HYPEBEAST(00150) - 2025 - 年度业绩

Annual Performance Overview Financial Highlights Hypebeast Limited reported a 25.6% revenue decrease and a net loss of HKD 21 million in FY2025, with gross margin declining to 40.1% Financial Highlights for FY2025 and FY2024 (HKD thousands) | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | 666,521 | 895,652 | | — Media | 502,474 | 608,272 | | — E-commerce and Retail | 164,047 | 287,380 | | Gross Profit | 267,548 | 413,458 | | Gross Margin | 40.1% | 46.2% | | Selling and Marketing Expenses | (121,994) | (172,355) | | Administrative and Operating Expenses | (162,604) | (213,636) | | EBITDA | 12,205 | 72,898 | | Profit/(Loss) for the year | (21,031) | 22,307 | | Profit/(Loss) Margin | (3.2%) | 2.5% | | Basic Earnings/(Loss) Per Share (HK cents) | (1.02) | 1.09 | | Diluted Earnings/(Loss) Per Share (HK cents) | (1.02) | 1.09 | - The Board recommends a final dividend of HKD 0.0018 per ordinary share for FY2025[3] Key Business Summary The Group's FY2025 revenue and gross profit significantly decreased, leading to a net loss primarily from inventory adjustments and slower media revenue growth - Revenue for FY2025 was HKD 666.5 million, a decrease of HKD 229.1 million or 25.6% compared to FY2024[4] - Gross profit was HKD 267.5 million, a decrease of HKD 145.9 million or 35.3% from FY2024; gross margin declined from 46.2% to 40.1%[4] - A net loss of HKD 21 million was recorded, compared to a net profit of HKD 22.3 million in FY2024, primarily due to temporary inventory adjustments and slower media revenue growth in the second half[4] Business Review and Outlook Business Review Hypebeast Group primarily operates through its Media segment (creative advertising services and ad space) and E-commerce and Retail segment (goods sales via online and offline platforms), publishing youth-focused content and selling fashion through HBX - The Group primarily engages in the Media segment (providing creative advertising services and advertising space) and the E-commerce and Retail segment (selling goods through online and offline retail platforms)[5] - Digital content targeting youth, covering fashion, lifestyle, technology, art, entertainment, culture, and music, is published via Hypebeast, Hypebae, and Popbee websites, mobile apps, and third-party social media platforms[5] - The HBX e-commerce platform and retail stores sell footwear, apparel, accessories, and other products, focusing on providing the latest trend-driven fashion and lifestyle items[6] Business Outlook and Future Development Following restructuring and interest rate optimization in FY2025, the company will focus on enhancing operational efficiency, strengthening community engagement, and solidifying the Hypebeast ecosystem Operational Efficiency and Profit Growth The company will prioritize operational efficiency and cost management through restructuring and interest rate optimization to stabilize its cost base and reinvest in high-growth areas, aiming to maximize profitability - Prioritize appropriate staffing balance across segments, adjusting based on results and return on investment impact[8] - Automate repetitive administrative tasks through smart workflow automation, allowing teams to focus on higher-value work[8] - Continuously review and enhance product and service delivery processes to save time and costs[8] - Rigorously evaluate the technology stack to ensure the most efficient and cost-effective solutions are utilized[8] - Implement strict cost control and budgeting measures to maintain discipline across all operating expenditures[8] Audience Engagement and Community Hypebeast places its reader and consumer community at the strategic core, aiming to deepen understanding of their needs, unlock new growth avenues, and solidify its position in youth culture and fashion - Invest in community management, providing meaningful content, fostering community dialogue, enhancing brand loyalty, and driving user engagement[12] - Develop and curate immersive virtual and physical experiences that bring together reader and consumer communities[12] - Collaborate with influencers and industry partners to curate content and products that resonate with the target demographic[12] - Explore culturally significant topics such as golf, art, entertainment, and technology, developing unique ways to experience these themes