Financial Performance - The company's revenue decreased by 11.6% to approximately HKD 149.4 million for the year ending April 30, 2023, down from approximately HKD 168.9 million in the previous year[10]. - Gross profit fell by approximately 45.7%, from about HKD 34.4 million to approximately HKD 18.7 million, resulting in a gross margin of about 12.5% compared to 20.4% in the previous year[11][15]. - The sales cost decreased by 2.9% to approximately HKD 130.7 million, aligning with the revenue decline[13]. - The overall comprehensive expenses attributable to the company's owners amounted to approximately HKD 19.2 million, a significant decrease from approximately HKD 0.2 million in the previous year[11]. - The group recorded a net loss of approximately HKD 16.4 million for the year, compared to a net profit of approximately HKD 0.5 million for the year ended April 30, 2022[21]. - Administrative expenses decreased from approximately HKD 19.1 million for the year ended April 30, 2022, to approximately HKD 17.7 million, a reduction of about 7.2%[18]. - The group recorded an unrealized loss on financial assets measured at fair value through profit or loss of approximately HKD 1.4 million for the year, compared to HKD 1.7 million for the year ended April 30, 2022[16]. - Basic loss per share for the year was approximately HKD 0.513, compared to basic earnings per share of approximately HKD 0.015 for the year ended April 30, 2022[23]. Business Strategy and Operations - A new major client targeting the U.S. market contributed approximately HKD 35.3 million, accounting for 23.7% of the total revenue for the year[10]. - The company is actively exploring new business opportunities and enhancing its supply chain management to improve gross margins[6][10]. - The company plans to continue strengthening its customized integrated apparel design and procurement services to meet existing and potential client needs[6]. - Management is taking actions to develop supply chain management in Cambodia to mitigate rising production costs from approved suppliers in China[11]. - The company will continue to assess business objectives and strategies while considering market uncertainties and risks[7]. - The company aims to enhance its design and development capabilities, with a focus on improving operational models[43]. - The company is actively expanding its fashion-related business, including footwear and bags, to meet customer demands[48]. - The company is dedicated to exploring potential mergers and acquisitions to further enhance market expansion and operational efficiency[51]. Market and Economic Environment - The company acknowledges the ongoing geopolitical tensions, high inflation, and recession risks affecting the fashion retail and wholesale market[11]. - The global economic performance in 2023 is expected to be below market expectations due to various factors, including the cost of living crisis and geopolitical tensions[46]. - The company faces risks related to reliance on major customers without long-term contracts, leading to revenue uncertainty[49]. Management and Governance - The company reported a significant increase in overall management and operational strategies under the leadership of Mr. Cai Jingting, who has over 15 years of experience in clothing design and procurement[51]. - The company has a strong board of directors with extensive experience in corporate governance, financial advisory, and risk management, led by independent non-executive director Mr. Lai Guohong[56]. - The board emphasizes the importance of integrity in financial reporting and compliance with legal and ethical standards[79]. - The company has established a diversity policy for the board, focusing on gender, age, cultural background, and professional experience[82]. - The board will review the implementation of the diversity policy annually to ensure its effectiveness[82]. Risk Management - The company faces significant risks including currency, interest rate, credit, and liquidity risks, as well as operational risks due to reliance on key customers without long-term contracts[120]. - The risk management framework follows the COSO framework, allowing effective management of various risks faced by the company[119]. - The company has implemented measures to improve its risk management and internal control systems based on independent assessments[116]. Environmental, Social, and Governance (ESG) - The group emphasizes sustainable development and corporate responsibility, aiming to balance business growth with environmental and social considerations[145]. - The board is responsible for overseeing the group's environmental, social, and governance (ESG) strategies and ensuring effective risk management related to ESG issues[148]. - The company reported a 53.4% increase in indirect greenhouse gas emissions due to higher electricity consumption compared to the previous year[165]. - The company aims to reduce its environmental impact through various protective measures in its operations[161]. - The company is committed to sustainable development and actively participates in green initiatives[163]. Employee and Workforce - Total number of employees decreased from 73 in 2022 to 44 in 2023, a reduction of approximately 40%[199]. - Female employees accounted for 61% of the workforce in 2023, down from 62% in 2022[199]. - The company promotes a harmonious work environment through regular employee activities and encourages work-life balance[196].
桦欣控股(01657) - 2023 - 年度财报