Financial Performance - The total revenue of the Group decreased to HK$216.1 million for the year ended March 31, 2023, down from HK$225.5 million in 2022, representing a decline of approximately 6.2%[9]. - Gross profit for the year was HK$133.2 million, compared to HK$142.6 million in 2022, indicating a decrease of about 6.5%[9]. - The Group recorded a net loss of HK$21.0 million for the year, compared to a net profit of HK$4.1 million in 2022, marking a significant turnaround in performance[11]. - Basic loss per share was HK2.63 cents, compared to basic earnings of HK0.52 cent per share in the previous year[11]. - The Group's cash and cash equivalents as of March 31, 2023, were HK$62.1 million, down from HK$76.8 million in 2022[53]. - The Group's current assets and current liabilities were approximately HK$128.2 million and HK$69.9 million, respectively, resulting in a current ratio of 1.8, up from 1.6 in 2022[54]. - The Group's total staff costs for the year were HK$45.9 million, an increase from HK$44.9 million in 2022[55]. - The Board does not recommend any payment of final dividend for the year ended March 31, 2023, compared to HK0.50 cent per share in 2022[57]. - The Group had no bank borrowings as of March 31, 2023, resulting in a debt ratio of zero, consistent with 2022[58]. - The current ratio and quick ratio improved to 1.8 and 1.2 respectively, from 1.6 and 1.0 in 2022[58]. - The Group's retained profits and accumulated losses movements are detailed on page 69 of the annual report[93]. Retail Segment Performance - Retail segment revenue amounted to HK$195.0 million, accounting for 90.2% of total revenue, down from 94.1% in the previous year[10]. - The retail sales revenue of "Ulferts" and "Ulferts Signature" was HK$110.0 million, contributing 56.4% to total retail revenue, a decrease from 64.3% in 2022[10]. - The Group's retail sales revenue from "Slumberland" and "Ulfenbo" increased to HK$48.2 million, accounting for 24.7% of total retail revenue, up from 14.9% in 2022[10]. - The Group operates 26 sales points in Hong Kong as of March 31, 2023, with specific retail lines including 1 "Ulferts Signature", 3 "Ulferts", 5 "at • home", 6 "Slumberland" stores, and 11 "Ulfenbo" outlets[34][35]. - "Ulferts" focuses on high-quality, stylish furniture targeting middle to high-mid income groups, while "Ulferts Signature" caters to up-market customers seeking luxury European tailor-made furniture[25][36]. - "at • home" stores are designed to meet the needs of young couples and new families, offering stylish and compact furniture suitable for small living spaces[30][32]. Market Conditions - The furniture market remained weak due to macroeconomic issues, including ongoing interest rate hikes and geopolitical tensions, impacting overall sales[15]. - The Group expects the demand for furniture to gradually pick up, despite current market challenges due to interest rate hikes and increased competition[48]. Corporate Governance and Structure - The Board consists of seven Directors, with four Executive Directors and three Independent Non-Executive Directors (INEDs), ensuring a diverse mix of skills and experience[180][184]. - The Board's gender diversity includes three female directors, representing 43% of the total, exceeding the target of at least 25% female representation[194][197]. - The Board has established mechanisms to ensure independent views are available, including annual meetings between the Chairman and all INEDs without the presence of other Directors[186]. - The Company adopted a Board Diversity Policy to achieve a balance of skills, experience, and perspectives relevant to its business nature[187][189]. - The Company is committed to a corporate culture focusing on customer centricity, excellence in products and services, people first, and positivity[170]. Employee and Director Remuneration - The remuneration of Directors is determined by the Board based on a written remuneration policy aligned with business strategy and shareholder interests[155]. - Employee remuneration includes basic salary, housing allowances, pension contributions, and performance-related bonuses[156]. - The Group's number of employees as of March 31, 2023, was 133, down from 144 in 2022[55]. Related Party Transactions - The Group had transactions with connected persons under the Master Leasing Agreement ("2020 MLA") for the term from April 1, 2021, to March 31, 2024[138]. - The independent auditor issued an unqualified letter regarding the Group's Disclosed Continuing Connected Transactions (CCTs) in accordance with the Listing Rules[150]. - The terms of each Definitive Leasing Agreement are to be on normal commercial terms or no less favorable than those offered by independent third parties[138]. Future Outlook and Strategy - The Group aims to enhance its market presence by enriching its product offerings and launching more vigorous promotions, including the addition of "Slumberland" and "Vono" to its portfolio[48]. - The Group has established multiple online shopping platforms to expand market coverage and reach a broader customer base[22].
欧化(01711) - 2023 - 年度财报