Financial Performance - Revenue for the year ended March 31, 2023, was HK$805.5 million, an increase of 16.3% compared to HK$692.5 million in 2022[4] - The net profit for the year was HK$51.1 million, a significant recovery from a net loss of HK$106.5 million in the previous year[4] - Shareholders' funds increased to HK$424.1 million as of March 31, 2023, compared to HK$378.1 million in 2022, reflecting a growth of 12.5%[4] - The earnings per share for the year was HK$0.0485, a turnaround from a loss per share of HK$0.102 in the previous year[4] - The Group's total assets as of March 31, 2023, were HK$1,063.1 million, down from HK$1,182.0 million in 2022, indicating a decrease of 10.1%[4] - The Group's liabilities decreased to HK$639.0 million from HK$803.9 million, a reduction of 20.5%[4] - Profit attributable to equity holders was HK$50.8 million, a significant recovery from a loss of HK$106.7 million in the prior year[170] - Excluding disposal gains and non-cash items, the Group reported a loss of HK$45.6 million, a 55.3% reduction from the previous year's loss of HK$102.0 million[170] Business Operations - The Group's watch wholesale business continues to thrive, with a network of independent dealers in Hong Kong, Singapore, and Malaysia, many of whom have been partners for over 25 years[18] - The Group emphasizes sustainable relationships with suppliers and lenders, maintaining strong communication to ensure stable credit facilities[20] - The Group is focused on enhancing employee satisfaction and retention, addressing the challenges posed by changing workforce demographics[19] - There were no significant events affecting the Group since the end of FY2022/23, indicating stability in operations[8] - The Group strengthened cash flow management due to a challenging business environment, implementing measures to improve liquidity[24] - Effective inventory management is crucial as inventory levels impact sales, profitability, and cash flows; the Group adopts a conservative approach to ordering stock[25] - Securing suitable store locations at appropriate rental rates is a key driver of performance, affecting turnover and profitability[26] - Product sourcing significantly impacts Group turnover, gross margins, and inventory levels; the Group focuses on maintaining good relationships with principal suppliers[27] Dividends and Reserves - The Group's distributable reserves available for dividends to shareholders amounted to HK$32.737 million as of March 31, 2023, unchanged from the previous year[50] - No interim or final dividends were paid during the year ended March 31, 2023[45][46] - The Group did not recommend a final dividend for the year ended 31 March 2023, consistent with the previous year[177] Governance and Compliance - The Group's financial risks and management policies are detailed in the "Finance" section of the Management Discussion and Analysis[28] - Climate change and social issues may impact business decisions; the Group's environmental policy is based on the principles of reduce, reuse, and recycle[42] - The Group has not experienced any material non-compliance with applicable consumer protection laws for the year ended March 31, 2023[35] - The provision for the executive bonus scheme for the year ended March 31, 2023, amounted to HK$1,450,000, consistent with the previous year[63] - No director has a service contract that cannot be terminated by the employer within one year without compensation, other than statutory compensation[62] - The directors have formal letters of appointment outlining the key terms and conditions of their roles[63] - The company has no significant transactions, arrangements, or contracts involving directors and their connected parties that had material interests during the year[68] Management and Directors - Mr. Joseph C. C. Wong did not participate in the executive bonus scheme for the year ended March 31, 2023[63] - Mr. Wallace Kwan Chi Kin and Mr. Ricky Lai Kai Ming will retire by rotation at the upcoming Annual General Meeting and are eligible for re-election[65] - Mr. Wallace Kwan Chi Kin has been with the Group since November 2011 and has 30 years of experience in financial management[75] - Mr. Suriyan Kanjanapas was appointed as a non-executive director on October 20, 2021, and has a background in law and management[70] - Mr. Jeff Ho has over 20 years of experience in wealth management services, focusing on corporate restructuring and mergers and acquisitions[80] - Honnus Cheung has expertise in mergers and acquisitions and digital transformation across various industries, including fintech[86] Shareholding and Interests - As of March 31, 2023, Mr. Joseph C. C. Wong holds a total of 549,341,014 shares, representing approximately 52.49% of the total shares issued[94] - Yee Hing Company Limited, through its subsidiary, holds 855,200 shares, with Mr. Joseph C. C. Wong deemed to have an interest in these shares via a discretionary trust[96] - Mr. Joseph C. C. Wong holds 209,000 preference shares in City Chain (Thailand) Company Limited, representing approximately 99.52% of the total preference shares issued[99] - Mr. Joseph C. C. Wong also holds 600 preference shares in Stelux Watch (Thailand) Company Limited, representing approximately 16.67% of the total preference shares issued[99] - Mr. Joseph C. C. Wong owns 5,100 preference shares in Stelux (Thailand) Limited, representing 100% of the total preference shares issued[99] - The Company and its subsidiaries did not establish or operate any share option scheme for the year ended March 31, 2023[89] - No directors or chief executives of the Company have any other interests or short positions in the shares or underlying shares of the Company as of March 31, 2023[100] - The Company has maintained a register of interests as required under the Securities and Futures Ordinance[101] - The interests of shareholders are disclosed pursuant to the Securities and Futures Ordinance as of March 31, 2023[101] - The Company has not granted or exercised any rights related to shares or debentures by its directors or chief executives[100] Supplier and Customer Relations - The largest supplier accounted for 63% of the Group's purchases, while the five largest suppliers combined accounted for 82%[109] - The largest customer contributed 3% to the Group's sales, with the five largest customers combined accounting for 7%[109] Rental and Property Management - The total monthly rental for Premises A, B, and C amounted to HK$584,347.5, excluding rates, government rent, and management charges[129] - The total monthly license fees for storerooms and carpark amounted to HK$24,840 and HK$36,100 respectively, inclusive of rates, government rent, and management charges[129] - The monthly license fees for the warehouse and parking space were determined on an arm's length basis, reflecting favorable market rates[136] - The management and property agency liaison services agreement was renewed for a term of three years from 1 April 2022 to 31 March 2025[139] - The Group has been using the office premises, storerooms, warehouses, and parking spaces primarily for office, administrative, and storage purposes over a long period[136] - The monthly rents and license fees were based on a rental valuation conducted by an independent property valuer[130] - The Group intends to continue leasing the relevant properties to avoid disruption to its business due to relocation[136] - The directors considered the tenancy agreements and licenses to be on normal commercial terms and fair to the Company and its shareholders[130] Continuing Connected Transactions - Continuing connected transactions were conducted on normal commercial terms and are subject to annual review under the Listing Rules[118] - The Group's internal audit function verified compliance of continuing connected transactions with the Listing Rules[119] - The independent non-executive directors confirmed that all continuing connected transactions were entered into by the Group[120] - The aggregate annual cap for continuing connected transactions for the financial year ended 31 March 2023 was approximately HK$8,100,000[136] - Annual cap for the continuing connected transaction was set at HK$2,580,000 for the financial year ended 31 March 2023[146] - Total monthly rental for properties leased to Optical 88 Entities approximated HK$260,000, exclusive of rates and management charges[155] - Aggregate annual cap for the continuing connected transactions for the financial year ended 31 March 2023 was approximately HK$9,999,999[158] - All rents incurred during FY2022/23 were paid during the year[155] Market Outlook and Strategy - The Group maintains a cautious outlook on short-term performance due to inflationary pressures and uncertainties in post-pandemic economic recovery[199] - The Group continues to invest in e-commerce development to integrate online and offline channels[199] - Capital management and financial risks are actively monitored, with prudent treasury management policies in place to address liquidity needs[200]
宝光实业(00084) - 2023 - 年度财报