Corporate Governance - The company did not engage in any related party transactions as defined under the Listing Rules Chapter 14A during the review year[1]. - The group has complied with relevant laws and regulations that could significantly impact its business and operations during the review year[2]. - The company maintained sufficient public float as of March 31, 2023[6]. - The independent auditors have confirmed their willingness to be reappointed at the upcoming annual general meeting[7]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring compliance with independence requirements[25]. - The company has adopted a code of conduct for securities transactions by directors, ensuring compliance throughout the review year[10]. - The board is responsible for preparing consolidated financial statements in accordance with generally accepted accounting principles in Hong Kong[29]. - The company has implemented a corporate governance framework to manage business risks and enhance transparency[9]. - All independent non-executive directors have confirmed their independence in accordance with the Listing Rules[31]. - The board is committed to continuous professional development for directors to ensure their contributions remain relevant[14]. - The board held five meetings during the year, with attendance rates for executive directors at 100%[43]. - The audit committee held two meetings during the year to review the group's interim and annual performance, ensuring compliance with financial reporting standards[46]. - The board's diversity policy emphasizes various factors such as age, experience, and cultural background in selecting board members, aiming for a balanced and diverse composition[39]. - The company has no management contracts related to its overall or any major part of its business as of March 31, 2023[147]. - The company has not entered into any significant transactions or agreements with directors that involve substantial interests during the fiscal year[169]. - The audit committee held three meetings during the year ending March 31, 2023, to review external audits, internal controls, and risk assessments[199]. - The company appointed a new auditor, "先機會計師行有限公司," on March 15, 2022, after the previous auditor resigned[200]. Financial Performance - The company recorded revenue of approximately HKD 213.7 million for the year ended March 31, 2023, an increase of 3.1% compared to approximately HKD 207.2 million for the previous year[79]. - The overall gross profit for the year was approximately HKD 27.2 million, a decrease of about HKD 7.9 million from the previous year's gross profit of approximately HKD 35.1 million[79]. - The company reported a loss attributable to owners of the company of approximately HKD 24.7 million, an increase of about HKD 13 million compared to a loss of approximately HKD 11.7 million in the previous year[85]. - Revenue from wholesale business increased by approximately 24.7% from approximately HKD 162.5 million in the previous year to approximately HKD 202.7 million in the current year[105]. - New revenue from the acquisition of Sinoforce Group Limited contributed approximately HKD 115.1 million to the wholesale business[105]. - Revenue from garment and sportswear products decreased by approximately 46.1% from approximately HKD 162.5 million in the previous year to approximately HKD 87.6 million in the current year[105]. - Revenue from property investment business remained stable at approximately HKD 3.8 million, compared to HKD 4.0 million in the previous year[106]. - Revenue from marketing services decreased by 82.6% to approximately HKD 7.1 million from HKD 40.7 million in the previous year[107]. - The group recorded a gross profit of approximately HKD 27.2 million, a decrease of about 22.5% compared to the previous year's gross profit of approximately HKD 35.1 million, with a gross margin of 12.7% compared to 17.0% in the prior year[108]. - The wholesale business achieved a gross profit of approximately HKD 34.0 million and a gross margin of 16.8%, an increase of about 12.1% from the previous year's gross profit of approximately HKD 21.1 million[108]. - The group incurred a gross loss of approximately HKD 10.5 million from marketing services, a significant decrease of about 205.0% compared to a gross profit of approximately HKD 10.0 million in the previous year[111]. Operational Changes - The company completed the acquisition of 100% equity in Sinoforce for a total consideration of HKD 50 million on June 14, 2022, marking a strategic expansion[51]. - Following the acquisition of a new subsidiary in June 2022, the company launched a new product line in watches and accessories, which is expected to expand revenue sources[87]. - The company aims to leverage its new subsidiary to establish partnerships with internationally recognized consumer brands, enhancing its sales and distribution capabilities[87]. - The company terminated its underperforming marketing services business by selling its subsidiary, 大灣融通（香港）有限公司, in May 2023[104]. - The company aims to expand its revenue sources through the new product line from the Sinoforce acquisition, establishing a platform for collaboration with internationally recognized brands[99]. Financial Position - The group had bank financing amounting to approximately HKD 40.1 million as of March 31, 2023, compared to HKD 8.4 million as of March 31, 2022, indicating a significant increase in utilized financing[56]. - The group’s cash and bank balances totaled approximately HKD 15.5 million as of March 31, 2023, down from approximately HKD 66.1 million a year earlier[124]. - Bank borrowings increased significantly to approximately HKD 41.0 million from about HKD 5.0 million in the previous year, with all borrowings due within one year[125]. - The group’s current assets to current liabilities ratio decreased to approximately 1.6 from 2.5 in the previous year, primarily due to increased bank borrowings[126]. - The company has no significant capital commitments as of March 31, 2023, suggesting a focus on maintaining liquidity[53]. - The company aims to retain sufficient funds for future growth and operations while considering various factors before declaring any dividends[156]. Market and Economic Conditions - The company faced challenges including the resurgence of COVID-19 and increased macroeconomic pressures, which negatively impacted wholesale business due to reduced consumer demand[79]. - The group plans to hold properties for rental income while monitoring the performance of the property market in Hong Kong and China for potential restructuring opportunities[120]. - The group aims to adopt a prudent approach in seeking new opportunities to diversify its business and enhance returns for shareholders[121]. Shareholder Information - The company did not recommend the payment of dividends for the year ending March 31, 2023, compared to zero dividends in 2022[155]. - The largest customer accounted for 18% of sales in 2023, down from 34% in 2022, while the top five customers collectively represented 55% of sales, down from 77%[150]. - The largest supplier accounted for 28% of procurement in 2023, down from 39% in 2022, with the top five suppliers collectively representing 84% of procurement, slightly up from 83%[150]. - The company has not participated in any arrangements allowing directors or key executives to benefit from purchasing shares or securities during the fiscal year ending March 31, 2023[180]. - No stock options were granted under the plan for the year ending March 31, 2023, and there were no unexercised stock options as of that date[198].
龙翼航空科技(00918) - 2023 - 年度财报