Financial Performance - Revenue for the year increased to approximately HKD 90 million, up from HKD 25 million in the previous year, with a gross margin expanding to about 8.4% from 3.0%[37] - Gross profit increased to approximately HK$90 million for the Year, compared to approximately HK$25 million in 2022, resulting in a gross profit margin expansion to approximately 8.4% from 3.0%[58] - The Group's major customers contributed 95.3% of total revenue for the Year, up from 89.6% in 2022[67] - The associated company in Vietnam recorded a revenue of approximately HK$957 million, a year-on-year growth of 6.9%[69] - The rugged-shoe category contributed 73.7% of total revenue, with shipment volume exceeding pre-pandemic levels, while premium casual footwear's contribution increased to 15.4%[94] Market and Operational Strategy - The company plans to relocate its outsole factory to southern Vietnam to enhance manufacturing efficiency, following the cessation of operations at the partnership factory in Cambodia[15][18] - The Group is focused on enhancing operational excellence and product innovation to meet evolving customer design requirements[19] - The Group's strategic focus is on business growth and enhancing its revenue profile by prioritizing value over volume in its operations[29] - The Group plans to take a more cautious stance towards capacity management and business development in the coming financial year due to macroeconomic uncertainties[100] Financial Position and Management - The company maintains a zero gearing ratio, indicating no bank borrowings against total equity, compared to 1.2% in the previous year[38] - As of March 31, 2023, the Group's cash and cash equivalents were approximately HK$393 million, up from approximately HK$304 million in 2022, with total bank borrowings reduced to Nil[80] - The current ratio improved to approximately 2.8 in 2023 from approximately 2.5 in 2022, indicating better liquidity management[81] - The Group's gearing ratio was Nil as of March 31, 2023, compared to 1.2% in 2022, reflecting a strong financial position[80] - The Group had available banking facilities amounting to approximately HK$40 million as of March 31, 2023, down from approximately HK$55 million in 2022, with no utilization reported for the current year[110] Employee and Talent Management - The group employed approximately 6,700 employees as of March 31, 2023, with remuneration policies based on market salary levels and individual performance[118] - The Group plans major expansion in Vietnam and Cambodia over the next two to three years, indicating adequate liquidity to meet current and future working capital requirements[112] - The group granted 3,000,000 share options to certain directors and employees in accordance with its share option scheme adopted on August 26, 2022[119] Sustainability and ESG Initiatives - The company is committed to sustainability and contributing to the United Nations Sustainable Development Goals through its operations[25] - The Group is committed to sustainability and has aligned its efforts with the UN's Sustainability Development Goals[47] - The Group aims to improve its environmental and social performance as part of its ESG initiatives, with no changes in the reporting scope from the previous year[126] - The Group has implemented a safety management system to address acute physical risks from extreme weather conditions, which may reduce revenue and increase costs[162] - The Group is continuously monitoring regulatory changes related to climate and has adopted measures to mitigate compliance costs[164] Waste Management and Environmental Compliance - Total hazardous waste increased from 76,856 kg in 2021/22 to 92,237 kg in 2022/23, while total non-hazardous waste decreased from 2,937,663 kg to 1,947,276 kg[177] - The Group aims to maintain hazardous and non-hazardous waste intensity between 90% and 120% of the baseline year ended March 31, 2023, for the next reporting period[175] - The Group has complied with all relevant environmental laws and regulations, with no confirmed non-compliance incidents noted during the reporting period[180] - The Group actively promotes a green and sustainable working environment, adhering to environmental protection laws in Vietnam and Cambodia[179] Risk Management - The Group actively manages foreign currency exposure through natural hedges, forward contracts, and options, with centralized management of currency risk at its Hong Kong headquarters[85] - The Group's treasury policies aim to mitigate financial risks from foreign currency fluctuations and utilize derivatives for risk management purposes[85] Shareholder Returns - A final dividend of HK2.0 cents per ordinary share and a special final dividend of HK0.2 cent per ordinary share were declared, bringing total dividends for the year to HK4.5 cents per ordinary share, up from HK4.0 cents in 2022[88] - The group repurchased 1,446,000 ordinary shares at a total cost of approximately HK$1,554,000 during the year, aiming to enhance net asset value and earnings per share for shareholders[86]
信星集团(01170) - 2023 - 年度财报