Corporate Social Responsibility and Sustainability - E Lighting has been honored as a "Caring Company" for nine consecutive years, reflecting its commitment to social responsibility and sustainable development[17] - The Group participated in the "Fluorescent Lamp Recycling Programme" to reduce environmental risks and recover resources from used mercury-containing lamps[18] Impact of COVID-19 on Business Operations - The COVID-19 pandemic and related restrictions severely affected Hong Kong's economic activities, disrupting supply chains and changing consumption habits during the financial year[19] - Revenue for the financial year was approximately HK$78,927,000, a decrease of 5.9% compared to the previous year's HK$83,891,000, primarily due to the impact of the local epidemic on the retail market[29] - Revenue for the financial year was approximately HK$78,927,000, a decrease of 5.9% compared to the previous year's HK$83,891,000, primarily due to the impact of the local epidemic on the retail market[53][57] Revenue and Financial Performance - Revenue from the retail chain business in lighting and designer label furniture was approximately HK$78,903,000, accounting for 99% of the Group's revenue, a decrease of 5.4% from the previous year's HK$83,420,000[30] - Revenue from the tableware, giftware, and other business was approximately HK$24,000, accounting for 1% of the Group's revenue, a significant decrease of 94.9% from the previous year's HK$471,000[31] - The Group's gross profit was approximately HK$42,308,000, with a recorded loss of approximately HK$6,845,000 for the financial year[31] - As of 31 March 2023, the Group's net assets were approximately HK$20,200,000[31] - Revenue from the retail chain business in lighting and designer label furniture was approximately HK$78,903,000, a decrease of 5.4% from the previous year's HK$83,420,000[54][58] - Revenue from tableware, giftware, and other business was approximately HK$24,000, a significant decrease of 94.9% from the previous year's HK$471,000[54][59] - Gross profit for the financial year was approximately HK$42,308,000, a decrease of 8.5% from the previous year's HK$46,239,000, with an overall gross profit margin of 53.6%[55][60] - The Group recorded a loss of approximately HK$6,845,000 during the financial year, compared to a profit of HK$2,395,000 in the previous year[64][67] Sales and Marketing Strategy - E Lighting maintained a flexible sales and marketing strategy to offer diversified and modern product choices, reinforcing its leading market position[20] - The Group is actively developing smart home and related products while seeking new business opportunities[20] - The Group is actively developing smart home and related products and seeking opportunities in this sector[21] - The Group will closely monitor market trends, adjust product strategies, and actively carry out promotional activities to identify suitable opportunities[35] - The Group's core business remains the retail chain in lighting and designer label furniture, with a focus on timely product strategy adjustments and promotional activities[39] Cost Management and Operational Efficiency - Selling and distribution expenses increased by 3.3% to approximately HK$28,318,000, primarily due to an increase in depreciation on right-of-use assets[56][61] - Administrative and other expenses increased by 11.2% to approximately HK$17,094,000, mainly due to higher depreciation of right-of-use assets and staff costs[63][66] - The Group plans to adopt more cautious strategies, control expenditures, and maintain a streamlined business operation to stay competitive[23] Market Recovery and Future Outlook - The Group expects a recovery in the market as social distancing and anti-epidemic measures have been lifted, with optimism for improved performance in the second half of 2023[28] Lease Agreements and Property Management - The Group renewed the tenancy agreement for its Wanchai shop, with a total consideration of not less than HK$2,208,000 for a two-year term[65][68][71] - Renewal of Tenancy Agreement for Wanchai Shop: The lease renewal ensures stable operations without additional costs for relocation or renovation, benefiting the company's retail business in Hong Kong[73][75] - Wanchai Shop lease terms: The rental charge was determined through arm's length negotiations, referencing market rents of comparable properties, and is considered fair and reasonable by the Board[74][75] - Warehouse lease renewal: The agreement for the warehouse premises ensures stable operations for two years (1 August 2022 to 31 July 2024) with a total rental value of at least HK$2,611,000[82][84] - Warehouse lease terms: The rental charge was negotiated based on market rents of comparable properties and is deemed fair and reasonable by the Board[85][88] - GEM Listing Rules implications: Both Wanchai Shop and Warehouse lease renewals are classified as asset acquisitions under HKFRS 16, with applicable percentage ratios exceeding 5% but below 25%, making them discloseable transactions[77][79][86][89] - Mongkok Shop Premises 1 lease: On 26 October 2022, the company finalized a tenancy agreement for a retail store, ensuring continued operations in the Mongkok area[91] - The total value of the lease for Mongkok Shop Premises 1 is not less than HK$2,070,000, covering a two-year term from 1 January 2023 to 31 December 2024[93] - The total value of the lease for Mongkok Shop Premises 2 is not less than HK$2,070,000, covering a two-year term from 1 January 2023 to 31 December 2024[96] - The lease agreements for Mongkok Shop Premises 1 and 2 are considered asset acquisitions under the GEM Listing Rules, as per HKFRS 16 "Lease"[99] - The applicable percentage ratios for the lease transactions of Mongkok Shop Premises 1 and 2 exceed 5% but are below 25%, classifying them as discloseable transactions under the GEM Listing Rules[103] - The renewal of the Tenancy Agreement for Shatin Shop 103 was finalized on 6 January 2023, with terms agreed upon by Good Harvest Surplus Limited and Sun Hung Kai Real Estate (Sales and Leasing) Agency