Financial Performance - The Group recorded revenue of HK$472,625,000 for the year ended March 31, 2023, a decrease of 5.4% compared to HK$499,849,000 in 2022[12]. - Gross profit increased to HK$229,763,000, representing a 17.1% growth from HK$196,216,000 in the previous year[16]. - The Group achieved a profit after tax of HK$5,027,000, recovering from a loss of HK$53,366,000 in 2022[18]. - The fair value of investment properties increased by HK$19,881,000, compared to an increase of HK$6,096,000 in the previous year[18]. - The Group received COVID-19 related subsidies totaling HK$16,244,000, significantly up from HK$1,365,000 in 2022[18]. Business Segments - The cosmetics business recorded a segment loss of HK$1,781,000, a significant improvement of 93.0% compared to a loss of HK$25,554,000 in the previous year[21]. - The fashion business had 62 stores as of March 31, 2023, with revenue of HK$170,998,000, an increase of 8.4% compared to the previous year[24]. - The fashion business recorded a segment loss of HK$1,437,000, a significant decrease of 94.5% from a loss of HK$26,041,000 in the previous year[24]. Store Operations and Network - The Group closed underperforming stores, contributing to a reduction in total store count[14]. - The Group's retail network consists of approximately 118 points of sale in Hong Kong and Macau[13]. - As of March 31, 2023, the Group operated 56 cosmetics stores, a decrease from 58 stores in the previous year, with revenue of HK$301,627,000, representing an 11.8% decrease year-on-year[21]. Market Outlook - The Group expects a gradual market recovery, with a double-digit revenue increase of approximately 26% in cosmetics and 16% in fashion from April 1 to June 15, 2023, compared to the same period last year[28]. - The cosmetics business recorded a significant year-on-year revenue increase of 26.4% from April 1 to June 15, 2023, compared to the same period last year[31]. Financial Position - The Group's total property valuation as of March 31, 2023, amounted to HK$738,548,000, an increase from HK$717,565,000 as of March 31, 2022[34]. - The outstanding bank borrowings as of March 31, 2023, were HK$383,818,000, compared to HK$375,505,000 as of March 31, 2022[43]. - The current ratio at the end of the reporting period was 0.35, slightly down from 0.37 as of March 31, 2022[44]. - The Group's cash and bank balances increased to HK$38,097,000 as of March 31, 2023, from HK$10,259,000 as of March 31, 2022[43]. Corporate Governance - The Company has complied with all applicable code provisions of the Corporate Governance Code throughout the year ended March 31, 2023[160]. - The Board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[170]. - The roles of Chairman and Chief Executive Officer are clearly divided to ensure a balanced distribution of power and authority[178]. - The Company has established written guidelines for securities transactions by employees likely to possess inside information, with no incidents of non-compliance noted[166]. Shareholder Information - The Company proposed a final dividend of HK$0.5 per share, amounting to HK$12,590,000, to be paid to shareholders upon approval at the upcoming AGM[76]. - The Company's distributable reserves as of 31st March 2023 amounted to HK$120,340,000, a decrease from HK$123,116,000 in 2022[78]. - The accumulated losses of the Company increased to HK$156,449,000 as of 31st March 2023, compared to HK$153,673,000 in 2022[78]. Risk Management - The Group's financial risk management objectives and policies are detailed in note 33 of the consolidated financial statements, indicating a structured approach to managing financial risks[66]. - Approximately 42% of the Group's procurement costs were in foreign currencies, primarily USD and EUR, indicating exposure to foreign exchange risk[48]. Management and Employees - The Group had approximately 910 employees as of 31st March 2023, down from approximately 950 in 2022, reflecting a reduction in workforce[56]. - The emolument policy for senior management is based on merit, qualifications, and competence, with recommendations made by the Remuneration Committee[143]. Directors and Management Experience - Mr. Cheng Chung Man, aged 66, has over 39 years of experience in manufacturing and retail, and established the Group in 1984[91]. - Ms. Lam Yuk Sum, aged 63, has over 36 years of experience in fashion design and retail, responsible for day-to-day management[92]. - Mr. Au-Yeung Hau Cheong, aged 74, has extensive experience in property leasing since 1970, previously general manager at Sun Hung Kai Real Estate[99]. Compliance and Ethics - The Company is committed to high ethical standards, believing that this approach maximizes long-term shareholder wealth and benefits employees and communities[156]. - The Company has established a Board Independence Evaluation Mechanism to ensure a strong independent element on the Board, allowing effective independent judgment to safeguard shareholders' interests[186].
威高国际(01173) - 2023 - 年度财报