Financial Performance - The company recorded revenue of approximately HKD 62.7 million for the year ended March 31, 2021, a decrease of about 62.8% compared to HKD 168.5 million for the year ended March 31, 2020[9]. - Revenue from the United States accounted for approximately 87.6% and 78.6% of total revenue for the years ended March 31, 2020, and March 31, 2021, respectively[9]. - The gross profit margin declined from 7.6% for the year ended March 31, 2020, to a gross loss margin of 11.0% for the year ended March 31, 2021[9]. - The company reported losses of approximately HKD 47 million and HKD 44.7 million for the years ended March 31, 2020, and March 31, 2021, respectively[9]. - The company recorded a revenue decrease of approximately 105,800,000 HKD or about 62.8%, from approximately 168,500,000 HKD for the year ended March 31, 2020, to approximately 62,700,000 HKD for the year ended March 31, 2021[22]. - Revenue from special occasion dresses decreased from approximately 84,100,000 HKD to approximately 8,700,000 HKD, a decline attributed to a drop in sales volume from 610,700 units to 42,800 units[23]. - Revenue from bridesmaid dresses decreased from approximately 79,800,000 HKD to approximately 44,100,000 HKD, with sales volume dropping from 274,000 units to 152,600 units[23]. - The company reported a gross loss of approximately 6,900,000 HKD for the year ended March 31, 2021, compared to a gross profit of approximately 12,800,000 HKD for the previous year, resulting in a gross loss margin of 11.0%[25]. - The company recorded a loss of approximately 44,700,000 HKD for the year ended March 31, 2021, a decrease from a loss of approximately 47,000,000 HKD in the previous year[28]. Cost Control and Business Strategy - The ongoing US-China trade disputes and the impact of COVID-19 have created a challenging business environment, affecting overall performance[12]. - The company has implemented cost control measures since April 2020 to address prolonged business setbacks[12]. - Management is actively seeking new business opportunities to diversify revenue sources and reduce risks[12]. - The company has begun developing an online business platform to sell fashion apparel since November 2020[16]. - The company aims to leverage its strong track record and experienced management team to seize growth opportunities in the future[12]. - The company will continue to review its existing business and take appropriate measures to respond to any potential impacts[12]. Financial Position and Ratios - As of March 31, 2021, the company's cash and cash equivalents were approximately 500,000 HKD, down from approximately 32,700,000 HKD a year earlier[33]. - The current ratio decreased to approximately 0.8 times as of March 31, 2021, compared to approximately 1.7 times a year earlier, primarily due to a reduction in cash and cash equivalents[33]. - The company's debt-to-equity ratio was 78.8% as of March 31, 2021, down from 82.8% a year earlier, mainly due to a decrease in bank borrowings[33]. - Administrative expenses decreased by approximately 16,700,000 HKD or about 36.7%, from approximately 45,500,000 HKD to approximately 28,800,000 HKD, primarily due to cost control measures[26]. - Financing costs decreased by approximately 500,000 HKD or 23.8%, from approximately 2,100,000 HKD to approximately 1,600,000 HKD, mainly due to a reduction in average bank borrowings[26]. Corporate Governance - The board of directors is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[64]. - The company has adopted the principles and code provisions of the Corporate Governance Code as set out in the Listing Rules of the Hong Kong Stock Exchange[64]. - During the reporting period, the company complied with the code provisions of the Corporate Governance Code, except for provision A.2.1[65]. - The board consists of capable directors, including executive and independent non-executive directors, ensuring a balanced governance structure[72]. - The chairman and CEO roles are currently held by the same individual, Mr. Zhuang Shuo, who is a co-founder with extensive industry experience[77]. - The board held a total of 9 meetings during the reporting period, with full attendance from all directors[76]. - Independent non-executive directors account for at least one-third of the board, ensuring compliance with the Listing Rules[80]. - The company has established a code of conduct for securities trading, which all directors confirmed adherence to during the reporting period[68]. - The board is responsible for setting strategies and overseeing their implementation, ensuring effective internal controls and risk management systems[81]. Employee Welfare and Training - As of March 31, 2021, the total number of employees in the group was 295, with 19 in Hong Kong and 276 in mainland China[144]. - The group maintained a gender distribution of 19 males and 11 females in Hong Kong, while in mainland China, there were 121 males and 155 females[144]. - The group emphasizes employee welfare by providing competitive compensation packages that exceed local minimum wage standards[145]. - The group has implemented a rigorous policy to ensure fair treatment of all employees, promoting diversity and equal opportunities[142]. - The group has invested in employee training and development opportunities to enhance knowledge and skills[141]. - The group has adhered to all relevant labor laws and regulations in both Hong Kong and mainland China without any violations reported[141]. - The group has established a comprehensive employee handbook detailing HR policies, including compensation, benefits, and dismissal procedures[145]. - The group aims to create a safe and healthy work environment to boost productivity and employee satisfaction[141]. - 100% of employees participated in training programs, with an average training time of 11.7 hours per employee, totaling 3,456 hours across 295 employees[158]. - Employee training participation by gender: 43.7% male and 56.3% female[158]. - Employee training participation by job level: 3.7% management, 38.3% administrative staff, and 58.0% production staff[158]. - Employee training participation by location: 6.4% in Hong Kong and 93.6% in mainland China[158]. - Average training hours by job level: 3.1 hours for management, 7.3 hours for administrative staff, and 15.2 hours for production staff[158]. Environmental and Social Responsibility - The company has committed to improving the accuracy of its ESG reporting and enhancing transparency of its ESG performance[127]. - The company has established an ESG committee involving the board, senior management, and employees to assess and manage ESG-related risks and opportunities[132]. - The ESG committee meets formally every six months to ensure timely execution of ESG measures[132]. - The company aims to provide responsible products and services while fulfilling its environmental and social responsibilities[130]. - The company actively participates in community initiatives, including donations and volunteer services, to create social value in local communities[190]. - The company has implemented various COVID-19 measures, including daily temperature checks and mandatory mask-wearing for all employees[154]. - The company has maintained a zero fatality rate since the start of its annual ESG reporting, with no significant work-related injuries reported during the period[153]. - The company has not reported any non-compliance incidents related to environmental laws and regulations during the reporting period[168]. - The company has initiated a partnership to install a solar renewable energy system on the rooftop of its Hong Kong office, which will sell generated electricity back to the grid, contributing to renewable energy efforts in Hong Kong[189]. - The company plans to procure biodegradable plastic bags for packaging in the near future to reduce environmental impact[187]. Risk Management - The board has established a risk management framework to identify, assess, and manage significant risks affecting the achievement of the group's objectives[110]. - The board conducted an annual review of the effectiveness of the risk management and internal control systems, concluding they are effective[111]. - The company emphasizes the importance of maintaining confidentiality regarding inside information before public disclosure[113]. - The company continues to manage and mitigate identified environmental risks associated with its operations, implementing effective monitoring measures[188].
嘉艺控股(01025) - 2021 - 年度财报