Financial Performance - For the fiscal year 2025, the company recorded revenue of approximately HKD 689.4 million, a decrease of about 21.7% compared to HKD 881.0 million for the fiscal year 2024[19] - The gross profit margin slightly declined from 72.8% in fiscal year 2024 to 69.3% in fiscal year 2025, a decrease of 3.5 percentage points[19] - The company reported a loss attributable to shareholders of approximately HKD 17.5 million for fiscal year 2025, compared to a profit of HKD 33.6 million in fiscal year 2024[19] - Basic loss per share for fiscal year 2025 was HKD 0.9 cents, down from a basic profit of HKD 1.6 cents in fiscal year 2024[19] - The group's revenue decreased from approximately HKD 881.0 million in the 2024 fiscal year to approximately HKD 689.4 million in the 2025 fiscal year, a decline of about 21.7%[26] - Gross profit decreased from approximately HKD 641.2 million in the 2024 fiscal year to approximately HKD 477.8 million in the 2025 fiscal year, a decline of about 25.5%[30] - The group recorded a loss attributable to owners of approximately HKD 17.5 million in the 2025 fiscal year, compared to a profit of HKD 33.6 million in the 2024 fiscal year[35] - The company's distributable reserves for the fiscal year 2025 amount to approximately HKD 1,563.8 million, a decrease from HKD 1,703.4 million in fiscal year 2024[164] Revenue Sources - The Tian Wang brand contributed approximately 84.2% of total revenue, amounting to about HKD 580.8 million in fiscal year 2025[19] - Revenue from the Tian Wang watch business decreased by approximately HKD 188.7 million or about 24.5%, from approximately HKD 769.4 million in the 2024 fiscal year to approximately HKD 580.8 million in the 2025 fiscal year[27] - Revenue from other brands (China) increased by approximately HKD 0.8 million or about 3.1%, from approximately HKD 25.6 million in the 2024 fiscal year to approximately HKD 26.4 million in the 2025 fiscal year[28] - The revenue from the core watch movement trading business accounted for about 11.9% of total revenue in fiscal year 2025, up from 9.8% in fiscal year 2024[40] E-commerce and Sales Channels - E-commerce business remained stable, contributing approximately 26.7% to total revenue, serving as an important channel for product promotion and new watch launches[19] - The e-commerce business accounted for approximately 26.7% of total revenue in fiscal year 2025, compared to 27.4% in fiscal year 2024[41] Retail Network and Sales Points - As of June 30, 2025, the company had 1,487 sales points for Tian Wang watches, down from 1,695 in fiscal year 2024, indicating a strategic optimization of the retail network[20] - The number of retail points for Tian Wang watches was reduced from 1,695 as of June 30, 2024, to 1,487 as of June 30, 2025, a net decrease of 208 points[27] Assets and Liabilities - The total assets of the company as of June 30, 2025, were HKD 2,471.1 million, a decrease from HKD 2,540.9 million in fiscal year 2024[10] - The total equity as of June 30, 2025, was approximately HKD 2,261.8 million, a decrease of about HKD 54.4 million from HKD 2,316.2 million as of June 30, 2024[46] - The debt-to-equity ratio increased to approximately 1.7% as of June 30, 2025, compared to 1.2% as of June 30, 2024[47] Investment Activities - The company has committed to invest USD 10 million in KKR Asia Tactical Credit (Overseas) Fund SCSp, known as KKR Fund II[54] - KKR Fund II aims to maintain a flexible investment strategy focusing on attractive opportunities in the credit market, targeting a portfolio with approximately 75-80% core investments and 20-25% event-driven investments[55] - The company has adopted an internal investment policy aimed at improving the efficiency of idle funds and generating stable returns while expanding income sources[58] - The investment strategy emphasizes maintaining appropriate investment sizes and optimizing portfolio structure to effectively allocate company resources[59] Corporate Governance - The company has maintained compliance with the corporate governance code, ensuring high standards of governance practices[103] - The company has adopted a code of conduct for directors' securities transactions, confirming full compliance for the fiscal year 2025[106] - The company established a corporate governance committee to oversee adherence to governance codes and practices[103] - The company has three independent non-executive directors, ensuring a balanced power structure within the board[104] - The company’s independent non-executive directors have extensive experience in auditing, accounting, and corporate finance, enhancing board effectiveness[98][99] Social Responsibility and Community Engagement - Tian Wang Watch has donated nearly 5 million RMB to support rural education since 2017, aligning with its educational charity philosophy[86] - The company emphasizes long-term sustainable development and aims to create its own legacy in the watch industry[87] - The company is actively involved in community events, such as being the official timing partner for the Shenzhen Nanshan Half Marathon[87] - The company has a strong commitment to its brand values, promoting the message "Every person is a Tian Wang" during public events[87] Employee and Management - The employee cost for the fiscal year 2025 is approximately HKD 252.1 million, a decrease from HKD 270.5 million in the fiscal year 2024[70] - The company emphasizes the importance of employee value and provides training and career development opportunities[159] - The management team has extensive experience, with the founder having over 30 years in the watch manufacturing and trading business[91] Future Outlook - The company anticipates that the economic outlook and retail industry in China will face uncertainties and challenges, which will inevitably impact its performance and financial condition in the coming years[82]
时计宝(02033) - 2025 - 年度财报