Financial Performance - For the fiscal year ending March 31, 2022, the Group recorded revenue of HK$499,849,000, a decrease of 3.4% compared to HK$517,246,000 in 2021[50] - The cosmetics business generated revenue of HK$342,099,000, down 2.7% from HK$351,570,000 in the previous year, accounting for 68.4% of total revenue[50] - The fashion business revenue was HK$157,750,000, representing a decline of 4.8% from HK$165,676,000 in 2021[50] - The Group reported a loss of HK$53,366,000 for the year, an improvement of 71.1% compared to a loss of HK$184,882,000 in 2021[51] - The overall revenue decline was attributed to reduced consumer spending amid ongoing health concerns[51] Impact of COVID-19 - The COVID-19 pandemic continued to impact retail operations, particularly affecting sales in the last quarter of the fiscal year[51] - The decline in sales was particularly pronounced in the fashion segment due to the pandemic's effects[51] - The Group's performance reflects ongoing challenges in the retail environment caused by the pandemic[51] - The Group aims to enhance its product offerings and market strategies to recover from the pandemic's impact in the upcoming fiscal year[51] Segment Performance - The Group's total revenue from the cosmetics segment was 68.4%, slightly up from 68.0% in the previous year[50] - The cosmetics business segment reported a loss of HK$25,554,000, significantly improved from a loss of HK$104,898,000 in the previous year, representing a 75.7% reduction in loss[54] - The fashion business segment recorded a loss of HK$26,041,000, down from a loss of HK$34,318,000 in 2021, reflecting a 24.2% improvement[59] - The turnover of the cosmetics business was HK$342,099,000, a slight decrease of 2.7% from HK$351,570,000 in the previous year[57] - The turnover of the fashion business was HK$157,750,000, representing a decrease of 4.8% compared to HK$165,676,000 in 2021[60] Financial Position - The Group's bank balance and cash position improved by over 50% as of May 31, 2022, compared to March 31, 2022, due to government subsidies and other financial measures[66] - As of 31st March 2022, the Group's cash and bank balances amounted to HK$10,259,000, a decrease from HK$47,114,000 as of 31st March 2021[74] - The outstanding bank borrowings were HK$375,505,000, down from HK$389,494,000 as of 31st March 2021[74] - The current ratio decreased to 0.37 from 0.54, while the gearing ratio improved slightly to 1.88 from 1.98[75] - The Group's properties were valued at approximately HK$717,565,000 as of 31st March 2022, providing financial support[70] Corporate Governance - The Company has complied with all applicable laws and regulations during the year, with no material breaches reported[104] - The Company is committed to maintaining a high standard of corporate governance to safeguard shareholder interests and enhance corporate value[198] - The Company has complied with all code provisions of the then Corporate Governance Code throughout the year ended March 31, 2022[200] - The Company continues to review its corporate governance practices to meet rising expectations of shareholders and comply with regulatory requirements[200] Management and Directors - The Group's chairman, Mr. Cheng Chung Man, has over 38 years of experience in manufacturing and retail, having established the Group in 1984[124] - The CEO, Ms. Lam Yuk Sum, has over 35 years of experience in fashion design and retail, responsible for day-to-day management[125] - Mr. Lam Man Tin has been an independent non-executive director since February 2, 2016, with over 30 years of experience in the retail and service industries[128] - Mr. Au-Yeung Hau Cheong has extensive experience in the property leasing industry since 1970, previously serving as general manager at Sun Hung Kai Real Estate Agency Limited[132] - Mr. Yeung Wing Kay has over 25 years of experience as a Certified Public Accountant and has been an independent non-executive director since September 17, 2004[134] Shareholder Information - The Company did not enter into any new or existing equity-linked agreements during the year ended March 31, 2022[141] - The share option scheme approved on August 30, 2013, has a remaining life of one year and five months as of March 31, 2022[142] - No share options were granted to directors or substantial shareholders during the year, and there are no outstanding options under the share option scheme[144] - As of March 31, 2022, Mr. Cheng Chung Man, the founder, holds 1,393,347,737 shares, representing 62.69% of the issued share capital[152] - Ms. Lam Yuk Sum, the Chief Executive Officer, holds 1,666,263,750 shares, representing 66.17% of the issued share capital[152] Sustainability and Development - The Group's commitment to sustainable development includes adherence to environmental protection laws and effective policies[103] - The Company recognizes employees, customers, suppliers, and business partners as key stakeholders for corporate sustainability[111] Audit and Compliance - Ernst & Young was appointed as the auditor of the Company after Deloitte Touche Tohmatsu resigned during the year[192] - The emolument policy for senior management is based on merit, qualifications, and competence, with recommendations made by the Remuneration Committee[182] Other Information - There were no material subsequent events undertaken by the Company or the Group after March 31, 2022, up to the date of the annual report[191] - The Company maintained a sufficient public float throughout the year ended March 31, 2022, as required under the Listing Rules[189] - The aggregate purchases from the Group's five largest suppliers accounted for 47.8% of total purchases for the year, with the largest supplier contributing 22.6%[175] - The aggregate sales from the Group's five largest customers were less than 30% of the Group's total sales for the year[179]
威高国际(01173) - 2022 - 年度财报