Financial Performance - The Group's revenue decreased by approximately 25.8% from approximately HK$299.6 million in the year ended March 31, 2021, to approximately HK$222.4 million for the year ended March 31, 2022[18]. - Profit and total comprehensive income for the year amounted to approximately HK$21.2 million, representing a decrease of approximately 23.2% from HK$27.6 million in 2021[18]. - The decrease in revenue was primarily due to reduced demand for products caused by the COVID-19 pandemic, particularly during the fifth wave in early 2022[18]. - The strict control measures imposed during the pandemic significantly impacted sales during the first quarter of 2022[18]. - Revenue decreased by approximately 25.8% from approximately HK$299.6 million for the year ended 31 March 2021 to approximately HK$222.4 million for the Year[21]. - Profit and total comprehensive income for the Year reached approximately HK$21.2 million, a decrease of about 23.2% compared to HK$27.6 million for the year ended 31 March 2021[21]. - The Group's gross profit decreased by approximately 7.6% from approximately HK$72.1 million for the year ended 31 March 2021 to approximately HK$66.6 million for the year ended 31 March 2022[38]. - The overall gross profit margin increased from approximately 24.1% in 2021 to approximately 29.9% in 2022, attributed to higher margins on certain self-owned alcoholic beverage brands[38]. - Other income slightly increased from approximately HK$3.1 million in 2021 to approximately HK$3.4 million in 2022, mainly from service provision[38]. - Selling and distribution expenses rose from approximately HK$15.1 million in 2021 to approximately HK$16.9 million in 2022, primarily due to the absence of rental concessions[38]. - Administrative expenses increased from approximately HK$20.2 million in 2021 to approximately HK$23.6 million in 2022, mainly due to higher legal and professional fees[40]. - Finance costs decreased by approximately 52.9% from approximately HK$5.7 million in 2021 to approximately HK$2.7 million in 2022, due to a reduction in trust receipt loans[41]. - Income tax expense decreased by approximately 17.2% from approximately HK$6.8 million in 2021 to approximately HK$5.7 million in 2022, attributed to lower estimated assessable profit[42]. - Profit attributable to owners of the Company for the year amounted to approximately HK$21.2 million, down from approximately HK$27.6 million in 2021[43]. Business Operations and Strategy - The Group focuses on the wholesale and retail of premium collectible red wine, defined as red wine priced at or above HK$1,000 per bottle[17]. - The Group's business operations are primarily located in Hong Kong, specializing in a wide spectrum of wine products and other alcoholic beverages[17]. - The Company has acknowledged the challenges posed by the pandemic and is strategizing to adapt to changing market conditions[18]. - Future outlook includes potential recovery as pandemic restrictions ease, with a focus on regaining market demand[18]. - The Group is committed to maintaining product quality and expanding its premium wine offerings to attract discerning customers[18]. - The Company continues to monitor market trends and consumer preferences to inform its business strategies moving forward[18]. - The Group is enhancing warehouse storage capacity and operational efficiency by establishing new warehouses in Hong Kong and implementing a professional warehouse management system tailored for the wine industry[22]. - The Group aims to strengthen its leading position in the wine industry in Hong Kong while seeking expansion opportunities to increase market share in different countries worldwide[25]. - The Group has launched online products to capture customer demand during the pandemic, adapting to changing market trends[31]. - The Group's product portfolio includes Premium Collectible Red Wine, fine red wine, white wine, and other alcoholic beverages, as well as wine accessory products[30]. - The establishment of a retail store in a prime location in Kowloon at the end of 2018 continues to support the Group's market presence[22]. - The Group is closely monitoring the development of the COVID-19 pandemic and will adjust its business strategies as necessary[24]. - The Group's strategic focus includes increasing storage capacity, diversifying sales channels, and expanding its business footprint[102]. - The Group is focused on developing business strategies to enhance sales and marketing activities in the wholesale sector[154]. Corporate Governance - The company has seen a strategic focus on corporate governance and internal control, particularly under the leadership of Ms. Yeung[121]. - The company is actively involved in various committees, enhancing its governance and strategic direction[130]. - The board composition reflects a commitment to effective governance and strategic oversight, with members having significant experience in their respective fields[120]. - The company has a strong governance structure with independent non-executive directors leading key committees[137]. - The management team includes professionals with extensive backgrounds in law, finance, and corporate governance[138]. - The company is focused on maintaining high standards of corporate governance and compliance[139]. - The board is actively involved in strategic decision-making and oversight of the company's operations[140]. - The company aims to leverage its management's expertise to enhance its market position and drive growth[141]. - The company has complied with all provisions of the Corporate Governance Code during the year, except for code provision C.1.8 regarding insurance cover for directors[164]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors[171]. - The company is in the process of arranging Directors' and officers' liability insurance as required by