Business Strategy and Growth - The company aims to enhance its brand recognition and reputation for "King of Gold" jewelry, focusing on increasing revenue in mainland China and Hong Kong[27]. - The company plans to diversify its revenue base by exploring new business opportunities, aiming for a win-win situation to create greater value for shareholders and investors[27]. - The company is optimistic about its business prospects in the medium to long term, supported by the rapid economic growth in mainland China[4]. - The company will continue to promote its self-owned brand "King of Gold" to achieve higher recognition and credibility[27]. - The company is developing online sales platforms and introducing high-end products to expand its distribution channels[4]. - The company is committed to launching more K-gold jewelry products, leveraging high levels of creativity[4]. - The company plans to continue focusing on the growth of franchised stores in mainland China, which is expected to be a major growth driver[29]. - New product series launched include "Shining Rhythm" diamond series and "Gold Supreme x Wind Rises in Luoyang" series, aimed at capturing different market segments[51]. Financial Performance - The company recorded total revenue of approximately HKD 902 million, an increase of 5% compared to HKD 856 million in the previous year[29]. - The company reported a loss of approximately HKD 79 million, a significant increase of 422% from a loss of HKD 15 million in the previous year, primarily due to foreign exchange losses and early redemption of convertible bonds[29]. - Retail revenue for gold and jewelry was approximately HKD 680 million, a decrease of 13% from HKD 783 million in the previous year, with same-store sales declining by 17%[29]. - The company’s sales and distribution expenses decreased to HKD 197 million, representing 22% of total revenue, down from 26% in the previous year[29]. - General and administrative expenses increased by HKD 10 million to HKD 76 million, reflecting a strategic reallocation of spending[29]. - The company reported a total of 21,157,000 shares held by Mr. Li Ning, representing 7.85% of the issued ordinary shares[122]. - Mr. Wang Chao Guang holds 65,000,000 shares, accounting for 24.10% of the issued ordinary shares[134]. - The company has no distributable reserves available for shareholders as of June 30, 2022[117]. Capital and Financing - The company entered into a subscription agreement to issue 650 million new ordinary shares at a subscription price of HKD 0.05 per share[54]. - The company also agreed to issue convertible bonds amounting to HKD 52 million, convertible into 800 million new ordinary shares at an initial conversion price of HKD 0.065[54]. - The company plans to utilize HKD 126 million of the raised funds for debt repayment, with HKD 80 million allocated for convertible bond repayment[59]. - The company raised approximately HKD 141 million in net proceeds from the subscription, with a subscription price of HKD 0.05 per share, representing a discount of about 15.25% compared to the closing price of HKD 0.058 on the subscription agreement date[58]. - The company has an unused revolving bank financing amounting to HKD 587 million as of June 30, 2022, down from HKD 664 million in the previous year[61]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency in its operations[72]. - The company has established three committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, each with defined written terms of reference[90]. - The company has implemented a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in board member selection[88]. - The company adhered to the corporate governance code as per the Hong Kong Stock Exchange, with the exception of the separation of roles between the Chairman and CEO, which is held by Mr. Li Ning since October 4, 2019[76]. - The board held five meetings and two shareholder meetings during the year, with all executive directors attending 100% of the board meetings[81]. Risk Management and Internal Control - The company is committed to ensuring the effectiveness of its risk management and internal control systems[101]. - The company confirmed that the internal control system is effective and has been reviewed at least annually[103]. - The audit included assessing the appropriateness of the valuation model and key assumptions used by management[170]. - The company’s financial statements are prepared on a going concern basis, reflecting its financial position accurately[100]. Related Party Transactions - The company entered into a franchise agreement with Gold Star Information Consulting Limited, with annual license fees capped at HKD 1,200,000 for 2022, HKD 1,300,000 for 2023, and HKD 1,400,000 for 2024[147]. - The company has established a supply agreement with Wanli Jia Enterprises Limited for the supply of various jewelry materials from July 1, 2021, to June 30, 2024[147]. - The company has confirmed that all related party transactions are conducted on normal commercial terms and are fair and reasonable[149]. Employee and Management - As of June 30, 2022, the group had 947 employees, a decrease from 982 employees in the previous year[65]. - The company has arranged appropriate liability insurance for directors, which is reviewed annually[84]. - The company appointed Mr. Li Ning as the Executive Director and Chairman on June 12, 2019, with prior experience as the Chairman of Shanxi Taihe Xiangye Industrial Group[70]. - Mr. Wang Chaoguang was appointed as the Executive Director and Co-Chairman on April 1, 2021, bringing over 10 years of experience in asset management and corporate investment consulting[70]. Market and Economic Environment - The company is focused on building partnerships that align with its franchise or alliance strategies in both physical and e-commerce distribution channels[7]. - The company plans to strengthen partnerships with various well-known e-commerce platforms in mainland China and Hong Kong to capitalize on the significant growth in e-commerce sales[54]. - The digital economy in China reached RMB 39.2 trillion in 2020, indicating substantial growth potential for new media business[54]. Charitable Contributions - The group made charitable donations of approximately HKD 19,000 in the current year, consistent with the previous year[157].
金至尊集团(02882) - 2022 - 年度财报