Financial Performance - For the fiscal year 2024, the company reported revenue of approximately HKD 881.0 million, a decrease of about 10.3% compared to HKD 981.8 million for the fiscal year 2023[15]. - The gross profit margin slightly decreased from 73.4% in fiscal year 2023 to 72.8% in fiscal year 2024, representing a decline of approximately 0.6 percentage points[15]. - The profit attributable to the company's owners decreased from approximately HKD 37.1 million in fiscal year 2023 to approximately HKD 33.6 million in fiscal year 2024, a decline of about 9.4%[15]. - Basic earnings per share for fiscal year 2024 were HKD 1.6 cents, down from HKD 1.8 cents in fiscal year 2023, reflecting an 11.1% decrease[5]. - The total revenue for the fiscal year 2024 decreased by approximately HKD 100.7 million or about 10.3% to approximately HKD 881.0 million, primarily due to slower-than-expected recovery in the Chinese economy and the closure of underperforming sales points[23]. - The group's gross profit decreased by approximately HKD 79.8 million or about 11.1% to approximately HKD 641.2 million, reflecting the decline in sales from Tianwang watches and other brands[26]. - The net profit for the year was HKD 34.039 million, a decline of 10.4% compared to HKD 38.019 million in 2023[174]. - Total comprehensive income for the year was HKD 11.226 million, a significant recovery from a loss of HKD 94.895 million in 2023[174]. Revenue Breakdown - In the fiscal year 2024, the main brand, Tianwang watches, contributed approximately 87.3% of the total revenue, amounting to about HKD 769.4 million[24]. - Revenue from Tianwang watches decreased by approximately HKD 89.7 million or about 10.4% to approximately HKD 769.4 million, with the retail network shrinking from 1,786 to 1,695 sales points[24]. - Revenue from the other brands (China) business dropped by approximately HKD 34.6 million or about 57.5% to approximately HKD 25.6 million, accounting for about 2.9% of total revenue[25]. - The revenue from the movement trading business increased by approximately HKD 23.6 million or about 37.7% to approximately HKD 86.1 million, representing about 9.8% of total revenue[26]. - E-commerce business accounted for approximately 27.4% of total revenue in fiscal year 2024, up from 25.7% in fiscal year 2023[37]. Cost Management - Selling and distribution costs decreased by approximately HKD 58.3 million or about 9.3% to approximately HKD 569.0 million, due to the closure of sales points and reduced employee costs[28]. - Administrative expenses decreased by approximately HKD 1.5 million or about 1.6% to approximately HKD 93.2 million[29]. - The group maintains a cautious approach to cost control and aims to maximize profitability through improved efficiency and cost structure[24]. - The financing cost for the fiscal year 2024 is approximately HKD 0.6 million, a decrease of about 25% from HKD 0.8 million in fiscal year 2023[30]. Assets and Equity - Total assets as of June 30, 2024, were approximately HKD 2,540.9 million, a decrease from HKD 2,619.6 million in fiscal year 2023[9]. - The company’s equity attributable to owners was approximately HKD 2,314.6 million as of June 30, 2024, down from HKD 2,386.1 million in fiscal year 2023, reflecting a decrease of 3.0%[5]. - As of June 30, 2024, the total equity of the group was approximately HKD 2,316.2 million, a decrease of about HKD 71.4 million from HKD 2,387.6 million on June 30, 2023[40]. Inventory and Cash Management - The average inventory turnover days improved from 408 days in fiscal year 2023 to 317 days in fiscal year 2024[9]. - Inventory balance decreased by approximately HKD 41.2 million or 18.0% to about HKD 187.4 million as of June 30, 2024[38]. - Cash and cash equivalents increased to approximately HKD 959.2 million as of June 30, 2024, from HKD 792.2 million as of June 30, 2023[39]. - The net cash generated from investment activities for the fiscal year 2024 was approximately HKD 82.2 million, primarily from the redemption of financial assets at fair value through profit or loss of about HKD 86.8 million and the sale of debt instruments at fair value through other comprehensive income of approximately HKD 81.1 million[40]. Market Conditions and Future Plans - The company acknowledges ongoing pressures in the Chinese job market and real estate sector, which continue to affect consumer spending ability and sentiment[14]. - The company plans to expand its OEM and ODM production of mechanical watch movements and watches, starting from July 1, 2024, targeting markets outside of Hong Kong, Macau, and China[14]. - The company anticipates challenges in the e-commerce sector due to increasing competition but will enhance online operational capabilities through targeted marketing activities[56]. - The company expects its performance and financial condition to be inevitably affected by uncertainties and challenges in the Chinese economy and retail industry in the coming years[57]. Corporate Governance - The board consists of seven directors, including four executive directors and three independent non-executive directors as of June 30, 2024[85]. - The company has adopted a corporate governance code and established a corporate governance committee to ensure compliance with governance standards[81]. - The company is committed to maintaining high standards of corporate governance and regularly reviews its governance practices[81]. - The company has arranged suitable liability insurance for directors to protect against legal claims arising from corporate activities[85]. - The company emphasizes the importance of internal controls and risk management in its operations[85]. Social Responsibility and Community Engagement - The company has a commitment to social responsibility, with board members actively involved in charitable and community service initiatives[75]. - The company raised approximately HKD 1.4 million in charity funds during the "YO Charity Event 2023," with over 500 participants[66]. - The company is committed to supporting educational equity in rural China through donations to the "Beautiful China" organization, enhancing access to quality education for rural children[66]. Shareholder Information - The company has established multiple communication channels with shareholders, including annual reports and direct inquiries[116]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting to vote on specified matters[113]. - The company has distributed over 40% of its attributable profit as cash dividends from the fiscal year ending June 30, 2013, to the fiscal year 2024[56]. - The company declared a special dividend of HKD 0.01 per share and a final dividend of HKD 0.007 per share for the fiscal year 2024, to be paid on December 12, 2024[129]. Risk Management and Compliance - The group has established procedures to accurately and securely handle and disclose insider information to prevent unauthorized access and mishandling[106]. - The independent non-executive directors have reviewed the compliance with the non-competition commitments and found that the controlling shareholders have adhered to these commitments throughout the 2024 fiscal year[111]. - The group has engaged an external professional company to periodically review its internal control measures across all significant operations, including governance, financial, and operational aspects[105]. - The company has implemented corporate governance measures to manage potential conflicts of interest between the controlling shareholders and the company[109].
时计宝(02033) - 2024 - 年度财报