the Corporate Governance Code[164]. - The board conducts at least four regular meetings a year to oversee significant operational and financial matters[166]. - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests[162]. - The board has reserved decision-making on strategic objectives, significant operational matters, and risk management[165]. - The company has established various committees, including Audit, Remuneration, Nomination, and Investment Management Committees, to assist in governance[171]. - The new Corporate Governance Code requirements came into effect on January 1, 2022, and will apply to the company's governance report for the financial year starting thereafter[163]. - The company has not arranged appropriate insurance cover for legal actions against its directors during the year[164]. - All Directors are subject to retirement by rotation at least once every three years, ensuring a balanced composition of executive, non-executive, and independent non-executive Directors[179]. - The Company complies with GEM Listing Rules by having at least one independent non-executive Director with appropriate professional qualifications or financial management expertise[180]. - The Board is collectively responsible for directing and supervising the Company's affairs, including monitoring operational and financial performance[182]. - Major matters such as policy, strategies, and financial information are reserved for the Board's decision, ensuring effective governance[183]. - Daily operations and management are delegated to executive Directors and senior management, who report periodically to the Board[184]. - Directors have full access to Group information and can obtain independent professional advice as necessary[193]. - The Company Secretary ensures compliance with procedures and regulations, maintaining minutes of Board meetings for inspection[192]. - Independent non-executive Directors have confirmed their independence annually, and the Company considers all of them to be independent[196]. - Any material transaction involving a conflict of interest is addressed at Board meetings with the presence of independent non-executive Directors[195]. - Directors act in good faith and with due diligence to ensure the best interests of the Company and its shareholders[200]. - Regular board meetings focus on business strategy, operational issues, and financial performance[200]. - Monitoring the quality and reliability of internal and external reporting is a key responsibility[200]. - Management of potential conflicts of interest, including misuse of corporate assets, is prioritized[200]. - Processes are in place to maintain the overall integrity of the Company, including financial statements and stakeholder relationships[200]. - Compliance with all laws and ethics is a critical aspect of corporate governance[200]. Management and Leadership - Mr. Chan Cham Man Simon was appointed as independent non-executive Director on December 1, 2021, and serves as the chairman of the Investment Management Committee[127]. - Ms. Chan Man Ki Maggie M.H. was appointed as independent non-executive Director on June 13, 2019, and is a member of the Audit Committee and the Remuneration Committee[131]. - Ms. Yeung Chi Hung has been a non-executive Director since January 3, 2017, and is responsible for advising on the strategy, performance, and resources of the Group[120]. - Mr. Simon Chan holds a bachelor's degree in Science (Business Administration) from the University of Southern California and has extensive experience in business development and sales operations[128]. - The company emphasizes the importance of legal advice and services, with Ms. Chan having over 27 years of experience as a solicitor in Hong Kong[131]. - The leadership team has a diverse background in various industries, contributing to the company's strategic planning and operational management[127]. - The company has a strong focus on investment management and business development, as evidenced by the roles of its independent directors[128]. - Mr. Wong has over 30 years of experience in corporate management, investment management, and finance[142]. - Mr. Wong is currently an independent non-executive director for multiple listed companies, including CRCC High-Tech Equipment Corporation and Jiangxi Bank[147]. - Ms. Chan has held various community positions and received honors such as the Medal of Honor in 2012 and Justice of the Peace in 2015[136]. - Ms. Kralj joined the Group in October 2018 as Vice President of Technology, Strategy, and R&D, overseeing technological development[149]. - Mr. Leung joined the Group in July 2021 as Senior Vice President of Business Development, responsible for business strategies and overseeing sales and marketing activities[152]. - Mr. Loong has been with the Group since September 2013, currently serving as Vice President of Trade Business Development, focusing on wholesale business strategies[154]. - Ms. Kralj holds a bachelor's degree in Technical Communication and a master's degree in Learning and Organizational Change, enhancing her expertise in technology and strategy[152]. - Mr. Leung has extensive experience in sourcing and promoting premium fine wine, having worked at Watsons' Wine for over 11 years[152]. - Mr. Loong previously worked as a wine sales manager and has significant experience in planning marketing and promotional activities in the wine industry[155]. - Ms. Kralj completed a comprehensive distilling course in South Africa in 2017, furthering her qualifications in the spirits industry[152]. - Mr. Loong obtained the WSET Level 3 Advanced Certificate in Wines and Spirits in November 2009, showcasing his expertise in the field[156]. - The management team brings a diverse background in technology, marketing, and wine expertise, positioning the Group for future growth[149].
威扬酒业控股(08509) - 2022 - 年度财报