Financial Performance - The company reported a profit attributable to owners of HKD 37.1 million for the fiscal year 2023, representing a 12.4% increase from HKD 33.0 million in 2022[8]. - Basic earnings per share increased by 12.5% to HKD 1.8 cents in 2023, compared to HKD 1.6 cents in 2022[8]. - Total revenue for the fiscal year 2023 was approximately HKD 981.8 million, a decrease from HKD 1,408.1 million in 2022[14]. - The gross profit margin for 2023 was 73.4%, slightly improved from 72.6% in 2022[14]. - The company recorded revenue of approximately HKD 981.8 million for the fiscal year 2023, a decrease of about 30.3% compared to HKD 1,408.1 million in the fiscal year 2022[39]. - Gross profit margin slightly decreased from 72.6% in fiscal year 2022 to 73.4% in fiscal year 2023, a decline of approximately 0.8 percentage points[39]. - Profit attributable to shareholders increased from approximately HKD 33.0 million in fiscal year 2022 to approximately HKD 37.1 million in fiscal year 2023, representing a growth of about 12.4%[50]. - The gross profit of the group decreased from approximately HKD 1,022.3 million in the 2022 fiscal year to approximately HKD 721.0 million in the 2023 fiscal year, a decline of about 29.5%[65]. - The group's cash generated from operating activities was approximately HKD 107.6 million in the 2023 fiscal year, a decrease of about HKD 67.9 million from HKD 175.5 million in the 2022 fiscal year[57]. Revenue Sources - The Tian Wang brand contributed approximately 87.5% of total revenue, amounting to about HKD 859.1 million in 2023[21]. - The watch core business contributed approximately 87.5% of total revenue in fiscal year 2023, up from 85.0% in fiscal year 2022[52]. - E-commerce business contributed approximately 25.7% to the total revenue in the 2023 fiscal year, despite a decline in sales due to intense competition and COVID-19 restrictions[55]. - Revenue from the core watch movement trading business accounted for approximately 6.4% of total revenue in fiscal year 2023, down from 5.7% in fiscal year 2022, with a decline in revenue from HKD 80.0 million to HKD 62.5 million, a decrease of about 21.9%[91]. Operational Metrics - The company operated 1,953 sales points as of June 30, 2023, down from 2,319 in 2022, focusing on second, third, and fourth-tier cities[22]. - The average inventory turnover days increased to 408 days in 2023, compared to 347 days in 2022[14]. - The average trade receivables turnover days were 61 days in fiscal year 2023, compared to 54 days in fiscal year 2022[36]. - The group's inventory balance as of June 30, 2023, was approximately HKD 228.6 million, a decrease of about 35.5% from approximately HKD 354.4 million as of June 30, 2022[75]. - The number of sales points for Tian Wang watches decreased from 2,086 as of June 30, 2022, to 1,786 as of June 30, 2023, a net reduction of 300 sales points[63]. Cash and Investments - The company held cash and cash equivalents of approximately HKD 1,528.6 million as of June 30, 2023, which is a key competitive advantage in the current challenging market[20]. - As of June 30, 2023, the company held cash and bank balances of approximately HKD 792.2 million, with time deposits of about HKD 538.2 million and bond instruments of approximately HKD 198.2 million[41]. - The net cash used for investment activities in the fiscal year 2023 was approximately HKD 21.1 million, primarily from the purchase of properties, plants, and equipment amounting to HKD 73.8 million[95]. - The group’s investment strategy includes investing in low-risk, high-credit-rated products issued by banks and financial institutions[86]. Cost Management - The company aims to maximize profitability through cost control policies and improving its retail network[23]. - The group's administrative expenses decreased by approximately 14.9% to about HKD 94.7 million in the 2023 fiscal year, down from HKD 111.3 million in the previous year[67]. - The total employee cost for the fiscal year 2023 was approximately HKD 300.1 million, down from HKD 398.0 million in fiscal year 2022, reflecting a decrease in full-time employees from about 4,100 to 3,100[82]. - The group has successfully controlled sales and operating expenses during revenue contraction to maintain profitability[89]. Corporate Governance - The board consists of seven directors, including four executive directors and three independent non-executive directors as of June 30, 2023[165]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the standards set out in the listing rules[164]. - The company received annual independence confirmation letters from all independent non-executive directors, affirming their independent status[171]. - The board has a balanced composition of skills and experience, with independent directors confirming compliance with governance standards[164]. - The company has established a corporate governance committee to oversee compliance with governance codes[186]. - The company has arranged suitable liability insurance for directors to cover legal claims arising from corporate activities[191]. Market Challenges and Strategies - The group faced challenges in the second half of 2022 due to the impact of COVID-19 in China, leading to temporary suspensions of operations at some sales points[110]. - The management expects the group's performance and financial condition to be inevitably affected by uncertainties and challenges in China's economic outlook and retail industry in the coming years[139]. - Following the relaxation of COVID-19 restrictions by the Chinese government in December 2022, the market atmosphere has improved, particularly during the Spring Festival, with expectations of gradual economic recovery[137]. - The group anticipates challenges in future growth for its e-commerce business due to increasing competition among market participants, but will enhance online operational capabilities through targeted marketing activities[138]. - The group continues to monitor foreign exchange risks and may consider hedging significant foreign currency risks if necessary[82]. Shareholder Returns - The company proposed a special dividend of HKD 0.032 per share and a final dividend of HKD 0.008 per share to reward shareholders[42]. - The group is committed to monitoring the use of the net proceeds from the IPO, with expectations to fully utilize the unutilized amount within the next five years[109].
时计宝(02033) - 2023 - 年度财报