嘉艺控股(01025) - 2025 - 年度业绩

Financial Highlights Financial Highlights The company reported a 17.9% revenue increase to HKD 64 million for FY2025, alongside a 16% decline in gross profit to HKD 6.3 million, while net loss slightly narrowed to HKD 23.8 million | Metric | Year Ended March 31, 2025 | Year Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | Approx. HKD 64,000,000 | Approx. HKD 54,300,000 | | Gross Profit | Approx. HKD 6,300,000 | Approx. HKD 7,500,000 | | Loss for the Year | Approx. HKD 23,800,000 | Approx. HKD 24,400,000 | | Basic and Diluted Loss Per Share | Approx. 45.7 HK cents | 51.1 HK cents | | Final Dividend | Not recommended | Nil | Consolidated Financial Statements Consolidated Statement of Profit or Loss FY2025 revenue grew 17.9% to HKD 64 million, driven by sales volume, but higher cost of sales led to a 15.2% gross profit decline and a narrowed net loss of HKD 23.81 million | Item (HKD thousands) | FY2025 | FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 63,995 | 54,312 | +17.9% | | Cost of Sales | (57,672) | (46,862) | +23.0% | | Gross Profit | 6,323 | 7,450 | -15.1% | | Administrative Expenses | (24,382) | (22,485) | +8.4% | | Finance Costs | (1,849) | (1,230) | +50.3% | | Loss Before Tax | (23,806) | (24,443) | -2.6% | | Loss for the Year | (23,808) | (24,444) | -2.6% | | Basic Loss Per Share (HK cents) | (45.7) | (51.1) | Narrowed 10.6% | Consolidated Statement of Profit or Loss and Other Comprehensive Income Total comprehensive expense attributable to owners for FY2025 was HKD 24.09 million, reduced from HKD 26.04 million, after accounting for the HKD 23.81 million loss for the year and other comprehensive expenses | Item (HKD thousands) | FY2025 | FY2024 | | :--- | :--- | :--- | | Loss for the Year | (23,808) | (24,444) | | Other Comprehensive Expense for the Year (net of tax) | (278) | (1,598) | | Total Comprehensive Expense Attributable to Owners of the Company for the Year | (24,086) | (26,042) | Consolidated Statement of Financial Position As of March 31, 2025, total assets were HKD 95.25 million, total liabilities HKD 67.97 million, and total equity declined 41.4% to HKD 27.28 million, with a shift to net current liabilities of HKD 6.26 million | Item (HKD thousands) | As at March 31, 2025 | As at March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 38,161 | 40,945 | -6.8% | | Current Assets | 57,089 | 69,189 | -17.5% | | Total Assets | 95,250 | 110,134 | -13.5% | | Current Liabilities | 63,353 | 58,658 | +8.0% | | Non-current Liabilities | 4,620 | 4,945 | -6.6% | | Total Liabilities | 67,973 | 63,603 | +6.9% | | Net Current (Liabilities)/Assets | (6,264) | 10,531 | From positive to negative | | Net Assets (Total Equity) | 27,277 | 46,531 | -41.4% | Management Discussion and Analysis Business Review and Financial Performance Analysis FY2025 revenue grew 17.9% to HKD 64 million, driven by bridesmaid dress sales, but rising costs led to a gross margin decline to 9.8%, with overall performance pressured by trade disputes and economic uncertainty - The Group's core business is a one-stop solution provider for bridesmaid dresses, wedding gowns, and special occasion wear, primarily selling products to US branded apparel companies and offering value-added services from design and sourcing to production and inventory management[48] - Revenue growth was primarily driven by a significant increase in bridesmaid dress sales from 97,900 units in the prior year to 150,500 units in the current year, despite a decrease in average selling price[54][55] - The decline in gross profit and gross margin was primarily attributable to the increase in cost of sales in the current year[57] - The reduction in loss for the year was mainly due to an increase in other income and a decrease in share of loss of an associate[64] Outlook and Future Strategies The Group plans to diversify revenue streams by reviewing existing operations and entering China's petrochemical business, focusing on natural gas, through a non-binding MOU with Hao Hui Xing Ye Limited, to mitigate trade and economic uncertainties - The new year is expected to be challenging due to persistent US-China trade disputes and uncertainties in post-pandemic economic recovery[51] - The Group will actively seek potential business opportunities to broaden its revenue base. On May 2, 2025, the Group entered into a memorandum of understanding with Hao Hui Xing Ye Limited, intending to cooperate in developing petrochemical business in China[52] - The petrochemical business cooperation focuses on natural gas production, processing, collection services, and related industrial operations[52] Liquidity, Financial Resources, and Risk Management The Group faced liquidity pressure at fiscal year-end, with net current liabilities of HKD 6.3 million and a current ratio decline to 0.9 times, while the gearing ratio significantly rose to 78.0% due to reduced equity | Metric | As at March 31, 2025 | As at March 31, 2024 | | :--- | :--- | :--- | | Bank Balances and Cash | Approx. HKD 6,800,000 | Approx. HKD 4,400,000 | | Net Current (Liabilities)/Assets | Approx. (HKD 6,300,000) | Approx. HKD 10,500,000 | | Current Ratio | Approx. 0.9 times | Approx. 