Revenue and Profit Performance - The apparel segment recorded revenue of approximately HKD 381.5 million, a decrease of about 10.2% compared to HKD 424.6 million for the year ended March 31, 2022[11]. - The gross profit for the apparel segment was approximately HKD 61.8 million, slightly down from HKD 62.5 million for the previous year[11]. - The healthcare products segment generated revenue of approximately HKD 55.8 million, a decrease of about 29.8% from HKD 79.5 million in the previous year[23]. - The gross profit for the healthcare products segment was approximately HKD 12.2 million, down from HKD 18.2 million, attributed to decreased procurement orders from a major client in Japan and the depreciation of the yen[23]. - The internal R&D segment recorded revenue of approximately HKD 15.6 million, a slight decrease of about 1.3% from HKD 15.8 million in the previous year[29]. - The total revenue decreased from approximately HKD 424.6 million to HKD 381.5 million, a reduction of about HKD 43.1 million, primarily due to a significant decrease in procurement orders from a major client based in Japan[34]. - Women's apparel revenue decreased from approximately HKD 323.6 million to HKD 298.8 million, a decline of about HKD 24.8 million (7.7%) due to a drop in sales volume from approximately 4.1 million units to 3.3 million units, despite an increase in average selling price from HKD 78.3 to HKD 89.3[42]. - Men's apparel revenue increased from approximately HKD 61.9 million to HKD 69 million, an increase of about HKD 7.1 million (11.5%), primarily due to an increase in average selling price from HKD 64.2 to HKD 71.2[42]. - Children's apparel revenue significantly decreased from approximately HKD 39.1 million to HKD 13.7 million, a decline of about HKD 25.5 million (65.1%), attributed to a drop in sales volume from approximately 0.7 million units to 0.3 million units and a decrease in average selling price from HKD 58.1 to HKD 51.8[43]. - Revenue from health products decreased from approximately HKD 79.5 million to HKD 55.8 million, a decline of about HKD 23.7 million (29.8%), mainly due to reduced procurement orders from major Japanese clients[44]. Acquisitions and Business Expansion - The company is focusing on enhancing its healthcare product business and innovation research organization (IRO) through acquisitions during the reporting period[5]. - The company has acquired three Chinese companies engaged in clinical trial services and one company in Japan for procurement and distribution of healthcare products[19]. - The company completed the acquisition of 100% of EP Trading Limited in December 2022, enhancing its distribution capabilities for healthcare products[23]. - The group completed the acquisition of three Chinese equity companies for a total consideration of approximately RMB 2.85 million (approximately HKD 3.24 million) on September 20, 2022[78]. - The acquisition of EP Trading Co., Ltd. was completed for a total consideration of approximately JPY 99.4 million (approximately HKD 5.6 million) on December 7, 2022[79]. - The group acquired 65% of R&E Corporation Limited for a total consideration of approximately HKD 56.16 million, completed on May 23, 2023[83]. - The IRO business is expected to provide synergies for the expansion of internal R&D and healthcare products[27]. - The company expects to leverage its acquisitions for future growth and market expansion strategies[140]. Financial Position and Liabilities - The total comprehensive expenses attributable to the company's owners increased to approximately HKD 45.4 million, up from HKD 20.6 million, mainly due to increased research and administrative expenses related to new drug development[33]. - As of March 31, 2023, the group's current assets amounted to approximately HKD 101.5 million, a decrease of about 23.9% compared to HKD 202.4 million on March 31, 2022[68]. - The current ratio declined from approximately 3.5 on March 31, 2022, to about 1.9 on March 31, 2023, primarily due to a significant increase in current liabilities by approximately 40%[68]. - The group's debt-to-equity ratio increased from 1.12 on March 31, 2022, to 1.48 on March 31, 2023, reflecting the total loans and borrowings[68]. - The total liabilities as of March 31, 2023, were 82,288 thousand HKD, with trade and other payables amounting to 36,451 thousand HKD[143]. - Current liabilities increased to HKD 115,184 thousand from HKD 82,288 thousand, marking an increase of approximately 40.1%[126]. - The company’s total equity as of March 31, 2023, was HKD 91,644 thousand, compared to HKD 139,864 thousand, indicating a decrease of about 34.5%[128]. - The company’s retained earnings showed a cumulative loss of HKD 27,015 thousand as of March 31, 2023, compared to a loss of HKD 34 thousand in the previous year[128]. Employee and Operational Insights - The total employee costs for the year ended March 31, 2023, were approximately HKD 55.1 million, compared to HKD 38.8 million for the previous year, indicating a significant increase in personnel expenses[92]. - As of March 31, 2023, the group employed a total of 112 employees, with 111 being full-time and 1 part-time[199]. - The group adheres to local labor laws for employee annual leave and benefits, ensuring fair compensation based on individual performance[196]. - The group emphasizes a transparent and fair recruitment system, providing equal opportunities and a discrimination-free workplace[195]. - The management compensation is linked to the group's operational performance, incentivizing management based on the company's success[196]. - The group is committed to eliminating workplace bias and discrimination based on gender, marital status, disability, and family status[195]. - The employee distribution by gender shows 88 males and 24 females, indicating a male-dominated workforce[199]. - The group has implemented effective measures to protect employee rights and ensure compliance with anti-discrimination laws[195]. Future Outlook and Strategic Initiatives - The company maintains a cautiously optimistic outlook, investing in product design and development, including healthcare apparel products[12]. - The company aims to create a business co-creation platform to meet the diverse needs of the healthcare industry between China and Japan[12]. - The group is cautiously optimistic about the future, planning to invest in product design and development, including health apparel, to promote a healthy lifestyle[98]. - The group plans to simplify its organizational structure and operational processes to save costs and enhance competitiveness[98]. - The group will continue to explore opportunities for business diversification while considering market uncertainties[110]. - The growth of the apparel supply chain management services is expected to be driven by increased disposable income and economic recovery globally[98]. Environmental and Social Responsibility - The group aims to reduce the negative environmental impact of daily operations through energy-saving and resource recycling methods, complying with all relevant environmental laws and regulations as of March 31, 2023[94]. - The company has recognized potential financial losses due to extreme weather events, which may lead to increased operational costs and delayed deliveries[186]. - The company has implemented various measures to prevent and mitigate the negative impacts of extreme weather[187]. - The company aims to support harmonious social development and establish mutually beneficial relationships with stakeholders[194]. - The group is dedicated to sustainable development while achieving economic goals, reflecting its social responsibility[195].
EPS创健科技(03860) - 2023 - 年度财报