2023-07-17-港交所-万保刚集团_年报_2022_2023_178页_5mb

Mobicon Group Limited 2022/2023 Annual Report Summary

Core Content

• Company Name: Mobicon Group Limited (萬保剛集團有限公司)
• Stock Code: 1213
• Registered Office: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda
• Principal Place of Business: 7/F New Trend Centre, 704 Prince Edward Road East, San Po Kong, Kowloon, Hong Kong
• Website: www.mobicon.com
• Investor Relations Contact: (852) 2397 6628 (Tel), (852) 2397 0339 (Fax)

Key Directors and Committees

• Board of Directors:
  • Executive Directors: Hung Kim Fung (Chairman), Yeung Man Yi (Deputy Chairman & CEO), Hung Ying Fung, Yeung Kwok Leung
  • Independent Non-Executive Directors: Ip Fu Wa, Leung Wai Cheung, Ku Wing Hong
• Committees:
  • Audit Committee: Leung Wai Cheung (Chairman), Charles E. Chapman (resigned), Ip Fu Wa, Ku Wing Hong
  • Remuneration Committee: Leung Wai Cheung (Chairman), Yeung Man Yi, Ku Wing Hong
  • Nomination Committee: Hung Kim Fung (Chairman), Charles E. Chapman (resigned), Ip Fu Wa, Leung Wai Cheung

Financial Highlights

• Total Revenue: HK$410,421,000 (2023) vs HK$501,269,000 (2022), down by 18.1%
• Gross Profit: HK$106,083,000 (2023) vs HK$131,768,000 (2022), down by 19.5%
• Operating Profit: HK$13,557,000 (2023) vs HK$30,078,000 (2022), down by 54.9%
• Net Profit: HK$5,269,000 (2023) vs HK$21,140,000 (2022), down by 75.1%
• Earnings per Share: HK$0.066 (2022) vs HK$-0.002 (2023), down by 103%
• Dividend per Share: HK$1 (2023) vs HK$1 (2022), no change
• Net Assets per Share: HK$86.3 (2023) vs HK$94.1 (2022), down by 8.3%

Financial Ratios

• Current Ratio: 1.9 (2023) vs 1.9 (2022), no change
• Quick Ratio: 0.6 (2023) vs 0.7 (2022), down by 14.3%
• Gross Margin: 25.9% (2023) vs 26.3% (2022), down by 1.5%
• Net Gearing Ratio: 29% (2023) vs 33% (2022), down by 12.1%

Business Segments

• Electronic and Electrical Trading Business: 66% of total revenue, HK$273 million (2023) vs HK$361 million (2022), down by 24.4%
• Computer Business: 20% of total revenue, HK$80 million (2023) vs HK$78 million (2022), up by 2.6%
• Cosmetic and Online Retail Business: 14% of total revenue, HK$57 million (2023) vs HK$63 million (2022), down by 9.5%

Key Financial Metrics

• Total Assets: HK$320,093,000 (2023) vs HK$355,925,000 (2022), down by 10.1%
• Net Assets: HK$172,674,000 (2023) vs HK$188,169,000 (2022), down by 8.2%
• Cash and Bank Balances: HK$30 million (2023) vs HK$356 million (2022), down by 10.1%
• Net Current Assets: HK$118 million (2023) vs HK$188 million (2022), down by 8.2%
• Total Borrowings: HK$50 million (2023) vs HK$69 million (2022), down by 27.5%
• Unused Bank Balance: HK$40 million (2023) vs HK$20 million (2022), up by 100%

Operational and Strategic Overview

• CEO's Statement: The Group continues to focus on its three core business segments: electronic and electrical trading, computer business, and cosmetic and online retail.
• Business Performance:
  • Electronic and Electrical Trading Business: Experienced a decline due to reduced demand and inflation, but the Group remains optimistic.
  • Computer Business: Suffered a 20% decline in turnover, mainly due to market competition.
  • Cosmetic and Online Retail Business: Faced a 9.5% decline, attributed to cautious consumer sentiment and increased operating costs. The Group has restructured its resources to strengthen online retail and procurement of Japanese products.
• Strategic Outlook:
  • The Group anticipates a gradual improvement in the consumer electronics market by the end of 2023.
  • The relocation to a new headquarters in South Africa (130,000 sq ft) is expected to enhance corporate image and operational efficiency.
  • The Group is committed to dynamic sales strategies to counter market challenges.

Risk and Exposure

• Foreign Exchange Risk: Minimal due to stable HKD/USD exchange rate and the Group's reliance on HKD, CNY, and USD.
• No hedging measures have been taken.
• Contingent Liabilities: None reported as of 31st March 2023.

Human Resources

• Total Full-Time Employees: 386 (as of 31st March 2023)
• Employee Reductions:
  • Electronic and Electrical Trading Business: 330 employees (down 0.3%)
  • Cosmetic and Online Retail Business: 9 employees (down 43.8%)
• Training and Remuneration: Policies based on performance and market conditions. Includes salary, provident fund, medical insurance, and performance-based bonuses.

Major Events

• New Headquarters: Nearly completed in South Africa, expected to improve operational efficiency and corporate image.
• Store Closures: Two retail stores in Ma On Shan and Wong Tai Sin were closed in March 2023.
• Dividend: A final dividend of HK$0.5 per share is proposed for the Year Under Review, with a total of HK$1 million, to be paid on 29th August 2023, subject to shareholder approval.

Conclusion

Mobicon Group Limited reported a decline in financial performance during the 2022/2023 fiscal year, with revenue and profit dropping significantly. Despite this, the Group remains optimistic about future growth, especially with the completion of its new headquarters and a focus on online retail and strategic resource allocation. The Group's financial structure and liquidity are stable, with sufficient resources to meet current obligations. The Group has no contingent liabilities and is well-positioned to navigate the challenges ahead.