Financial Performance - Revenue increased by approximately 7.2% from approximately HK$279.4 million for the year ended March 31, 2020, to approximately HK$299.6 million for the year ended March 31, 2021[25]. - Profit and total comprehensive income for the year ended March 31, 2021, amounted to approximately HK$27.6 million, representing a substantial increase of over two times compared to HK$11.9 million in 2020[25]. - The increase in revenue was mainly due to sales from an online auction conducted by the Group in early 2021[25]. - Gross profit increased by approximately 30.4% from approximately HK$55.3 million for the year ended March 31, 2020, to approximately HK$72.1 million for the year ended March 31, 2021[46]. - The overall gross profit margin improved from approximately 19.8% for the year ended March 31, 2020, to approximately 24.1% for the year ended March 31, 2021[47]. - Other income rose from approximately HK$597,000 for the year ended March 31, 2020, to approximately HK$3.1 million for the year ended March 31, 2021, mainly due to anti-epidemic subsidies from the Hong Kong Government[48]. - Profit attributable to owners of the Company amounted to approximately HK$27.6 million, up from approximately HK$11.9 million in 2020[59]. Operational Efficiency and Expansion - The Group is strengthening warehouse storage capability and operational efficiency by leasing new warehouses and acquiring a professional warehouse management system[26]. - The Group aims to strengthen its leading position in the Hong Kong wine industry while seeking expansion opportunities in different countries worldwide[34]. - The Group has established a retail store in a prime location in Kowloon at the end of 2018 and is considering a third retail store based on market conditions[29]. - The Group has capitalized on the online auction trend to boost sales, particularly for highly sought-after Premium Collectible Red Wine[47]. - The planned use of net proceeds includes strengthening warehouse storage capability with an allocation of HK$38.9 million, which is expected to be completed by March 31, 2022[112]. - The Group plans to expand its retail network in Hong Kong through the establishment of a new retail store and a flagship store, with an allocation of HK$23.3 million, expected to be completed by March 31, 2022[112]. - The Group aims to increase storage capacity for its products by acquiring a self-owned warehouse[124]. Impact of COVID-19 - The Board expects the global economy and retail environment to remain uncertain and full of challenges due to the COVID-19 pandemic[26]. - The Group will continue to evaluate the impact of the COVID-19 outbreak on its financial position and operating results[26]. - Selling and distribution expenses decreased from approximately HK$17.7 million to approximately HK$15.1 million, attributed to rental concessions during the COVID-19 outbreak[55]. - Administrative expenses increased from approximately HK$17.2 million to approximately HK$20.2 million, mainly due to higher legal fees and salaries[56]. - The Group is carefully evaluating the impact of COVID-19 on the retail environment before proceeding with the opening of a third retail store[116]. Corporate Governance and Management - The company has a diverse board with members holding significant qualifications and experience in finance and law[167]. - The independent non-executive directors contribute to the company's governance and strategic direction through various committees[170]. - The company emphasizes the importance of experienced leadership in navigating the financial landscape and regulatory environment[169]. - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and ensure transparency and accountability[200]. - The company complied with all code provisions in the Corporate Governance Code during the year, reflecting its commitment to corporate governance standards[200]. Employee and Management Team - As of March 31, 2021, the total number of employees increased to 52 from 45 in the previous year, with total employee benefit expenses rising from approximately HK$13.1 million to approximately HK$13.7 million[95]. - The Group's total employee benefit expenses for the year ended March 31, 2021, included Directors' emoluments, amounting to approximately HK$13.7 million[95]. - The management team's diverse backgrounds contribute to the Group's strategic direction and innovation in the market[176]. - The company has demonstrated a commitment to continuous professional development among its management team, which is essential for maintaining competitive advantage[187]. Risk Management - The Group's exposure to foreign currency risk is significant due to foreign currency denominated trust receipt loans for wine product purchases, which may impact operational results and financial position[88]. - The Group has ceased holding any pledged bank deposits in foreign currencies since October 2016 to manage foreign currency exchange risk exposure[89]. - The Group has established a tracking and reporting system to monitor foreign currency exchange rate fluctuations and adjust procurement strategies accordingly[91].
威扬酒业控股(08509) - 2021 - 年度财报