Financial Performance - For the fiscal year ending March 31, 2022, the group recorded revenue of approximately HKD 993.3 million, a slight increase of about 3.9% compared to HKD 956.4 million for the fiscal year ending March 31, 2021[11]. - The group's revenue for the year was approximately HKD 993.3 million, an increase of about 3.9% compared to HKD 956.4 million in the previous year[26]. - The cost of goods sold for the year was approximately HKD 282.1 million, a decrease of about 1.2% from HKD 285.4 million in the previous year, representing 28.4% of total revenue[27]. - Gross profit for the year was approximately HKD 711.2 million, up 6.0% from HKD 671.0 million in the previous year[28]. - Employee costs for the year were approximately HKD 334.0 million, an increase of about 7.1% from HKD 311.8 million in the previous year[31]. - The group recorded a post-tax loss of approximately HKD 124,000,000, slightly improved from a loss of HKD 126,100,000 in the previous year[43]. - As of March 31, 2022, the group's cash and cash equivalents were approximately HKD 103,300,000, a decrease of about HKD 63,900,000 from HKD 167,200,000 in the previous year[44]. - The current ratio improved to approximately 1.0 times, up from 0.7 times in the previous year, with current assets totaling approximately HKD 411,000,000[44]. - The group's asset-to-equity ratio was approximately 12.8%, an increase from 9.3% in the previous year[45]. - The financing cost for the year was approximately HKD 19,800,000, a decrease of about HKD 5,300,000 from the previous year[39]. Business Operations - The group opened 3 new restaurants in mainland China and 3 in Singapore during the fiscal year, bringing the total number of restaurants operated in Hong Kong, Macau, mainland China, and Singapore to 85[10]. - The group closed 4 "Tsui Wah" restaurants in Hong Kong and opened 4 new restaurants under different brands during the year[20]. - The group opened 3 new "Tsui Wah" restaurants in Guangzhou, Nanjing, and Shenzhen during the year[21]. - The group expanded its restaurant network in Singapore from 1 to 4 locations during the year[24]. - Following the relaxation of social distancing measures on April 21, 2022, the group plans to continue promoting takeaway services and seek cost-reduction solutions[13]. - The group has established close cooperation with popular delivery service providers in mainland China, such as Meituan and Ele.me, to enhance its takeaway services[10]. - The group actively promoted its takeaway services in mainland China, collaborating closely with popular delivery service providers[21]. - The group has implemented promotional discounts for takeaway customers to encourage the use of self-pickup services during the pandemic[10]. - The group adjusted its operational hours and staffing in response to the pandemic's impact on business in Macau[24]. Financial Position and Strategy - The group maintained a strong financial position with ample cash on hand and unused bank financing, sufficient to meet business needs[11]. - The group entered into a sale agreement for certain units in the Kwai Chung Dali Centre for approximately HKD 264 million, aimed at realizing cash and releasing investment value[11]. - The company plans to diversify its business and revenue sources in response to the pandemic, focusing on developing new brands and exploring new business models[59]. - The company aims to accelerate its entry into overseas markets and the Guangdong-Hong Kong-Macao Greater Bay Area, enhancing marketing efforts to expand its customer base[59]. - The company will actively promote takeaway services and implement various marketing promotions to attract more customers, countering the negative impacts of social distancing measures[59]. - The company is taking decisive measures to improve efficiency and productivity by controlling costs, such as rent and labor costs, while reviewing and restructuring regular expenses to maintain profit margins[59]. - The company maintains a strong cash flow and resource reserves, allowing it to choose the most advantageous ways to improve operations and seize attractive business opportunities[60]. Corporate Governance - The company has maintained compliance with all applicable corporate governance codes since January 2022[85]. - The board of directors held 7 meetings during the year, with all directors attending the annual general meeting[92]. - The board consists of 9 members, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, meeting the requirement for independent representation[96]. - The company has established a robust internal control and risk management system, ensuring transparency and accountability[88]. - The chairman and CEO roles are separated, aligning with corporate governance best practices[93]. - The company has received written confirmations of independence from all independent non-executive directors, ensuring their impartiality[97]. - The company has adequate directors' and officers' liability insurance in place, reviewed annually[99]. - The company emphasizes high standards of corporate governance to enhance shareholder value and ensure sustainable development[85]. - The board regularly reviews and adheres to corporate governance policies to ensure compliance with applicable