Financial Performance - Revenue for the year ended March 31, 2022, was HK$211,489,000, a decrease of 2.3% from HK$216,181,000 in 2021[6] - Gross profit was HK$134,468,000, with a gross profit margin of 63.6%, compared to 63.0% in the previous year[6] - The company reported a loss from operations of HK$15,389,000, compared to a loss of HK$6,960,000 in 2021[6] - Net profit attributable to equity shareholders was HK$3,284,000, a significant improvement from a loss of HK$11,740,000 in the prior year[6] - Revenue decreased by 2.2% to HK$211,489,000 for the year, compared to HK$216,181,000 in the previous year[26] - Gross profit fell by 1.3% to HK$134,468,000, while the gross profit margin improved to 63.6% from 63.0%[26] - Operating loss increased to HK$15,389,000, a 121.1% rise from HK$6,960,000 in the previous year[25] - Cash generated from operations was negative at HK$3,828,000, a significant decline from HK$28,461,000 in the previous year[25] - Profit attributable to equity shareholders was HK$3,284,000, a recovery from a loss of HK$11,740,000 in the previous year[33] Assets and Equity - The total assets decreased to HK$608,928,000 from HK$690,662,000 in 2021, reflecting a decline of 11.8%[6] - Shareholders' equity stood at HK$498,998,000, down from HK$538,886,000 in 2021[6] - As of March 31, 2022, the Group's net assets were HK$507,670,000, down from HK$558,928,000[37] - Shareholders' equity decreased by 7.4% to HK$498,998,000 from HK$538,886,000[25] Dividends - The company declared an interim dividend of HK$0.10 per share and a final dividend of HK$0.05 per share[6] - The Company reported an interim dividend of 10 HK cents per ordinary share for the year ended 31 March 2022, compared to nil in the previous year[167] - The directors recommended a final dividend of 5 HK cents per ordinary share for the year ended 31 March 2022, down from 10 HK cents in the previous year[167] - The Company has established a Dividend Policy to guide the declaration and payment of dividends, allowing shareholders to participate in profits while retaining reserves for growth[131] Market and Operational Challenges - The company plans to continue its expansion in Mainland China, although the pace is slower due to COVID-19 lockdowns[16] - The company expressed uncertainty in predicting profitability due to ongoing COVID-19 restrictions affecting retail performance[21] - The Group's revenue for the year decreased by 2.2% to HK$211,489,000, impacted by the COVID-19 pandemic[27] - The fifth wave of local COVID-19 and subsequent restrictions severely affected economic activity and sentiment[67] - The Group's performance is impacted by global economic risks, including geopolitical tensions and rising inflation due to the Russia-Ukraine war[66] Risk Management - The Group's currency risk mainly arises from investments outside of Hong Kong, which may affect performance due to currency fluctuations[68] - The Group's financial performance may be affected by local, national, and international regulations, which pose risks to revenue and profit[74] - The Group has taken proactive measures to monitor changes in government policies and legislation to mitigate risks associated with regulatory changes[75] - The Group's risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[154] Corporate Governance - The Group's adherence to the Corporate Governance Code has been maintained throughout the financial year, with a noted deviation regarding the term of non-executive directors[86] - The Board comprises six executive directors and three independent non-executive directors, meeting the requirement of at least one-third independent members[88] - The Company is committed to establishing a good corporate governance framework and practices, including reviewing and monitoring compliance with laws and regulations[96] - The Company encourages directors to attend relevant seminars, conferences, or forums to enhance their knowledge and skills[102] Employee and Community Engagement - The Group actively supports charitable organizations and encourages employee participation in community service[61] - The Group's charitable donations for the year amounted to HKD 306,000, significantly higher than HKD 66,000 in the previous year[176] - As of March 31, 2022, the Group had approximately 370 employees, a decrease from 400 employees as of March 31, 2021[79] - The Group has implemented competitive remuneration packages, including medical subsidies and retirement scheme contributions, to attract and retain talent[79] Audit and Financial Oversight - The Audit Committee comprises three independent non-executive directors as of March 31, 2022, ensuring oversight of the Company's financial statements[108] - The Audit Committee reviewed the Group's financial statements to ensure compliance with accounting principles generally accepted in Hong Kong during the year ended March 31, 2022[108] - The principal auditor, KPMG, received HK$1,566,000 for audit services and HK$206,000 for non-audit services, which included tax and review services[144] Strategic Outlook - The Group plans to focus on cautious expansion in Mainland China for the "Ashworth" brand amid ongoing market challenges[43] - The Group's retail performance in Hong Kong may be impacted by the global economic situation, but local epidemic control could provide some relief[71] - The global economic outlook is facing significant downside risks, including rising borrowing costs and geopolitical tensions, which could affect the Group's operations[70]
YGM TRADING(00375) - 2022 - 年度财报