Financial Performance - The group reported a loss attributable to owners of approximately HKD 12,673,000, compared to a loss of HKD 3,960,000 in the previous year[23]. - Revenue for 2022 was HKD 122,339,000, an increase of 1.9% from HKD 120,057,000 in 2021[197]. - Gross profit for 2022 was HKD 6,128,000, up from HKD 5,303,000 in 2021, reflecting a growth of 15.5%[197]. - The company reported a loss before tax of HKD 12,673,000 in 2022, compared to a loss of HKD 960,000 in 2021, indicating a significant increase in losses[197]. - The company’s total equity decreased to HKD 96,805,000 in 2022 from HKD 108,265,000 in 2021, a decline of 10.6%[199]. - The basic and diluted loss per share for 2022 was HKD 1.61, compared to HKD 0.60 in 2021, indicating a worsening of per-share performance[197]. - Other comprehensive income for the year was HKD 395,000 in 2022, compared to HKD 107,000 in 2021, reflecting an increase of 269.2%[197]. - Total assets decreased to HKD 109,838,000 in 2022 from HKD 69,091,000 in 2021, showing a decline in asset value[199]. - Cash and cash equivalents increased to HKD 34,462,000 in 2022, up from HKD 15,243,000 in 2021, representing a growth of 126.5%[199]. - The company’s net current assets improved to HKD 71,519,000 in 2022 from HKD 50,694,000 in 2021, an increase of 40.9%[199]. - The significant increase in administrative and operating expenses, which were HKD 11,413,000 in 2022 compared to HKD 12,017,000 in 2021[197]. Revenue Sources - The company recorded revenue of HKD 4.5 million from financial services, an increase from HKD 3.1 million in the previous year[13]. - Financial services revenue increased by approximately 44.28% to HKD 4,500,000, up from HKD 3,119,000 in the previous year, primarily due to the expansion of loan services[23]. - The garment procurement revenue was approximately HKD 117,839,000, reflecting a growth of about 0.77% from HKD 116,938,000 in the previous year[23]. - The overall sales performance improved compared to the previous year, despite conservative order placements due to intermittent pandemic outbreaks[12]. Business Challenges - The apparel procurement business faced significant challenges due to the ongoing COVID-19 pandemic, impacting sales and order placements[10]. - The global supply chain crisis led to significant increases in raw material costs and extended transportation times for goods[9]. - The retail environment remains challenging, particularly for non-essential goods like apparel, due to reduced consumer confidence and spending[10]. - The impact of trade tensions and the pandemic has led to cautious ordering behavior among wholesalers[10]. Strategic Initiatives - The company aims to diversify its business by expanding its financial services in both mainland China and Hong Kong, capitalizing on the growing demand in these markets[13]. - The company implemented a new supplier selection process to promote sustainable business growth, focusing on reputable and financially stable suppliers[10]. - The company is focused on enhancing its product offerings and financial service systems to quickly scale its business[13]. - The group maintained a prudent financial management strategy, ensuring sufficient liquidity to support its operations and development plans[26]. Risk Management - The company established a standardized risk management system to address credit risks inherent in its financial services business[15]. - The expected credit loss provision was approximately HKD 3,290,000, compared to a reversal of HKD 3,164,000 in the previous year, mainly due to impairment losses on receivables[23]. - The company recognized an impairment loss of approximately HKD 2.68 million on receivables from a former subsidiary, Best Keen International Limited, as of March 31, 2022[118]. - The assessment of impairment for receivables requires significant management judgment, considering customer credit history and current market conditions[182]. Corporate Governance - The company is committed to high standards of corporate governance and has established various committees, including the Nomination, Remuneration, and Audit Committees[145]. - The board currently has no intention to fill the vacant chairman position, believing collective decision-making will not adversely affect the company[141]. - Independent non-executive directors have a fixed term of three years, automatically renewing unless terminated with a month's notice[144]. - The board believes that the existing internal control system is effective and meets current requirements[166]. Shareholder Information - The company reported a reserve available for distribution to shareholders of HKD 39,346,000 as of March 31, 2022, down from HKD 41,210,000 in 2021[62]. - The board decided not to declare any final dividend for the year ending March 31, 2022, consistent with the previous year[61]. - Major shareholder Mr. Wu Lianghao owns 103,950,000 shares, accounting for 13.23% of the total shares[91]. - The company aims to allow shareholders to share in profits while retaining sufficient reserves for future development as part of its dividend policy[66]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements of Hangpin Life Technology Co., Ltd. reflect a true and fair view of the group's financial position as of March 31, 2022, and for the year then ended[178]. - The auditor's opinion is based on compliance with Hong Kong Financial Reporting Standards and the Companies Ordinance disclosure requirements[178]. - The audit procedures included sampling tests of aging analysis and repayment terms from loan agreements[182]. - The total audit service fees paid to the external auditor amounted to HKD 530,000 for the reporting period[163].
杭品生活科技(01682) - 2022 - 年度财报