Financial Performance - The company reported a consolidated profit of HKD 1.2 billion for the fiscal year, representing a 15% increase compared to the previous year[9]. - The Group's revenue for the fiscal year was approximately HK$6,066.3 million, representing an increase of 12.7% compared to HK$5,384.9 million in 2021, driven by a 9.6% increase in average sales price[26]. - Profit attributable to equity holders decreased by 20.6% to approximately HK$572.7 million from HK$721.5 million in 2021, with a 7.9% decrease when excluding a one-time gain from property disposals[26]. - The gross margin improved to 35%, up from 32% in the previous year, due to cost optimization measures[10]. - The cash flow from operating activities was reported at HKD 800 million, indicating a strong liquidity position[13]. Revenue Growth and Market Expansion - User data showed a growth in customer base by 20%, reaching a total of 500,000 active users[3]. - The company anticipates a revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[3]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[3]. - A strategic acquisition of a local textile manufacturer is expected to enhance production capacity by 30%[3]. - The Group aims to expand customer bases by developing high-quality functional fabrics and enhancing production capabilities, including establishing a new factory in Vietnam[26]. Research and Development - Investment in R&D increased by 25%, focusing on sustainable textile technologies and innovative fabric solutions[3]. - The Group is focusing on developing environmentally friendly and innovative functional fabrics, with seven products accredited as "Public list of Green Design Products" by the Ministry of Industry and Information Technology of China[56]. - The company has a strong focus on research and development, with key personnel having worked in laboratories across Japan, China, and the USA[68]. Cost Management and Financial Challenges - The cost of sales increased by 17.0% to approximately HK$5,290.0 million from HK$4,523.2 million in 2021, primarily due to inflation in raw materials and fuel costs[26]. - Finance costs rose by approximately 50.7% to HK$22.0 million from HK$14.6 million in 2021, mainly due to increased net exchange loss on USD bank loan revaluation[27]. - The financial year ended March 31, 2022, was marked by significant inflation in production costs, particularly for yarns, fuel, chemicals, and labor, with no expectation of returning to pre-inflation levels[51]. - Production costs have surged due to increases in yarn, fuel, chemicals, dyeing materials, and labor costs, making it difficult to revert to levels seen two years ago[55]. Corporate Governance - The Company has established an Audit Committee in compliance with the CG Code, with members including independent non-executive directors[124]. - The Company complied with applicable code provisions and best practices in corporate governance throughout the 2022 Financial Year[134]. - The Board is responsible for major decisions, including approving policies, strategies, budgets, and risk management frameworks, while day-to-day operations are managed by the executive team[141]. - The Company is committed to maintaining high standards of corporate governance to enhance transparency and accountability[133]. Management and Leadership - The Group has a strong management team with extensive experience across various industries, including textiles and telecommunications[64]. - The company aims to leverage its management expertise to drive growth and innovation in the textile sector[64]. - The management team has a diverse background in finance, operations, and engineering, enhancing the company's strategic decision-making[66]. - The company is focused on strategic planning and management to enhance operational efficiency and market competitiveness[62]. Employee and Workforce Management - As of March 31, 2022, the Group had 4,697 full-time employees, a decrease from 4,933 in 2021[48]. - The Group will continue to provide regular training and competitive remuneration packages to enhance employee motivation[49]. - The Company aims to improve gender diversity at the Board level, where currently all Directors are male, with a commitment to change this by December 31, 2024[175]. Risk Management - The Group identified key risks for the 2022 Financial Year, including business risk, strategic direction risk, and legal and compliance risk[75]. - The Group's risk management and internal control systems were assessed as effective and adequate for the year ended March 31, 2022[188]. - An independent consultancy firm was engaged to periodically appraise the adequacy and effectiveness of the Group's risk management and internal control systems[188]. Shareholder Communication - The Company maintains ongoing communication with shareholders through general meetings, with representatives present to address questions[191]. - The Company has a shareholders' communication policy that is regularly reviewed for effectiveness[190]. - Shareholders holding at least one-tenth of the paid-up capital can requisition an extraordinary general meeting[194].
互太纺织(01382) - 2022 - 年度财报