Company Overview - MOG Holdings Limited is one of the largest optical product retailers in Malaysia, offering a wide range of optical products including international brands, proprietary brands, and manufactured brands[17]. - As of March 31, 2021, the company operates a retail network of 79 owned and 7 franchised stores across central, southern, northern, and eastern Malaysia[21]. - The company has adopted a multi-brand strategy with 10 retail brands covering high-end, mid-range, and mass-market segments, along with a brand focused on contact lenses[21]. Impact of COVID-19 - The COVID-19 pandemic has significantly impacted the company's revenue channels and operational processes, with ongoing restrictions likely to affect consumer spending in 2021[18]. - The company’s retail operations were significantly affected by the conditional movement control orders implemented in Malaysia due to COVID-19[27]. - The company experienced delays in the actual application of net proceeds due to the impact of the COVID-19 pandemic, which significantly affected the retail industry[86]. - The company faces significant risks related to public health issues, particularly the ongoing COVID-19 pandemic, which may impact supply chains and customer traffic[70]. Financial Performance - The company's revenue decreased by approximately RM 47.9 million or 32.6% to about RM 99.2 million for the reporting period, down from approximately RM 147.1 million for the year ended March 31, 2020[33]. - Retail business revenue dropped from approximately RM 144.6 million to about RM 98.2 million, a decrease of about 32.1%, primarily due to COVID-19 restrictions impacting sales[33]. - Gross profit decreased by approximately RM 28.5 million or 29.3% to about RM 68.8 million, attributed to the decline in revenue[35]. - Net profit decreased by approximately 1.5 million MYR or 10.9% to about 12.3 million MYR, while the net profit margin increased from approximately 9.4% to about 12.4%[43]. - Other income increased by approximately RM 6.9 million or 363.2% to about RM 8.8 million, mainly due to rental concessions and wage subsidy programs[34]. Operational Changes - The company has experienced operational disruptions, with 4 owned retail stores, 3 franchised stores, and 2 licensed retail stores ceasing operations during the reporting period[21]. - The number of retail stores decreased from 83 to 79 during the reporting period[33]. - Sales and distribution costs decreased by approximately 9.7 million MYR or 17.0% to about 47.2 million MYR during the reporting period, primarily due to reduced employee costs from lower sales commissions and allowances[36]. Future Outlook and Strategies - The company plans to continue monitoring the situation and develop response strategies to maximize business potential amid uncertainties[18]. - The company aims to provide an exemplary eye care experience through continuous innovation in both products and services[5]. - The company plans to establish 36 new retail stores, with an expected expenditure of MYR 28.1 million, to be utilized by March 31, 2022[79]. - The company aims to enhance the production capacity of customized lenses, with an investment of MYR 5.5 million, also expected to be utilized by March 31, 2022[79]. - The company is considering strategic acquisitions to enhance its product offerings, with a budget of $10 million set aside for potential deals[178]. Corporate Governance - The company has adhered to the corporate governance code and has complied with the relevant principles and rules since its listing date[90]. - The board of directors has held four meetings during the reporting period, with all executive and independent non-executive directors in attendance[98]. - The company emphasizes the importance of sound corporate governance as a shared responsibility among directors[113]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, in compliance with relevant laws and regulations[114]. Management and Leadership - The company has expanded its board with experienced professionals from various sectors, enhancing governance and strategic oversight[186]. - The management team has a strong background in finance, human resources, and business development, contributing to the company's operational efficiency[188]. - The company aims to leverage the expertise of its board members to drive growth and innovation in its operations[187]. Shareholder Communication - The company encourages shareholders to attend meetings and ensures independent resolutions are presented for voting[152]. - The company has established a shareholder communication policy to provide timely information to shareholders and potential investors[158]. Sustainability Initiatives - The board of directors highlighted the commitment to sustainability initiatives, planning to invest $1 million in eco-friendly practices[178]. - MOG Holdings Limited is committed to enhancing its environmental, social, and governance (ESG) practices, with a focus on sustainability initiatives[199].
马可数字科技(01942) - 2021 - 年度财报