codes[87]. Risk Management - The company’s risk management framework is based on a "three lines of defense" model, clearly defining roles and responsibilities[144]. - The board has conducted an annual review of the effectiveness of the group's risk management and internal control systems, finding them to be effective and adequate[150]. - The internal audit team operates independently and reports directly to the audit committee, conducting audits based on risk assessments to cover high-risk business activities annually[150]. - The company has established policies and procedures for handling and disclosing inside information to ensure the accuracy, completeness, and timeliness of public disclosures[151]. - The internal audit plan is developed annually based on risk assessments and is executed in collaboration with external consultants[150]. Social Responsibility - The company is committed to corporate social responsibility, encouraging employee participation in charitable activities and promoting environmental measures[58]. - The company is conducting surveys among key stakeholders to assess its environmental and social policies, which will inform its next environmental, social, and governance report[58]. Shareholder Communication - The company emphasizes the importance of transparent and timely communication with shareholders to build investor confidence and attract new investments[162]. - The company has invited independent auditors to attend the annual general meeting to address shareholder inquiries regarding audit work and accounting policies[163]. - The company maintains high transparency by publishing corporate communications on its website, ensuring shareholders receive accurate and timely information[162]. Challenges and Future Outlook - The company has faced significant challenges in the restaurant industry since the second half of 2019, exacerbated by the pandemic, leading to a decline in customer numbers[180]. - The company expresses confidence in its long-term prospects, thanking its management, employees, shareholders, and partners for their support[61].

ai163878292287_Tsui Wah IR2021_Cover_5.1mm_output.pdf 1 6/12/2021 下午5:28 翠華控股有限公司 Tsui WahHoldings Limited INTERIM REPORT 2021 中期報告 Tsui Wah Holdings Limited 翠華控股有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司)2021 Stock Code 股份代號: 1314 Interim Report 中期報告 目 錄 | --- | --- | |-------|--------------------| | | | | 2 | 公司資料 | | 3 | 財務摘要 | | 4 | 主席報告 | | 5 | 管理層討論及分析 | | 12 | 綜合損益表 | | 13 | 綜合全面收益表 | | 14 | 綜合財務狀況表 | | 16 | 綜合權益變動表 | | 17 | 綜合現金流量表 | | 18 | 中期財務報表附註 | | 30 | 企業管 ...

Financial Performance - The group recorded revenue of approximately HKD 956.4 million for the year ended March 31, 2021, a decrease of about 30.8% compared to HKD 1,381.5 million for the year ended March 31, 2020[8]. - The group's revenue for the year was approximately HKD 956.4 million, a decrease of about 30.8% compared to approximately HKD 1,381.5 million in the previous year, primarily due to restaurant closures and a sharp decline in the number of inbound travelers and local diners[28]. - The group's gross profit was approximately HKD 671 million, a decrease of 31.5% from approximately HKD 979.1 million in the previous year[30]. - Employee costs for the year were approximately HKD 311.8 million, a decrease of about 38.2% from approximately HKD 504.2 million in the previous year[31]. - The total depreciation and amortization for the year was approximately HKD 265.4 million, accounting for about 27.7% of the group's revenue, an increase from 22.4% in the previous year[35]. - Property rental and related expenses decreased by 75.5% to approximately HKD 21.9 million from approximately HKD 89.6 million in the previous year[36]. - Other operating expenses decreased by about 33.0% to approximately HKD 192.2 million, representing about 20.1% of the group's revenue[37]. - The group recorded a post-tax loss of approximately HKD 126.1 million for the year, compared to a loss of approximately HKD 319.7 million in the previous year[43]. - As of March 31, 2021, the group's cash and cash equivalents were approximately HKD 167.2 million, a decrease of about HKD 70.2 million from approximately HKD 237.4 million in the previous year[47]. - The current ratio was approximately 0.7 times as of March 31, 2021, down from approximately 0.8 times in the previous year[47]. - As of March 31, 2021, the company's debt-to-equity ratio was approximately 9.3%, compared to 8.4% in 2020[48]. Business Strategy and Expansion - The group expanded its business into e-commerce and launched an online platform to increase customer base and revenue sources[8]. - The group plans to actively explore new business models and develop new brands to adapt to changing consumer spending patterns[11]. - The group aims to accelerate overseas market expansion and increase market share in Hong Kong, Macau, and mainland China[11]. - The group has established a strategic partnership with Jumbo Group in Singapore to further develop the Singapore market[9]. - The group opened 15 new restaurants during the year, with 8 located in Hong Kong and 7 in mainland China, while closing 19 restaurants, including 15 in Hong Kong[24]. - The group expanded its business into e-commerce by launching an online platform for