Economic Challenges - As of March 31, 2025, the eyewear industry in Hong Kong, including the Group, is facing unprecedented pressures due to persistent inflation, particularly in core markets like Europe and the United States, which has severely eroded consumer purchasing power [9]. - The Group's reliance on production facilities in Mainland China is under strain due to rising costs and declining price competitiveness, with competition from lower-cost manufacturing hubs in Southeast Asia compressing profit margins [10]. - The overall market dynamics have made it increasingly difficult for the Group to sustain profitability without compromising on quality [10]. - The Group continues to face economic conditions and market risks that may impact consumer confidence and spending habits [33]. Strategic Initiatives - Management has initiated a long-term strategy to diversify the supply chain by exploring partnerships with cost-competitive suppliers in Southeast Asia, although this transition may impact short-term performance [11]. - The strategic shift towards a procurement and sourcing service provider model aims to enhance flexibility and cost efficiency, although the expected benefits have been constrained by worsening macroeconomic conditions [8]. - The Group is actively exploring additional collaborations with leading production houses in Hong Kong to capitalize on future opportunities in the film industry [17]. - The Group is focusing on diversifying its investments to broaden its asset and revenue base, with potential acquisitions or mergers under consideration [31]. Financial Position - As of March 31, 2025, the Group did not have any material capital commitments, indicating a cautious approach to financial obligations [18]. - The Group had no significant contingent liabilities as of March 31, 2025, reflecting a stable financial position [19]. - As of March 31, 2025, the Group had cash and cash equivalents of approximately HK$8.7 million, an increase from HK$7.1 million in 2024 [23]. - Total borrowings increased significantly to HK$44.7 million in 2025 from HK$13.1 million in 2024, resulting in a gearing ratio of 58.7% compared to 14.3% in the previous year [23]. - The Group's current liabilities exceeded its current assets by HK$39.9 million as of March 31, 2025, up from HK$35.1 million in 2024 [23]. - The Group has not recommended any dividend payment for the year, consistent with the previous year [26]. Employee and Workplace Dynamics - The Group employs 25 full-time employees as of March 31, 2025, a slight decrease from 26 in 2024 [25]. - The annual turnover rate for 2025 is reported as 0% across all demographics, including gender and age groups [116]. - The Group adopts a five to six-day workweek to ensure adequate rest for employees, in compliance with the Employment Ordinance of Hong Kong [110]. - The Group is committed to diversity and equal opportunities, ensuring a workplace free from discrimination based on various social identities [111]. - The Group's office environment is designed to be safe and hygienic, with individual workstations and regular maintenance of facilities [118]. Environmental, Social, and Governance (ESG) Efforts - The Group has complied with all "comply or explain" provisions set out in the ESG Reporting Guide, ensuring adherence to principles of materiality, quantitative measures, balance, and consistency [44]. - The ESG Report identifies both achievements and challenges faced by the Group, highlighting the importance of stakeholder engagement in determining significant ESG issues [47]. - The Group's business operations have established short-term and long-term sustainable development goals to reduce emissions in accordance with governmental requirements [69]. - The Group emphasizes waste reduction and improving resource efficiency as part of its commitment to environmental responsibility [69]. - The Group acknowledges the importance of managing ESG impacts in the supply chain and protecting local communities while complying with applicable laws [69]. Board and Corporate Governance - The Company has adopted the Corporate Governance Code as its own code of corporate governance practices, ensuring compliance throughout the year ended March 31, 2025 [170]. - The Company failed to meet the requirement of having at least three independent non-executive Directors on the Board after the resignation of Ms. Lai Pik Chi Peggy on May 6, 2025 [174]. - The Board currently comprises six Directors, including two executive Directors and four non-executive Directors, ensuring a diverse mix of skills and experience [186]. - The Company aims to achieve a gender diversity target of no less than 20% female Directors by appointing a female Director by December 31, 2024 [195]. - The Board's gender diversity level is currently at 0% female representation, with plans to address this by the proposed appointment of a female Director [195].
高雅光学(00907) - 2025 - 年度财报