Financial Performance - The company reported a revenue of approximately HKD 170.6 million for the year, an increase of about 80.5% compared to HKD 94.5 million in the previous year[8]. - Gross profit rose from approximately HKD 16.4 million in the previous year to about HKD 34.1 million in the current year[8]. - The company recorded a profit attributable to owners of approximately HKD 19.2 million, compared to a loss of HKD 16.7 million in the previous year[8]. - Excluding a one-time gain of approximately HKD 15.0 million from the sale of properties, the profit attributable to owners was about HKD 4.2 million[8]. - The number of units sold for the year was 1,694,150, compared to 895,299 units in the previous year, reflecting a significant recovery in demand[20]. - Sales costs rose from HKD 78.1 million to HKD 136.4 million, an increase of approximately 74.7%, consistent with the increase in total sales volume[28]. - Other income decreased by approximately 55.7% from HKD 2.8 million to HKD 1.2 million, primarily due to the absence of government subsidies related to COVID-19 in the current year[30]. - The average selling price for outerwear decreased by 11.6% to HKD 181.5, while the average selling price for sweaters increased by 49.8% to HKD 106.5[24]. - The increase in revenue was attributed to a recovery in orders from several major countries as the impact of COVID-19 eased[19]. - The company reported a net profit attributable to owners of HKD 19.21 million, a turnaround from a loss of HKD 16.69 million in the previous year, achieving a net profit margin of 11.3%[53]. - Total assets return on equity improved to 49.8%, compared to -86.1% in the previous year, indicating a strong recovery in profitability[53]. - The basic and diluted earnings per share for the year was HKD 4.80, compared to a loss per share of HKD 4.17 in the previous year[192]. - The company reported a significant increase in cash and cash equivalents, rising to HKD 27,175,000 from HKD 10,274,000[194]. Market Performance - Revenue contribution from the Australian market increased from 19.3% in the previous year to 22.7% in the current year[9]. - The company plans to allocate more resources to the Australian market due to a decline in revenue from the U.S. market, which accounted for 46.3% of total revenue this year, down from 55.7% last year[10]. - The Australian market generated revenues of approximately HKD 17.64 million, HKD 18.28 million, and HKD 38.64 million for the fiscal years ending March 31, 2020, 2021, and 2022, respectively[59]. Cost Management - The company aims to maximize long-term returns for shareholders through cost reduction and efficiency improvements[11]. - Administrative expenses decreased from approximately HKD 26.4 million to about HKD 22.0 million, a reduction of approximately 16.6%[33]. - Financing costs decreased by approximately 23.5% from HKD 1.0 million to HKD 0.8 million, mainly due to a reduction in bank overdrafts[34]. - The company has taken measures to control high costs amid rising material and logistics expenses[65]. Corporate Governance - The company has a strong governance framework, emphasizing transparency and accountability to enhance shareholder value[80]. - The management team has extensive experience, with key members having over 30 years in their respective fields, including finance and marketing[74][75][77]. - The company is committed to maintaining good corporate governance policies and procedures since its listing[80]. - Independent directors provide independent judgment on the company's strategy, performance, resources, and ethical standards[72][73]. - The company has established a code of conduct for directors' securities trading, confirming compliance with GEM Listing Rules, with no known breaches during the year[82]. - The board consists of a majority of independent non-executive directors, meeting the requirement of at least one with appropriate professional qualifications or accounting expertise[84]. - The board held a total of 7 meetings during the year to review the group's financial and operational performance, with all executive directors attending all meetings[86]. - The company has implemented a policy for handling and disclosing inside information, ensuring compliance with the Securities and Futures Ordinance and GEM Listing Rules[83]. - The board is responsible for the overall management of the company, ensuring decisions are made in the best interest of the company[87]. Risk Management - The company closely monitors foreign exchange risks, particularly related to transactions in HKD, USD, and RMB[49]. - The group faces significant credit risk from customers and relies on several major clients without long-term contracts, which could adversely affect its business and financial performance[134]. - The group relies heavily on third-party manufacturers, with most suppliers located in China, exposing the business to risks from economic and political changes in the region[139]. - The company has identified significant improvements in internal controls and risk management during the audit process[187]. Shareholder Communication - The company has established multiple communication channels with shareholders, including annual general meetings and its website[125]. - The company has implemented a shareholder communication policy to keep shareholders informed and engaged[123]. - The company has adopted a dividend policy aimed at balancing shareholder interests with prudent capital management[127]. Future Plans - The company plans to open a quality control office in China, with an initial allocation of HKD 4.68 million fully utilized[54]. - The company aims to enhance its capabilities in sustainable clothing and sportswear, expanding its market reach beyond casual wear[65]. - The company will explore self-brand development and online sales platforms to generate long-term benefits for shareholders[65]. - The board believes that reallocating the use of net proceeds aligns with the company's business strategy and will not adversely affect its financial condition or operations[61]. Employee and Management - The total employee cost for the year was approximately HKD 20.0 million, down from HKD 23.7 million in the previous year, with a total of 43 employees as of March 31, 2022[51]. - The company has appointed a new executive director to oversee operations in the US representative office[64]. - The company has established a retirement benefits plan, details of which are included in the financial statements[155]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements reflect a true and fair view of the group's financial position as of March 31, 2022[173]. - The audit committee reviewed the consolidated financial statements and found them compliant with applicable reporting standards and GEM listing rules[170]. - The audit committee is responsible for overseeing the group's financial reporting process[183].
爱世纪集团(08507) - 2022 - 年度财报