exclusive bakery products, aiming to tap into the growing online shopping trend[19]. - In mainland China, the group saw a significant rebound in business as most restaurants gradually resumed operations, particularly in residential areas[22]. - The group has 22 restaurants operating in the Greater Bay Area, with six opened during the fiscal year, capitalizing on the region's strong consumer spending power[22]. - The group actively promoted takeaway services and collaborated with popular delivery platforms to enhance service coverage and customer satisfaction[18]. - The company plans to diversify its business and revenue sources by actively exploring new platforms and developing new brands[60]. - The company aims to accelerate its entry into overseas markets and the Guangdong-Hong Kong-Macao Greater Bay Area, enhancing marketing efforts to expand its customer base[60]. Cost Management and Financial Support - The group adjusted takeaway discounts and enhanced delivery services through its delivery team to mitigate the impact of reduced foot traffic[8]. - The group received approximately HKD 55.4 million in government subsidies from the anti-epidemic fund and the "Employment Support Scheme" to alleviate financial pressure[27]. - The company is taking decisive measures to control costs, such as rent and labor costs, to maintain profit margins[60]. - The company has a strong cash flow and resource reserves, allowing it to improve operations and seize attractive business opportunities[61]. - The group implemented cost control measures, including a 30% salary reduction for board members and senior management from February 1 to July 31, 2020, followed by a 15% reduction until the report date[17]. Corporate Governance - The company has maintained compliance with all provisions of the corporate governance code throughout the year[84]. - The board of directors held a total of 6 meetings during the year, with all directors attending the annual general meeting[95]. - The company emphasizes high levels of corporate governance to protect shareholder interests and enhance corporate value[83]. - The chairman and CEO roles are separated, ensuring effective leadership and management oversight[96]. - The company has a strong management team with over 30 years of experience in the restaurant industry[80]. - The independent non-executive directors have consistently attended all board meetings, demonstrating commitment to governance[95]. - The audit committee is chaired by an independent non-executive director, ensuring transparency and accountability[83]. - The company has established various committees to oversee significant transactions and risk management[86]. - The management team is responsible for executing the board's decisions and monitoring operational plans[86]. - The company has a robust internal control system in place to manage financial and operational risks[86]. - The board consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors, meeting the requirement of at least one-third independent directors as per listing rules[99]. - The company has received written annual confirmations of independence from all independent non-executive directors, ensuring their independence and impartial judgment[100]. - The board has established nomination, remuneration, and audit committees to oversee specific areas of the company's affairs, with sufficient resources to perform their duties[112]. - The nomination committee evaluates the board's structure and composition, ensuring diversity in skills, education, and experience, which is deemed appropriate for effective management[113]. - The company has implemented a standard code of conduct for directors' securities trading, ensuring compliance with listing rules[108]. - All directors have confirmed compliance with the trading standards set out in the standard code during the year[111]. - The company provides comprehensive training for directors to ensure they understand their responsibilities under regulatory requirements and corporate governance policies[106]. - The independent non-executive director, Mr. Yan, is a senior member of the UK Chartered Association of Certified Accountants, ensuring appropriate professional qualifications on the board[99]. - The company has adequate and sufficient directors' and officers' liability insurance to protect against legal claims arising from their duties[102]. - The nomination committee will continue to review the board diversity policy to ensure its ongoing effectiveness[116]. - The Nomination Committee reviewed the board's structure, size, and diversity during the year[124]. - The Remuneration Committee held three meetings this year, with all members present[126]. - The Audit Committee reviewed the 2020 annual report and the interim report for the six months ending September 30, 2020[135]. - The company has one senior management member earning between HKD 2,500,001 and HKD 3,000,000[141]. - The Nomination Committee provided recommendations for the re-election of directors at the annual general meeting[124]. - The Audit Committee evaluated the independence of external auditors and reviewed their audit results[135]. - The company has established a whistleblowing policy applicable to all stakeholders[138]. - The Remuneration Committee