Impact of COVID-19 - The group faced significant challenges during the reporting period due to the COVID-19 pandemic, which severely impacted global economic growth and retail performance, particularly in the apparel sector[9]. - The group's apparel procurement business was notably affected, with a cautious ordering approach from wholesalers due to weak market conditions and reduced consumer demand[9]. - The ongoing U.S.-China trade tensions and pandemic-related restrictions have created significant uncertainties for the apparel manufacturing business, leading to a decision to terminate and sell certain operations[12]. - The management team faced operational challenges in overseeing production in China due to travel restrictions and pandemic measures[12]. - The group reported that the retail sales growth in mainland China has turned positive, but the apparel industry has not fully recovered compared to overall retail performance[9]. Financial Performance - The group's revenue for the reporting period was approximately HKD 120,057,000, a decrease of about 1.69% compared to HKD 122,097,000 in the previous year[21]. - The garment procurement revenue was approximately HKD 116,938,000, down by about 1.91% from HKD 119,216,000 in the previous year[21]. - Financial services revenue increased by approximately 8.26% to HKD 3,119,000, up from HKD 2,881,000 in the previous year, mainly due to the expansion of loan services[21]. - The gross profit margin improved to approximately 4.42%, an increase of about 0.52% from 3.90% in the previous year[21]. - Administrative expenses decreased by approximately 51.98% to HKD 11,998,000 from HKD 24,985,000 in the previous year, due to strict control over administrative costs[21]. - The company reported a loss attributable to owners of approximately HKD 3,960,000, significantly improved from a loss of HKD 24,002,000 in the previous year[21]. - The total comprehensive loss for the year was HKD 3,853,000, significantly lower than HKD 22,746,000 in the previous year, indicating improved financial health[172]. - The company reported a significant reduction in expected credit losses, with a reversal of HKD 3,164,000 in 2021 compared to a provision of HKD 4,118,000 in 2020[180]. Strategic Initiatives - The group adjusted its sales strategy to mitigate the crisis by adopting a low-margin, high-volume approach[9]. - The group plans to utilize proceeds from asset sales to further develop its core business, rather than incurring costs from manufacturing apparel products[12]. - The group is focusing on strategic expansion in both mainland China and Hong Kong markets for its financial services, anticipating strong demand in these regions[13]. - The company plans to continue its focus on developing its clothing procurement business and financial services as part of its growth strategy[106]. Corporate Governance - The company has complied with the listing rules regarding the reporting of its financial position, with key financial performance indicators including revenue, gross profit, and shareholder equity[57]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors, ensuring compliance with corporate governance codes[115]. - The company has established a code of conduct for directors regarding securities trading, ensuring adherence to listing rules[114]. - The board has adopted a diversity policy aimed at achieving a diverse board composition, considering factors such as gender, age, and professional experience[129]. - The independent non-executive directors confirmed their independence in accordance with the listing rules[79]. Shareholder Information - The company reported a reserve available for distribution to shareholders of HKD 41,210,000 as of March 31, 2021, down from HKD 62,150,000 in the previous year[60]. - No final dividend was declared for the year ended March 31, 2021, consistent with the previous year[30]. - The company must compensate shareholders for any reasonable expenses incurred due to the board's failure to convene a meeting within the specified timeframe[148]. - Shareholders can request the company to issue notices regarding resolutions to be proposed at the next annual general meeting[152]. Compliance and Audit - The financial statements for the year ending March 31, 2021, were audited by Kaiyuan Xinde Accounting Firm, ensuring transparency and compliance[110]. - The audit committee reviewed the effectiveness of the risk management and internal control systems during the reporting period[137]. - The independent auditor's report confirmed that the consolidated financial statements reflect the group's financial position accurately as of March 31, 2021[154]. - The company ensured compliance with the listing rules regarding the appointment of independent non-executive directors, with at least three independent non-executive directors in place[135]. Environmental and Social Responsibility - The company has actively implemented measures to reduce negative environmental impacts, focusing on waste reduction and energy efficiency[109]. - The company is committed to enhancing its environmental performance and will regularly review its environmental policies[109].
杭品生活科技(01682) - 2021 - 年度财报