Financial Performance - For the fiscal year ending March 31, 2022, the company's revenue was HKD 468.2 million, a decrease of 3.1% compared to HKD 483.1 million in the previous year[14]. - Gross profit increased by approximately 44.1% to HKD 77.1 million, attributed to a recovery in business despite the financial impact of the fifth wave of COVID-19 in Hong Kong[14]. - Net profit for the year was HKD 1.2 million, reflecting a decrease of 25.0% from HKD 1.6 million in the previous year[14]. - The company did not recommend the payment of a final dividend for the fiscal year due to operational performance and the need to maintain a robust financial position[14]. - The government subsidies related to COVID-19 amounted to approximately HKD 2.1 million, significantly lower than HKD 24.4 million received in the previous fiscal year[14]. - The company's revenue for the fiscal year ending March 31, 2022, was approximately HKD 468.2 million, a decrease of about 3.1% compared to HKD 483.1 million in the same period of 2021[61]. - The company's gross profit increased by approximately 44.1% to about HKD 77.1 million, with a gross profit margin of approximately 16.5%, up from 11.1% in the previous year[64]. - Selling and distribution expenses were approximately HKD 35.9 million, an increase of about 2.0% from HKD 35.2 million in the previous year[65]. - Administrative expenses decreased by approximately 4.8% to about HKD 38.0 million, down from HKD 39.9 million in the previous year[66]. - Net financing costs decreased by approximately 19.6% to about HKD 3.7 million, compared to HKD 4.6 million in the previous year[67]. Business Segments - The company operates two main business segments: distribution (52% of revenue) and retail (48% of revenue)[13]. - The distribution business generated revenue of approximately HKD 244.0 million, down from HKD 253.5 million, a decrease of about HKD 9.5 million, accounting for 52.1% of total revenue[40]. - The retail business revenue decreased to approximately HKD 224.2 million from HKD 229.6 million, a decline of about HKD 5.4 million, representing 47.9% of total revenue[45]. - The company operates 62 self-operated retail stores as of March 31, 2022, down from 66 stores in the previous year[41]. - The average same-store sales performance for the company showed a decline in 2022 compared to previous years, with significant impacts from the pandemic[13]. - The average same-store sales for "Ten Ren's Tea" retail stores showed a decline, with the average sales per store decreasing from HKD 3.43 million to HKD 3.19 million[48]. Strategic Initiatives - The company continues to enhance its business through product quality maintenance and multi-brand development strategies despite operational disruptions caused by the pandemic[19]. - The company aims to introduce more high-quality brands and products from around the world to its retail offerings[20]. - The company plans to expand its brand and product portfolio in the distribution business to maintain market competitiveness and ensure more choices for customers[60]. - The company remains committed to maintaining and improving the quality of existing brands and products while adapting its business model to the changing market landscape[38]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange's listing rules, emphasizing effective board leadership and accountability[98]. - The board consists of seven directors, including four executive directors and three independent non-executive directors[105]. - The chairman and CEO roles are held by the same individual, which the board believes enhances efficiency in strategy formulation and execution[98]. - The board is responsible for establishing strategic plans and monitoring operational and production plans, as well as internal control systems[103]. - The company has not reported any incidents of non-compliance with the securities trading standards by its employees during the reporting period[100]. - The company will continue to review its board structure and composition to maintain high corporate governance standards[99]. - The remuneration committee held two meetings during the fiscal year ending March 31, 2022, focusing on reviewing the remuneration policies for executive directors and senior management[116]. - The nomination committee also convened twice in the same fiscal year, assessing the independence of independent non-executive directors and recommending re-election of retiring directors[117]. - The company has established formal and informal channels for independent non-executive directors to express their opinions openly, including regular board evaluations and closed-door meetings with the chairman[109]. - The company has taken out appropriate insurance to protect directors from legal actions arising from their duties[131]. Risk Management and Compliance - The board believes that the risk management and internal control systems of the group were adequate and effective for the year ended March 31, 2022[147]. - The company has implemented multiple procedures to ensure the proper safeguarding of accounting records and compliance with applicable laws and regulations[146]. - The company secretary ensured reliable information flow among board members and compliance with applicable laws and regulations[150]. - The audit committee reviewed the external auditor's independence and remuneration, ensuring compliance with auditing standards[126]. - The company paid HKD 1,500,000 for audit services during the fiscal year[144]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the group's performance and efforts in these areas for the year ended March 31, 2022[165]. - The company emphasizes its commitment to sustainable development, integrating it into core business operations and community support[168]. - Significant progress has been made in climate change initiatives, with a roadmap established to address climate challenges over the next decade[170]. - A major achievement for the year includes reducing water usage and packaging materials, contributing to sustainability goals[170]. - The company aims to further reduce its carbon footprint through innovative green solutions[170]. - The company actively engages with stakeholders to identify and address significant environmental, social, and governance issues[175]. - The company has established concrete long-term plans based on four pillars: market, workplace, community, and environment[198]. - The company has set up an environmental, social, and governance working group to enhance transparency and accountability[199]. - The company focuses on product health and safety, customer satisfaction, and data privacy as key issues[197]. - The company encourages the use of electronic communication for interactions with suppliers and customers[200].
宾仕国际(01705) - 2022 - 年度财报