Financial Performance - The Group's consolidated revenue for the year ended March 31, 2023, was HK$4,150,886,000, a decrease from HK$4,729,976,000 in 2022, representing a decline of approximately 12.2%[14]. - Profit attributable to equity holders of the Company was HK$40,732,000, up from HK$12,634,000 in the previous year, indicating a significant increase of 222.5%[14]. - Gross profit decreased by HK$58,244,000, from HK$937,558,000 to HK$879,314,000, representing a decrease of 6.2%[72]. - EBITDA for the year was HK$129,624,000, down from HK$157,496,000, a decrease of 17.7%[72]. - The net profit margin improved to 1.0% from 0.3%[71]. - The Group's financial performance reflects a strategic focus on improving profitability despite a decline in revenue[72]. Revenue Breakdown - Sales from the Hong Kong segment amounted to HK$1,831,336,000, accounting for 44% of total sales, showing stability despite pandemic impacts[21]. - Sales in Mainland China were HK$750,532,000, down from HK$929,929,000 in 2022, representing a decrease of approximately 19.2%[22]. - Revenue from Japan was HK$1,569,018,000, a decrease of 19.7% from HK$1,956,089,000 in 2022, accounting for 38% of the Group's total revenue[23][26]. - Revenue from Hong Kong was HK$1,831,336,000, a slight decrease of 0.6% from HK$1,843,958,000 in 2022, representing 44% of the Group's total revenue[24]. - Revenue from Mainland China was HK$750,532,000, a significant decrease of 19.3% from HK$929,929,000 in 2022, accounting for 18% of the Group's total revenue[25]. Strategic Initiatives - The Group's strategy includes leveraging the acquisition of Miyata Co., Ltd. to expand its product offerings in Hong Kong and Mainland China, while also entering the Japanese market[10]. - The Group aims for stable yet progressive growth while maintaining operational stability amidst inflation and rising business costs[9]. - Following the full acquisition of Miyata, the Group will invest more resources in the Japanese market, utilizing synergies to drive business growth[58]. - The Group plans to expand its presence in the Mainland market, capitalizing on the expected GDP growth of 5% and the development of the Guangdong-Hong Kong-Macao Greater Bay Area[57]. Product and Market Development - The Group has diversified its food distribution portfolio, including staples like Japanese eggs, milk, tofu, and rice, contributing to long-term growth[30][33]. - The Group's retail outlets, such as "Okashi Land" and "Miyata Store," have expanded their offerings to include staple foods, attracting more consumers and gaining long-term patrons[41]. - The Group's products are now sold on major e-commerce platforms such as Taobao, Tmall, and JD.com, leveraging online sales strategies to boost market share in Mainland China[44]. - The Group aims to maintain its leading position in Hong Kong's food distribution and retail sectors while introducing more Japanese food varieties to increase market share[52]. Community and Corporate Social Responsibility - The Group's commitment to community development and public welfare during the pandemic has been recognized, enhancing its brand image[46]. - The Group actively participates in community services and supports various charitable activities, providing food products to organizations such as schools and youth programs[120]. - The Group has received multiple awards for outstanding sales performance and corporate social responsibility, reflecting its strong reputation in the market[47]. Operational Efficiency - The cost of sales as a percentage of revenue increased in the second half of the year, impacting overall profitability due to a lag in raising product prices[15]. - The Group has implemented environmental measures, including water management and energy efficiency improvements, to enhance sustainability in operations[104]. - The Group has a stringent supplier selection process to mitigate supply chain risks, ensuring the stability and quality of food materials[122]. Employee and Governance - The total number of employees as of March 31, 2023, was approximately 2,800, with remuneration packages structured based on market terms and individual qualifications[97]. - The Group recognizes the importance of employee development and retention, offering performance-based bonuses and training programs[110]. - The Group has been awarded the "Good MPF Employer" for eight consecutive years, reflecting its commitment to employee welfare[111]. Financial Position - The Group's cash and cash equivalents stood at HK$735,180,000 as of March 31, 2023, with banking facilities of HK$2,929,826,000, of which 37% had been utilized[87]. - The Group's gearing ratio was 86% as of March 31, 2023, indicating a high level of bank borrowings relative to equity[87]. - Total assets as of 31 March 2023 were HK$3,244,070, a decrease from HK$3,352,241 in 2022[139]. - Total liabilities were HK$1,939,188, slightly reduced from HK$1,981,552 in the previous year[139]. Shareholder Information - The Company has reserves available for cash distribution amounting to HK$280,795,000, with HK$24,974,000 proposed as a final dividend[149]. - The Company repurchased a total of 36,000 shares during the year, with an aggregate consideration of HK$92,000[145]. - The repurchase aimed to enhance the net asset value per share and earnings per share for the benefit of shareholders[146].
四洲集团(00374) - 2023 - 年度财报