Financial Performance - Revenue for the year ended March 31, 2021, was HKD 371,276,000, a decrease of 37.1% from HKD 590,873,000 in 2020[5] - Gross profit for the same period was HKD 43,849,000, with a gross margin of 11.8%, down from 18.8% in the previous year[5] - The company reported a loss before tax of HKD 35,280,000, compared to a loss of HKD 59,471,000 in 2020[5] - Revenue for the fiscal year ended March 31, 2021, decreased by approximately 37.2% to about HKD 371,276,000 from approximately HKD 590,873,000 for the previous year[14] - Gross profit margin declined from 18.8% to 11.8% due to intermittent factory shutdowns during the first and second quarters[14] - The company reported a loss of approximately HKD 33,253,000 for the fiscal year, an improvement from a loss of approximately HKD 58,638,000 in the previous year[15] - EBITDA loss for the fiscal year was approximately HKD 14,580,000, compared to a loss of approximately HKD 30,450,000 in the previous year[16] - Total sales volume for the year was approximately 2,048,000 garments, down from approximately 2,750,600 garments in the previous year, primarily due to COVID-19[19] - Other income for the fiscal year was approximately HKD 11,513,000, up from HKD 3,830,000 in the previous year, mainly due to government subsidies[20] - Financing costs decreased by approximately 39.1% to about HKD 6,033,000 from approximately HKD 9,905,000 in the previous year[25] Assets and Liabilities - Total assets increased to HKD 384,578,000 from HKD 373,517,000 year-on-year[6] - Cash and bank balances rose to HKD 63,853,000, up from HKD 47,836,000 in the previous year[6] - Cash and cash equivalents increased to approximately HKD 63,853,000 from approximately HKD 47,836,000 in the previous year, primarily due to shareholder loans[27] - The company's bank borrowings amounted to approximately HKD 237.02 million as of March 31, 2021, compared to approximately HKD 231.44 million on March 31, 2020[35] - The company's debt-to-equity ratio was approximately 415.8% as of March 31, 2021, compared to 408.2% on March 31, 2020[36] Workforce and Cost Management - The company plans to reduce its workforce in China from 600 to approximately 100 employees by November 2021 to cut costs[8] - The company plans to reduce its workforce at the Panyu factory from about 300 employees to approximately 100, aiming to save about HKD 20 million annually[31] - The group employed approximately 1,584 full-time employees, a decrease from approximately 2,279 full-time employees as of March 31, 2020[40] - The group implemented a 30% salary reduction for all employees and directors for a three-month period starting April 1, 2020, and conducted layoffs to reduce personnel costs in Hong Kong[40] Strategic Initiatives - The company aims to diversify revenue by launching a direct-to-consumer business through an American apparel brand, targeting younger demographics[9] - The company is launching a sub-brand, JP by J. Peterman, to enter the online direct-to-consumer market, aiming to diversify its revenue base[32] - The company anticipates a shift towards more casual clothing orders due to changes in workplace attire preferences post-pandemic[31] - The company has identified a significant increase in e-commerce, with its share of total retail sales growing over three times compared to the previous five years[30] - The company plans to expand its product range in response to changing market demands post-pandemic[31] Corporate Governance - The company has adopted and complied with all provisions of the Corporate Governance Code as set out in the Main Board Listing Rules of the Hong Kong Stock Exchange[64] - The board is committed to developing and maintaining a robust corporate governance and effective internal control system, which is crucial for enhancing corporate value and accountability[64] - The company has a strong management team with extensive experience in various sectors, including procurement and finance, ensuring effective resource allocation and strategic decision-making[61][62] - The independent non-executive directors provide independent opinions on the group's strategy, policy formulation, and resource allocation, enhancing corporate governance[56][60] - The company has established various committees, including the Audit Committee and Remuneration Committee, to ensure accountability and effective management[56][60] Risk Management - The board confirmed its responsibility to establish and maintain effective risk management and internal control systems, with risk assessments conducted semi-annually[121] - The company has engaged an independent internal control consultant to review its key business processes and internal control systems, reporting findings to the audit committee[122] - The board and audit committee believe that the risk management and internal control systems are effective and sufficient[124] - The company has established an insider information policy to ensure compliance with the Securities and Futures Ordinance regarding the handling and disclosure of insider information[125] Shareholder Relations - Shareholder loans amounting to HKD 34,000,000 have been waived by the controlling shareholders to strengthen the company's financial position[9] - The company does not recommend declaring a final dividend for the fiscal year ended March 31, 2021[18] - The board will consider various factors, including the financial condition of the company and group, when deciding on dividend declarations, with no predetermined payout ratio[114] - The company has maintained sufficient public float as required by the Listing Rules throughout the year and up to the report date[200] Compliance and Regulations - The company has complied with the disclosure requirements of Chapter 14A of the Listing Rules regarding related party transactions[196] - The independent non-executive directors confirmed that the related party transactions were conducted under normal commercial terms and in the overall interest of shareholders[194] - The company has established multiple management systems and measures to ensure compliance with relevant laws and regulations[146]
STERLING GP(01825) - 2021 - 年度财报