Corporate Social Responsibility - E Lighting participated in several charitable events and has been recognized as a "Caring Company" for eight consecutive years[17]. - E Lighting has been involved in the "Fluorescent Lamp Recycling Programme" to mitigate environmental risks from improper disposal[18]. - E Lighting's commitment to sustainable development includes social responsibility initiatives[17]. Market Performance and Strategy - The company opened two new retail stores in April and May 2021, increasing its market share[21]. - E Lighting is actively developing smart home and related products to capture new business opportunities[21]. - The company maintains a flexible sales and marketing strategy to provide diversified product choices for consumers[20]. - The Group plans to maintain a cautious strategy and closely control expenditures to remain competitive in the challenging retail environment[25]. - The retail market in Hong Kong is expected to gradually recover in mid-2022, despite ongoing challenges from the COVID-19 pandemic[36]. - The Group will focus on consolidating its retail network, optimizing product mix, and intensifying cost control to stabilize growth[50]. - The Group is focusing on the development of smart home products and related opportunities, responding to the growing demand for housing and household products in Hong Kong[54]. - The Group will continue to monitor market trends and seek suitable opportunities for business expansion amidst challenges in the retail market[52]. Financial Performance - The Group's revenue for the financial year ended March 31, 2022, was approximately HK$83,891,000, representing an increase of approximately 2.0% from HK$82,227,000 in the previous year[31]. - Revenue from the retail chain business in lighting and designer label furniture was approximately HK$83,420,000, accounting for approximately 99.4% of the Group's total revenue, and increased by approximately 9.6% from HK$76,091,000 in the previous year[32]. - Revenue from tableware, giftware, and other business was approximately HK$471,000, accounting for approximately 0.6% of the Group's revenue, representing a decrease of approximately 92.3% from HK$6,136,000 in the previous year[33]. - The Group's gross profit for the financial year was approximately HK$46,239,000, with a recorded profit of approximately HK$2,395,000[33]. - The Group's net assets as of March 31, 2022, were approximately HK$27,045,000[33]. - The Group recorded a profit of approximately HK$2,395,000 during the Financial Year, down from a profit of approximately HK$8,157,000 in the previous year[67]. - The Group's total equity attributable to the owners amounted to approximately HK$27,045,000 as of March 31, 2022, compared to HK$24,650,000 in 2021, reflecting an increase of about 9.7%[108]. - The Group had no bank borrowings as of March 31, 2022, maintaining a gearing ratio of nil, consistent with the previous year[105]. - The Group's employee count increased to 50 as of March 31, 2022, up from 49 in the previous year, reflecting a slight growth in workforce[121]. Tenancy Agreements - The Renewal of Tenancy Agreement for Shatin Shop 335 has an effective date of October 1, 2021, and a term of three years, ending on September 30, 2024[74]. - The total consideration payable for the Shatin Shop 335 lease is approximately HK$5,635,000, which includes a monthly basic rental for the three-year term[74]. - The tenant is required to pay an additional turnover rental of 15% on monthly gross receipts exceeding the basic rental amount[74]. - The terms of the tenancy agreement were determined after arm's length negotiations and are considered fair and reasonable by the Board[76]. - The renewal of these tenancy agreements is aimed at ensuring stable operations without incurring additional costs related to relocation[75]. - The Group renewed the tenancy agreement for Shatin Shop 308 to ensure stable operations without incurring additional costs related to relocation and renovation[86]. - The renewal terms for Shatin Shop 308 were determined based on arm's length negotiations and market rent comparisons, ensuring fairness and reasonableness[87]. - The renewal of the tenancy agreement for Shatin Shop 308 is classified as an acquisition of assets under GEM Listing Rules, with applicable percentage ratios exceeding 5% but below 25%[88][89]. - The Group finalized the renewal of the tenancy agreement for Wanchai Shop 56 on 3 March 2022, effective from 8 March 2022 for a term of two years[93][95]. - The total consideration for the Wanchai Shop 56 tenancy agreement is not less than HK$2,250,000, covering the two-year term[95]. - The terms for Wanchai Shop 56 were also established through market comparisons and are deemed fair and reasonable by the Board[98]. - The renewal of the Wanchai Shop 56 tenancy agreement is recognized as an acquisition of assets under GEM Listing Rules, with applicable percentage ratios exceeding 5% but below 25%[99][100]. Governance and Compliance - The company has a commitment to high standards of corporate governance, complying with the Corporate Governance Code during the financial year[165]. - The Board of Directors consists of three executive directors and three independent non-executive directors, with all members confirming no material relationships among them[167]. - Each executive director has a service agreement for a fixed term of two years, with provisions for termination and retirement by rotation[180]. - The company held six board meetings and one general meeting during the financial year, with full attendance from executive directors[176]. - The company has adopted a code of conduct for securities transactions, ensuring compliance by all directors during the financial year[166]. - The independent non-executive directors held meetings with the chairman without the presence of other directors, in compliance with the Corporate Governance Code[177]. - The company has an independent management team led by experienced senior management to implement policies and strategies[172]. - Directors appointed to fill casual vacancies are subject to election by shareholders at the first general meeting after their appointment[183]. - The company ensures that every director is subject to retirement by rotation at least once every three years[184]. - The company has a strong focus on enhancing corporate value and safeguarding shareholder interests through effective governance practices[168]. - The Company has three independent non-executive Directors, complying with Rule 5.05 of the GEM Listing Rules[188]. - The roles of the chairman and the chief executive officer are separated, with Mr. Hue Kwok Chiu as chairman and Mr. Hui Kwok Keung Raymond as CEO[189]. - The Audit Committee, established on September 11, 2014, consists of three independent non-executive Directors and oversees the Company's financial reporting system and risk management[200]. - All Directors participated in continuous professional development during the Financial Year to enhance their knowledge and skills[192]. - The Company has arranged appropriate insurance covering liabilities for Directors and officers, reviewed annually[199]. - The Board held six meetings and one shareholders' meeting during the Financial Year[187]. - Each Director is required to retire at least once every three years, with one-third of the Directors up for re-election at each annual general meeting[186]. - The Company has a clear delegation of powers to management while reserving key strategic decisions for Board approval[190]. - Independent non-executive Directors have confirmed their independence in writing, ensuring compliance with GEM Listing Rules[188]. Future Outlook and Growth Plans - The company reported a significant increase in revenue for the fiscal year 2021/22, achieving a total revenue of HKD 1.2 billion, representing a growth of 15% compared to the previous year[138]. - User data showed a 20% increase in active customers, reaching 500,000 by the end of the fiscal year, indicating strong market demand for the company's products[138]. - The company has set a future revenue target of HKD 1.5 billion for the next fiscal year, reflecting an ambitious growth strategy of 25%[138]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on energy-efficient lighting solutions[138]. - The company is expanding its market presence in Southeast Asia, with plans to open 10 new retail locations by the end of 2023[138]. - A strategic acquisition of a local lighting manufacturer is anticipated to enhance production capabilities and reduce costs by 10%[138]. - The company is investing HKD 50 million in research and development for innovative lighting technologies, aiming to lead in smart lighting solutions[138]. - The gross profit margin improved to 35%, up from 30% in the previous year, due to better cost management and pricing strategies[138]. - The company plans to enhance its online sales platform, targeting a 30% increase in e-commerce revenue by the end of 2023[138]. - A new marketing strategy focusing on digital channels is expected to increase brand awareness and customer engagement by 40%[138].
壹照明(08222) - 2022 - 年度财报