Financial Performance - Revenue for the year ended March 31, 2021, was HK$234,504,000, representing a 7.2% increase from HK$218,853,000 in 2020[21] - Retail segment revenue increased by 9.3% to HK$216,979,000, up from HK$198,594,000 in the previous year[21] - Gross profit rose by 13.8% to HK$152,891,000, with a gross profit margin of 65.2%, an increase of 3.8 percentage points from 61.4%[21] - EBITDA surged to HK$35,239,000, reflecting a significant increase of 1,335.4% from HK$2,455,000 in the prior year[21] - The company reported a net profit of HK$16,826,000, a turnaround from a net loss of HK$11,628,000 in 2020[21] - Basic earnings per share improved to HK2.10 cents, compared to a loss of HK(1.45) cents per share in the previous year[21] - Total dividends per share declared at HK0.63 cents, marking a return to dividend distribution[21] Segment Performance - The wholesale and special projects segment saw a decline of 13.5%, with revenue of HK$17,525,000 compared to HK$20,259,000 in 2020[21] - Retail segment revenue amounted to HK$217.0 million, accounting for 92.5% of total revenue, compared to 90.7% in 2020[24] - Sales revenue from "at • home" grew by 68.0% to HK$40.5 million, representing 18.7% of total retail revenue[24] Market and Growth Outlook - Management expressed optimism for future growth, focusing on retail expansion and operational efficiency improvements[23] - The overall economy in China is recovering rapidly, providing a solid backup for the local economy, which is expected to positively impact the retail market[53] - The Group remains cautiously optimistic about the future retail market, anticipating a recovery in momentum for both retail and property sectors[53] Operational Highlights - The Group operates 23 points-of-sale in Hong Kong, covering five retail lines[30] - The Group has expanded its market reach through various distribution channels, including online platforms and over 200 dealers[30] - The Group's self-owned label "Ulfenbo" has been recognized as a "Hong Kong Top Brand Mark" for seven consecutive years since 2014, indicating strong brand recognition in the market[51] - The Group offers a diverse product portfolio with over 50 furniture brands, including international names, catering to various customer needs[41] Financial Position - As of March 31, 2021, the Group's cash and cash equivalents increased to HK$93.7 million, up from HK$63.7 million in 2020[61] - The Group's current assets and current liabilities were approximately HK$162.7 million and HK$83.2 million, respectively, resulting in a current ratio of 2.0, compared to 1.4 in 2020[61] - The Group has maintained a zero gearing ratio, indicating no bank borrowings as of March 31, 2021[61] Corporate Governance - The Company has a strong governance structure with multiple committees, including Audit, Remuneration, and Nomination, chaired by experienced independent directors[75][80] - The Company emphasizes corporate governance and compliance, with independent directors playing a crucial role in oversight[75][80] - The Company has fully complied with all code provisions of the Corporate Governance Code for the Year[169] Management and Directors - The Group's Executive Director and General Manager, Ivy Mok, has over 18 years of corporate management experience, focusing on operational management and policy implementation since joining in July 2011[72] - The Chairman, Mr. Wong, has over 30 years of financial and management experience, overseeing financial management and business strategy since 1992[71] - The management team possesses a robust educational background, with qualifications in law and business administration, enhancing their strategic decision-making capabilities[72][74] Shareholder Information - The Group's retained profits available for distribution to shareholders as of March 31, 2021, amounted to HK$5,295,000, compared to nil in 2020[96] - The Directors recommended a final dividend of HK0.63 cent per share for the Year, totaling HK$5,040,000, subject to shareholder approval at the 2021 AGM[4] - There was no interim dividend paid to shareholders during the Year, consistent with 2020[3] Related Party Transactions - The independent non-executive Directors confirmed that the disclosed continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[144] - The auditor issued unqualified conclusions regarding the disclosed continuing connected transactions in accordance with the Listing Rules[143] - The Company complied with the disclosure requirements under Chapter 14A of the Listing Rules for related party transactions[145]
欧化(01711) - 2021 - 年度财报