Financial Performance - The company's consolidated revenue for the year ended March 31, 2023, decreased by 19.61% to HKD 705 million compared to HKD 877 million in the previous year[22]. - The company recorded a net loss attributable to shareholders of HKD 31 million for the year, compared to a profit of HKD 9 million in the previous year, resulting in a basic loss per share of HKD 0.1163[22]. - The gross profit margin decreased to 15.49% from 18.11% in the previous year, while the net profit margin fell to -4.33% from 0.99%[22]. - The ODM business revenue decreased by 23.68% to HKD 551 million, accounting for 78.16% of total revenue, primarily due to high inflation and reduced consumer confidence in Europe and the US[23]. - Revenue from the brand eyewear distribution business slightly increased by 4.86% to HKD 151 million, representing 21.42% of total revenue[24]. - The revenue from the brand contact lenses business was HKD 1 million, down from HKD 9 million in the previous year[26]. - The company reported a total revenue of HKD 1.2 billion for the fiscal year ending March 31, 2023, representing a year-on-year increase of 15%[49]. - The company reported a net loss of HKD 30,558,000 for the year, compared to a profit of HKD 8,655,000 in 2022[169]. - Total comprehensive loss for the year was HKD 51,232,000, a significant decline from a comprehensive income of HKD 18,803,000 in the prior year[169]. Assets and Liabilities - The company's long-term assets recorded a non-cash impairment loss of HKD 25 million due to the challenging business environment[22]. - As of March 31, 2023, the group had total equity attributable to owners of HKD 722,000,000, down from HKD 781,000,000 as of March 31, 2022[27]. - Non-current assets decreased to HKD 332,754,000 from HKD 385,221,000, reflecting a decline of 13.6%[171]. - Current assets also decreased to HKD 612,410,000 from HKD 655,154,000, a reduction of 6.5%[171]. - The total number of shares available for issuance under the 2014 Share Option Scheme is 26,277,828 shares, equivalent to approximately 10% of the total issued shares as of March 31, 2023[117]. Cash Flow and Financing - The group recorded a net operating cash inflow of HKD 33,000,000 for the year ended March 31, 2023, with cash and bank balances amounting to HKD 329,000,000[27]. - The operating cash flow before changes in working capital was HKD 20,015,000, down from HKD 36,341,000 in the prior year, indicating a decline of approximately 45%[177]. - The net cash generated from operating activities was HKD 33,474,000, a decrease of 26% from HKD 45,166,000 in the previous year[179]. - The financing activities used cash of HKD 22,072,000, slightly down from HKD 23,160,000 in the previous year, indicating a stable financing strategy[179]. Market and Business Strategy - The group plans to establish a production facility in Vietnam to enhance product supply stability[37]. - The group aims to improve overall efficiency by enhancing production efficiency, budget control, and optimizing supplier networks and logistics processes[37]. - The group anticipates continued volatility in market demand for eyewear products due to geopolitical and macroeconomic challenges[35]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[49]. - The company is exploring potential acquisitions to enhance its product portfolio and market reach, with a budget of HKD 500 million allocated for this purpose[49]. Corporate Governance - The board of directors held five meetings during the fiscal year, with full attendance from all members, indicating strong governance[50]. - The company has maintained compliance with corporate governance codes, ensuring transparency and accountability[47]. - The independent directors possess significant financial expertise, enhancing the board's overall effectiveness[49]. - The company confirms that the independence of the board is a key factor for good corporate governance, with mechanisms in place for independent professional advice[52]. - The company has adopted a board diversity policy, ensuring a balanced composition of skills, experience, and perspectives among board members[70]. Risk Management - The company recognizes market risk, credit risk, and liquidity risk as major risks affecting its operational and financial status[93]. - The board has established a structured risk management system to identify, assess, and monitor risks, ensuring effective internal controls[75]. - The risk management system includes regular evaluations and action plans for identified risks, ensuring accountability within the organization[79]. Shareholder Information - Shareholders holding at least 10% of the voting rights can request a special general meeting within two months of their request[84]. - The company proposed a final special dividend of HKD 0.015 per share, totaling approximately HKD 3,942,000[91]. - The total sales from the top five customers accounted for approximately 71.07% of the company's total sales, with the largest customer contributing about 24.93%[99]. Environmental and Ethical Commitment - The company is committed to environmental sustainability and has implemented policies to reduce waste and energy consumption[95]. - The company emphasizes ethical conduct and integrity as core values, aligning with relevant anti-corruption laws and regulations[82].
新兴光学(00125) - 2023 - 年度财报