Financial Performance - For the fiscal year ending March 31, 2025, the company's revenue decreased by approximately HKD 69.8 million, representing a decline of about 26.5% to approximately HKD 51.4 million compared to the previous year[11]. - The company's gross profit fell from approximately HKD 14.5 million to about HKD 8.2 million, a decrease of approximately 43.7%, with the gross margin declining from 20.8% to 15.9%[12]. - The group's pre-tax loss increased by 5.9% to approximately HKD 4.8 million, primarily due to a decrease in gross profit of about HKD 6.3 million, offset by a reduction in sales and distribution costs and administrative expenses of approximately HKD 6.2 million[15]. - The group anticipates continued pressure on business due to ongoing geopolitical tensions and global financial market volatility, with a challenging economic environment expected in the short term[17]. - The group reported that sales to the top five customers accounted for approximately 49.2% of total sales for the fiscal year 2025, with the largest customer contributing about 12.8%[117]. - The group's accumulated losses as of March 31, 2025, were HKD (172,179) thousand, compared to HKD (168,564) thousand as of March 31, 2024[112]. Cost Management - Sales and distribution costs decreased by approximately 25.8% to about HKD 5.4 million from approximately HKD 7.3 million in the previous year[13]. - Administrative and other expenses were reduced by approximately 38.0% to about HKD 7.0 million from approximately HKD 11.2 million, primarily due to cost control measures[13]. - The financing costs increased by approximately 9.2% to about HKD 556,000 due to higher lease liabilities[14]. - The company aims to enhance operational efficiency and control costs while optimizing existing resources to improve core competitiveness[40]. Strategic Initiatives - The company plans to reduce physical retail stores in Hong Kong while expanding its online business, reflecting a shift in consumer shopping behavior towards online platforms[7]. - The company aims to collaborate with other manufacturers in the Asia-Pacific region to expand its business into children's and youth clothing[7]. - The company anticipates an improvement in business performance for the fiscal year 2024/2025 due to strategic measures including product innovation and operational streamlining[10]. - The retail business has faced operational challenges, but the group has made strategic adjustments to its product mix to align with customer preferences and market trends[17]. - The group plans to maintain a sustainable and profitable retail business while gradually developing online and social media distribution channels to drive future growth[17]. Corporate Governance - The board consists of six directors, with independent non-executive directors making up 50% of the board members[54]. - The company has three independent non-executive directors, meeting the GEM listing rules requirement of at least one-third of the board[56]. - The independent non-executive directors bring extensive operational and financial expertise, contributing to the company's governance[56]. - The company has adopted the GEM listing rules as the code of conduct for directors' securities transactions, ensuring compliance[50]. - The company is committed to good corporate governance to enhance shareholder value and accountability[48]. - The management is responsible for executing the business plans and strategies adopted by the board[51]. - The company has established appropriate insurance arrangements for potential legal claims against directors[57]. - The independent non-executive directors have confirmed their independence in writing, complying with GEM listing rules[56]. - The company regularly reviews its corporate governance practices to ensure compliance with applicable codes[49]. - The board has set the necessary financial and human resources to support the company's objectives[51]. Shareholder Matters - The board has resolved not to declare any dividends for the current year (2024: none)[16]. - The company has adopted a dividend policy to allow shareholders to share in profits while retaining sufficient funds for future growth[96]. - The board will consider various factors, including capital expenditure needs and overall economic conditions, when deciding on dividend distributions[100]. - The group did not recommend any dividend payment for the fiscal year 2025[107]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to enhancing its environmental, social, and governance (ESG) performance and reporting systems[145]. - The ESG report covers the performance of the company and its subsidiaries for the fiscal year ending March 31, 2025[146]. - The company aims to improve the quality and comprehensiveness of its ESG reporting over the long term[145]. - The company has established a top-down ESG organizational structure to implement sustainable development concepts[149]. - The company has established an Environmental, Social, and Governance (ESG) Committee consisting of four members, including executive directors and management from HR, finance, and operations[151]. - The ESG Committee is responsible for assessing and determining the company's ESG-related risks and opportunities, ensuring effective risk management and internal control systems[152]. - The company has identified key ESG issues, with the top ten concerns including greenhouse gas emissions, waste management, energy consumption, and employee development and training[158]. - The company emphasizes stakeholder engagement through various communication channels to enhance its sustainable development strategy[155]. - The company has implemented an internal environmental awareness program to encourage employees and customers to improve environmental performance[160]. - The company aims to minimize its environmental impact by developing internal environmental policies tailored to different business segments[160]. Employment and Workforce - As of March 31, 2025, the company employed approximately 27 staff, a decrease from 34 in the previous year[41]. - The employer's contribution to the Mandatory Provident Fund for the fiscal year 2025 was HKD 118,000, down from HKD 288,000 in the fiscal year 2024[42]. - The group employs 27 staff members, with a focus on providing competitive compensation and a safe working environment[190]. - The group has implemented a flexible working hours plan to promote a healthy work-life balance for employees[196]. - The group has adhered to significant laws and regulations related to employment, including the Employment Ordinance and the Minimum Wage Ordinance, ensuring compliance in areas such as recruitment, promotion, and equal opportunities[200].
民信国际控股(08456) - 2025 - 年度财报