assessed the performance of all directors and senior management[128]. - The board conducted a review of corporate governance policies and practices during the year[136]. - The company has a member earning less than HKD 1,000,000 in the senior management group[141]. - The independent auditor's fees for the year amounted to HKD 1,680,000[143]. - The board confirmed the effectiveness of the group's risk management and internal control systems, with no significant issues identified during the annual review[150]. - The risk management framework is based on a "three lines of defense" model, ensuring clear roles and responsibilities across the organization[149]. - The internal audit team conducts regular audits of financial, operational, and compliance controls, reporting directly to the audit committee[149]. - The company emphasizes the importance of transparent and timely communication with shareholders to build investor confidence[157]. - The board is responsible for overseeing the company's strategic development and setting the group's objectives and policies[155]. Market Conditions and Industry Challenges - Total revenue for the restaurant industry in Hong Kong dropped from HKD 112.5 billion in 2019 to HKD 79.4 billion in 2020, marking the largest annual decline in history[16]. - The restaurant industry has faced significant challenges since the second half of 2019, particularly due to the pandemic, leading to a decline in customer numbers[178]. - The company's main business involves investment holding, with subsidiaries primarily engaged in restaurant operations and food sales[179]. - The company has been listed on the stock exchange since November 26, 2012[180]. - There were no significant disputes with suppliers, customers, or other stakeholders during the year[182]. - The company did not recommend a final dividend for the year, consistent with the previous year[187]. - The company has complied with all major legal and regulatory requirements, with no significant violations reported during the year[181]. - The company maintains a strong focus on food safety and quality, adhering to international food standards[181]. - The company has established compliance and risk management policies to monitor adherence to legal and regulatory requirements[181]. - The company's financial performance details are available in the consolidated income statement and other comprehensive income statement on pages 51 and 52 of the annual report[185]. - The company's cash flow situation is analyzed in the consolidated cash flow statement on pages 56 and 57 of the annual report[186]. - There were no stock options granted, exercised, or canceled during the year under the stock option plan[198].

(R) 翠菲集團 T W TSUI WAH GROUP Tsui Wah Holdings Limited 翠華控股有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號 : 1314 Interim Report 中期報告 目 錄 2 公司資料 3 財務摘要 主席報告 4 6 管理層討論及分析 綜合損益表 13 14 綜合全面收益表 15 綜合財務狀況表 綜合權益變動表 17 18 綜合現金流量表 19 中期財務報表附註 企業管治及其他資料 31 本中期報告以環保紙張印刷 。 | --- | --- | |------------------------------------------------------|----------------------------------------------------------------| | | | | 董事局 | 獨立核數師 | | 執行董事 | 畢馬威會計師事務所 執業會計師 | | 李遠康先生(主席) 李堃綸 ...

Financial Performance - The company reported a revenue of HKD 1,381,500,000 for the fiscal year ending March 31, 2020, a decrease of approximately 22.7% compared to HKD 1,786,800,000 in the previous year[7]. - The company recorded a total loss after tax of approximately HKD 319,700,000 for the year, with a loss of HKD 194,700,000 after excluding non-cash items[7]. - The group's revenue decreased by approximately 22.7% from about HKD 1,786,800,000 in 2019 to about HKD 1,381,500,000 in the current year due to weakened market conditions and a sharp decline in dining out during the pandemic[18]. - Gross profit fell by 24.1% to approximately HKD 979,100,000 compared to HKD 1,289,300,000 in 2019, primarily due to reduced revenue and increased cost of goods sold[20]. - The company's share of profits from joint ventures decreased by approximately HKD 10.9 million or 32%, from HKD 34.1 million in 2019 to about HKD 23.2 million in 2020, largely impacted by the pandemic[35]. - For the fiscal year ending March 31, 2020, the company reported a loss of approximately HKD 319.7 million, compared to a profit of about HKD 4.7 million in 2019, primarily due to reduced operating income and non-cash impairment losses[37]. - Total operating expenses increased to HKD 286.9 million in 2020 from HKD 201.9 million in 2019, with significant increases in impairment losses on property, plant, and equipment amounting to HKD 81.0 million[31]. - The company's cash and cash equivalents decreased by approximately HKD 187.1 million, from HKD 424.5 million in 2019 to about HKD 237.4 million in 2020[38]. - The current ratio as of March 31, 2020, was approximately 0.8 times, which would improve to about 1.6 times when excluding lease liabilities under the new accounting standard[38]. Cost Control Measures - The company implemented a 30% salary reduction for all board members and senior management starting February 1, 2020, as part of cost control measures[8]. - The company aims to negotiate more competitive rental agreements with landlords to further reduce operating costs[10]. - Employee costs decreased