Financial Performance - The company reported a consolidated profit of $XX million for the fiscal year, representing a YY% increase compared to the previous year[53]. - The Group's revenue for the year ended March 31, 2023, was HK$711 million, a decrease of 9% from HK$785 million in the previous year[30]. - The Group achieved a net profit of HK$44 million this year, down from HK$83 million last year, reflecting a decline of approximately 47%[48]. - The final dividend proposed after the reporting period is HK$35 cents per share, down 13% from HK$40 cents last year[30]. - The final dividend recommended is HK$0.0469 per share, down from HK$0.0536 per share last year[68]. User and Market Growth - User data showed an increase in active users to ZZ million, up by AA% year-over-year[60]. - The company plans to expand its market presence in the Asia-Pacific region, targeting a growth rate of EE% over the next two years[60]. - The luxury retail sentiment in China remains stable, with expectations for improvement as the pandemic is under control[51]. Revenue Segments - New product launches are expected to contribute an additional $DD million in revenue, with a focus on innovative technology[60]. - The "Sale of watches" segment generated total revenue of HK$702 million this year, continuing to be a key revenue driver[35]. - Revenue from the "Properties leasing" segment fell by 42% to HK$7 million compared to HK$12 million last year due to vacancy issues[35]. Cost Management and Efficiency - The company aims to improve operational efficiency, targeting a reduction in costs by HH% over the next fiscal year[60]. - Distribution costs decreased by 15% to HK$88 million from HK$104 million last year, attributed to lower staff-related costs and rental expenses[41]. - Administrative expenses rose by 8% to HK$28 million compared to HK$26 million last year, mainly due to increased exchange losses[41]. Research and Development - Research and development expenses increased by GG%, reflecting the company's commitment to innovation[60]. Corporate Governance - The company has appointed Ms. Lam Kim Phung as the Chairman of the Board and the chairman of the Nomination Committee, ensuring compliance with corporate governance codes[180]. - The Board will continuously review and improve corporate governance practices to ensure prudent decision-making[192]. - All Directors confirmed compliance with the Model Code and Code of Conduct for the year ended March 31, 2023[195]. Sustainability and Social Responsibility - The board of directors emphasized a focus on sustainable practices, aiming for a reduction in carbon footprint by JJ% by 2025[60]. - The Group emphasizes environmental protection and sustainable development, implementing measures such as energy-saving initiatives and recycling programs[159]. - The company is committed to reducing disposable product usage and water consumption in its offices[170]. - The company made multiple charitable donations during the year[168]. Financial Position and Ratios - As of March 31, 2023, the Group's total cash balance was HK$194 million, a decrease from HK$208 million on March 31, 2022[49]. - The gearing ratio was 38% as of March 31, 2023, compared to 37% on March 31, 2022[49]. - Finance costs increased by 50% to HK$9 million this year from HK$6 million last year due to rising interest rates on bank borrowings[47]. Store Operations - The total number of stores decreased from 6 to 5, with one store in Beijing closing[39]. - The Group operates 5 stores in China and aims to enhance cost efficiency by streamlining operating costs[51]. Supplier and Customer Relations - The largest supplier contributed approximately 92% of total purchases for the year, indicating a high dependency on a single supplier[86]. - The total sales from the top five customers accounted for only 0.3% of the group's total sales during the year[95]. - The company has maintained effective communication with suppliers and established long-term stable relationships, with no significant disputes reported this year[166]. Shareholding and Directors - As of March 31, 2023, Ms. Lam Kim Phung held 441,484,400 shares, representing approximately 59.09% of the total issued share capital[108]. - The Company entered into a Sub-Tenancy Agreement with Honour Rich International Limited for a term of 26.5 months at a monthly rental of HK$359,706, which was renewed for 24 months at HK$163,713[119][123]. - No significant transactions, arrangements, or contracts involving Directors' interests were reported during the year[130].
ASIA COMM HOLD(00104) - 2023 - 年度财报