YGM TRADING(00375) - 2025 - 年度财报

Corporate Information Corporate Information Overview This section outlines the company's governance structure and key partners, including board members, committees, bankers, and auditors - The Board comprises 5 executive directors and 3 independent non-executive directors, with Chan Wing Sun as Chairman and Fu Shing Yam as Chief Executive, ensuring clear division of responsibilities[3][5] - The company has established an Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee, with all committee chairmen and members clearly listed[3][4][6] - The principal bankers are The Hongkong and Shanghai Banking Corporation Limited, and the auditor is KPMG[5][7] Five-Year Financial Summary Five-Year Financial Highlights Overview This section provides a five-year overview of key financial data, including operating results, financial position, and shareholder returns, highlighting trends in revenue, profit, assets, liabilities, and EPS Revenue and Gross Profit Trends | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 177,852 | 238,435 | | Gross Profit | 117,464 | 166,962 | | Gross Profit Margin | 66.0% | 70.0% | Operating Profit and Net Loss | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Operating Profit / (Loss) | 441 | (2,309) | | (Loss) / Profit Attributable to Equity Holders of the Company | (23,650) | (5,121) | | Net (Loss) / Profit Margin | -13.3% | -2.1% | Financial Position and Shareholder Returns | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Total Assets | 505,776 | 571,613 | | Total Liabilities | 87,279 | 113,200 | | Shareholders' Equity | 413,157 | 452,208 | | (Loss) / Earnings Per Share - Basic | ($0.14) | ($0.03) | | Final Dividend Per Share | $0.10 | $0.10 | Chairman's Statement Group Performance and Strategic Adjustments Despite a weak Hong Kong consumer market, the Group significantly reduced operating losses by exiting unprofitable mainland China retail operations and implementing cost cuts; annual loss was primarily due to non-cash asset impairment, with a strong financial position and no outstanding borrowings - Hong Kong's consumer market recovery fell short of expectations, with the market slowing again, posing challenges for businesses[10][15] - The Group has terminated its unprofitable retail operations in mainland China, refocusing on Hong Kong retail and implementing significant cost-cutting measures[10][16] - The reported loss for the year is primarily attributable to non-cash impairment provisions related to asset valuations, with no impact on cash flow[10][17] - The Group maintains a strong financial position with no outstanding borrowings, providing a solid foundation to navigate current market conditions and pursue future growth opportunities[10][18] Business Segment Performance This section details the performance of key business segments: Ashworth Hong Kong retail sales slowed, Guy Laroche profit slightly decreased due to increased promotion, J.Lindeberg performed positively as a distributor, and the printing business successfully returned to profitability - Ashworth Hong Kong retail business experienced a significant slowdown in sales, leading the Group to adopt a more cautious strategy focused on strategic negotiations for shop leases[11][19] - The Guy Laroche brand performed satisfactorily, though profit for the year slightly decreased compared to the previous year, mainly due to increased investment in promotional activities to enhance brand awareness[12][20] - The J.Lindeberg brand's distribution business in Hong Kong and Macau made a positive contribution to the Group's overall operating costs, reflecting its excellent performance[13][21] - The printing business successfully returned to profitability driven by effective management strategies, with operations conducted in the Group's own factory premises and internal rent paid on time[14][22] Property and Outlook The Group's UK properties are fully leased, with renewal negotiations underway for increased rent; given the weak Hong Kong consumer market, the Group must re-evaluate strategies and explore diversification for sustainable growth - The Group's properties in the UK are currently fully leased, with renewal negotiations underway to increase rental income, demonstrating a commitment to maintaining good tenant relationships[23][26] - Given the weak consumer market in Hong Kong, the Group must carefully re-evaluate its existing strategies and market positioning to ensure sustainable growth[24][27] - Despite numerous challenges, the Group's strong financial position provides an excellent opportunity to explore diversification and expand into new business areas[24][27] Management Discussion and Analysis Key Performance Indicators Key performance indicators for FY2025 show a 25.4% revenue decrease and 29.6% gross profit decline, but operating profit turned positive; net loss margin widened, EBITDA margin improved, while total asset and equity returns remained negative and worsened Key Performance Indicators (2025 vs 2024) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 177,852 | 238,435 | -25.4% | | Gross Profit | 117,464 | 166,962 | -29.6% | | Gross Profit Margin | 66.0% | 70.0% | -4.0 pp | | Operating Profit / (Loss) | 441 | (2,309) | -119.1% | | Operating Profit / (Loss) Margin | 0.2% | -1.0% | +1.2 pp | | Loss Attributable to Equity Holders of the Company | (23,650) | (5,121) | 361.8% | | Net Loss Margin | -13.3% | -2.1% | -11.2 pp | | EBITDA | 29,716 | 35,141 | -15.4% | | EBITDA Margin | 16.7% | 14.7% | +2.0 pp | | Return on Total Assets | -4.7% | -0.9% | -3.8 pp | | Return on Shareholders' Equity | -5.7% | -1.1% | -4.6 pp | | Current Ratio (times) | 2.6 | 2.3 | 13.0% | | Gearing Ratio | 0.108 | 0.144 | -25.0% | | Loss Per Share - Basic | ($0.14) | ($0.03) | 366.7% | | Cash Generated from Operating Activities | 36,407 | 40,830 | -10.8% | Group Operating Results Group operating results saw significant revenue and gross profit declines due to market conditions and economic slowdown; despite reduced operating expenses, loss attributable to equity holders increased substantially due to UK property revaluation loss and trademark impairment, with decreased operating cash inflow and lower inventory - The Group's financial performance declined, with revenue falling by 25.4% to HKD 177,852 thousand and gross profit decreasing by 29.6% to HKD 117,464 thousand year-on-year, primarily due to a challenging market environment and economic slowdown[32][33] - Total operating expenses decreased by 26.9% to HKD 126,560 thousand, enabling the Group to achieve an operating profit of HKD 441 thousand (2024: operating loss of HKD 2,309 thousand)[34][38] - Loss attributable to equity holders of the Company increased to HKD 23,650 thousand (2024: HKD 5,121 thousand) due to a HKD 17,450 thousand revaluation loss on UK properties and trademark impairment losses[34][38] - For the year ended March 31, 2025, the Group's operating cash inflow was **