Financial Performance - The total revenue for the fiscal year ended March 31, 2021, was approximately HKD 79,397,000, a decrease of about 65.1% compared to HKD 227,568,000 in 2020[11]. - Gross profit for the year was approximately HKD 9,197,000, down from HKD 55,575,000 in 2020, indicating a significant decline in profitability[11]. - The company reported a loss of approximately HKD 26,621,000 for the year, compared to a profit of HKD 10,981,000 in the previous year[11]. - Revenue from the online wholesale platform decreased by approximately 78.3% to HKD 44,310,000, primarily due to the ongoing impact of COVID-19[13]. - Other business revenue increased by approximately 49.8% to HKD 35,087,000, attributed to increased offline trade in the Chinese market[13]. - The group's revenue for the year was approximately HKD 79.4 million, a decrease of about 65.1% compared to HKD 227.6 million in the previous year[26]. - Gross profit for the year was approximately HKD 9.2 million, down approximately 83.5% from HKD 55.6 million in the previous year, with a gross margin of 11.6%[27]. - The group reported a loss of approximately HKD 26.6 million for the year, compared to a profit of HKD 11.0 million in the previous year[30]. Cost Management - Sales and distribution expenses were reduced by 38.2% to approximately HKD 10,727,000, down from HKD 17,349,000 in 2020[13]. - Administrative expenses decreased by 22.9% to approximately HKD 19,439,000, compared to HKD 25,210,000 in the previous year[13]. - The total employee cost, including directors' remuneration, is approximately HKD 8,938,000 for the year ending March 31, 2021, down from HKD 9,419,000 in 2020[39]. Market Strategy - The company is optimistic about revenue growth as the world recovers from COVID-19[16]. - Strategic measures were implemented to mitigate the negative impacts of COVID-19, including cost control and optimization of internal cost structure[13]. - The company is focusing on developing fashion accessory products suitable for the Chinese market to capitalize on the recovery in consumer spending[13]. - The group plans to continue focusing on the "Yatani" brand and expand its online marketing strategies through third-party retail platforms and social media[1]. - The group aims to diversify its product offerings by developing new product lines, including semi-precious products, to reduce the impact of seasonal and trend changes[1]. - The group remains optimistic about the Chinese market, anticipating continued consumer demand growth driven by the government's "dual circulation" strategy[1]. - The group will invest more resources to further expand its market share in China as disposable income and living standards continue to rise[1]. Customer and Supplier Relationships - Revenue from the top five customers in the integrated fashion accessories platform accounts for about 65.8% of the segment's total revenue[46]. - Approximately 93.6% of the segment's revenue comes from China and the United States, indicating a high dependency on these markets[47]. - The group has established significant procurement directions with major customers to strengthen business relationships[47]. - Purchases from the top five suppliers represented about 68.6% of total purchases for the year[53]. - The company has established long-term framework agreements with key suppliers to ensure stable and reliable business relationships[53]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors as of March 31, 2021[76]. - The company has adopted the corporate governance code and has complied with all provisions during the reporting period[76]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements[83]. - The company has implemented a robust internal control system, which is regularly reviewed for effectiveness[83]. - The independent non-executive directors bring diverse experience and expertise to the board[78]. - The company emphasizes the importance of continuous professional development for directors and senior management[83]. - The board has established a remuneration committee to oversee compensation policies and practices[79]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[76]. Risk Management - The management will continue to monitor foreign exchange risks, particularly due to fluctuations in the Renminbi, without using forward contracts or derivatives for hedging[36]. - The company has established an internal control department to manage compliance and monitoring matters, reporting directly to the board[120]. - The board is responsible for the effectiveness of the risk management and internal control systems, which are reviewed at least twice a year[119]. - The company has a significant focus on managing business risks to protect assets from fraud and other illegal activities[119]. Employee Management - As of March 31, 2021, the company employed a total of 37 staff members, a decrease from 48 staff members in 2020, representing a reduction of approximately 22.9%[183]. - The gender distribution of employees in 2021 was 35% male (13 employees) and 65% female (24 employees), compared to 29% male and 71% female in 2020[183]. - The age group distribution showed that 30% of employees were aged 21-30, while 57% were aged 31-40, indicating a shift towards a more experienced workforce[183]. - The company has established a competitive compensation system, including basic salary, position allowances, and other benefits, to attract and retain talent[187]. - The company has maintained a "zero" injury workplace environment, with no reported work-related injuries or fatalities during the reporting period[189]. - The company adheres to fair employment practices, actively opposing child labor and forced labor, with no reported violations of related laws during the reporting period[190]. Sustainability and Social Responsibility - The company is committed to maintaining environmental sustainability and has implemented various policies to achieve resource conservation[57]. - The company emphasizes corporate social responsibility by integrating environmental and social considerations into daily operations and decision-making[175]. - The company has adopted key performance indicators to optimize and improve sustainability reporting[171]. Online Platform Development - The company aims to enhance its online wholesale platform to attract new customers and increase engagement through various marketing channels[53]. - The company has developed an online marketing system that supports a large number of registered customers[53]. - The group has shifted significantly from offline marketing to online sales platforms, aiming to expand its customer base in major regions including China, North America, and Europe[47]. - The company operates a one-stop online wholesale platform for brand manufacturers and retailers, ensuring product quality and offering free returns for defective products within seven days[193]. Financial Commitments and Investments - The company has no significant investments as of March 31, 2021, with cash and cash equivalents approximately HKD 18,901,000, down from HKD 49,042,000 in 2020[37]. - The capital debt ratio as of March 31, 2021, is approximately 15.2%, a decrease from 22.9% in 2020[37]. - The company has established a financing agreement with a maximum amount of HKD 100,000,000 at an annual interest rate of 5.25% for operational funding[164]. Shareholder Information - The company reported a total of 730,018,397 shares outstanding, representing approximately 66.13% of the issued shares held by key shareholders[127]. - The major shareholder, Lihua Investment Co., Ltd., holds 705,053,597 shares, accounting for 63.87% of the total issued shares[133]. - The company has granted stock options amounting to 11,000,000 shares under its stock option plan adopted on August 26, 2019[127]. - The company has received the payment of HKD 1.00 from relevant grantees for the share options granted[142]. - The company’s board members have significant shareholdings, with Mr. Xie Haizhou holding 66.13% of the shares[127].
雅天妮集团(00789) - 2021 - 年度财报