Financial Performance - The company's revenue for the year ended March 31, 2023, was approximately HKD 286,244,000, an increase of about 18.6% compared to approximately HKD 241,372,000 for the same period in 2022[31]. - Gross profit increased by approximately 14.5% to about HKD 66,815,000 for the year ended March 31, 2023, while the gross profit margin slightly decreased to 23.3% from 24.2%[36]. - Other income rose significantly from approximately HKD 272,000 to about HKD 4,557,000, mainly due to service fees and government subsidies received[37]. - The cost of sales increased by approximately 19.9% to about HKD 219,429,000, primarily due to increased sales volume[35]. - Sales and distribution expenses accounted for approximately 12.1% of total revenue for the year ended March 31, 2023, compared to 11.9% in the previous year[41]. - The loss attributable to owners increased from approximately HKD 2,137,000 for the year ended March 31, 2022, to approximately HKD 4,408,000 for the year ended March 31, 2023, driven by bad debt write-offs and increased sales commissions[46]. - Trade receivables increased by approximately 7.6% from about HKD 36,907,000 as of March 31, 2022, to approximately HKD 39,695,000 as of March 31, 2023, due to increased sales demand following the reopening of borders with mainland China[49]. - Trade payables rose from approximately HKD 9,524,000 as of March 31, 2022, to approximately HKD 11,989,000 as of March 31, 2023, attributed to increased sales demand and anticipated price hikes for purchased products[50]. - Cash and bank balances increased from approximately HKD 29,797,000 as of March 31, 2022, to approximately HKD 35,533,000 as of March 31, 2023, indicating improved liquidity[53]. Business Operations - The company has been developing its food and beverage distribution business under the original brand "Hung Fat" for over 40 years, providing products from over 300 brands[10]. - The product portfolio includes daily necessities, packaged foods, sauces, dairy products, beverages, and kitchen supplies[27]. - The company aims to continue expanding and developing its business to create better prospects and achieve more favorable returns for shareholders[10]. - The experienced team enables the company to quickly respond to changes in customer preferences and adjust product offerings accordingly[10]. - The company plans to invest more resources in sales and marketing activities to drive the development of new products[28]. - The company experienced a significant increase in customer orders starting from April 2022, following the easing of COVID-19 restrictions[32]. - The company aims to expand and diversify its business to solidify and broaden its customer base, maintaining a competitive advantage in the market[76]. Market Conditions - The company anticipates stable performance in the coming year, supported by the recovery of inbound tourism and private consumption[10]. - The management is optimistic about 2023 being a year of economic recovery for Hong Kong and is closely monitoring market conditions for suitable business opportunities[28]. - The company remains cautiously optimistic about its core business despite economic uncertainties arising from the latest COVID-19 situation and government policy changes[76]. - The board is actively assessing and managing uncertainties, taking necessary measures to navigate challenges while continuing to leverage the current customer base[76]. Capital Expenditures and Investments - Capital expenditures for the year ended March 31, 2023, were approximately HKD 3,460,000, up from about HKD 2,266,000 for the year ended March 31, 2022, primarily for the purchase of delivery vehicles[59]. - The company plans to allocate approximately HKD 12,560,000 to upgrade the ERP system to enhance operational efficiency, with HKD 7,653,000 already spent on consulting services and software/hardware acquisition[71]. - Approximately HKD 5,540,000 is earmarked for sales and marketing activities to attract more customers, with HKD 1,310,000 already spent on advertising and local food exhibitions[72]. - The company has reallocated funds initially intended for new repackaging equipment, approximately HKD 3,500,000, to develop restaurant services and general working capital due to cost-effectiveness considerations[75]. - The company has utilized approximately HKD 3,064,000 for the renovation and startup costs of a new restaurant in Tsim Sha Tsui, although the restaurant was closed in March 2022 due to the pandemic[75]. - The company plans to complete the development of restaurant services by December 31, 2023, with HKD 5,936,000 already allocated for this purpose[68]. Financial Management - The total employee cost for the year ended March 31, 2023, was approximately HKD 27,877,000, an increase from about HKD 21,427,000 for the year ended March 31, 2022, reflecting an increase in workforce from 59 to 76 employees[65]. - The company did not declare or recommend any dividends for the year ended March 31, 2023, consistent with the previous year[47]. - The total interest-bearing borrowings amounted to approximately HKD 19,789,000 as of March 31, 2023, compared to approximately HKD 8,467,000 as of March 31, 2022, reflecting an increase in lease liabilities[57]. - The board has adopted a more cautious approach regarding business expansion and investment plans, leading to delays in the expected timeline for utilizing unutilized net proceeds[68]. - The company allocated approximately HKD 5,211,000 for general working capital to support daily operations and maintain sufficient liquidity against market volatility[76]. Corporate Governance - The company has established a remuneration committee in accordance with GEM listing rules to review compensation policies and related matters for directors and senior management[110]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, maintaining a balance of skills and experience[165]. - The company has established mechanisms to ensure independent opinions and suggestions are provided to the board, including annual reviews of these mechanisms[166]. - Independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules, and the board believes they are independent[168]. - The chairman and CEO roles are separated, with the chairman leading major decisions and the CEO focusing on daily management and operations[169]. - The audit committee, composed of three independent non-executive directors, reviewed the audited consolidated financial statements for the year ending March 31, 2023[154]. - The company has adhered to the corporate governance code as per GEM listing rules for the year ending March 31, 2023[159]. Employee and Board Composition - As of March 31, 2023, the company had a total of 76 employees, with a gender composition of approximately 58% male and 42% female[200]. - The board consisted of 6 males and 1 female as of March 31, 2023, representing 85% and 15% respectively[191]. - The remuneration range for the board and senior management members as of March 31, 2023, included 6 individuals earning up to HKD 1,000,000, 1 earning between HKD 1,000,001 and HKD 2,000,000, 1 earning between HKD 2,000,001 and HKD 3,000,000, and 1 earning between HKD 3,000,001 and HKD 4,000,000[198]. - The company ensures continuous professional development for all directors, providing training and updates on GEM listing rules and regulatory requirements[172]. Compliance and Risk Management - The company is committed to complying with applicable environmental laws and minimizing negative impacts on the environment from its operations[82]. - The company faces various risks, including market competition, employee commitment, customer credit risk, and financial investment risks[76]. - The company has confirmed that all commitments under the non-competition agreement have been complied with by major shareholders for the year ending March 31, 2023[131].
亚洲富思(08413) - 2023 - 年度财报