Financial Performance - The group's revenue for the year ended March 31, 2022, decreased by approximately 14.7% to about HKD 74.5 million from approximately HKD 87.3 million in the corresponding year[14]. - The revenue from the OEM production business slightly decreased by about 1.1% to approximately HKD 43.7 million, while the original brand production revenue dropped significantly by about 28.4% to approximately HKD 30.8 million[14]. - The group's gross profit decreased by approximately 19.8% to about HKD 31.5 million, resulting in a gross margin decline from 45.0% to 42.3%[15]. - The pre-tax loss increased by about 1.1 times to approximately HKD 21.4 million, primarily due to a significant reduction in gross profit[20]. - The group recorded an inventory write-down of approximately HKD 1.4 million due to provisions for obsolete and slow-moving inventory items[16]. - The group reported a total reserve available for distribution to shareholders of HKD 3,242,000 as of March 31, 2022, compared to HKD 13,714,000 as of March 31, 2021[149]. Cost Management and Operational Efficiency - The company plans to reduce costs by simplifying operations and collaborating with other manufacturers in the Asia-Pacific region to adjust production[10]. - The company will implement further cost-cutting measures in its OEM production business[10]. - The company plans to continue improving operational efficiency and controlling costs while optimizing existing resources[59]. - The company is committed to improving and enhancing employee management and professional skills, with no collective bargaining agreements or union representation among employees[63]. E-commerce and Market Strategy - There will be a shift from physical retail stores in Hong Kong to expanding online business, reflecting a change in consumer shopping behavior[10]. - The company aims to invest in building its e-commerce platform and collaborate with other online retailers to enhance its online presence[10]. - The group plans to maintain a sustainable and profitable retail business while gradually developing online and social media distribution channels for future growth[23]. Economic Outlook - The government’s issuance of HKD 5,000 electronic consumption vouchers and ongoing COVID-19 vaccination efforts are expected to improve the global economic outlook for 2022/2023[11]. - The group anticipates that the global economic situation will improve in 2022/2023 due to government-issued electronic consumption vouchers and ongoing vaccinations[23]. - The company remains cautiously optimistic about the recovery of the local retail market despite the ongoing COVID-19 pandemic[58]. Corporate Governance - The company emphasizes the importance of good corporate governance to enhance shareholder value and has incorporated governance elements into its management structure and risk management processes[72]. - The company has established committees for audit, nomination, and remuneration, ensuring effective oversight and governance practices[74]. - The company is committed to regular reviews of its corporate governance practices to ensure compliance with applicable codes and regulations[73]. - The board of directors consists of six members, with independent non-executive directors making up 50% of the board[82]. - The company has adopted a board diversity policy, emphasizing the importance of diverse skills, experiences, and perspectives among board members[91]. Shareholder Engagement and Remuneration - The company has adopted a dividend policy to allow shareholders to share in the company's profits while retaining sufficient funds for future growth[130]. - The board will consider various factors, including the group's capital expenditure needs and overall economic conditions, when deciding on dividend distributions[135]. - The remuneration policy for directors includes considerations of comparable salaries in similar companies and the responsibilities of the positions[114]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements reflect a true and fair view of the group's financial position as of March 31, 2022[190]. - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements without finding any significant issues[186]. - The independent auditor's remuneration for the statutory audit services in the fiscal year 2022 was HKD 520,000, with an additional HKD 120,000 for non-audit services related to the rights issue[115]. Employee and Stakeholder Relations - The management expresses gratitude to employees, partners, suppliers, and customers for their ongoing support[11]. - The company is focused on stakeholder engagement to gather valuable feedback for future business and community development[63]. - The company has taken various steps in the 2022 fiscal year to ensure responsible operations that align with the interests of customers, employees, suppliers, and other stakeholders[63].
民信国际控股(08456) - 2022 - 年度财报