Financial Performance - The company reported a revenue of approximately HKD 424.7 million for the fiscal year ending March 31, 2022, representing an increase of about 4.7% compared to HKD 405.4 million for the previous year[18]. - Gross profit for the fiscal year was approximately HKD 62.5 million, up from HKD 54.0 million in the previous year, indicating a significant increase driven by increased orders from a major US client[18]. - The group reported a total comprehensive income attributable to owners of approximately HKD 17.8 million for the year ended March 31, 2022, compared to HKD 6.6 million for the previous year, with losses primarily due to new drug development costs of approximately HKD 13.6 million and a cash offer cost of approximately HKD 1.4 million related to a change in control announced on May 5, 2022[23]. - The group's revenue increased by approximately 4.7% or HKD 19.2 million from approximately HKD 405.4 million for the year ended March 31, 2021, to approximately HKD 424.6 million for the year ended March 31, 2022, mainly due to a significant increase in procurement orders from a major customer based in the United States[30]. - Sales cost increased by approximately 3.0% from HKD 351.4 million to HKD 362.1 million for the year ended March 31, 2022, aligning with a revenue increase of about 4.7%[38]. - Gross profit rose by approximately 15.8% from HKD 54.0 million to HKD 62.6 million, with gross margin improving from about 13.3% to 14.7% due to higher average selling prices[39]. - The company reported a comprehensive loss attributable to owners of approximately HKD 17.8 million for the year ended March 31, 2022, a decrease of about HKD 24.4 million compared to the previous year[52]. - Basic loss per share for the year ended March 31, 2022, was approximately HKD 0.035, a significant decline from a basic earnings of HKD 0.013 in the previous year[53]. Business Expansion and Strategy - The company is optimistic about future growth in apparel supply chain management services, driven by rising disposable income and retail value growth in Japan and the US[13]. - The company plans to expand its service offerings from pharmaceuticals to the entire healthcare industry, including medical devices and health foods, with a focus on the Chinese market[13]. - The company aims to become a solutions provider for the entire healthcare industry in China, responding to the shift towards drug discovery technologies and partnerships with academic institutions and biotech firms[13]. - The company has established three new subsidiaries in Japan during the fiscal year, focusing on new drug development services and pharmaceutical consulting[17]. - The company has expanded its Japan office to better serve existing clients and attract new mid-to-high-end fashion brands[18]. - The group plans to expand its service offerings from pharmaceutical products to the entire healthcare industry, including medical devices and health foods[76]. - The group aims to become a solution provider for the entire healthcare industry in China, focusing on drug development and distribution[76]. Segment Performance - The women's apparel segment generated revenue of approximately HKD 323.6 million for the year ended March 31, 2022, an increase of approximately HKD 8.7 million or 2.8% from approximately HKD 314.9 million in the previous year, driven by an increase in average selling price from HKD 64.3 to HKD 78.3[31]. - The men's apparel segment revenue decreased by approximately HKD 2.5 million or 3.9% to approximately HKD 61.9 million for the year ended March 31, 2022, due to a decline in sales volume from approximately 1.1 million pieces to approximately 1.0 million pieces, despite an increase in average selling price from HKD 57.9 to HKD 64.2[34]. - The children's apparel segment saw a significant revenue increase of approximately HKD 17.2 million or 78.7% to approximately HKD 39.1 million for the year ended March 31, 2022, attributed to an increase in sales volume from approximately 0.4 million pieces to approximately 0.7 million pieces and an increase in average selling price from HKD 55.7 to HKD 58.1[35]. - The group recorded revenue of approximately HKD 18,000 from healthcare services during the reporting year[37]. Governance and Management - The company has established a robust governance structure with independent directors overseeing strategy, performance, and compliance[85][86]. - The management team continuously assesses credit risk and maintains cash and cash equivalents at levels deemed sufficient to mitigate cash flow volatility[59]. - The company has adopted the corporate governance code as per the listing rules and is committed to enhancing its governance standards to meet stakeholder expectations[99]. - The board of directors consists of a mix of executive and non-executive members, ensuring a balance of power and independence[104]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of governance[120]. - The Audit Committee is responsible for reviewing the company's financial information and monitoring the effectiveness of the financial reporting system and internal controls[124]. - The company has no internal audit function and believes that appointing external professionals for this role is more cost-effective given the business's scale and complexity[136]. - The company emphasizes the importance of independent judgment in its operations, as highlighted by the roles of independent directors in key committees[85][86]. Sustainability and ESG - The group is committed to reducing its environmental impact and has set both short-term and long-term sustainability goals[187]. - The board is responsible for overseeing the group's ESG strategy and ensuring compliance with relevant regulations[186]. - The ESG report includes key performance indicators (KPIs) that are quantifiable and comparable to past performance[192]. - The report adheres to the "comply or explain" principle as per the ESG reporting guidelines[184]. - The group will continue to optimize and improve the disclosure of KPIs in future reports[192]. - The company emphasizes compliance with applicable laws and anti-corruption measures in its dealings with suppliers and business partners[200]. - Community support initiatives focus on improving employees' environmental awareness and encouraging social commitments[200]. Financial Position and Ratios - Current assets increased by approximately 62.5%, while current liabilities surged by about 167.2%, resulting in a decrease in the current ratio from approximately 8.2 to 5.0[58]. - The group's debt-to-equity ratio as of March 31, 2022, was 0.96, compared to 0.13 as of March 31, 2021, indicating a significant increase in leverage[59]. - Total employee costs for the year ended March 31, 2022, were approximately HKD 27.7 million, up from HKD 21.2 million for the previous year, indicating a 30.8% increase[70]. - The group has no significant contingent liabilities as of March 31, 2022, consistent with the previous year[65]. Shareholder Engagement - The group has established communication channels with shareholders, including annual and interim reports, announcements, and its website[180]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting to address specified matters[171]. - The company must hold an annual general meeting each year, with the location determined by the board[168].
EPS创健科技(03860) - 2022 - 年度财报