Financial Performance - Revenue for the year ended March 31, 2019, was HKD 641,733,000, a decrease of 5.2% from HKD 676,856,000 in 2018[9] - Gross profit for 2019 was HKD 92,899,000, resulting in a gross margin of 14.5%, down from 18.4% in 2018[9] - The company recorded a net loss attributable to owners of HKD 22,670,000, compared to a profit of HKD 20,012,000 in the previous year[9] - EBITDA (after deducting listing expenses) was HKD 6,995,000, significantly lower than HKD 49,674,000 in 2018[9] - The total sales volume for the year was approximately 3,830,000 garments, a decrease from about 4,373,000 garments in the previous year, with a significant drop in lower garment sales by approximately 17.4%[20] - Average selling price per garment increased to approximately HKD 167.6 from HKD 154.8 in the previous year[20] - Financing costs increased by approximately 35.5% to about HKD 7,984,000, up from approximately HKD 5,892,000 in the previous year[23] - The interest coverage ratio decreased to (1.8 times) from 5.4 times in the previous year, indicating increased financial strain[9] Assets and Liabilities - The total assets increased to HKD 385,633,000 from HKD 364,490,000, while the equity attributable to owners rose to HKD 115,544,000 from HKD 68,534,000[9] - Cash and cash equivalents as of March 31, 2019, were approximately HKD 75,687,000, an increase from about HKD 66,536,000 in the previous year[25] - Borrowings decreased by approximately HKD 6,733,000 (about 3.4%) to approximately HKD 190,443,000 as of March 31, 2019[25] - The current assets and current liabilities were approximately HKD 286,084,000 and HKD 268,016,000 respectively, compared to HKD 255,946,000 and HKD 293,704,000 in the previous year[28] - The company's debt-to-equity ratio decreased to 164.8% as of March 31, 2019, down from 287.7% a year earlier, primarily due to the completion of a share placement in October 2018[30] Production and Operations - The company plans to relocate production lines to Sri Lanka and optimize operations in its Panyu factory to reduce costs and improve efficiency[11] - A significant expansion plan for the Sri Lanka factory is underway, including a feasibility study for doubling current capacity[11] - The company expects to maintain sales at last year's levels, with significant changes anticipated due to a large order of flight attendant uniforms, improving production planning and efficiency[27] Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange's Main Board Listing Rules since its listing date on October 19, 2018[62] - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[67] - The independent non-executive directors provide independent opinions on the company's strategy, policy formulation, accountability, and resource allocation[55] - The company has confirmed that all directors have complied with the relevant guidelines and codes regarding securities transactions[66] - The board is committed to engaging with shareholders through the annual general meeting, allowing them to express their opinions and ask questions[110] Management and Leadership - The company has been led by Ms. Wang Meihui, who has over 25 years of experience in the apparel industry and has been the CEO of Sterling Apparel since November 2012[43] - Mr. Xiao Yiming, appointed as an executive director in July 2017, is responsible for managing manufacturing facilities in Sri Lanka and China[44] - Mr. Zhong Guowei has served as the Chief Financial Officer since December 2013, overseeing the group's overall management and financial operations[46] - The company has a strong management team with over 20 years of experience in procurement and production management[57][58] Shareholder Information - The company did not recommend the declaration of a final dividend for the year ended March 31, 2019[19] - The board has adopted a dividend policy effective from January 1, 2019, aiming to maintain sufficient reserves for future development while providing returns to shareholders[113] - The board will consider various factors, including actual and expected financial performance, economic conditions, and operational strategies when deciding on dividend declarations[114] - The company has no predetermined dividend payout ratio, and the declaration and payment of dividends are at the board's discretion[115] Related Party Transactions - The rental agreements between SAL and Win 18, Win 19, and Win 20 have a monthly rent of HKD 125,000, excluding rates, land rent, and management fees[191][192][193] - The rental agreements were established based on independent property valuation and negotiated on fair and reasonable terms[195] - The independent non-executive directors confirmed that the related transactions were conducted in the overall interest of the company's shareholders[197][199] - Details of the related party transactions are included in the consolidated financial statements, specifically in note 35[200]
STERLING GP(01825) - 2019 - 年度财报