Business Operations - The Group operates seven retail stores under the brand "Chong Fai Jewellery" strategically located in Kowloon and the New Territories[17] - The principal products include gem-set jewellery and gold jewellery, produced in-house at a facility in Shenzhen, PRC[18] - The Group plans to expand its jewellery design collection to align with customer preferences and market trends[19] - Future retail expansion is aimed at capturing a wider range of market opportunities as the economic environment improves[19] - Marketing campaigns will be extended to social media to enhance shareholder returns and sustain long-term growth[19] Financial Performance - The Group's revenue increased by approximately HK$29.5 million, or approximately 27.5%, from approximately HK$107.3 million for the year ended 31 March 2022 to approximately HK$136.8 million for the year ended 31 March 2023[26] - Revenue from gold jewellery products increased by approximately HK$17.1 million, or approximately 45.6%, from approximately HK$37.4 million to approximately HK$54.5 million for the year ended 31 March 2023[31] - Revenue from gem-set jewellery products increased by approximately HK$8.8 million, or approximately 17.0%, from approximately HK$51.8 million to approximately HK$60.6 million for the year ended 31 March 2023[27] - Revenue from trading of recycled gold products increased by approximately HK$3.6 million, or approximately 19.8%, from approximately HK$18.1 million to approximately HK$21.7 million for the year ended 31 March 2023[32] - Retail operation revenue increased by approximately HK$25.8 million, or approximately 33.1%, from approximately HK$78.0 million to approximately HK$103.8 million for the year ended 31 March 2023[35] - The Group's cost of goods sold increased by approximately HK$26.5 million, or approximately 33.9%, from approximately HK$78.2 million to approximately HK$104.7 million for the year ended 31 March 2023[36] - The Group's gross profit increased by approximately HK$2.9 million, or approximately 10.1%, from approximately HK$29.2 million to approximately HK$32.1 million for the year ended 31 March 2023[41] - The gross profit margin decreased from approximately 27.2% for the year ended 31 March 2022 to approximately 23.5% for the year ended 31 March 2023[41] - Other income for the year ended 31 March 2023 amounted to approximately HK$2.3 million, representing an increase of approximately HK$1.3 million compared to the previous year[42] - Other net gain for the year ended 31 March 2023 amounted to approximately HK$0.1 million, compared to a loss of approximately HK$1.8 million for the year ended 31 March 2022[43] Cost and Expenses - Selling and distribution costs decreased by approximately HK$1.5 million or about 7.2%, from approximately HK$21.3 million in 2022 to approximately HK$19.8 million in 2023[49] - General and administrative expenses increased by approximately HK$1.2 million or about 7.8%, from approximately HK$14.7 million in 2022 to approximately HK$15.9 million in 2023[50] Assets and Liabilities - The total assets of the group as of March 31, 2023, amounted to approximately HK$128.3 million, a slight decrease from approximately HK$129.2 million in 2022[59] - The current ratio as of March 31, 2023, was approximately 1.63 times, down from approximately 1.99 times in 2022, mainly due to an increase in amounts due to a controlling shareholder[60] - The gearing ratio increased from approximately 38.8% as of March 31, 2022, to approximately 41.0% as of March 31, 2023, primarily due to a decrease in total equity[61] - The company did not recommend the payment of any dividend for the year ended March 31, 2023[57] - As of March 31, 2023, the company's issued share capital was HK$7.5 million, with 750 million shares outstanding[75] - The Group had capital commitments of approximately HK$0.2 million as of March 31, 2023, down from approximately HK$0.3 million in 2022[80] - The Group had no material contingent liabilities as of March 31, 2023[81] Market Influences - The Group's revenue growth was significantly boosted by the Hong Kong government's consumption voucher schemes launched in April and August 2022[96] - The Group faces risks including price fluctuations of jewellery raw materials and potential challenges in renewing retail store leases[93] - The Group currently has no foreign currency hedging policy but monitors exchange rate fluctuations closely[78] Leadership and Management - Mr. Fu Chun Keung has been the chairman and CEO since January 2018, overseeing overall management and strategy planning[100] - Ms. Cheung Lai Yuk, appointed in March 2018, leads the procurement department and has over 20 years of experience in the jewellery industry[102] - Ms. Fu Wan Ling, also appointed in March 2018, is responsible for overall strategy formulation and inventory oversight, with over 20 years in the jewellery sector[105] - Mr. Chan Cheong Tat has served as an independent non-executive director since September 2018, bringing over 32 years of experience from the Inland Revenue Department[113] - Mr. Tony Chan, an independent non-executive director since September 2018, has over 20 years of experience in business advisory, accounting, and auditing[120] - Mr. Wong Wing Keung Meyrick has been an independent non-executive director since September 2018 and is currently practicing as a barrister-at-law in Hong Kong[123] - The company has a strong leadership team with extensive experience in the jewellery industry and financial management[100][102][105][113][120][123] Corporate Governance - The Group's Board of Directors comprises six members, including three executive directors and three independent non-executive directors, ensuring compliance with GEM Listing Rules[143][152] - Mr. Fu Chun Keung serves as both Chairman and Chief Executive Officer, a decision deemed in the best interest of the Group despite deviation from CG Code provision C.2.1[137][140] - The independent non-executive directors represent more than one-third of the Board, fulfilling the requirement of Rule 5.05A of the GEM Listing Rules[152][153] - All directors participated in various training sessions during the year ended March 31, 2023, focusing on updated GEM Listing Rules and their responsibilities[155] - The Company has implemented corporate governance practices in line with the CG Code, with the exception of code provision C.2.1[135][139] - The Group's senior management is responsible for day-to-day operations, executing strategies set by the Board[141][146] - Each executive director has a service contract with an initial term of three years, subject to termination with three months' notice[144][152] - The Company has received written confirmations of independence from all independent non-executive directors, affirming their status[154] - The Board monitors the Group's operational and financial performance, collectively responsible for promoting the Company's success[141][146] - The Company Secretary, Mr. Wong Ho Pang, ensures that Board procedures are followed and provides necessary support to the directors[154] Board Committees - The company has established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[174] - The Audit Committee is responsible for reviewing and supervising the Group's financial reporting process, risk management, and internal control systems[179] - The Remuneration Committee's primary duty is to establish and review the remuneration policy for Directors and senior management[182] - The Nomination Committee evaluates candidates for directorship based on merit and objective criteria, considering the benefits of diversity[185] - The Company ensures that all committees have sufficient resources to perform their duties and can obtain independent professional advice when necessary[178] Compliance and Training - The Board is responsible for developing and reviewing the Group's corporate governance policies and practices[198] - The Company emphasizes a well-balanced Board with diverse cultural and educational backgrounds, industry experience, and professional expertise[197] - The Company has confirmed compliance with the Required Standard of Dealings by all Directors for the year ended March 31, 2023[199] - External audit fees for the year ended March 31, 2023, were approximately HK$500,000[200]
创辉珠宝(08537) - 2023 - 年度财报