through the Hypebeast lens[12] Strengthening the Hypebeast Ecosystem The company will strengthen the interconnected network between its core segments—media, e-commerce and retail, and agency services—leveraging data insights to enhance media strategies and product recommendations, and bridging the gap between media influence and e-commerce capabilities through agency business to create a virtuous cycle - Media platforms attract readers with engaging content, setting trends and fostering cultural exchange[11] - The E-commerce and Retail segment serves as a direct channel to fashion-savvy consumers, with its data and insights informing media strategies[11] - Agency business leverages rich data, insights, and creative expertise to enhance both media and e-commerce and retail strategies[11] Business and Financial Review Media Segment The Media segment experienced significant declines in both revenue and gross profit in FY2025, primarily due to slower advertising spending by brand partners, macroeconomic uncertainty, and increased costs for "physical" sales execution activities Media Segment Revenue and Gross Profit (HKD thousands) | Metric | FY2025 | FY2024 | Change (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 502,474 | 608,272 | (105,798) | (17.4%) | | Gross Profit | 224,167 | 327,114 | (102,947) | (31.5%) | | Gross Margin | 44.6% | 53.8% | - | -9.2 percentage points | - The decrease in revenue was primarily due to a cyclical slowdown in discretionary advertising spending by selected brand partners and a more cautious marketing environment amid macroeconomic uncertainty[13] - The decline in gross margin was mainly attributable to lower-than-expected revenue and the costs of "physical" sales execution activities produced in FY2025[13] E-commerce and Retail Segment The E-commerce and Retail segment saw a substantial 42.9% revenue decrease and a 49.8% gross profit decline, mainly due to business streamlining, increased promotional discounts, and a one-time non-cash inventory impairment expense of HKD 14.2 million E-commerce and Retail Segment Revenue and Gross Profit (HKD thousands) | Metric | FY2025 | FY2024 | Change (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 164,047 | 287,380 | (123,333) | (42.9%) | | Gross Profit | 43,381 | 86,344 | (42,963) | (49.8%) | | Gross Margin | 26.4% | 30.0% | - | -3.6 percentage points | - The decrease in revenue was primarily due to management's appropriate streamlining of the e-commerce business and increased promotions and discounts during the process of adjusting the inventory portfolio[18] - A one-time non-cash inventory impairment expense of HKD 14.2 million was recognized to reflect the estimated net realizable value of aged inventory under current market conditions, aiming to strengthen the balance sheet and prepare for future inventory efficiency improvements[18] Cost of Revenue The Group's cost of revenue decreased by 17.3% to HKD 399 million, primarily due to declining sales in both the Media and E-commerce and Retail segments - Cost of revenue decreased by approximately 17.3% from HKD 482.2 million in FY2024 to HKD 399 million in FY2025[15] - This decrease was primarily due to a decline in sales in both the Media and E-commerce and Retail segments in FY2025[15] Gross Margin The Group's gross profit decreased by 35.3% to HKD 267.5 million, with the overall gross margin falling to 40.1%, mainly impacted by reduced revenue, inventory impairment expenses in the E-commerce and Retail segment, and "physical" sales execution activity costs in the Media segment - Gross profit decreased by approximately 35.3% from HKD 413.5 million in FY2024 to HKD 267.5 million in FY2025[16] - The overall gross margin decreased from approximately 46.2% in FY2024 to approximately 40.1% in FY2025[16] - Key reasons include a one-time non-cash impairment expense for inventory balances from the E-commerce and Retail segment, as well as lower-than-expected sales and related costs from "physical" sales execution activities in the Media segment[16] Selling and Marketing Expenses Selling and marketing expenses decreased by 29.2% to HKD 122 million, with the percentage of revenue also declining, primarily due to the Group's efficiency enhancement activities, including personnel and process streamlining, and a shift to lower-cost organic marketing channels - Selling