Financial Performance - Revenue for the year ended March 31, 2019, was HK$1,288,479,000, representing a 19.7% increase from HK$1,075,930,000 in 2018[4] - Gross profit for the same period was HK$434,440,000, up from HK$342,289,000, indicating a growth of 27%[4] - Operating profit increased to HK$78,820,000, compared to HK$68,796,000 in the previous year, reflecting a rise of 14.7%[4] - Profit attributable to owners of the Company was HK$59,728,000, a 11.4% increase from HK$53,599,000 in 2018[4] - Earnings per share attributable to owners was 7.4 HK cents, slightly up from 7.1 HK cents in the previous year[4] - The total equity attributable to owners of the Company rose significantly to HK$369,582,000 from HK$93,184,000, marking a growth of 296%[4] - The Group achieved satisfactory growth in both revenue and profit attributable to owners despite a slowdown compared to the previous financial year, primarily due to the US-China trade tensions and global financial market fluctuations[10][12]. - The Group's revenue and profit growth were sustained through effective pricing policies and cost control measures, optimizing gross profit margin and same-store sales growth[10][12]. - Same-store sales growth was approximately 6.8% for the financial year under review[47] - The Group achieved a gross profit margin of approximately 33.7% for the year ended 31 March 2019, an increase of approximately 1.9 percentage points from 31.8% for the year ended 31 March 2018[54] Retail Expansion and Strategy - The Company successfully listed on the main board of The Stock Exchange of Hong Kong on January 11, 2019, enhancing brand awareness and capital for future expansion[9] - The Group aims to provide "Best Quality" and "Best Prices" through global procurement efforts, positioning itself as one of the largest leisure food retailers in Hong Kong[7] - The Company plans to continue expanding its retail presence and improving customer shopping experiences[9] - The Group's retail network expanded to 89 chain retail stores as of March 31, 2019, contributing to increased revenue and profitability[23]. - The number of Best Mart 360° chain retail stores reached 93, covering shopping districts, community areas, and major traffic hubs as of June 26, 2019[38] - The Group opened its first retail store at the Hong Kong-Zhuhai-Macau Bridge Passenger Clearance Building in May 2019, aiming to capture consumer potential from the "one-hour living circle" created by the infrastructure[27][30] - The Group plans to commence operations of a retail store in the Macau Special Administrative Region by the end of the forthcoming financial year, aiming to bring new growth momentum[28][31] - The Group's retail products mainly consist of fast-moving consumer packaged goods, and management is confident in maintaining competitiveness due to a strong business foundation[11][13]. - The Group's retail network expansion includes meticulous planning to increase market share and penetration in Hong Kong while exploring opportunities in the Greater China region[28][31] Customer Engagement and Technology - A mobile app was launched in March 2019 to enhance communication and interaction with customers, aiming to improve shopping convenience and experience[24]. - The introduction of mobile payment options, including Apple Pay, Android Pay, Alipay, and WeChat Pay, is part of the Group's strategy to enhance customer experience and streamline operations[29][36] - A WeChat Pay Smart Store was opened on June 13, 2019, in Tsimshatsui East, integrating automated checkout processes to improve shopping efficiency[29][39] - The Group aims to enhance consumer experience through strategic cooperation with well-known internet companies and social media platforms in the digital transformation of retail operations[33][36] Supply Chain and Product Management - The Group sourced approximately 675 brands and 3,261 SKUs from suppliers across over 16 countries, focusing on quality and competitive pricing[20]. - The Group is committed to developing quality private label products to better control product quality and enhance customer loyalty[25]. - Continuous optimization of the supply chain and procurement capabilities is a priority, including identifying additional suppliers and lowering procurement costs[68] - The Group aims to accelerate the development of private label products to enhance cost advantages and quality control, thereby maximizing customer loyalty[68] Human Resources and Staff Management - Employee count increased from 562 (406 full-time and 156 part-time) as of 31 March 2018 to 728 (538 full-time and 185 part-time) as of 31 March 2019[58] - Staff costs (excluding Directors' emoluments) for the year ended 31 March 2019 were approximately HK$119,373,000, a 36.2% increase from approximately HK$87,676,000 for the previous year[58] - Staff costs represented approximately 9.3% of the Group's revenue for the year ended 31 March 2019, up from 8.2% for the year ended 31 March 2018[58] - The increase in staff cost ratio was primarily due to salary adjustments, bonuses, and management structure enhancements during the financial year[58] Corporate Governance - The Company is committed to maintaining high standards of corporate governance to improve accountability and transparency[155] - The roles of the Chairman and the Chief Executive Officer are separate, ensuring a balance of power and authority[157] - The Company has adopted and complied with all applicable code provisions in the Corporate Governance Code since its listing[156] - The Board of Directors consists of five members, including three independent non-executive Directors, meeting the requirement of at least one-third representation[165] - The audit committee, comprising three independent non-executive Directors, reviewed the Group's audited annual results for the year ended March 31, 2019, ensuring compliance with applicable accounting standards[172] - The Board has established three committees: audit, remuneration, and nomination, each with specific written terms of reference[170] - The Group's governance structure includes provisions for independent professional advice for Directors at the Company's expense[163] Financial Position and Liquidity - As of 31 March 2019, the Group's total cash and bank balances were approximately HK$277,394,000, a significant increase from HK$37,809,000 in 2018, with the current ratio improving from approximately 1.7 times to approximately 4.7 times[90] - The gearing ratio decreased to approximately 20.0% as of 31 March 2019 from approximately 72.5% as of 31 March 2018, attributed to an increase in share premium from the Share Offer[91] - Total bank borrowings as of 31 March 2019 were approximately HK$73,775,000, representing a 9.2% increase from approximately HK$67,555,000 as of 31 March 2018[92] - The Group plans to finance its liquidity and working capital requirements through various sources, including cash generated from operations, bank borrowings, and net proceeds from the Share Offer[97] Dividend and Shareholder Information - The final dividend per share declared was 6.0 HK cents, compared to no dividend in the previous year[4] - A final dividend of HK6.0 cents per share was proposed for the year ended March 31, 2019, representing a payout ratio of approximately 100.5%[16]. - The proposed final dividend is subject to shareholder approval at the AGM scheduled for 7 August 2019[125] - The final dividend is expected to be paid on or around 23 August 2019 if approved[128] Risk Management and Compliance - The company has adopted a series of internal control policies and implemented risk management policies to address various potential risks, including operational, credit, market, financial, and legal risks[200] - The Board believes that the Group's risk management and internal control systems were adequate and effective from the listing date to March 31, 2019[200]
优品360(02360) - 2019 - 年度财报