Financial Performance - The gross profit decreased by approximately HKD 15.6 million or about 17.3% from approximately HKD 90.8 million in the fiscal year 2021 to approximately HKD 75.2 million in the fiscal year 2022, with the gross profit margin dropping from about 60.9% to 54.7%[1] - Other income and loss decreased from a gain of approximately HKD 1.5 million in the fiscal year 2021 to a loss of approximately HKD 1.3 million in the fiscal year 2022, a decrease of HKD 2.8 million[2] - The company recorded a loss of approximately HKD 12.1 million in the 2022 fiscal year, compared to a loss of approximately HKD 31.8 million in the 2021 fiscal year[147] - The company achieved sales of HKD 137 million in the past year, indicating a challenging performance but a commitment to strategic adjustments for future growth[111] Cost Management - Administrative expenses reduced by approximately HKD 13.3 million or about 29.7% from approximately HKD 44.7 million in the fiscal year 2021 to approximately HKD 31.4 million in the fiscal year 2022[4] - Distribution expenses decreased by approximately HKD 21.5 million or about 32.0% from approximately HKD 67.1 million in the fiscal year 2021 to approximately HKD 45.6 million in the fiscal year 2022[81] - Total employee costs decreased from approximately HKD 55.1 million in 2021 to approximately HKD 39.4 million in 2022[132] - Financing costs decreased by approximately HKD 2.2 million or about 16.6% from approximately HKD 13.5 million in 2021 to approximately HKD 11.3 million in 2022[146] Inventory and Receivables - Inventory decreased by approximately HKD 50.4 million from approximately HKD 372.7 million as of December 31, 2021, to approximately HKD 322.3 million as of December 31, 2022[5] - Trade and other receivables increased from approximately HKD 47.7 million on December 31, 2021, to approximately HKD 89.8 million on December 31, 2022, an increase of about 42.1 million HKD[122] - Trade and other payables decreased from approximately HKD 38.5 million on December 31, 2021, to approximately HKD 33.7 million on December 31, 2022, a decrease of about 4.8 million HKD[122] - As of December 31, 2022, the group's inventory was valued at HKD 322,277,000, representing a significant proportion of the total assets[187] Environmental and Social Responsibility - The report includes key performance indicators related to greenhouse gas emissions, waste management, and resource usage[49] - Direct (Scope 1) and energy-related (Scope 2) greenhouse gas emissions are reported in tons, with specific metrics for harmful and non-harmful waste generation[49] - The company has implemented measures to reduce emissions and manage waste effectively, with results documented in the report[49] - The company has policies to prevent child labor and forced labor, ensuring compliance with relevant laws and regulations[51] - The report outlines the company's commitment to environmental protection and resource conservation initiatives[50] Employee Development and Training - Employee training programs are in place, with a percentage of trained employees reported by gender and employee category[51] - The company maintains a strong commitment to employee training, ensuring staff are updated on product, technology developments, and market conditions[106] - The company has adopted a stock option plan to reward employees for their contributions to growth and development[29] Corporate Governance - The company has received written annual confirmations from all independent non-executive directors regarding their independence, affirming compliance with listing rules[92] - The company’s board and senior management have established service contracts for three years, with provisions for rotation and re-election[115] - The independent auditor, Hong Kong BDO Limited, will be reappointed at the upcoming annual general meeting[184] - The audit committee reviewed the accounting principles and discussed audit, internal control, and financial reporting matters[164] Marketing and Brand Strategy - The company emphasizes continuous innovation and employee development as key strategies for maintaining competitiveness in a volatile market[10] - The company is focused on brand promotion and adapting to the preferences of younger consumers to enhance brand vitality and market share[112] - The company engaged in promotional activities with influencers to enhance brand recognition and market reputation[174] - The company’s marketing strategy includes collaborations with sports figures to promote its brand image[174] Compliance and Legal Matters - The group has complied with all relevant laws and regulations that have a significant impact on its business operations during the year ending December 31, 2022[182] - There were no major litigations or arbitrations involving the group as of December 31, 2022, nor any pending or threatened significant claims[183] - The company has adhered to the International Financial Reporting Standards and the Hong Kong Companies Ordinance in preparing its financial statements[192] Future Outlook - The company believes in a rebound in performance despite the global economic slowdown and challenges faced in the watch industry[111] - The company plans to enhance marketing strategies and integrate online and offline resources to increase brand exposure and sales[140] - The company plans to shorten the research and development cycle to ensure timely product development and align with current market trends and consumer preferences[112]
依波路(01856) - 2022 - 年度财报