and marketing expenses decreased by 29.2% from HKD 172.4 million in FY2024 to HKD 122 million in FY2025[17] - The percentage of revenue decreased from 19.2% in FY2024 to 18.3% in FY2025[17] - This was primarily due to the Group's efficiency enhancement activities, a comprehensive review of expenditures, significant reductions in personnel and processes, and a shift in marketing strategy from higher-cost paid channels to lower-cost organic marketing channels[17][19] Administrative and Operating Expenses Administrative and operating expenses decreased by 23.9% to HKD 162.6 million, mainly attributed to cost-effectiveness actions including efficiency improvements, office downsizing, and workforce optimization; despite the absolute decrease, the percentage of revenue slightly increased - Administrative and operating expenses decreased by 23.9% from HKD 213.6 million in FY2024 to HKD 162.6 million in FY2025[21] - The decrease was primarily due to cost-effectiveness actions taken to improve profit margins and profitability, including efficiency enhancements, office downsizing, and workforce optimization[21] - The percentage of revenue, however, increased from 23.9% in FY2024 to 24.4% in FY2025[21] Cash Flow Net cash inflow from operating activities increased to HKD 75.7 million in FY2025, driven by improved collection procedures and inventory optimization; net cash outflow from investing activities significantly increased to HKD 92.3 million, mainly for increased fixed deposits; net cash outflow from financing activities also rose, primarily related to dividend payments and lease payments Cash Flow Summary (HKD thousands) | Cash Flow Excerpt | FY2025 | FY2024 | | :--- | :--- | :--- | | Net cash generated from operating activities | 75,677 | 70,577 | | Net cash used in investing activities | (92,274) | (15,205) | | Net cash used in financing activities | (58,245) | (31,503) | | Net (decrease) increase in cash and cash equivalents | (74,842) | 23,869 | | Cash and cash equivalents at end of year | 107,999 | 183,492 | - Net cash inflow from operating activities increased, primarily due to improved collection procedures and cycles, and a reduction in trade and other receivables resulting from optimized procurement and reduced inventory[22] - Net cash used in investing activities significantly increased, mainly due to an increase in fixed deposits with maturities exceeding three months[22] Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income In FY2025, the Group turned from profit to loss, recording a loss for the year of HKD 21.031 million, compared to a profit of HKD 22.307 million in FY2024, with decreases in cost of revenue, selling and marketing expenses, and administrative and operating expenses, while other income and gains turned into a loss, and income tax shifted from expense to credit Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (HKD thousands) | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | 666,521 | 895,652 | | Cost of Revenue | (398,973) | (482,194) | | Gross Profit | 267,548 | 413,458 | | Other Income, Other Gains and Losses | (1,749) | 2,884 | | Selling and Marketing Expenses | (121,994) | (172,355) | | Administrative and Operating Expenses | (162,604) | (213,636) | | (Loss) Profit Before Tax | (22,274) | 32,816 | | Income Tax Credit (Expense) | 1,243 | (10,509) | | (Loss) Profit for the Year | (21,031) | 22,307 | | Total Comprehensive (Expense) Income for the Year | (21,454) | 10,729 | | Basic (Loss) Earnings Per Share (HK cents) | (1.02) | 1.09 | | Diluted (Loss) Earnings Per Share (HK cents) | (1.02) | 1.09 | Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets and net assets both decreased, with net current assets declining primarily due to reduced inventory, trade and other receivables, and cash and cash equivalents, offset by a significant increase in fixed deposits, while lease liabilities in non-current liabilities also decreased Consolidated Statement of Financial Position Summary (HKD thousands) | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Non-current assets | 103,380 | 118,120 | | Current assets | 458,886 | 511,757 | | Current liabilities | 120,771 | 123,496 | | Net current assets | 338,115 | 388,261 | | Total assets less current liabilities | 441,495 | 506,381 | | Non-current liabilities | 14,900 | 26,049 | | Net assets | 426,595 | 