Financial Performance - For the year ended March 31, 2022, the Group's revenue decreased by 1% to approximately HK$1,049 million[12] - The Group recorded a profit of approximately HK$357 million, compared to a loss of approximately HK$99 million last year[12] - The improvement in performance was mainly due to the disposal of Starlite Printers (Shenzhen) Co., Ltd, resulting in a net gain of approximately HK$483 million[13] - Overall revenue from southern China operations declined, but profit was still recorded through measures to increase income and reduce expenditure[33] - The eastern China operations experienced a marginal profit decrease due to soaring paper prices and increased outsourcing and labor expenses, yet still saw growth for the year[36] - The Southeast Asia operation's revenues increased, and losses narrowed despite multiple production halts due to pandemic volatility[36] - The southern China operation remained profitable, with a recovery in customer orders for children's books and board games despite weakened global retail demand due to COVID-19[38] - The eastern China operation turned from loss to profit, benefiting from improved consumer sentiment in Europe and the U.S., leading to increased revenue from greeting card products[45] - Operating profit for the same period was HK$367,421,000, a significant recovery from an operating loss of HK$98,713,000 in 2021[94] - Profit attributable to the owners of the Company for the year was HK$357,473,000, compared to a loss of HK$98,525,000 in the previous year[94] - Basic earnings per share attributable to the owners of the Company increased to 68.10 HK cents, recovering from a loss of 18.76 HK cents in 2021[94] Operational Challenges - The appreciation of Renminbi by approximately 4% and rising costs in commodities, logistics, and labor have negatively impacted overall performance[13] - The Guangzhou and Shaoguan plants suffered losses, while the Suzhou plant recorded an increase in sales and a turnaround from loss to profit[15] - The macro environment fluctuated sharply in the second half of the year due to geopolitical instability and inflation reaching the highest level in over 40 years in the US and Europe[15] - The Group's operational difficulties increased due to disruptions in the global supply chain and rising operating costs[15] - The Group's performance was affected by the ongoing COVID-19 pandemic and the emergence of the Omicron variant[15] Strategic Initiatives - The Group aims to continue building long-term partnerships with customers across various industries[5] - The Group established long-term strategic partnerships with international customers to maintain market competitiveness[23] - The Group is actively promoting upgrades to its internal management system and supply chain reform to enhance operating efficiency and risk management[32] - The Group's management is actively implementing operational upgrades to improve flexibility and diversify manufacturing capabilities for long-term growth[46] - The Group's strategic vision focuses on sustainable management and resource integration to enhance its leading position in the industry[42] - The Group is actively exploring opportunities to develop its own products and brand, moving away from traditional OEM business models[91] Financial Position - As of March 31, 2022, the Group's cash and bank balances and short-term bank deposits amounted to approximately HK$286 million[55] - The Group achieved a working capital surplus of approximately HK$238 million as of March 31, 2022, compared to HK$84 million as of March 31, 2021[57] - The Group's net cash position as of March 31, 2022, was approximately HK$137 million, improving from a net debt position of HK$116 million in the previous year[57] - The Group's gearing ratio decreased to 22% as of March 31, 2022, down from 111% in the previous year[57] - Interest expenses for the Group amounted to approximately HK$18 million during the year, compared to HK$11 million recorded last year[56] - The Group's non-current assets amounted to HK$434,716,000, an increase from HK$426,780,000 in the previous year[96] - Current assets as of March 31, 2022, were HK$604,760,000, compared to HK$592,722,000 as of March 31, 2021[96] - The Group's net current assets increased to HK$238,190,000 in 2022 from HK$84,077,000 in 2021, reflecting a significant improvement[96] - Total equity as of March 31, 2022, was HK$670,645,000, up from HK$353,219,000 in the previous year[96] Shareholder Information - The Group did not recommend a final dividend for the year ended March 31, 2022, but paid an interim dividend of HK1 cent and a special dividend of HK10 cents per share for the six months ended September 30, 2021[25] - The Group's retained profit available for distribution to shareholders as of March 31, 2022, was approximately HK$401,844,000[116] - During the year, the Company repurchased 6,500,000 ordinary shares for a total consideration of HK$2,078,350[123] - The directors believe that the share repurchases will enhance earnings per share and increase net asset value per share attributable to shareholders[128] - The Company plans to propose a new share option scheme at the special general meeting on August 18, 2022, to reward eligible participants for their contributions[180] Environmental and Social Governance - The Group has established an ESG management team to oversee environmental and social governance initiatives, with an ESG report to be published alongside the 2022 annual report[78] - The Group has received a "Certificate of Participation in Green Financing Solutions" from HSBC, recognizing its contributions to green transformation and sustainable development[81] - The management is focusing on digital transformation and green manufacturing to create long-term sustainable value for shareholders[81] - The Group made charitable contributions of approximately HK$285,000 during the year, compared to HK$119,000 in 2021[131] - The Group has engaged in various charitable activities, including financial support for disaster relief and educational initiatives in Hong Kong and China[76]
星光集团(00403) - 2022 - 年度财报