Financial Performance - Revenue for the year ended March 31, 2022, was HKD 876,741,000, an increase of 25% compared to HKD 701,671,000 in 2021[21] - Profit attributable to owners decreased slightly to HKD 9,000,000 from HKD 10,000,000 in the previous year, primarily due to a tax credit of HKD 7,000,000 in the prior fiscal year[25] - The group's consolidated revenue increased significantly by 24.93% to HKD 877 million for the year ended March 31, 2022, compared to HKD 702 million in 2021[27] - Gross profit for the year was HKD 158,751,000, up from HKD 130,373,000, indicating a year-over-year increase of about 21.7%[164] - The net profit attributable to the company's owners was HKD 8,655,000, compared to HKD 9,508,000 in the previous year, reflecting a decrease of approximately 9%[160] - The total comprehensive income for the year was HKD 18,803,000, compared to HKD 15,099,000 in the previous year, marking an increase of approximately 24%[161] Revenue Breakdown - The ODM business's revenue distribution shows Europe and the USA as the top two markets, accounting for 49.03% and 40.44% of total ODM revenue, respectively[25] - The ODM business revenue rose by 35.71% to HKD 722 million, accounting for approximately 82.33% of the group's total revenue[27] - The group's ODM revenue in Europe and the US grew by 45.68% to HKD 354 million and by 25.32% to HKD 292 million, respectively[27] - The brand contact lens business revenue decreased by 60.87% to HKD 9 million, representing only 1% of the group's total revenue[30] Operational Efficiency - The company has made continuous efforts in streamlining operations and reducing costs, positively contributing to profitability despite challenges faced during the year[25] - The company plans to enhance production efficiency, strengthen budget control, streamline organizational structure, and optimize supplier networks and logistics processes[36] - The company aims to maintain flexible production capacity to quickly adjust operations based on market demand and mitigate potential disruptions in the global supply chain[36] Financial Position - As of March 31, 2022, the group had cash and cash equivalents of HKD 324 million and outstanding bank borrowings of approximately HKD 40 million[30] - The debt-to-equity ratio was 5.15%, indicating a stable financial position for the group[30] - The average collection period for receivables improved to 83 days, and inventory turnover period improved to 51 days during the review year[30] - The total accounts receivable amounted to HKD 199,082,000, with a credit loss provision of HKD 11,617,000 as of March 31, 2022[142] - The company's equity attributable to owners increased by 1.7% to HKD 781,485 thousand in 2022 from HKD 770,147 thousand in 2021[168] Governance and Compliance - The board of directors consists of five executive directors and three independent non-executive directors, ensuring a balanced governance structure[50] - The company has complied with all applicable corporate governance code provisions during the fiscal year ending March 31, 2022[48] - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code, but the board believes this structure provides effective leadership[55] - The company is committed to high standards of corporate governance to enhance management and protect shareholder interests[48] Risk Management - The group continues to monitor foreign exchange risks closely, utilizing forward contracts to manage risks associated with currency fluctuations[32] - The company has established a structured risk management system with clear objectives, employing a top-down approach to identify, assess, and monitor risks[74] - No significant deficiencies were found in the company's risk management and internal control systems during the annual review conducted by the board[76] Shareholder Information - The company proposed a final special dividend of HKD 0.015 per share, amounting to approximately HKD 3,942,000[87] - The company maintains a dividend policy aimed at balancing sufficient liquidity for future development and distributing profits to shareholders[79] - The Vision Trust holds 141,533,828 shares, representing 53.86% of the issued share capital, owned by the chairman and vice-chairman[108] Investments and Assets - The group acquired properties, plants, and equipment at a cost of approximately HKD 16,838,000 to maintain existing facilities and upgrade production capabilities[93] - The carrying amounts of identified long-term assets were HKD 289,850,000 for properties, HKD 14,292,000 for plant and equipment, HKD 31,647,000 for right-of-use assets, and HKD 19,742,000 for intangible assets as of March 31, 2022[144] - The company’s financial assets measured at fair value through profit or loss increased to HKD 1,625 thousand in 2022 from zero in 2021, indicating new investment strategies[165] Employee and Stakeholder Relations - The company emphasizes the importance of maintaining long-term relationships with employees, suppliers, and customers[94] - As of March 31, 2022, the group employed approximately 3,500 staff members, with compensation based on performance, tenure, and market conditions[33] Future Outlook - The group anticipates a challenging and uncertain business environment due to the resurgence of COVID-19 and geopolitical tensions, which may lead to increased input prices and operational costs[36] - The company remains committed to creating long-term value for stakeholders and achieving sustainable growth despite the challenging business environment[37]
新兴光学(00125) - 2022 - 年度财报