宝光实业年报二零二五

2025202533116416638202533127332024/25 The directors of the Company (the “Board”) submit their reporttogether with the audited consolidated financial statements forthe year ended 31 March 2025.PRINCIPAL ACTIVITIESThe principal activity of the Company is investment holding. Theactivities of its principal subsidiaries are set out in Note 38 onpages 164 to 166 to the consolidated financial statements.BUSINESS REVIEWA fair review of the Group’s businesses for the year ended 31March 2025 and an indication of likely future development inthe Group’s businesses are set out under Management Discussionand Analysis on pages 27 to 33.There were no important events affecting the Group that haveoccurred since the end of FY2024/25.Stelux is a company that cares about the way it does business,the way we engage with our customers, our employees, oursuppliers, and others in general. Certain core principles underpinthe way we achieve our business objectives. We engage ourbusiness partners and treat our employees in a fair, honestand responsible manner to deliver sustainable results to ourshareholders.Our vision to “Beautify and enrich lives through our products andservices” underscores the way we engage with our customers.From our lifestyle products, ranging from trendy watches andsmart watches available at our physical and online stores, westrive to deliver a personal shopping experience to our customersengaging them through traditional and social media.Customers looking for a wide brand selection will enjoy shoppingat multi-branded retailer “CITY CHAIN”, appealing to customerswho enjoy fashionable watches. 252194200203090200201 STELUX Holdings International LimitedANNUAL REPORT 2025As for the Group’s watch wholesale business, (in addition toselling to CITY CHAIN), our customers comprise of a largenetwork of independent dealer stores spanning, Hong Kong,Singapore, Malaysia, Macau and Brunei. Many of these dealershave been doing business with the Group for an average periodof over 25 years. Some of our watch dealers operate at least 2points of sales.With older workers delaying retirement and younger workersjoining the workforce, the Group is aware of the challengesbrought on by these underlying structural changes and alsohigher employee expectations towards work life balance andwork fluidity. We continue with our mission to grow, respectand reward our employees as they progress their careers with us.More details on the Group’s employment and labour practicescan be found on pages 194 to 200 of the Environmental, Socialand Governance Report.The Group’s suppliers are an important component of ourbusinesses, ranging from upstream component vendors,assemblers and manufacturers to downstream third partybrand principals and distributors, where third party brandsare sourced. Some brand principals have been partnering theGroup for over 20 years. Credit terms granted by the Group’ssuppliers range from 30 to 90 days. More details on our supplychain management are set out on pages 200 to 201 of theEnvironmental, Social and Governance Report.Businesses require stable relationships with their lenders.Without exception, the Group maintains strong and activecommunications with its lenders who provide important tradeand other short and long term credit facilities. These lendersrange from local banks with strong local connections to regionaland global banks with solid reputations.The Group faces certain principal risks and uncertainties,described below (in no order of preference): 2025313231326 Due to the challenging business environment, cash flowmanagement was strengthened with appropriate measuresadopted to improve liquidity. For more details, refer to the“Finance” section of the Management, Discussion and Analysison pages 31 to 32.As inventory levels impact sales, profitability and cash flows andwith long production lead times for some products, effectiveinventory management is important. Systems are in place toensure key functions including merchandising, store operationsand finance closely monitor metrics like, inventory levels, agingand turnover ratios. The Group adopts a conservative approachto ordering and purchasing stock with increased monitoring dueto the adverse business environment. There are also measures tofasten stock turn and to facilitate disciplined capital managementincluding flexible cross regional clearance initiatives.Securing the right store location at an appropriate rental isanother principal driver of performance and affects Groupturnover and profitability. Leasing, store operations, finance andsenior management review and assess location suitability using achecklist of pre-agreed criteria. A dedicated leasing team focuseson leasing strategies and activities in our major markets.Product sourcing impacts Group turnover, gross margins andinventory levels. CITY CHAIN being a multi-branded retailer,sources a proportion of products from third party brandprincipals or distributors and there is no assurance that supply