Financial Performance - The Group achieved a revenue of HK$3,640 million for the year ended March 31, 2022, representing a year-on-year growth of 3.9% from HK$3,504 million in 2021[3] - Gross profit increased by 22.7% to HK$1,180 million, with a gross profit margin rising to 32.4%, up 4.9 percentage points from 27.5% in 2021[3] - Profit attributable to owners surged by 55.8% to HK$363 million, compared to HK$233 million in the previous year[3] - Revenue from the Group's Mainland China operations increased by 2.4% to HK$2,415 million, up from HK$2,359 million in 2021[5] - The Group's Hong Kong operations generated revenue of HK$1,063 million in 2021, an increase of 8.5% from HK$980 million in 2020[7] Retail Operations - The Group operated 44 retail points in Greater China as of March 31, 2022, including 30 in Mainland China and 11 in Hong Kong[5] - Total retail sales in Hong Kong rose by 8.1% year-on-year in value and 6.5% in volume, with jewelry and watch sales growing by 27.3%[7] - The Group launched e-commerce platforms for the Mainland China and Hong Kong markets to enhance brand awareness and capture rising opportunities in e-commerce[3] Dividends and Equity - The Board recommended a final dividend of 10.0 HK cents per share and a special dividend of 30.5 HK cents per share for the year ended March 31, 2022[3] - The Group's total equity reached HK$2,036 million as of March 31, 2022, up from HK$1,991 million a year earlier[12] Inventory and Expenses - The Group's inventory level decreased by 22.3% to HK$484 million as of March 31, 2022, down from HK$623 million[9] - Lease-related expenses increased to HK$174 million, with lease expenses as a percentage of overall expenses stable at 22.9%[8] Human Resources - The Group employed approximately 587 employees as of March 31, 2022, with about 63% located in Mainland China[13] - The group invests significant resources in employee training programs to enhance service quality, utilizing results from a "mystery shopper program" to tailor training for individual stores or employees[18] Corporate Governance - The Company aims to enhance long-term total return for shareholders by achieving sustainable recurring earning growth and maintaining a strong financial profile[36] - The Company has complied with the corporate governance code provisions throughout the year ended March 31, 2022, with some deviations explained in relevant paragraphs[32] - The Board is responsible for directing the strategic objectives of the Company and overseeing business management[37] - The Company emphasizes effective risk management and internal control as part of its corporate governance principles[36] Risk Management - The Group adopts an Enterprise Risk Management (ERM) framework consistent with the COSO framework to manage risks across its operations[98] - The Risk Management Taskforce identifies and prioritizes significant risks at least annually, establishing mitigation plans for those deemed significant[100] - The Group has an internal audit function to monitor risk management and internal control systems, reporting significant deficiencies to the Audit Committee and the Board[101] Environmental, Social, and Governance (ESG) - The Company engaged in annual stakeholder engagement to identify material ESG issues during the Reporting Period, confirmed by management and the Board[137] - The ESG taskforce is responsible for establishing long-term ESG goals, monitoring ESG-related risks, and reporting achieved ESG objectives to the Board regularly[144] - The Company has established a strict code of conduct to prevent corruption and ensure compliance with relevant laws[164] Compliance and Reporting - The Company acknowledges its responsibility for the preparation of financial statements to ensure they present a true and fair view in accordance with Hong Kong Companies Ordinance and applicable accounting standards[63] - The Audit Committee met four times during the year, with all members attending every meeting, ensuring oversight of the financial reporting process[71] - The Company ensures compliance with Listing Rules by publishing annual and interim results in a timely manner[61] Product Quality and Safety - The company has a zero-tolerance policy for selling counterfeit products and has joined the "Hong Kong Q-Mark Scheme" to attest to the quality of its products and services[169] - The company has implemented systematic internal recall procedures to handle potential product recalls, with no recalls reported during the reporting period due to safety and health reasons[172] - The Company aims to improve product safety and quality assurance as part of its product responsibility strategy[157]
东方表行集团(00398) - 2022 - 年度财报