480,332 | | Share Capital | 20,505 | 20,541 | | Reserves | 406,090 | 459,791 | - Inventory decreased from HKD 77.924 million to HKD 45.759 million[25] - Fixed deposits with original maturity exceeding three months significantly increased from HKD 19.403 million to HKD 114.673 million[25] Notes to the Financial Statements 1. General Information Hypebeast Limited, incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange, primarily engages in advertising space services, creative agency projects, magazine publishing, and online/offline retail platform operations, with Mr. Ma Pak Wing as the ultimate controlling party - The Company was incorporated in the Cayman Islands on September 25, 2015, and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[27] - The Group primarily engages in providing advertising space services, creative agency project services, magazine publishing, and operating online and offline retail platforms[27] - Its ultimate controlling party is Mr. Ma Pak Wing[27] 2. Application of New and Revised International Financial Reporting Standards The Group has adopted several revised IFRS accounting standards for the first time, including lease liabilities for sale and leaseback transactions and classification of liabilities as current or non-current, but these applications have not had a significant impact on the financial position or performance for the current and prior periods - The Group has for the first time applied revised accounting standards including IFRS 16 (Amendment) Lease Liability in a Sale and Leaseback, IAS 1 (Amendment) Classification of Liabilities as Current or Non-current, and others[29] - The application of the revised IFRS accounting standards during the reporting period has not had a significant impact on the Group's financial position and performance for the current and prior periods and/or on the disclosures contained in these consolidated financial statements[29] 3. Revenue Total revenue for FY2025 was HKD 666.5 million, with the Media segment contributing HKD 502.5 million and the E-commerce and Retail segment HKD 164 million, primarily from advertising space and online/offline retail sales; the United States remains the largest geographical market, but revenue declined across all major markets Revenue from Contracts with Customers by Category (HKD thousands) | Segment | FY2025 | FY2024 | | :--- | :--- | :--- | | Media | | | | Provision of advertising space | 386,923 | 473,037 | | Provision of creative agency project services | 107,427 | 134,813 | | Magazine publishing | 1,218 | 422 | | Exhibition income | 6,906 | - | | E-commerce and Retail | | | | Sales of goods through online and offline retail platforms | 147,750 | 269,347 | | Commission fees from consignment | 2,540 | 3,560 | | Provision of advertising space | 3,465 | 738 | | Exhibition income | 4,161 | 9,068 | | Beverage income | 6,131 | 4,667 | | Total | 666,521 | 895,652 | Geographical Market Revenue (HKD thousands) | Region | FY2025 | FY2024 | | :--- | :--- | :--- | | Hong Kong | 100,006 | 113,522 | | China | 80,641 | 103,433 | | United States of America ("USA") | 229,684 | 322,921 | | Other Countries | 256,190 | 355,776 | | Total | 666,521 | 895,652 | - In terms of revenue recognition timing, HKD 276.133 million of revenue was recognized at a point in time in FY2025, and HKD 390.388 million of revenue was recognized over time[30] 4. Segment Information The Group is segmented into Media and E-commerce and Retail business categories; in FY2025, the Media segment recorded a segment result of HKD 83.973 million, while the E-commerce and Retail segment recorded a loss of HKD 33.492 million - The Group's reportable and operating segments include: the Media segment (providing advertising space, creative agency project services, and magazine publishing) and the E-commerce and Retail segment (operating online and offline retail platforms for selling third-party branded apparel, footwear, and accessories, earning consignment commission fees, providing advertising space, earning exhibition income, and beverage income)[32] Analysis of Revenue and Results by Operating and Reportable Segments (HKD thousands) | Metric | Media (2025) | E-commerce and Retail (2025) | Total (2025) | Media (2024) | E-commerce and Retail (2024) | Total (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Segment Revenue | 