Financial Performance - For the fiscal year ending March 31, 2025, the group's revenue was HKD 1.92 billion, a decrease of 19.9% compared to HKD 2.4 billion in the previous year[10]. - Net profit attributable to equity shareholders was HKD 198 million, down 43.5% from HKD 350 million in the previous year[11]. - Sales revenue in Hong Kong decreased by 29% due to weakened consumer confidence and changes in shopping behavior among local and Chinese tourists[12]. - In Taiwan, sales revenue decreased by 0.4% in local currency, following a 10.5% increase in the previous year, reflecting ongoing consumer confidence issues[14]. - In China, retail and e-commerce sales grew by 9.2% in local currency as the group integrated its wholesale network while developing its retail network[14]. - The group reported a total comprehensive income of HKD 179,498, down from HKD 328,497 in 2024, a decline of 45.5%[160]. - The company's profit before tax for the year ending March 31, 2025, was HKD 228,770,000, a decrease of 35.6% compared to HKD 355,373,000 in 2024[168]. - Basic and diluted earnings per share were 50.4 cents, down from 89.0 cents in the previous year[159]. - The operating cash flow for the year was negative HKD 188,902,000, compared to positive HKD 385,644,000 in the previous year, indicating a significant decline in cash generation[170]. Retail Network and Sales Contribution - The retail network currently consists of 63 stores, with contributions to sales from Hong Kong at 63%, Taiwan at 29.8%, and other regions at 7.2%[14]. - Hong Kong contributed 63% to total sales, Taiwan contributed 29.8%, and other regions accounted for 7.2%[28]. - The product mix includes watches and jewelry at 49.9%, cosmetics and beauty products at 18%, fashion and accessories at 26.1%, and securities trading at 6%[14]. Cost Management and Restructuring - The group plans to adopt a conservative approach to managing its retail network and investment portfolio while strictly controlling operational costs[19]. - The outlook for the retail market in Hong Kong remains challenging, necessitating a comprehensive restructuring across all cost levels to revitalize business[17]. - The company acknowledges the need for a comprehensive restructuring across all cost levels to revitalize the Hong Kong retail market[29]. Dividends and Shareholder Returns - The company does not recommend a final dividend for the fiscal year ending March 31, 2025, due to ongoing privatization proposals[11]. - The board decided not to recommend a final dividend for the fiscal year ending March 31, 2025, maintaining the interim dividend at HKD 0.10 per share[37]. - The company aims to maintain a stable and sustainable dividend policy, considering factors such as current and expected financial performance, retained earnings, and future capital expenditure needs[130]. Employee and Financial Resources - The group reported a total employee cost of HKD 261.7 million for the year, a decrease from HKD 306 million in the previous year, with 623 employees as of March 31, 2025, down from 683 the previous year[49]. - As of March 31, 2025, the group's net current financial resources amounted to HKD 2.67 billion, unchanged from the previous year, with cash and bank balances of HKD 3.28 billion, down from HKD 3.47 billion[50]. - The group maintained a current ratio of 4 times as of March 31, 2025, compared to 3.3 times the previous year[52]. Corporate Governance and Compliance - The company has adhered to the corporate governance code principles and all applicable provisions, except for the CEO's responsibilities being fulfilled by the Group Executive Chairman[92]. - The independent auditor, KPMG, has expressed willingness to be reappointed at the upcoming annual general meeting[87]. - The board of directors includes the Group Executive Chairman and other executive and independent non-executive directors, with regular meetings held at least quarterly[94]. - The company believes that high standards of corporate governance are crucial for managing business risks and protecting shareholder interests[92]. - The company has established mechanisms to ensure the board receives independent views and opinions, enhancing governance performance[102]. Related Party Transactions - The company has confirmed that all related party transactions were conducted under normal commercial terms and are in the best interest of shareholders[82]. - The group has ongoing transactions with S.T. Dupont S.A., including a three-year sales agreement starting April 1, 2024, with a maximum annual limit of HKD 1 million for the fiscal year ending March 31, 2025[72]. - The group has a procurement agreement with S.T. Dupont S.A. with a maximum annual limit of HKD 5.6 million for the fiscal year ending March 31, 2025, and the amount paid this year was HKD 2.668 million[73]. Audit and Financial Reporting - The audit opinion confirms that the consolidated financial statements reflect the group's financial position as of March 31, 2025, in accordance with Hong Kong Financial Reporting Standards[140]. - Inventory valuation is a key audit matter due to fluctuations in sales of luxury goods influenced by fashion trends and consumer demand[144]. - The audit committee assists the board in overseeing the financial reporting process of the group[152]. Risk Management and Internal Controls - The board has reviewed the effectiveness of the risk management and internal control systems, confirming they are appropriate and comply with corporate governance codes[129]. - The internal audit department conducts regular independent reviews of financial, operational, and governance controls, reporting quarterly to the audit committee[127]. - The company has established a risk management committee to oversee environmental, social, and governance (ESG) matters, reporting regularly to the audit committee[126]. Diversity and Inclusion - The company is committed to providing a diverse work environment and emphasizes work-life balance for all employees[117]. - The company has implemented standardized recruitment and interview processes to promote gender diversity among employees[117]. - The board currently has one female director, meeting the gender diversity requirement under Listing Rule 13.92, and aims to increase female representation further[114].
迪生创建(00113) - 2025 - 年度财报