Financial Performance - For the fiscal year ending March 31, 2019, the group recorded a revenue of HKD 1,693,426,000, a decrease of 12.2% compared to HKD 1,928,320,000 in 2018[18] - The cosmetics segment generated revenue of HKD 1,408,287,000, down 10.5% year-on-year, accounting for 83.2% of total revenue[18] - The fashion segment's revenue was HKD 285,139,000, reflecting a decline of 19.6% from HKD 354,453,000 in the previous year[18] - The group reported a loss of HKD 79,351,000 for the year, compared to a profit of HKD 5,262,000 in 2018, primarily due to a cautious consumer market[19] - The cosmetics division incurred a loss of HKD 52,884,000, while the fashion division recorded a loss of HKD 29,797,000[19] - The group experienced a notable decline in sales during the second half of the fiscal year, particularly in the cosmetics and fashion categories[19] Inventory and Provisions - Inventory write-offs and provisions for slow-moving stock amounted to approximately HKD 17,533,000 for the year[19] - Provisions related to loss-making stores totaled about HKD 33,700,000 as of March 31, 2019[19] Market Conditions - The retail environment was impacted by the US-China trade war and fluctuations in the global financial market, leading to a cautious consumer sentiment[18] Gross Profit Margins - The gross profit margin for the cosmetics business decreased by 0.6 percentage points to 31.1%[24] - The gross profit margin for the fashion business decreased by 3.3 percentage points to 66.8%[28] Strategic Plans - The Group plans to strategically adjust its product portfolio and explore new products to enhance competitiveness and meet changing customer demands[31] - The Group is actively exploring e-commerce platforms to drive growth in the cosmetics business and expand its customer base[31] Financial Position - The Group's working capital decreased from HK$311,550,000 as of March 31, 2018, to HK$225,870,000 at the end of the reporting period[42] - Cash and bank balances amounted to HK$56,064,000, down from HK$65,168,000 as of March 31, 2018[43] - Outstanding bank borrowings were HK$265,590,000, slightly reduced from HK$269,206,000 as of March 31, 2018[43] - The current ratio decreased to 1.61 times from 1.84 times as of March 31, 2018, while the gearing ratio increased to 0.42 from 0.37[44] - The Group's banking facilities increased to HK$429,240,000 from HK$357,810,000 as of March 31, 2018, with HK$282,555,000 utilized[46] Procurement Costs - Approximately 34% of the Group's procurement costs were in foreign currencies, up from 22% in the previous year[47] Property Acquisition - The Group acquired a property for HK$117,500,000, with total costs including transaction costs around HK$128,458,000, aimed at generating rental income[37] Market Focus - The Hong Kong and Macau market accounted for 92.9% of the total revenue of the fashion business, with a focus on optimizing product design and closing underperforming stores[35] Dividends - The Group declared an interim dividend of HK$0.2 cents per share, amounting to HK$5,036,000, settled in cash[78] - The directors recommended a final dividend of HK$0.1 cents per share, amounting to HK$2,518,000, pending shareholder approval[78] Corporate Governance - The Company has maintained high standards of corporate governance to enhance transparency and accountability in the interests of shareholders[1] - The Company has complied with all code provisions of the Corporate Governance Code throughout the year ended 31st March, 2019[3] - The roles of Chairman and Chief Executive Officer are clearly divided and held by different individuals to ensure a balanced distribution of power[155] - The Company continues to review its corporate governance practices to meet rising expectations of shareholders and investors[1] Board Composition and Meetings - The Board comprises six members, including two executive directors, one non-executive director, and three independent non-executive directors[149] - The Company conducts at least four regular Board meetings annually, with additional meetings arranged as needed to discuss significant issues[167] - The Audit Committee held six meetings during the year ended March 31, 2019, with the Chairman and CEO attending five of them[190] Risk Management - The Company confirmed that there are no significant uncertainties regarding its ability to continue as a going concern[199] - The effectiveness of the financial reporting and internal control systems, including risk management functions, was reviewed by the Audit Committee[190] Directors' Responsibilities - The directors acknowledge their responsibility for preparing the consolidated financial statements for the year ended March 31, 2019[200] - The consolidated financial statements are prepared in accordance with statutory requirements and applicable accounting standards[200] - The directors ensure that the financial statements give a true and fair view of the state of affairs of the Group[200]
威高国际(01173) - 2019 - 年度财报