Economic Outlook - The Hong Kong Government forecasts a GDP growth of 3.5%-5.5% for 2021, indicating a potential recovery in the economy[31] - The Hong Kong Government forecasts a GDP growth of 3.5% to 5.5% for 2021, despite ongoing challenges from the COVID-19 pandemic and geopolitical tensions[34] - Hong Kong's GDP is expected to grow between 3.5% to 5.5% in 2021, with an unemployment rate around 6%[77] - The residential property market in Hong Kong is expected to see stable to modest increases due to low interest rates and strong demand[84] - The government’s commitment to increasing land supply may help citizens acquire housing more quickly in the long term[84] - The retail industry is anticipated to face challenges due to weak consumer sentiment, particularly in the luxury sector[84] Challenges and Responses - The company acknowledges the challenges posed by the COVID-19 pandemic and geopolitical tensions affecting business operations[29] - The gradual rollout of COVID-19 vaccinations is expected to improve consumption sentiment, although recovery may be uneven due to new variants[30] - Government subsidies and rent concessions have provided support during the challenging business environment[29] - The company is closely monitoring external factors impacting operations, including supply chain strains and raw material price increases due to COVID-19[86] - The geopolitical situation and economic stimulus measures are expected to contribute to ongoing currency fluctuations, affecting procurement costs[81] Management and Governance - The company is responsible for the overall management and strategic planning, led by its Chairman, Mr. TSE Sun Fat, who has over 30 years of experience in the building materials trading industry[120] - The Managing Director, Mr. TSE Sun Po, has been with the group since 1979 and oversees the retail business, contributing to strategic planning and management[120] - The company has a strong management team with extensive experience in brand building and new product development, led by Vice Chairman Mr. TSE Sun Wai[120] - The company emphasizes the importance of strategic planning and management in its operations[127] - The company maintains a commitment to transparency and accountability in its governance practices[139] Employee and Operational Metrics - The workforce as of March 31, 2021, was recorded at 149 employees, a decrease from 152 employees in 2020[188] - The lease payment for warehouse rental to Negotiator Consultants Limited was approximately HK$3,826,000 for the year ended March 31, 2021[178] - The Group's management team is experienced and closely involved in daily operations, ensuring adaptability to changes in the operating environment[188] Shareholding and Directors - As of March 31, 2021, the interests of Mr. TSE Sun Fat, Henry in the company amounted to 37,197,294 shares[161] - Mr. TSE Sun Wai, Albert and Mr. TSE Hon Kit, Kevin held a combined total of 108,302,488 shares, with Mr. TSE Sun Po, Tony holding 43,659,542 shares[161] - The board confirmed that all Independent Non-executive Directors are independent according to the Listing Rules[150] - There were no competing business interests disclosed by any Director during the year[151] - The company has arranged insurance coverage to protect Directors against potential costs and liabilities arising from claims[151] Subsidiaries and Business Operations - The Group's subsidiaries are engaged in importing, wholesale, retail, and installation of architectural builders' hardware and furniture in Hong Kong and the PRC[44] - The largest supplier accounted for 20% of total purchases, while the aggregate of the five largest suppliers represented 61% of total purchases[200] - The largest customer contributed 5% to total sales, and the aggregate of the five largest customers accounted for 20% of total sales[200]
怡邦行控股(00599) - 2021 - 年度财报