Financial Performance - For the year ended March 31, 2023, the Group's revenue decreased by 12% to approximately HK$923 million, with a profit of approximately HK$5 million compared to HK$357 million last year[17]. - Operating profit for the year was HK$14,018,000, a significant decline from HK$367,421,000 in the previous year[100]. - The profit attributable to owners of the company was HK$6,478,000, compared to HK$357,473,000 in 2022, indicating a substantial drop[100]. - The company declared dividends of HK$5,096,000, down from HK$57,765,000 in the previous year[100]. - The Group's cash and bank balances and short-term bank deposits amounted to approximately HK$252 million as of March 31, 2023, with a working capital surplus of approximately HK$235 million[62][63]. - Interest expenses decreased to approximately HK$6 million from HK$18 million in the previous year, indicating improved cost management[62][66]. - The Group's gearing ratio improved to 14% as of March 31, 2023, down from 22% in the previous year, reflecting a stronger financial position[63]. - The total equity attributable to owners of the company was HK$643,374,000, a decrease from HK$670,645,000 in the previous year[101]. Operational Challenges - The global political and economic situation remains complex, affecting consumer demand and leading to a more conservative business model among customers[19]. - The unfavorable macro environment has impacted the purchasing power and consumption desire of end consumers[19]. - The overall economic growth is expected to remain low, with significant challenges in market demand for printing services due to geopolitical tensions and economic slowdown, particularly in developed economies[37]. - The eastern China operation recorded a slight decrease in performance due to COVID-19 lockdowns and economic growth slowdown, but overall add-on value improved through effective cost control[41]. - The overall consumer sentiment in developed economies remains weak, affecting the business growth of the Southern China operation[50]. Cost Optimization and Efficiency - Excluding the disposal of Starlite Printers (Shenzhen) Co., Ltd last year, the core profit level improved due to effective cost optimization measures and exchange gains from the depreciation of Renminbi[18]. - The Group implemented several cost optimization measures during the reporting period[18]. - The Group completed resource integration for its Southern China plants, reducing procurement, production, logistics, and inventory costs, thereby enhancing competitiveness and market share[51]. - The management team is focusing on lean operations and simplifying production processes to enhance overall operational standards and reduce costs[61][64]. Sustainability Initiatives - The Group is actively promoting a green production system and has established solar photovoltaic power generation systems in Shaoguan and Suzhou plants to align with national dual-carbon policies[43]. - The Group aims to integrate sustainability initiatives with its energy conservation and emission reduction concepts, establishing a benchmark for green manufacturing[43]. - The Group is committed to carbon emission management and has initiated various environmental protection measures[90]. - The company is focusing on environmental sustainability by implementing initiatives such as using biodegradable materials like bamboo in product designs[94]. - The establishment of ESG working groups across subsidiaries aims to enhance the company's commitment to environmental, social, and governance standards[96]. Market and Product Development - The performance of the three plants in China was better than expected, with the Guangzhou plant recording a profit and the Shaoguan plant significantly narrowing its losses[19]. - The Suzhou plant improved its profitability despite disruptions from Shanghai's lockdown measures and a decline in sales at the beginning of the year[19]. - The Group's frontline business team is engaging in international exhibitions to explore new business opportunities following the lifting of pandemic restrictions[43]. - The Group plans to strengthen business development in mainland China and Southeast Asia, expanding sales channels through online media and physical stores[53]. - TEAM GREEN® brand sales increased with the resumption of retail activities, and new product series were launched, including the JIGZLE wood animals series[53]. Awards and Recognition - The global limited-edition OPERA GIRL of TEAM GREEN® won multiple awards at the 33rd Hong Kong Print Awards, including the Gold Award for Creative Products[53]. - The Guangzhou plant received the Science and Technology SME Certificate, and the Shaoguan plant built a solar photovoltaic power generation system, optimizing energy consumption and reducing costs[51]. Corporate Governance and Management - The Group's Chairman received the Outstanding Contribution Leader Award for contributions to the Guangdong-Hong Kong-Macao Greater Bay Area[47]. - The Audit Committee consists of all four Independent Non-Executive Directors and has reviewed the financial statements for the year ended March 31, 2023[198]. - The Remuneration Committee is responsible for recommending the remuneration policy for all Directors and senior management[199]. - The Nomination Committee regularly reviews the structure and composition of the Board and makes recommendations for any proposed changes[200].
星光集团(00403) - 2023 - 年度财报