Financial Performance - For the fiscal year 2024, the company's revenue decreased by approximately HKD 8.6 million or 1.8% to about HKD 458.7 million compared to the fiscal year 2023[7]. - The net profit for fiscal year 2024 was approximately HKD 40.8 million, down from HKD 50.2 million in fiscal year 2023, primarily due to reduced revenue and lower gross margin[7]. - The company recorded a net profit of approximately HKD 40.8 million for the year ended March 31, 2024, down from HKD 50.2 million for the year ended March 31, 2023, representing a decrease of about 18.6%[18]. - Revenue decreased by approximately 1.8% from HKD 467.3 million for the year ended March 31, 2023, to HKD 458.7 million for the year ended March 31, 2024[20]. - Gross profit for the year ended March 31, 2024, was approximately HKD 66.6 million, a decrease of about 15.5% from HKD 78.7 million for the previous year[23]. - The gross profit margin decreased from approximately 16.8% for the year ended March 31, 2023, to about 14.5% for the year ended March 31, 2024, a decline of approximately 2.3 percentage points[23]. - Cost of goods sold increased by approximately 0.9% from HKD 388.6 million for the year ended March 31, 2023, to HKD 392.2 million for the year ended March 31, 2024[22]. - Selling and distribution costs increased by approximately 5.4% from HKD 11.0 million for the year ended March 31, 2023, to HKD 11.6 million for the year ended March 31, 2024[24]. - Tax expenses decreased by approximately HKD 1.9 million or 18.0%, from HKD 10.4 million for the year ended March 31, 2023, to HKD 8.5 million for the year ended March 31, 2024[27]. - The profit attributable to the owners of the company for the year ended March 31, 2024, was approximately HKD 40.8 million, a decrease from HKD 50.2 million for the year ended March 31, 2023, primarily due to a reduction in revenue and gross profit[28]. Market Conditions - The company anticipates continued pressure on the restaurant and food service industry due to changing consumer spending trends in Hong Kong[8]. - The company anticipates continued pressure on the food service industry due to changing consumer spending trends in Hong Kong[19]. - The company aims to closely monitor market conditions and respond to unprecedented changes through effective planning to improve business performance[8]. - The company plans to strengthen cost-saving measures in response to the challenging market conditions[19]. Customer and Supplier Information - The company serves over 400 customers, mainly frozen seafood resellers and suppliers, offering a variety of over 100 types of frozen seafood products[8]. - The largest customer accounted for approximately 9.2% of total sales, while the top five customers represented about 27.0% of total revenue for the year ending March 31, 2024, compared to 6.4% and 24.1% in 2023[56]. - The largest supplier accounted for approximately 12.6% of total purchases, with the top five suppliers making up about 44.7% of total procurement for the year ending March 31, 2024, compared to 14.9% and 46.5% in 2023[56]. Financial Position - As of March 31, 2024, the group's cash and bank balances were approximately HKD 104.9 million, an increase from HKD 79.4 million as of March 31, 2023[33]. - The total equity attributable to the owners of the company as of March 31, 2024, was approximately HKD 261.4 million, compared to HKD 231.8 million as of March 31, 2023[33]. - The group's total debt, including lease liabilities, was approximately HKD 1.1 million as of March 31, 2024, down from HKD 2.2 million as of March 31, 2023[33]. - The company has no significant interests or stakes in any major transactions or arrangements involving directors or related entities during the year[66]. Corporate Governance - The board of directors includes five members, with terms expiring at the annual general meeting scheduled for August 22, 2024[58]. - The company has received independence confirmations from all independent non-executive directors, affirming their status as independent individuals[61]. - The company has established specific committees, including the audit committee, remuneration committee, and nomination committee, to assist in governance[128]. - The audit committee consists of three independent non-executive directors who review the accounting standards and internal control systems[109]. - The company has adopted the GEM Listing Rules as the code for directors' securities transactions and confirms compliance since the listing date[114]. - The chairman and CEO roles are held by the same individual, which the board believes ensures effective leadership and management[113]. - Directors are required to retire and seek re-election at least once every three years, with specific provisions for filling temporary vacancies[117]. - The board consists of two executive directors and three independent non-executive directors[118]. Environmental and Social Responsibility - The company is committed to corporate social responsibility, focusing on ethical behavior, employee health and safety, and environmental concerns[107]. - The company emphasizes its commitment to environmental and social responsibilities as core values in its operations[161]. - The company has implemented a stakeholder engagement strategy to address core concerns through various communication channels[163]. - The company has initiated a climate change assessment to identify and mitigate potential risks associated with its operations[193]. - The company encourages recycling and the use of electronic documents to minimize paper waste and reduce overall emissions[178]. - The company has implemented control procedures to ensure suppliers comply with fishing restrictions and has established a monitoring system for inventory levels to prevent waste[190][191]. Employee Information - The total employee costs for the year ended March 31, 2024, were approximately HKD 7.3 million, compared to HKD 6.9 million for the year ended March 31, 2023[43]. - As of March 31, 2024, the company employed a total of 17 employees, with 11 males (64.7%) and 6 females (35.3%)[199]. - The age distribution of employees shows that 5 employees (29.4%) are aged between 30 to 50 years, while 12 employees (70.6%) are over 50 years[199]. - The company has a robust human resources policy that adheres to all applicable laws in Hong Kong and promotes equal opportunities without discrimination[198]. - The company has established a performance management system aimed at attracting and retaining top talent, including a comprehensive compensation structure[198]. Compliance and Regulations - The company has complied with the GEM Listing Rules Chapter 20 disclosure requirements during the review period[79]. - The independent non-executive directors have reviewed the continuing connected transactions and confirmed their compliance with the GEM Listing Rules[79]. - The company has maintained sufficient public float as required by the GEM Listing Rules as of the date of the annual report[87]. - The company is committed to complying with relevant laws and regulations, ensuring adherence to the GEM Listing Rules and other applicable regulations[90]. Dividends and Shareholder Information - The proposed final dividend for the year ended March 31, 2024, is HKD 0.04 per ordinary share, totaling HKD 11.2 million, the same as the previous year[51]. - The company has proposed a final dividend of HKD 0.04 per share for the year ending March 31, 2024, subject to shareholder approval[93]. - The major shareholder, 嘉信控股有限公司, holds 205,800,000 shares, representing approximately 73.5% of the total shares[74]. Risk Management - The company has implemented a risk management framework to identify and assess significant risks affecting the business, ensuring effective internal controls[147][148]. - The internal control consultant identified significant issues prior to the company's listing, which were corrected, ensuring asset security and shareholder rights[143][144]. - The company regularly reviews business interruption risks related to extreme weather events and has developed contingency plans to mitigate negative impacts[194]. - The company is aware of the potential for stricter climate regulations and is monitoring trends to ensure compliance and mitigate reputational risks[195].
大洋环球控股(08476) - 2024 - 年度财报