Financial Performance - The total revenue for the fiscal year ended March 31, 2023, increased by 28.0% to HKD 753,200,000[6]. - The company recorded a profit attributable to shareholders of HKD 19,700,000, compared to a loss of HKD 26,100,000 in the previous year[6]. - The company achieved a pre-tax profit of HKD 22,900,000, a turnaround from a pre-tax loss of HKD 26,500,000 in the previous year[15]. - Gross profit was HKD 161,400,000, with a gross margin of 21.4%, up from 19.0% year-on-year, attributed to increased sales leverage and improved operational efficiency[15]. - The group's EBITDA for the year was HKD 39,900,000, a turnaround from an EBITDA loss of HKD 8,900,000 in the previous year[47]. - The net profit for the year was HKD 18,800,000, a significant recovery from a loss of HKD 26,697,000 in 2022[196]. - Basic and diluted earnings per share improved to HKD 4.4 from a loss of HKD 5.8 in the prior year[194]. - Total comprehensive income for the year was HKD 12,937,000, compared to a loss of HKD 20,160,000 in 2022[196]. Market Performance - North America market revenue grew significantly by 65.1%, accounting for 59.0% of total revenue[7]. - Revenue from the Asian market, primarily impacted by challenges in China, decreased by 9.7%, representing 36.1% of total revenue[7]. - Retail sales for the "Betu" brand in China declined by 10.6% year-on-year, or 5.4% excluding foreign exchange effects[8]. - Total sales in China fell by 12.7% year-on-year to HKD 254,400,000, with retail sales and sales to domestic brand customers contributing to this decline[25]. - Sales in the Asian market decreased by 9.7% year-on-year to HKD 271,800,000, primarily due to the impact of COVID-19 in mainland China, which accounted for approximately 93.6% of Asian sales[25]. Cost Management and Efficiency - The company continues to implement strict cost control measures and reduce capital expenditures to enhance operational efficiency[8]. - Distribution expenses decreased by 12.9% to HKD 60,000,000, aligning with a 10.6% decline in retail sales[16]. - The cost of sales as a percentage of total revenue decreased to 78.6% from 81.0% in the previous year, attributed to improved sales leverage and operational efficiency[41]. - The group's capital expenditure for the year was HKD 1,800,000, a significant decrease from HKD 43,600,000 in the same period last year[37]. Operational Challenges - The retail environment in China remains challenging, with domestic sales showing a decline due to weak consumer demand and economic uncertainty[19]. - The company is focusing on cost control and management to mitigate the negative impact of reduced foot traffic in physical stores[22]. - Management anticipates ongoing macroeconomic and geopolitical uncertainties will continue to hinder global consumer market recovery, particularly in North America[31]. Governance and Corporate Structure - The board of directors consists of three executive directors and four independent non-executive directors, ensuring a diverse governance structure[68]. - The company has established audit, remuneration, and nomination committees to oversee specific areas of corporate governance[75]. - The board composition is reviewed regularly to ensure it possesses the necessary expertise and experience for the company's business needs[69]. - The company provides directors with ongoing training on regulatory requirements and corporate governance to support their roles[70]. Shareholder Engagement and Dividends - The board proposed a final dividend of HKD 0.005 per share for the fiscal year, consistent with the previous year[12]. - The company has adopted a dividend policy to allow shareholders to share in profits while retaining sufficient reserves for future business development[102]. - The company encourages shareholders to attend the annual general meeting to raise inquiries and has established various communication channels for shareholder engagement[99]. Environmental and Social Responsibility - The company is committed to sustainable development goals and promoting environmentally friendly practices in its supply chain[9]. - The company is committed to high environmental standards and compliance with relevant laws and regulations, including corporate governance and disclosure requirements[125]. - The company’s environmental, social, and governance report will be published in July 2023, detailing its policies and benefits[125]. Risk Management - The Group's risk management system includes systematic assessment and prioritization of financial, operational, and regulatory risks[91]. - The internal audit function is responsible for regular and independent reviews of the Group's risk management and internal control systems[93]. - The Group encourages employees to report any concerns regarding financial reporting or internal controls[94].
同得仕(集团)(00518) - 2023 - 年度财报