Financial Performance - The company's basic earnings per share decreased to 1.6 HK cents, down 87.2% from 12.5 HK cents in 2021[6] - The profit attributable to the company's owners was 33.0 million HKD, a decline of 87.3% compared to 259.1 million HKD in 2021[6] - Total revenue for the fiscal year ended June 30, 2022, was 1,408.1 million HKD, down from 1,917.9 million HKD in 2021, representing a decrease of 26.5%[17] - The gross profit margin for 2022 was 72.6%, a slight decrease from 75.4% in 2021[17] - The company recorded revenue of approximately HKD 1,408.1 million for the fiscal year 2022, a decrease of about 26.6% from HKD 1,918.0 million in fiscal year 2021[30] - Gross profit margin decreased from 75.4% in fiscal year 2021 to 72.6% in fiscal year 2022, reflecting an approximate decline of 2.8 percentage points[30] - Profit attributable to the company's owners dropped from approximately HKD 259.1 million to about HKD 33.0 million in fiscal year 2022[30] Cash and Assets - As of June 30, 2022, the group held approximately 1,615.7 million HKD in cash and cash equivalents, which is a key competitive advantage in the challenging market[28] - The company’s total assets as of June 30, 2022, were 2,937.4 million HKD, a decrease from 3,077.8 million HKD in 2021[18] - The company’s total liabilities decreased to 325.8 million HKD in 2022 from 444.0 million HKD in 2021[18] - The company maintained cash and bank balances of approximately HKD 840.5 million, with time deposits of about HKD 518.7 million and bond instruments of approximately HKD 256.5 million as of June 30, 2022[31] - The inventory balance as of June 30, 2022, was approximately HKD 354.4 million, a decrease of about 6.4% from HKD 378.7 million in the previous year[59] Operational Efficiency - The company has focused on restructuring its business to reduce risks and improve operational efficiency, particularly by terminating third-party brand watch distribution[28] - The company aims to enhance operational efficiency and improve cost structure to maximize profitability amid challenging market conditions[31] - The average inventory turnover days increased to 347 days in 2022, compared to 292 days in 2021[18] - The average trade receivables turnover days were 61 days in 2022, up from 51 days in 2021[18] - The company aims to enhance its profitability by optimizing its sales network for better regional market coverage[85] Sales and Market Presence - The main brand, Tian Wang watches, contributed approximately 85.0% of total revenue, amounting to about HKD 1,196.6 million, down 27.2% from HKD 1,643.2 million in fiscal year 2021[42] - The number of sales points decreased from 2,549 in 2021 to 2,319 in 2022, a net reduction of 230 sales points[31] - The number of sales points for Tian Wang watches decreased by 140 to 2,086 as of June 30, 2022, compared to the previous year[54] - E-commerce business accounted for approximately 22.2% of total revenue in FY2022, despite a decline in sales from about HKD 466.9 million in FY2021 to about HKD 313.2 million in FY2022[58] - The company continues to focus on e-commerce as a key driver of revenue, maintaining its position as the top seller of watches on Tmall for nine consecutive years[30] Dividends and Shareholder Returns - The company plans to distribute a special dividend of HKD 0.043 per share and a final dividend of HKD 0.007 per share to reward shareholders[31] - The distributable reserves available for shareholders amounted to approximately HKD 1,856.4 million for the fiscal year 2022, compared to HKD 1,219.1 million for the fiscal year 2021[198] - The company declared a special dividend of HKD 0.043 per share and a final dividend of HKD 0.007 per share, to be paid on December 16, 2022[196] Employee and Operational Changes - The employee cost for the fiscal year 2022 was approximately HKD 398.0 million, compared to HKD 418.4 million in the fiscal year 2021[68] - The group employed approximately 4,100 full-time employees as of June 30, 2022, down from approximately 4,500 employees on June 30, 2021[68] - The group closed several underperforming sales points in FY2022 to optimize its sales network[56] Corporate Governance - The company is committed to corporate governance, with independent directors overseeing strategy and performance[112] - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a balanced skill set and experience[123] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the standards set forth in the listing rules[121] - The company’s governance committee regularly reviews compliance with the corporate governance code, ensuring ongoing adherence to best practices[120] - The company has adopted a Director Nomination Policy outlining the selection criteria and process for board appointments[143] Risk Management and Compliance - The company maintains effective risk management and internal control systems, which are reviewed and assessed at least annually by the board[159] - The company has adopted corporate governance measures to manage potential conflicts of interest between controlling shareholders and the company, including annual audits by independent non-executive directors[160] - The company emphasizes the importance of compliance with rules and regulations, recognizing the impact of non-compliance on business operations[189] Philanthropy and Social Responsibility - The company aims to continue its philanthropic efforts, contributing to social welfare initiatives[102] - The company donated over RMB 1,450,000 to Guangxi Cloud Social Service Center from 2020 to 2021, and an additional RMB 300,000 in March 2022 to support children in difficulty[102] Future Outlook - The company anticipates that its e-commerce business growth will slow or stagnate due to changes in consumer behavior and supply chain disruptions[86] - The company expects its performance and financial condition to be inevitably affected by uncertainties and challenges in the Chinese economy and retail sector in the post-pandemic era[86] - The company intends to focus resources on its proprietary brand business and plans to sell part or all of its other brand operations in China in the near future[86]
时计宝(02033) - 2022 - 年度财报