502,474 | 164,047 | 666,521 | 608,272 | 287,380 | 895,652 | | Segment Results | 83,973 | (33,492) | 50,481 | 159,763 | (39,012) | 120,751 | 5. Other Income, Other Gains and Losses In FY2025, the Group's other income, other gains and losses shifted from a HKD 2.884 million gain in FY2024 to a HKD 1.749 million loss, primarily affected by reduced bank interest income, lease modification gains, and losses on disposal of property, plant, and equipment Other Income, Other Gains and Losses (HKD thousands) | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Net exchange losses | 983 | 2,112 | | Bank interest income | (6,216) | (3,524) | | Gain on lease modification | (5,742) | (66) | | Loss on disposal of property, plant and equipment | 13,965 | 872 | | Others | (1,241) | (1,770) | | Total | 1,749 | (2,884) | 6. Income Tax Credit (Expense) Income tax for FY2025 shifted from an expense to a credit of HKD 1.243 million, mainly due to a significant increase in deferred tax credits; Hong Kong profits tax operates under a two-tiered system, and the corporate income tax rate in China is 25% Income Tax Credit (Expense) (HKD thousands) | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Current tax | 7,153 | 10,798 | | Deferred tax: credit for the year | (8,396) | (289) | | Total | (1,243) | 10,509 | - Hong Kong profits tax operates under a two-tiered system, with eligible entities taxed at 8.25% on the first HKD 2 million of assessable profits and 16.5% on profits exceeding this amount[36] - The basic tax rate for PRC subsidiaries is 25%[37] 7. (Loss) Profit for the Year The loss for FY2025 was HKD 21.031 million, primarily impacted by expenses such as staff costs, inventory costs, and depreciation and amortization; total staff costs decreased, but inventory write-downs increased Items Deducted from (Loss) Profit for the Year (HKD thousands) | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Directors' emoluments | 6,589 | 6,985 | | Other staff costs — salaries and allowances | 236,597 | 299,837 | | Other staff costs — discretionary bonuses | 1,628 | - | | Other staff costs — retirement benefit scheme contributions | 9,337 | 11,228 | | Other staff costs — share-based payment expenses | 529 | 1,820 | | Total directors' and other staff costs | 254,680 | 319,870 | | Auditor's remuneration | 980 | 980 | | Cost of inventories recognized as expense | 101,559 | 178,098 | | Depreciation of property, plant and equipment | 14,433 | 12,152 | | Depreciation of right-of-use assets | 17,400 | 24,780 | | Amortization of intangible assets | 99 | 99 | | Write-down of inventories | 14,186 | 10,019 | 8. Dividends In FY2025, the company declared and paid final and special dividends for FY2024, as well as an interim dividend for FY2025; the Board recommends a final dividend of HKD 0.0018 per ordinary share for FY2025 - For the year ended March 31, 2024, a final dividend of HKD 0.00359 per ordinary share (totaling HKD 7.37 million) and a special dividend of HKD 0.01063 per ordinary share (totaling HKD 21.83 million) were declared[40] - For the six months ended September 30, 2025, an interim dividend of HKD 0.00179 per share (totaling HKD 3.686 million) was declared[40] - Subsequent to the reporting period, the Directors recommend a final dividend of HKD 0.0018 per ordinary share (totaling HKD 3.686 million) for the year ended March 31, 2025[40] 9. (Loss) Earnings Per Share Both basic and diluted loss per share for FY2025 were 1.02 HK cents, compared to basic and diluted earnings per share of 1.09 HK cents in FY2024; the diluted loss per share for FY2025 did not assume the exercise of share options as it would reduce the loss per share (Loss) Earnings Per Share Data | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | (Loss) Profit for the year attributable to owners of the Company (HKD thousands) | (21,031) | 22,307 | | Weighted average number of ordinary shares (thousands) — Basic | 2,053,492 | 2,054,129 | | Weighted average number of ordinary shares (thousands) — Diluted | 2,053,492 | 2,054,913 | | Basic (Loss) Earnings Per Share (HK cents) | (1.02) | 1.09 | | Diluted (Loss) Earnings Per Share (HK cents) | (1.02) | 1.09 | - In calculating the diluted loss per share for FY2025, the exercise of granted share options was not assumed because such exercise would result in a reduction in loss per share[42] 10. Right-of-use