Financial Performance - Revenue for the year ended March 31, 2023, was HK$410,421,000, a decrease of 18.1% from HK$501,269,000 in 2022[11] - Gross profit decreased by 19.5% to HK$106,083,000 in 2023 from HK$131,768,000 in 2022[11] - Net profit for the year was HK$5,269,000, reflecting a significant decline of 75.1% compared to HK$21,140,000 in the previous year[11] - Earnings per share turned negative at HK$0.2, down from HK$6.6 in 2022, marking a 103% decrease[11] - Total assets decreased by 10.1% to HK$320,093,000 in 2023 from HK$355,925,000 in 2022[11] - Net assets per share fell to HK$86.3, down 8.3% from HK$94.1 in 2022[11] - The company's gross margin was 25.9%, slightly down from 26.3% in the previous year[11] - The Group recorded a turnover of approximately HK$410 million for the financial year ended 31st March 2023, a decrease of about 18.2% from HK$501 million in the previous year[26] - Gross profit decreased by approximately 19.7% to around HK$106 million, with a gross profit margin decline of about 1.5% from 26.3% to 25.9%[26] - The Group's operating profit was approximately HK$13.6 million, down from approximately HK$30 million in the previous year[26] - The loss attributable to shareholders was approximately HK$0.4 million, compared to a profit of approximately HK$13.2 million in the previous year, resulting in a loss per share of around HK$0.002[26] Business Segments - Revenue from the Electronic and Electrical Trading Business accounted for 66% of total revenue in 2023[18] - Turnover from the Electronic and Electrical Trading Business decreased by approximately 24.4% to about HK$273 million, while turnover from the Computer Business increased by approximately 2.6% to about HK$80 million[28] - The gross profit margins for the Electronic and Electrical Trading Business, Computer Business, and Cosmetic and Online Retail Business were approximately 28.0%, 19.3%, and 24.8% respectively, showing a decline in the Computer Business from 23.3% last year[46][54] - The Computer Retail Business recorded a turnover of approximately HK$16 million, a decrease of approximately 20% from HK$20 million last year, while the Computer Distribution Business increased by approximately 10.3% to HK$64 million[54][57] - The Cosmetic and Online Retail Business turnover decreased by approximately 9.5% to HK$57 million, down from HK$63 million last year, influenced by global inflation and increased operating costs[55][58] Financial Ratios and Assets - The company reported a current ratio of 1.9, unchanged from the previous year, while the quick ratio decreased by 14.3% to 0.6[11] - The inventory turnover ratio improved to 213 days in 2023, up from 185 days in 2022, indicating better inventory management[11] - The Group's cash and bank balances as of 31st March 2023 amounted to approximately HK$30 million, with a current ratio of approximately 1.9[60] - Total assets of the Group were approximately HK$320 million, down from approximately HK$356 million as of 31st March 2022[60] - The Group's total borrowings decreased to approximately HK$50 million from HK$69 million, with interest rates ranging from 2.8% to 11.3% per annum[62] - The total equity as of March 31, 2023, was approximately HK$173 million, down from HK$188 million a year earlier[66] - The net gearing ratio improved to 29% as of March 31, 2023, from 33% as of March 31, 2022[66] Market Outlook and Strategy - The Group expects the consumer electronics market to improve by the end of 2023, despite ongoing challenges from the Russia-Ukraine War and high inflation[32] - The Group is optimistic about the Cosmetics Retail Business due to the increase in tourists following the removal of COVID-19 restrictions, and plans to enhance procurement capabilities for high-quality Japanese goods[38] - The Group is nearing completion of its new headquarters in South Africa, which is expected to enhance operational efficiency and market share[33] - The company is considering strategic acquisitions to bolster its position in the electronics sector, with potential targets identified[86] - Market expansion efforts include entering two new Asian markets, projected to increase market share by 10%[86] Corporate Governance - The company has complied with the Corporate Governance Code during the Year Under Review, with some deviations regarding the retirement of directors [135] - The company emphasizes transparency, accountability, and independence in its corporate governance practices [134] - The Board is collectively responsible for overseeing the management of the business and affairs of the Group with the objective of enhancing share value [137] - The Company has adopted a board diversity policy to enhance corporate governance standards since August 29, 2013[144] - The Board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a balance of skills and experience[141] Management and Personnel - The executive team consists of experienced professionals with over 40 years of combined experience in the electronics industry, ensuring robust leadership[86] - The Group employed a total of 386 full-time employees as of March 31, 2023[75] - The financial management is overseen by the Chief Financial Officer, who has over 14 years of experience in auditing and accounting [120] - The business development managers are responsible for product development and brand management across various sectors [122][124] Audit and Compliance - The audit committee conducted four meetings during the review year, focusing on the effectiveness of financial reporting, risk management, and internal control systems[190] - The audit committee ensured compliance with accounting principles and practices as per the Listing Rules and statutory requirements[191] - The audit committee has recommended the re-appointment of the external auditors, indicating confidence in their performance[200] Dividend Policy - The company has adopted a dividend policy, allowing the board to declare dividends subject to legal restrictions and other considerations[192] - The board considers factors such as debt to equity ratios and market conditions when deciding on dividend payments[194] - The company emphasizes the importance of retained earnings and distributable reserves in its dividend policy[194]
万保刚集团(01213) - 2023 - 年度财报