Limited[104] - Renewal of Tenancy Agreement for Shatin Shop 103 with a total consideration of not less than HK$1,984,000 for a two-year term, effective from 18 January 2023 to 17 January 2025[109] - The tenant is subject to an additional turnover rental of 10% of monthly gross receipts exceeding the basic rental[109] - Renewal of Tenancy Agreement for Morrison Shop 20, effective from 1 March 2023, with terms finalized on 11 January 2023[117][119] - The renewal of Shatin Shop 103 is considered an acquisition of asset under GEM Listing Rules, with applicable percentage ratios exceeding 5% but below 25%, making it a discloseable transaction[112][113] - The renewal of Shatin Shop 103 ensures stable operations without additional costs for relocation or renovation, benefiting the company's retail business in Hong Kong[110][114] - The aggregate value of consideration payable for the renewal of Morrison Shop 20 is not less than HK$1,728,000, covering a two-year term with monthly basic rental payments[121] - The renewal of Morrison Shop 20 ensures stable operations without additional costs for identifying, renovating, or relocating to new retail stores[122][124] - The terms of the Morrison Shop 20 renewal were determined through arm's length negotiations and are considered fair and reasonable by the Board[123][124] - The renewal of Shatin Shop 345 involves an aggregate value of consideration payable of not less than HK$1,917,000 for a two-year term[133] - The tenant of Shatin Shop 345 is subject to monthly additional turnover rental, calculated as 15% of the monthly gross receipts exceeding the basic rental[133] - The renewal of Shatin Shop 345 is beneficial for maintaining stable operations without incurring additional costs for relocation or renovation[135] - The terms of the Shatin Shop 345 renewal were determined through arm's length negotiations and are considered fair and reasonable by the Board[136] - Both renewals are classified as discloseable transactions under the GEM Listing Rules, as their applicable percentage ratios exceed 5% but are below 25%[127][138] - Renewal of tenancy agreement for Shatin Shop 336 with a total consideration of not less than HK$3,307,000 for a two-year term, including monthly basic rental and additional turnover rental of 15% of monthly gross receipts exceeding the basic rental[145][147] - Renewal of tenancy agreement for Shatin Shop 336 effective from 20 March 2023 to 19 March 2025, ensuring stable operations without additional costs for relocation or renovation[145][147] - Renewal of tenancy agreement for Shatin Shop 336 considered a discloseable transaction under GEM Listing Rules, with applicable percentage ratios exceeding 5% but below 25%, exempt from shareholder approval[151][152] - Renewal of tenancy agreement for Shatin Shop 336 negotiated at arm's length, referencing open market rent of comparable properties and existing rental payments, deemed fair and reasonable by the Board[148][149] - Renewal of tenancy agreement for Shatin Shop 336 recognized as acquisition of asset under HKFRS 16 "Lease", with right-of-use assets recorded on the consolidated financial statement[151] - Renewal of Morrison Hill Road Shop 48 lease with a total consideration of not less than HK$1,452,000 for a two-year term, effective from 7 May 2023 to 6 May 2025[158] - Renewal of Tsuen Wan Shop lease with a total consideration of not less than HK$1,150,000 for a three-year term, effective from 22 June 2023 to 21 June 2026[172] - The renewal of Morrison Hill Road Shop 48 lease is considered an acquisition of asset under GEM Listing Rules, with applicable percentage ratios exceeding 5% but below 25%, making it a discloseable transaction[163] - The renewal of Tsuen Wan Shop lease is aimed at securing stable operations without incurring additional costs for identifying, renovating, and relocating to new retail stores[173] - The renewal terms for both leases were determined after arm's length negotiations and are considered fair and reasonable, in the ordinary course of the company's business[161][172] - The renewal of the Tsuen Wan Shop tenancy agreement was determined based on open market rent of comparable properties and existing rental payments, ensuring fair and reasonable terms[174][176] - The Tsuen Wan Shop lease transaction exceeds 5% but is below 25% of the applicable percentage ratios, classifying it as a discloseable transaction under GEM Listing Rules[178][180] - The Kowloon Bay Shop renewal agreement involves a total consideration of not less than HK$1,992,000 for a two-year term, with additional turnover rental of 15% of monthly gross receipts exceeding the basic rental[184] - The Kowloon Bay Shop lease transaction also exceeds 5% but is below 25% of the applicable percentage ratios, making it a discloseable transaction under GEM Listing Rules[190][193] - Both the Tsuen Wan and Kowloon Bay Shop renewals are recognized as right-of-use assets on the company's consolidated financial statements under HKFRS 16 "Lease"[175][189] Financial Position and Treasury Management - Cash and bank balances as of 31 March 2023 were approximately HK$9,938,000, compared to HK$13,855,000 in 2022[196] - The Group's gearing ratio was nil as of 31 March 2023, with no bank borrowings, as operations were financed from internally generated funds[196] - Total equity attributable to the owners of the Company amounted to approximately HK$20,200,000 as of 31 March 2023, down from HK$27,045,000 in 2022[199] - The Group had 451,035,713 ordinary shares in issue as of 31 March 2023[199] - The Group adopts a conservative treasury policy, depositing sales proceeds immediately into reputable and creditworthy banks[198] - The Group closely monitors cash flow, considering trade receivables, trade payables, cash and bank balances, and administrative and capital expenditures to prepare cash flow forecasts[197] - As of 31 March 2023, the Group did not have any material contingent liabilities[200] - No significant investment or capital asset acquisition plans were disclosed as of the annual report date[194]
壹照明(08222) - 2023 - 年度财报