Financial Performance - The company reported a consolidated profit or loss statement showing significant financial performance metrics, with total revenue reaching HKD 1.2 billion, representing a 15% increase year-over-year[3]. - The Group's revenue for the year was HK$785 million, a decrease of 33% from HK$1,165 million last year, primarily due to the termination of the watches wholesale business in China and the closure of the only retail store in Hong Kong[48]. - The group achieved a net profit of HK$83 million for the year, compared to a net profit of HK$56 million in the previous year[62][69]. - The company provided a positive outlook for the upcoming fiscal year, projecting a revenue growth of 10% to 12% driven by new product launches and market expansion strategies[3]. Customer and Market Growth - User data indicated a growth in customer base, with a 20% increase in active users compared to the previous year, totaling approximately 500,000 active users[3]. - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% increase in market share within the next two years[3]. - The Group's largest supplier contributed approximately 86% of total purchases for the year, while the top five suppliers accounted for about 99.8% of total purchases[88]. Product Development and Investment - Investment in new product development was highlighted, with an allocation of HKD 50 million towards R&D initiatives aimed at enhancing product offerings and technological advancements[3]. - The "Sale of watches" segment generated total revenue of HK$770 million this year, continuing to play a key role in the Group's operations[48]. Operational Efficiency - The company reported a 5% increase in gross margin, reaching 40%, attributed to cost control measures and operational efficiencies[3]. - Gross profit margin increased by 9% to 29% due to an improved product mix with higher gross profit margins[51]. - Distribution costs amounted to HK$104 million, a 13% decrease from HK$119 million last year, due to reductions in staff-related costs and amortization charges[52]. - Administrative expenses decreased by 32% to HK$26 million compared to HK$38 million last year, mainly due to lower professional fees and consultancy costs[52]. Sustainability and Corporate Responsibility - Future guidance includes a commitment to sustainability initiatives, with a target to reduce carbon emissions by 30% over the next five years[3]. - The Group emphasizes environmental protection and sustainable development, implementing measures such as energy-saving initiatives and recycling programs[116]. - No charitable donations were made by the Group during the year[124]. Corporate Governance - The Company has complied with all code provisions in the Corporate Governance Code throughout the year ended March 31, 2022, except for certain deviations related to the Chairman position[132]. - The position of the Chairman was vacant until June 30, 2022, when Ms. Lam Kim Phung was appointed as the Chairman of the Board[132]. - The Board has recognized that the current arrangement for Directors has proven effective over several years[142]. - The Company has adopted a code for securities transactions by Directors that meets or exceeds the standards set out in the Model Code[142]. Risk Management and Internal Control - The Board has overall responsibility for overseeing the Group's risk management and internal control systems to ensure their effectiveness[196]. - The Company has established a risk management policy to identify, evaluate, and manage principal risks affecting the business[196]. - The internal audit department was established to review the effectiveness of the internal control system, which includes financial, operational, and compliance controls[196]. Shareholder Communication - The Company is committed to timely, accurate, and detailed disclosure of material information about the Group[196]. - The Company uses various communication tools to keep shareholders informed, including general meetings and reports[200]. - The procedure for voting by poll has been read out by the chairman at general meetings to ensure transparency[200].
ASIA COMM HOLD(00104) - 2022 - 年度财报