Assets The carrying amount of right-of-use assets decreased from HKD 37.582 million as of March 31, 2024, to HKD 28.917 million as of March 31, 2025, with a corresponding reduction in depreciation expense Right-of-use Assets Carrying Amount and Depreciation Expense (HKD thousands) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Carrying amount | 28,917 | 37,582 | | Depreciation expense | 17,400 | 24,780 | - Right-of-use assets are depreciated on a straight-line basis over their estimated useful lives and the respective lease terms ranging from one to seven years, whichever is shorter[43] 11. Trade and Other Receivables Total trade and other receivables decreased from HKD 196 million in 2024 to HKD 170.12 million in 2025; the net carrying amount of trade receivables slightly declined, with an increase in debts overdue by more than 90 days, which are still considered recoverable Total Trade and Other Receivables (HKD thousands) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Trade and unbilled receivables (net carrying amount) | 138,450 | 140,116 | | Advances to employees | 1,050 | 1,533 | | Rental and utilities deposits | 11,068 | 14,652 | | Prepayments | 13,184 | 18,744 | | Other receivables | 6,368 | 15,855 | | Consideration receivable for disposal of a joint venture | - | 3,149 | | Deposits paid for long-term investments | - | 1,958 | | Total | 170,120 | 196,007 | Ageing Analysis of Trade Receivables (HKD thousands) | Ageing | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Within 60 days | 87,377 | 93,014 | | 61 to 90 days | 10,576 | 7,147 | | 91 to 180 days | 11,169 | 21,329 | | 181 to 365 days | 3,787 | 2,016 | | Over 365 days | 5,384 | 1,866 | | Total | 118,293 | 125,372 | - As of March 31, 2025, the balance of trade and unbilled receivables included debts with a total carrying amount of HKD 17.685 million that were past due, of which HKD 9.058 million were past due for more than 90 days or more and were not considered to be in default[45] 12. Contract Assets Contract assets, primarily related to unbilled rights for providing advertising space, decreased from HKD 9.625 million in 2024 to HKD 6.656 million in 2025, with all contract assets expected to be settled within one year Contract Assets (HKD thousands) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Provision of advertising space | 6,656 | 9,625 | - Contract assets primarily relate to the Group's unbilled rights to receive consideration for advertisements placed on online platforms or social media platforms, which are contingent upon achieving contractual target impression or click-through rates[46] - As of March 31, 2025 and 2024, all contract assets are expected to be settled within one year and are therefore classified as current assets[46] 13. Trade and Other Payables Total trade and other payables increased from HKD 73.387 million in 2024 to HKD 77.098 million in 2025, mainly due to an increase in other payables and accrued expenses; the ageing analysis of trade payables shows an increase in amounts overdue by more than 90 days Trade and Other Payables (HKD thousands) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Trade payables | 23,032 | 20,726 | | Staff commissions payable | 9,844 | 8,993 | | Accrued activity costs | 2,804 | 7,992 | | Other payables and accrued expenses | 41,418 | 35,676 | | Total | 77,098 | 73,387 | Ageing Analysis of Trade Payables (HKD thousands) | Ageing | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 12,125 | 10,313 | | 31 to 60 days | 2,123 | 3,710 | | 61 to 90 days | 2,553 | 1,138 | | Over 90 days | 6,231 | 5,565 | | Total | 23,032 | 20,726 | - The average credit period for goods purchased is 30 days[47] 14. Contract Liabilities Total contract liabilities increased from HKD 27.115 million in 2024 to HKD 31.386 million in 2025, primarily due to a significant increase in contract liabilities for goods sold through online retail platforms, while contract liabilities for providing advertising space slightly decreased Contract Liabilities (HKD thousands) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Provision of advertising space | 24,884 | 25,374 | | Sales of goods through online retail platforms | 5,357 | 596 | | Customer loyalty programs | 1,145 | 1,145 | | Total | 31,386 | 27,115 | - Contract liabilities for providing advertising space primarily arise from