Financial Performance - Total revenue reached HKD 588.3 million, a year-on-year increase of 27.8% from HKD 460.4 million in the previous year[9]. - The net loss for the year was HKD 26.7 million, compared to a net profit of HKD 255.3 million in the previous year, which included one-time non-operating items[9]. - Gross profit increased by 13.8% to HKD 112,000,000, with a gross margin of 19.0%, a decrease of approximately 2.4 percentage points compared to the previous year[16]. - The company recorded a pre-tax loss of HKD 26,500,000, compared to a pre-tax profit of HKD 254,900,000 in the previous year, which included one-time non-operating gains from asset sales[16]. - Excluding one-time and non-operating items, the operating loss decreased by 46.7% to HKD 29,600,000, reflecting a rebound in revenue and effective cost improvement measures[17]. - The company reported a loss before tax of HKD 29,600,000 for the year, an improvement from a loss of HKD 55,500,000 in the previous year[61]. - The company reported a loss per share of HKD 0.058 in 2022, compared to earnings per share of HKD 0.567 in 2021[65]. Sales and Market Performance - The company experienced sales growth in both the Chinese and broader Asian markets despite ongoing pandemic-related restrictions[9]. - Sales in Asia grew by 9.2% to HKD 300,800,000, with sales in China accounting for 96.9% of Asian sales and 49.5% of total sales[24]. - Retail sales overall increased by 16.0% to HKD 225,400,000, benefiting from a shift to e-commerce amid ongoing pandemic restrictions[25]. - North American sales experienced a significant growth of 57.0%, reaching HKD 269,200,000, compared to HKD 171,500,000 in the previous year[26]. - Overall retail sales in China increased by 16.0% to HKD 225,400,000, despite a decline of 18.1% in physical store sales due to pandemic restrictions[30]. - Online sales grew by 43.8%, with their share of total retail sales rising from 55.1% to 68.3%[32]. Operational Efficiency and Cost Management - Operational expenses were reduced, and strategic measures were implemented to improve sales performance, leading to a healthier financial and operational state[10]. - The company has actively reduced non-priority capital expenditures to optimize working capital and enhance operational leverage[10]. - Distribution expenses increased by 16.3% to HKD 68,900,000, driven by a 43.8% growth in online sales and increased advertising costs[17]. - Administrative expenses decreased by 27.0% to HKD 74,300,000, primarily due to the termination of manufacturing operations in Shenzhen and Dongguan[17]. - Financing costs decreased by 43.9% to approximately HKD 2,900,000, attributed to effective cash flow and working capital management[18]. Corporate Governance - The board of directors held a total of 7 meetings during the fiscal year ending March 31, 2022, with all directors attending the annual general meeting[78]. - The company adopted the new corporate governance code effective from April 1, 2022, ensuring compliance with all relevant principles and provisions[77]. - The board consists of 3 executive directors and 5 independent non-executive directors, ensuring a diverse governance structure[84]. - The company has established committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of corporate governance[91]. - The company emphasizes the importance of independent directors and their roles in corporate governance, with all independent directors actively participating in board meetings[93]. Environmental and Social Responsibility - The company is committed to enhancing environmental protection measures and sustainable development practices as part of its operational strategy[11]. - The company is committed to high environmental standards and compliance with relevant laws and regulations during its business development[151]. - The company’s environmental, social, and governance report will be published in July 2022, detailing its policies and benefits[151]. - The company regularly collects feedback from stakeholders to understand their needs and optimize resource utilization for future business and community development[154]. Future Outlook and Strategy - The company aims to leverage digitalization and technology as a new normal in response to the pandemic's impact on business and social models[10]. - The company plans to continue closing unprofitable stores, reducing the number of Betu brand physical stores in China to 173, a net decrease of 4 stores[31]. - Management anticipates ongoing uncertainty and challenges in the short term due to factors such as inflation and geopolitical tensions[33]. - The company aims to leverage its production capabilities in Zhongshan to maintain quality and timely production under challenging conditions[36]. - The management team is actively exploring potential mergers and acquisitions to drive growth and market expansion[171]. Financial Position and Liquidity - As of March 31, 2022, the group's cash level was HKD 293,300,000, down from HKD 393,800,000 a year earlier, with total bank borrowings amounting to HKD 85,600,000[41]. - The group’s inventory turnover period increased to 71 days from 62 days year-on-year, attributed to higher inventory levels in the garment division to support increased order volumes[41]. - The company maintains sufficient levels of cash and cash equivalents to manage liquidity risk and reduce the impact of cash flow fluctuations[145]. - The company is exposed to foreign currency translation risks due to foreign currency transactions and borrowings, and it manages this risk through appropriate measures[147]. Shareholder Information - The company reported a proposed final dividend of HKD 0.5 per share for the year ended March 31, 2022, down from HKD 1.5 per share in the previous year[134]. - The total reserves available for distribution to shareholders as of March 31, 2022, amounted to HKD 72,686,000, a decrease from HKD 94,508,000 in the previous year[135]. - The largest customer accounted for 21% of total sales, while the top five customers represented 54% of total sales[133]. - The largest shareholder, Corona Investments Limited, holds 150,059,268 shares, representing 33.27% of the total issued shares[183].
同得仕(集团)(00518) - 2022 - 年度财报