Financial Performance - The Group's revenue for the year ended 31 March 2023 was HK$365,761,000, a decrease of 6% compared to HK$390,446,000 in the previous year[8]. - The operating profit improved to HK$18,738,000 from a loss of HK$13,064,000 in the previous year, indicating a significant operational turnaround[9]. - The overall loss for the year was HK$23,249,000, a decline from a profit of HK$30,274,000 in the previous year, primarily due to losses from the Wuxi investment[10]. - Gross profit increased by 18% to HK$71,697,000, with a gross profit margin of 20%, up from 16%[19]. - The net profit margin was -6%, a decline of 14 percentage points from the previous year[19]. - Earnings before interest, taxes, depreciation, and amortization (EBITDA) showed a loss of HK$15,368,000, down from a profit of HK$39,703,000[19]. Liquidity and Financial Health - The current ratio improved by 56% to 6.7 times, indicating better short-term financial health[19]. - Cash and bank balances increased by 30% to HK$306,173,000, reflecting improved liquidity[19]. - The Group has no short-term or long-term borrowings as of March 31, 2023[31]. - The Group's cash and cash equivalents and bank deposits as of March 31, 2023, were approximately HK$306,173,000, up from HK$235,472,000 in 2022[31]. Investment and Market Outlook - The management expects the losses from the Wuxi investment to be significantly reduced in the coming year, which should improve overall results[11]. - The management expects a decrease in business orders in the coming year as manufacturing shifts from China to other Asian countries[24]. - The Wuxi Group, in which the Group holds a 49% stake, reported substantial losses due to lower yarn prices and increased material costs[29]. - The management anticipates that domestic demand will gradually recover while the export market remains weak[29]. Corporate Governance and Board Structure - The Board comprises six executive directors and three independent non-executive directors as of March 31, 2023[143]. - The Company has complied with the Corporate Governance Code throughout the financial year ended March 31, 2023[141]. - The Board is committed to transparency, accountability, and independence to protect shareholder interests[140]. - The Audit Committee comprises three independent non-executive directors and is responsible for monitoring the integrity of the Company's financial statements and internal control systems[160]. - The Company has established a mechanism to ensure independent viewpoints from directors are communicated to the Board[145]. Shareholder Information and Dividends - The Company maintained a dividend per share of HK$0.02, unchanged from the previous year[19]. - The Board recommended a final dividend of HK2 cents per ordinary share for the year ended March 31, 2023, totaling HK$4,135,000, consistent with the previous year[87]. - As of March 31, 2023, the reserves available for distribution to equity shareholders amounted to HK$261,208,000, down from HK$286,812,000 in 2022[88]. - The Board will consider various factors before declaring or recommending dividends, maintaining discretion in the decision-making process[197]. Employee and Social Responsibility - The Group employs approximately 369 employees as of March 31, 2023, with remuneration packages based on performance and market salary levels[66]. - The Group encourages employee participation in charitable activities to demonstrate corporate social responsibility[47]. - Charitable donations made by the Group during the year amounted to HK$10,000, a decrease from HK$11,000 in 2022[89]. Risk Management - The Group has implemented adequate risk mitigation measures to address changes in global economic and macro-economic conditions, particularly in light of the COVID-19 outbreak[53]. - The Risk Management Committee oversees the design, implementation, and monitoring of risk management and internal control systems for the Group[191]. Diversity and Inclusion - The Company has adopted a Board Diversity Policy aiming for at least two female directors, with a focus on increasing the proportion of female members over time[179]. - The Company recognizes the benefits of a diverse workforce and will continue to enhance diversity subject to the availability of suitable candidates[184]. - The Nomination Committee conducted an annual review of the Board Diversity Policy and confirmed its effective implementation during the year ended March 31, 2023[182].
长江制衣(00294) - 2023 - 年度财报