deposits received upon signing contracts with new clients, pending the client's advertisement publication and receipt of related benefits[49] - Contract liabilities for sales of goods through online retail platforms arise when full payment is received before goods are shipped/delivered[49] - Reward points under the customer loyalty program are valid for one year[50] 15. Lease Liabilities Total lease liabilities decreased from HKD 44.357 million in 2024 to HKD 25.202 million in 2025, with both amounts due within one year and non-current liabilities declining; incremental borrowing rates range from 3.50% to 6.50% per annum Lease Liabilities (HKD thousands) | Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Within one year | 10,302 | 18,308 | | More than one year but within two years | 12,783 | 11,682 | | More than two years but within five years | 2,117 | 14,367 | | Total | 25,202 | 44,357 | | Amounts due after 12 months shown under non-current liabilities | 14,900 | 26,049 | - The incremental borrowing rates applied to lease liabilities range from 3.50% to 6.50% per annum (2024: 2.77% to 4.38%)[51] 16. Share Capital The company repurchased and cancelled 3,575,600 ordinary shares in FY2025, resulting in a slight decrease in issued share capital, with the total consideration for repurchased shares being HKD 0.74 million Changes in Issued Ordinary Share Capital | Item | Number of Shares | Share Capital (HKD) | | :--- | :--- | :--- | | As at March 31, 2024 | 2,054,129,231 | 20,541,293 | | Shares repurchased and cancelled | (3,575,600) | (35,756) | | As at March 31, 2025 | 2,050,553,631 | 20,505,537 | - For the year ended March 31, 2025, the Company repurchased and cancelled 3,575,600 ordinary shares, with a total consideration of HKD 0.74 million[52] Share Repurchase Details (December 2024 to February 2025) | Month of Repurchase | Number of Shares Repurchased (thousands) | Highest (HKD) | Lowest (HKD) | Total Consideration Paid (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | December 2024 | 899 | 0.223 | 0.212 | 195 | | January 2025 | 1,081 | 0.230 | 0.188 | 233 | | February 2025 | 1,596 | 0.198 | 0.188 | 312 | | Total | 3,576 | - | - | 740 | Other Information Proposed Final Dividend The Board recommends a final dividend of HKD 0.0018 per ordinary share for FY2025, payable on September 10, 2025, subject to shareholder approval at the Annual General Meeting on August 26, 2025 - The Board recommends a final dividend of HKD 0.0018 per ordinary share for FY2025[54] - The proposed final dividend is subject to approval by shareholders at the Annual General Meeting to be held on Tuesday, August 26, 2025[54] - The proposed final dividend will be paid in cash on Wednesday, September 10, 2025, to shareholders whose names appear on the Company's register of members at the close of business on Tuesday, September 2, 2025[54] Closure of Register of Members To determine shareholders' eligibility to attend and vote at the Annual General Meeting, the register of members will be closed from August 21 to August 26, 2025; to determine eligibility for the proposed final dividend, the register will be closed on September 2, 2025 - To determine the eligibility of shareholders to attend and vote at the Annual General Meeting, the Company's register of members will be closed from Thursday, August 21, 2025, to Tuesday, August 26, 2025[55] - To determine the eligibility of shareholders to receive the proposed final dividend, the Company's register of members will be closed on Tuesday, September 2, 2025[56] Purchase, Sale or Redemption of the Company's Listed Securities As of the announcement date, the company repurchased a total of 6,384,000 ordinary shares on the Stock Exchange for approximately HKD 1.1588 million, all of which have been cancelled; during the reporting period and up to the announcement date, neither the company nor its subsidiaries had any other purchases, sales, or redemptions of listed securities, nor held any treasury shares - For the year ended March 31, 2025, and up to the date of this announcement, the Company repurchased a total of 6,384,000 ordinary shares on the Stock Exchange for a total consideration of approximately HKD 1,158,819.76[57] Share Repurchase Details (Up to Announcement Date) | Month/Year | Number of Shares Repurchased | Highest (HKD) | Lowest (HKD) | Total Consideration (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | December 2024 | 898,800 | 0.223 | 0.212 | 195 | | January 2025 | 1,080,800 | 0.230 | 0.188 | 233 | | February 2025 | 1,596,000 | 0.198 | 0.188 | 312 | | April 2025 | 2,808,400 | 0.160 | 0.134 | 418 | | Total | 6,384,000 | - | - | 1,159 | - The repurchased shares were cancelled on March 28, 2025, and June 9, 2025, respectively[57] - For the year ended March 31, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, nor held any treasury shares[58] Corporate Governance Practices The company is committed to maintaining high standards of corporate governance and complied with the Code Provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules for FY2025, except for Code Provision C.2.1 (separation of Chairman and Chief Executive roles), as Mr. Ma Pak Wing holds both positions - The Company has complied with the Code Provisions set out in the Corporate Governance Code in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for the year ended March 31, 2025, save for Code Provision C.2.1[59] - Mr. Ma Pak Wing currently serves as both the Chairman and Chief Executive Officer of the Company, an arrangement the Board believes provides strong and consistent leadership, promoting planning effectiveness and management efficiency[60] Directors' Securities Transactions Following inquiries with all Directors, they confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules from April 1, 2024, to the announcement date, with no instances of non-compliance - All Directors have confirmed that, for the entire period from April 1, 2024, to the date of this announcement, they have fully complied with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and there have been no instances of non-compliance[61] Audit Committee The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's consolidated financial statements for FY2025 and deemed them compliant with applicable accounting standards and Listing Rules, with adequate disclosures - The Company's Audit Committee comprises three independent non-executive Directors: Mr. Wong Kai Chi (Chairman), Ms. Poon Lai Kuen, and Ms. Kwan Sin Lun[62] - The Audit Committee has reviewed the Group's consolidated financial statements for the year ended March 31, 2025, and is of the opinion that they comply with applicable accounting standards and the Listing Rules, and that adequate disclosures have been made[62] Events After Reporting Period Except for the matters already disclosed, no other significant events materially affecting the Group's business operations have occurred after the reporting period and up to the date of this announcement - Save for those disclosed above, no other significant events materially affecting the Group's business operations have occurred after the reporting period and up to the date of this announcement[63] Scope of Work by Deloitte Touche Tohmatsu Deloitte Touche Tohmatsu, the Group's auditor, has agreed that the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and related notes in the preliminary announcement are consistent with the audited consolidated financial statements, but their work does not constitute an assurance engagement, and they have not expressed an opinion or assurance conclusion on the preliminary announcement - The consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and their related notes for the Group for the year ended March 31, 2025, as set out in the preliminary announcement, have been agreed by Deloitte Touche Tohmatsu, the Group's auditor, to be consistent with the amounts in the audited consolidated financial statements[64] - The work performed by Deloitte Touche Tohmatsu in this regard does not constitute an assurance engagement, and Deloitte Touche Tohmatsu has not expressed any opinion or assurance conclusion on this preliminary announcement[64] By Order of the Board This announcement is issued by Mr. Ma Pak Wing, Chairman and Executive Director of Hypebeast Limited, dated June 19, 2025, and lists the executive and independent non-executive Directors - This announcement is issued by Mr. Ma Pak Wing, Chairman and Executive Director of Hypebeast Limited, dated June 19, 2025[65] - The Executive Directors are Mr. Ma Pak Wing and Ms. Lee Yuen Tung; the Independent Non-executive Directors are Ms. Kwan Sin Lun, Ms. Poon Lai Kuen, and Mr. Wong Kai Chi[65]