Financial Performance - The company reported a consolidated profit of HK$XX million for the year ended April 30, 2022, representing a YY% increase compared to the previous year[64]. - The Group recorded a turnover of approximately HK$75.3 million for the Year, a decrease of approximately HK$8.1 million from HK$83.4 million in the previous financial year[28]. - The loss attributable to owners of the Company increased to approximately HK$6.4 million, up from a loss of approximately HK$0.8 million in the Year 2021, representing an increase of approximately HK$5.6 million[28]. - The Group's revenue for the year was approximately HK$75.3 million, a decrease of approximately HK$8.1 million or 9.7% from approximately HK$83.4 million in the previous year[40]. - Revenue from the trading business increased by approximately HK$5.2 million or 19.7% to approximately HK$31.6 million, while revenue from the watches business decreased by approximately HK$13.3 million or 23.3% to approximately HK$43.7 million[40]. - The overall gross profit decreased by approximately HK$3.5 million or 7.9% to approximately HK$40.6 million, with the gross profit from the watches business decreasing by approximately HK$8.6 million or 48.6%[42]. - The gross profit margin for the watches business decreased from approximately 31.1% to approximately 20.8% due to a temporary adjustment in sales strategy to expedite stock clearance[42]. - The Group recorded a loss before tax of approximately HK$2.3 million, a shift from a profit before tax of approximately HK$2.3 million in the previous year[50]. - The Group's net loss for the Year was approximately HK$6.4 million, reflecting the impact of the COVID-19 pandemic on its operations[24]. Market and Product Development - User data showed a growth of ZZ% in active users, reaching a total of AA million by the end of the reporting period[64]. - The company provided a revenue guidance of HK$BB million for the next fiscal year, indicating a projected growth of CC%[64]. - New product launches contributed to a revenue increase of DD million, accounting for EE% of total sales[64]. - Market expansion efforts have led to a YY% increase in market share in the Asia-Pacific region[64]. - The company completed a strategic acquisition of GG, which is expected to enhance operational capabilities and drive future growth[64]. - The Group plans to accelerate expansion into overseas markets to diversify its customer base amid high production costs and expected stable fertiliser prices[30]. - The Group's retail trade is anticipated to revive with the relaxation of social distancing measures and the disbursement of electronic consumption vouchers[31]. Research and Development - The company is investing in R&D with a budget of HK$FF million, focusing on innovative technologies to enhance product offerings[64]. Corporate Governance - The board of directors emphasized the importance of corporate governance and compliance with the latest regulations to maintain investor confidence[19]. - The Company emphasizes good corporate governance to enhance shareholder value and achieve effective accountability[101]. - The Board has adopted principles set out in the Corporate Governance Code to ensure effective internal control and risk management[102]. - The Company has adopted and complied with all applicable code provisions of the CG Code throughout the Year, except for specific provisions that were renumbered effective January 1, 2022[103]. - The Board comprises seven Directors, with Independent Non-executive Directors (INEDs) representing more than one-third of the Board members as of April 30, 2022[112]. - The Company has received written confirmation of independence from each INED, ensuring compliance with independence guidelines[118]. - The Company recognizes the importance of good corporate governance elements in its management structure, internal controls, and risk management processes[104]. Financial Management - The Group has adopted cost-saving measures, including job cuts and the closure of underperforming shops, to mitigate financial losses[24]. - Selling and distribution costs increased by approximately HK$2.2 million or 8.2% to approximately HK$29.0 million, primarily due to increased lease expenses and maintenance costs[43]. - Administrative expenses decreased by approximately HK$1.0 million or 5.1% to approximately HK$18.8 million, mainly due to a reduction in impairment loss on right-of-use assets[48]. - Finance costs decreased by approximately HK$0.7 million or 58.3% to approximately HK$0.5 million, attributed to lower finance costs on lease liabilities[49]. - The total remuneration costs incurred by the Group for the year were approximately HK$23.1 million, down from about HK$24.2 million in 2021[60]. - The remuneration paid to the Independent Auditor for audit services was HK$900,000, with an additional HK$50,000 for non-audit services, totaling HK$950,000 for the year[178]. Risk Management and Internal Control - The Company has conducted a review of its risk management and internal control systems, which are deemed adequate and effective[185]. - The internal audit function is in place to assess the adequacy and effectiveness of the Company's systems, ensuring confidentiality and managing conflicts of interest[186]. - The Audit Committee reviews the adequacy of internal financial controls and risk management policies established by management[183]. - The Company will address identified areas for enhancement in its risk management and internal control systems[185]. - The Group has established strict policies to prevent unauthorized use of confidential or inside information[195]. - The Company Secretary ensures compliance with applicable laws and regulations, maintaining reliable information flow among Board members[198]. Board and Committee Activities - The Company has established Board committees to monitor operational and financial performance and ensure appropriate internal control and risk management[109]. - The Audit Committee was established on April 21, 2015, and comprises three Independent Non-executive Directors (INEDs) including Mr. Tian Zhiyuan as the chairman[141][142]. - The Remuneration Committee was also established on April 21, 2015, and includes two INEDs and one Executive Director, with Mr. Tian Zhiyuan as the chairman[151]. - The Nomination Committee also held one meeting, assessing the structure, size, and composition of the Board, and recommending the re-appointment of retiring Directors[164]. - The attendance of the Remuneration Committee members was 1 out of 1 for Mr. Tian Zhiyuan and Mr. Wang Luping, while Mr. Meng Guangyin did not attend[157]. - The Nomination Committee considers diversity in gender, age, cultural background, and professional experience when selecting candidates[167].
富一国际控股(01470) - 2022 - 年度财报