1.2 times | | Gearing Ratio | 78.0% | 48.3% | - The Group has pledged leasehold land, buildings, and investment properties with a total carrying value of approximately HKD 35.9 million to secure bank financing and other loans[69] - The Group faces foreign exchange risk as some transactions are denominated in functional currencies other than HKD, but currently has no foreign currency hedging policy[70] Notes to the Consolidated Financial Statements Company Information and Going Concern Registered in the Cayman Islands, the company, primarily engaged in garment manufacturing, maintains a going concern basis despite FY2025 losses and net current liabilities, supported by recent financing and business plans - The company's principal activity is investment holding, with its subsidiaries primarily engaged in the manufacturing and trading of garment products[15] - Despite recording a loss and net current liabilities, the Board believes the company has sufficient working capital to continue as a going concern, based on financing measures undertaken, including obtaining loans and completing a rights issue[22][25] Revenue and Segment Information FY2025 total revenue was HKD 64 million, with bridesmaid dresses as the largest product segment and the US as the primary market, while revenue concentration from the top three customers exceeded 60% Product Category (HKD thousands) | Product Category (HKD thousands) | FY2025 | FY2024 | | :--- | :--- | :--- | | Bridesmaid Dresses | 33,427 | 25,233 | | Special Occasion Wear | 11,696 | 9,749 | | Accessories | 11,606 | 11,002 | | Wedding Gowns | 2,527 | 4,285 | | Others | 4,739 | 4,043 | | Total | 63,995 | 54,312 | Geographical Market (HKD thousands) | Geographical Market (HKD thousands) | FY2025 | FY2024 | | :--- | :--- | :--- | | United States of America | 31,001 | 22,548 | | Hong Kong | 22,684 | 19,689 | | United Kingdom | 4,784 | 5,489 | | Europe | 4,467 | 5,078 | | Australia | 1,059 | 1,508 | | Total | 63,995 | 54,312 | Major Customers (HKD thousands) | Major Customers (HKD thousands) | FY2025 | FY2024 | | :--- | :--- | :--- | | Customer A | 18,533 | Not applicable* | | Customer B | 11,606 | 11,002 | | Customer C | 7,352 | 6,772 | Dividends and Loss Per Share No dividends were recommended for FY2025, and basic and diluted loss per share narrowed to 45.7 HK cents, primarily due to a slight reduction in the loss for the year - For the years ended March 31, 2025 and 2024, the company neither paid nor proposed any dividends[34] Loss Per Share Calculation | Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Loss for the Year used for calculation (HKD thousands) | (23,808) | (24,444) | | Weighted average number of ordinary shares (thousands) | 52,094 | 47,836 | | Basic Loss Per Share (HK cents) | (45.7) | (51.1) | Capital Structure and Changes The company restructured its capital during the period, including a 20-to-1 share consolidation and a placement of 168 million new shares raising HKD 5.31 million, resulting in HKD 10.11 million issued share capital by year-end - On October 31, 2024, the company consolidated every twenty issued and unissued shares of HKD 0.01 par value into one consolidated share of HKD 0.20 par value[47] - On October 15, 2024, the company placed and issued 168,486,000 new ordinary shares at HKD 0.0315 per share, raising gross proceeds of approximately HKD 5.31 million[47] Share Capital Movement | Item | Number of Shares | Share Capital (HKD thousands) | | :--- | :--- | :--- | | As at April 1, 2024 (pre-consolidation) | 842,432,607 | 8,424 | | Shares placed | 168,486,000 | 1,685 | | Share consolidation (20-to-1) | (960,372,677) | – | | As at March 31, 2025 (post-consolidation) | 50,545,930 | 10,109 | Other Company and Shareholder Information Events After Reporting Period Post-reporting period, the company completed a rights issue on April 11, 2025, raising HKD 41.6 million net by issuing 152 million new shares at HKD 0.29 each, and extended property leases to enhance liquidity and support operations - On April 1, 2025, the Group modified and extended the leases for its factory properties and staff quarters for one year[73] - On April 11, 2025, the company completed a rights issue on the basis of 'three rights shares for every one existing share held', issuing approximately 152 million ordinary shares at a subscription price of HKD 0.29 per share[74] Employees and Remuneration Policy As of March 31, 2025, the Group had 206 employees, a reduction from 227, with total staff costs of approximately HKD 26.2 million, reflecting cost control efforts and market-based remuneration Employee Statistics | Item | As at March 31, 2025 | As at March 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 206 | 227 | | Total Staff Costs (HKD thousands) | Approx. 26,200 | Approx. 26,300 | Corporate Governance The company largely complied with HKEX Corporate Governance Code, with the only deviation being the combined Chairman and CEO role, which the Board believes provides strong leadership; the Audit Committee reviewed the annual financial results - The company has complied with the Corporate Governance Code throughout the reporting period, with the exception of Code Provision C.2.1, which stipulates that the roles of chairman and chief executive officer should be separate[81] - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Zhuang Shuo. The Board believes this arrangement provides strong and consistent leadership for the company, facilitating effective planning and implementation of business decisions and strategies[82] - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's audited consolidated financial results for the year ended March 31, 2025[85]