Company Overview - The company is a leading retailer of shapewear lingerie in Hong Kong, primarily operating under the core brand "Bodibra" and sub-brands "June," "ooobiki," "Bodicare," and "invisi"[9]. Impact of COVID-19 - The COVID-19 pandemic severely impacted the retail market in Hong Kong, leading to a decline in consumer sentiment and necessitating cost control measures[10]. - For the fiscal year ending March 31, 2022, the group's revenue was approximately HKD 46.6 million, a decrease of about 12.7% from HKD 53.4 million for the previous year due to weak retail sales caused by the COVID-19 pandemic in Hong Kong[13]. Financial Performance - The group's cost of sales increased to approximately HKD 12.1 million, an increase of about 8.0% from HKD 11.2 million in the previous year, primarily due to rising employee costs, depreciation of right-of-use assets, and raw material purchases[14]. - Gross profit decreased by approximately 18.2% to about HKD 34.5 million from approximately HKD 42.2 million in the previous year[14]. - The group recorded a loss before tax of approximately HKD 18.7 million for the fiscal year, compared to a profit of about HKD 4.4 million in the previous year, attributed to decreased sales and increased costs[17]. - The group reported a loss attributable to owners of approximately HKD 18.8 million for the fiscal year, compared to a profit of about HKD 3.7 million in the previous year[21]. Asset and Liability Management - The total assets of the group increased by approximately HKD 33.8 million to about HKD 95.5 million as of March 31, 2022, compared to HKD 61.7 million in the previous year[23]. - Total liabilities decreased by approximately HKD 1.5 million to about HKD 88.9 million as of March 31, 2022, compared to HKD 90.4 million in the previous year[24]. - The group had a net current liability of approximately HKD 15.1 million as of March 31, 2022, down from HKD 55.1 million in the previous year[25]. - The group’s cash and bank balances increased to approximately HKD 21.9 million as of March 31, 2022, compared to HKD 3.7 million in the previous year[25]. Share Placement and Capital Management - The company successfully completed a placement of new shares in March 2022 to enhance liquidity, supported by shareholders[10]. - Following the completion of Placement 1 on April 30, 2021, the total amount raised was approximately HKD 41.28 million, with a net amount of about HKD 40.80 million[43]. - Placement 2 was completed on March 28, 2022, raising approximately HKD 13.26 million, with a net amount of about HKD 13.05 million[58]. - The proceeds from Placement 2 are intended for general working capital[58]. Corporate Governance - The company has appointed Mr. Tong and Mr. Li as independent non-executive directors, enhancing the board's expertise in financial management and corporate governance[65]. - The board consists of 5 members, including 2 executive directors and 3 independent non-executive directors, ensuring compliance with GEM listing rules regarding board composition[76]. - The company has adopted a code of conduct for directors' securities trading, adhering to the standards set by GEM listing rules[75]. - The board is committed to high standards of corporate governance, focusing on transparency, accountability, and fairness to enhance long-term shareholder value[70]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, with a majority of independent non-executive directors[92]. Risk Management - The company has engaged external consultants to review its risk management and internal control systems, with no significant deficiencies found[124]. - The risk management system is designed to manage rather than eliminate risks that may prevent the achievement of business objectives[123]. - The board is responsible for the annual review of the effectiveness of the group's risk management and internal control systems[114]. - The company has implemented procedures for identifying, assessing, and managing significant risks, including regular monitoring and reporting to management and the board[122]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable business practices and has set environmental goals aligned with the Chinese government's carbon neutrality vision[141]. - The environmental, social, and governance (ESG) report outlines the company's initiatives and performance in these areas for the fiscal year ending March 31, 2022[147]. - The company has established a framework for identifying and managing ESG-related risks and opportunities, with regular assessments by the board[141]. - The total greenhouse gas emissions increased from approximately 110.45 tons of CO2 equivalent in 2021 to about 154.81 tons of CO2 equivalent in the current year, representing a 40.16% increase due to the recovery of business activities post-COVID-19[179]. Gender Diversity and Inclusion - The company aims to appoint at least one qualified female director by December 31, 2024, to comply with GEM listing rules, as currently, there are no female members on the board[112]. - The company conducts annual reviews of its senior management's gender composition and will take appropriate measures to enhance gender balance as needed[112]. - As of March 31, 2022, the gender ratio among employees is approximately 16 males to 99 females, indicating a significant gender imbalance[112].
海纳星空科技(08297) - 2022 - 年度财报