Financial Performance - The Group's revenue decreased by approximately 33.6% from approximately HK$222.4 million for the year ended 31 March 2022 to approximately HK$147.7 million for the year ended 31 March 2023[20]. - Profit for the year amounted to approximately HK$16.3 million, representing a decrease of approximately 20.6% from HK$20.6 million in the previous year[20]. - Profit attributable to owners of the Company was approximately HK$16.6 million, down from HK$21.2 million in 2022[20]. - The decline in revenue and profit was primarily due to decreased demand for products caused by external challenges, including the global economic downturn and tightening monetary policies[20]. - The gross profit decreased by approximately 10.3% from approximately HK$66.6 million for the year ended March 31, 2022, to approximately HK$59.7 million for the Year[37]. - Other income decreased from approximately HK$3.4 million for the year ended March 31, 2022, to approximately HK$0.9 million for the Year[39]. - Selling and distribution expenses decreased from approximately HK$16.9 million for the year ended March 31, 2022, to approximately HK$12.4 million for the Year[41]. - Administrative expenses decreased from approximately HK$23.6 million to approximately HK$21.7 million, attributed to a decrease in legal and professional fees[47]. - Finance costs increased from approximately HK$2.7 million to approximately HK$5.8 million, primarily due to increased interest on bank borrowings[48]. - Income tax expense decreased by approximately 11.2% from approximately HK$5.7 million to approximately HK$5.0 million, mainly due to a decrease in estimated assessable profit[49]. Business Strategy and Market Position - The Group aims to adapt its strategies in response to the ongoing economic challenges and market conditions[20]. - Future outlook includes potential market expansion and product development to enhance revenue streams[20]. - The Group aims to strengthen its leading position in the wine industry in Hong Kong while expanding its market share globally[25]. - The Group is focusing on developing products under its self-owned brands to seize opportunities in the wine industry[31]. - The Group has established a retail store in a prime location in Kowloon and is enriching its product portfolio with wineries, particularly from French regions[24]. - The Group has focused on diversifying its income streams by developing self-owned brands alongside trading well-known wine products[107]. - The company is adapting its business strategies to address external challenges and uncertainties in the market[108]. - The Group emphasizes the creation of new sales channels and geographical expansion to enhance its business[109]. - The company aims to expand sustainable global trade in wine and spirits distribution, focusing on partnerships that understand market needs and share a passion for wine[162]. - The distribution network plans to establish a presence in the Guangdong-Hong Kong-Macao Greater Bay Area in the coming years[162]. Corporate Governance and Management - The Group has complied with all relevant laws and regulations in Hong Kong during the year, ensuring adherence to GEM Listing Rules and the Securities and Futures Ordinance[88][89]. - The Board has resolved to change the unutilized net proceeds to general working capital as of June 10, 2022[106]. - The Board consists of two executive Directors, one non-executive Director, and three independent non-executive Directors[168]. - The Company has at least one independent non-executive Director with appropriate professional qualifications or accounting expertise, satisfying GEM Listing Rules[177]. - The Board is responsible for major policy matters, strategies, budgets, and significant operational matters of the Company[180]. - Daily operations and management are delegated to executive Directors and senior management, who report periodically to the Board[181]. - The Board meets at least four times a year, with additional meetings as necessary[165]. - The appointment of Directors is recommended by the Remuneration and Nomination Committees and approved by the Board[178]. - The Company maintains a balanced composition of executive, non-executive, and independent non-executive Directors to ensure effective management[175]. - The Board of Directors is responsible for leading and controlling the company, ensuring sound internal controls and risk management systems[185]. Employee and Operational Metrics - As of March 31, 2023, the total number of employees decreased to 30 from 45 in the previous year, with total employee benefit expenses amounting to approximately HK$12.2 million, down from HK$14.9 million in 2022[83][85]. - The current ratio increased from approximately 1.6 to approximately 1.7, mainly due to a decrease in inventories and an increase in deposits paid to suppliers[58]. - Gearing ratio increased from approximately 53.4% to approximately 54.9% as of March 31, 2022, and 2023, respectively[59]. Risk Management and Compliance - The Group has established a tracking and reporting system to monitor foreign currency exchange risks, particularly related to purchases from suppliers outside Hong Kong[82][84]. - The Group has not implemented a foreign currency hedging policy but will consider it if exposure to foreign currency risk increases[82]. - The management team is tasked with implementing board policies and strategies, as well as handling daily administrative matters[163]. - The company is focused on risk management and ensuring a robust control system is in place[163]. - Directors are required to act in good faith and in the best interests of the company and its shareholders, focusing on business strategy and financial performance[196]. Leadership and Board Composition - Ms. Yeung has been the director and general manager of Dynasty International Group Holdings Limited since its founding in November 2006, overseeing corporate governance and internal control[123]. - Ms. Chan Man Ki has been an independent non-executive director since June 2019, serving on the Audit Committee and Remuneration Committee[134]. - Mr. Chan Cham Man Simon was appointed as an independent non-executive director on December 1, 2021, and is the chairman of the Investment Management Committee[130]. - The company has received annual confirmations of independence from all independent non-executive Directors, affirming their independence[193]. - Regular board meetings are held with at least 14 days' notice, and board papers are sent at least three days prior to meetings[192].
威扬酒业控股(08509) - 2023 - 年度财报