Financial Performance - Revenue decreased by approximately 5.9% from HK$114.6 million for the year ended March 31, 2021, to HK$107.8 million for the year ended March 31, 2022[10]. - The loss attributable to owners of the company increased from approximately HK$5.0 million for the year ended March 31, 2021, to approximately HK$8.7 million for the year ended March 31, 2022[6]. - Basic loss per share increased from HK$0.15 for the year ended March 31, 2021, to HK$0.26 for the year ended March 31, 2022[6]. - Gross profit decreased by approximately 20.7% from HK$17.4 million for the year ended March 31, 2021, to HK$13.8 million for the year ended March 31, 2022[11]. - Gross profit margin decreased from approximately 15.1% for the year ended March 31, 2021, to approximately 12.8% for the year ended March 31, 2022[11]. - Other income increased from approximately HK$1.9 million for the year ended March 31, 2021, to approximately HK$6.0 million for the year ended March 31, 2022, mainly due to tax reimbursements[12]. - Wine sales decreased from approximately HK$99.3 million for the year ended March 31, 2021, to approximately HK$85.3 million for the year ended March 31, 2022[10]. - The company did not recommend the payment of a final dividend for the year ended March 31, 2022[6]. Expenses and Cost Management - Promotional, sales, and distribution expenses decreased by approximately 13.6% from HKD 13.2 million for the year ended March 31, 2021, to HKD 11.4 million for the year ended March 31, 2022[14]. - Administrative expenses decreased by approximately 9.5% from HKD 10.6 million for the year ended March 31, 2021, to HKD 9.6 million for the year ended March 31, 2022[14]. - Income tax expense increased to approximately HKD 4.0 million for the year ended March 31, 2022, compared to an income tax benefit of approximately HKD 0.5 million for the year ended March 31, 2021[15]. Liquidity and Financial Ratios - The current ratio decreased from approximately 4.26 in 2021 to approximately 3.59 in 2022, primarily due to a decrease in trade receivables and an increase in bank borrowings[19]. - The debt-to-equity ratio increased to approximately 22.7% for the year ended March 31, 2022, compared to 18.3% for the year ended March 31, 2021[19]. - Cash and bank balances amounted to approximately HKD 7.2 million as of March 31, 2022, compared to HKD 6.9 million as of March 31, 2021[19]. Employment and Human Resources - As of March 31, 2022, the group had 25 full-time employees and 1 part-time employee, with employee costs amounting to approximately HKD 8.6 million, an increase from HKD 7.2 million in the previous year[38]. Market and Economic Conditions - The global growth forecast for 2022 and 2023 is projected at 3.6%, a decrease of 0.8 and 0.2 percentage points from earlier predictions due to the impact of the war in Ukraine[40]. - Inflation in developed economies is forecasted at 5.7% for 2022, while emerging markets and developing economies are expected to see inflation at 8.7%, an increase of 1.8 and 2.8 percentage points from January predictions[41]. - The total retail sales value in Hong Kong increased by approximately 4.0% from HK$332.7 billion for the year ended March 31, 2021, to HK$346.1 billion for the year ended March 31, 2022[9]. - In March 2022, Hong Kong's total retail sales value decreased by 13.8% compared to March 2021, with a total sales volume drop of 16.8%[45]. - Online retail sales value in Hong Kong was estimated at HKD 2.8 billion in March 2022, representing a 30.9% increase from March 2021[45]. - The unemployment rate in Hong Kong dropped to 3.9% in December 2021, the lowest level since the pandemic began[45]. Corporate Governance - The company has adopted the corporate governance code and is committed to maintaining high standards of corporate governance[103]. - The board of directors held a total of 4 meetings during the fiscal year ending March 31, 2022, with all directors attending each meeting[106]. - The board is responsible for overseeing the management and overall performance of the group, focusing on strategy formulation and financial performance monitoring[108]. - The company does not have a corporate governance committee; the board itself executes corporate governance responsibilities[109]. - The board ensures that at least three independent non-executive directors are appointed, with at least one-third of the board being independent[112]. - The chairman and CEO roles are held by the same individual, Zhang Jun Tao, which the board believes provides strong and consistent leadership[115]. - All directors confirmed compliance with the corporate governance code as of March 31, 2022[120]. Risk Management and Internal Control - The company has established a risk management and internal control system in compliance with corporate governance codes, with no significant risks identified during the risk assessment for the year ending March 31, 2022[149]. - The internal control system is designed according to the COSO 2013 framework, focusing on operational effectiveness, reliability of financial reporting, and compliance with applicable laws[150]. - The board has reviewed the effectiveness of the risk management and internal control systems annually, concluding that they are effective and sufficient, with adequate resources and employee qualifications[156]. - The internal audit function operates independently from daily operations and evaluates the risk management and internal control systems through various testing methods[154]. Environmental, Social, and Governance (ESG) - The company emphasizes sustainable development as a key to ongoing success and integrates environmental, social, and governance (ESG) aspects into its risk management system[180]. - The board of directors oversees the company's governance and ESG matters, ensuring effective risk management and internal controls[183]. - The company has established a working group to systematically manage ESG issues, responsible for collecting relevant data and preparing ESG reports[183]. - The company recognizes the importance of setting targets for its ESG performance and regularly reviews the effectiveness of its measures[181]. - The company is committed to minimizing its environmental impact to ensure sustainable business growth[181]. - Total greenhouse gas emissions for 2022 were 99.11 tons of CO2 equivalent, an increase from 94.84 tons in 2021[198]. - Total waste generated increased to 1,306.90 kg in 2022 from 990.41 kg in 2021, with non-hazardous waste density per employee rising to 50.27 kg[198]. - Water consumption increased to 506.00 cubic meters in 2022, compared to 441.00 cubic meters in 2021, with water consumption density per employee at 19.46 cubic meters[198]. - The company aims to enhance stakeholder communication to improve sustainability performance and create greater value for the community[189].
美捷汇控股(01389) - 2022 - 年度财报