by about HKD 71,300,000 to approximately HKD 504,200,000, with the total number of employees at 3,029 as of March 31, 2020[20]. - Other operating expenses increased by approximately 42.1% to about HKD 287,000,000, accounting for about 20.8% of the group's revenue, largely due to impairment assessments on assets[29]. - Cost control measures are being taken to safeguard profit margins, including managing rental and labor costs[53]. Business Strategy and Adaptation - The company plans to increase efforts in promoting takeaway services and exploring new business models in response to market changes[10]. - The group actively promoted takeaway services and provided discounts, contributing positively to business during challenging times[16]. - The company adjusted its restaurant network and operating hours in response to actual market demand, with some restaurants temporarily closing[8]. - The group has seen a significant rebound in business in mainland China since the end of March 2020, with some restaurants gradually resuming operations[53]. - The group is actively promoting takeaway services and implementing various marketing campaigns to attract more customers[53]. - The group aims to diversify its business by developing new brands, which will serve as future growth and profit engines[53]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules throughout the fiscal year ending March 31, 2020[78]. - The board of directors held four meetings during the fiscal year, with all directors attending at least 75% of the meetings[82]. - The board consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors, meeting the requirement of at least one-third being independent[86]. - The roles of the chairman and the CEO are separated, ensuring independent leadership and management oversight[85]. - The company has maintained appropriate and sufficient directors' and officers' liability insurance to protect against legal claims arising from their duties[90]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules, with no known circumstances affecting their impartiality[88]. - The board is responsible for approving and monitoring all policy matters, overall strategy, and budget, as well as internal controls and risk management systems[80]. - The company has established various board committees, including a nomination committee and a remuneration committee, to enhance governance practices[86]. - The company ensures that all directors are adequately informed about significant matters and receive relevant information in a timely manner[80]. - The company has a policy for the appointment and rotation of directors, ensuring that all directors are eligible for re-election at least every three years[91]. Shareholder Communication and Dividends - The company maintains transparent communication with shareholders and investors through annual reports, interim reports, and timely announcements[142]. - The company did not declare an interim dividend for the six months ended September 30, 2019, compared to a dividend of HKD 0.01 per share totaling approximately HKD 14,112,000 in 2018[167]. - The board of directors does not recommend the payment of a final dividend for the year, similar to the previous year where a dividend of HKD 0.01 per share was also declared totaling approximately HKD 14,112,000[168]. - The company has adopted a dividend policy to distribute no less than 30% of its profit as dividends, subject to the board's discretion based on various factors[152]. - The company will continue to review its dividend policy and does not guarantee the declaration of dividends in any specific period[153]. Management Team Experience - The company has a strong management team with extensive experience in the restaurant industry, with Mr. Pang having over 30 years of experience in strategic development and management[74]. - Mr. Huang served as the Chief Financial Officer of Dongsheng Tourism Group Limited from October 2014 to October 2018, overseeing financial operations and strategic decisions[64]. - Mr. Yang has over 15 years of experience in auditing, financial management, and compliance, having held various financial roles in listed companies[68]. - Mr. Deng has over 20 years of experience in international investment and corporate banking, previously working with major banks like Merrill Lynch and UBS[70]. - Mr. Tang, the Chief Operating Officer, has over 20 years of management experience, focusing on business development in the Chinese market[75]. Risk Management and Compliance - The company confirmed its responsibility for the accuracy of the financial statements and acknowledged no significant uncertainties affecting its ability to continue as a going concern[126]. - The risk management framework is based on a "three lines of defense" model, clearly defining roles and responsibilities across the board, audit committee, senior management, and internal audit team[130]. - The audit committee conducts an annual review of the effectiveness of the group's risk management and internal control systems, finding them effective and adequate[134]. - The company is aware of its responsibilities under the Securities and Futures Ordinance and has developed an inside information disclosure policy in line with guidelines from the Securities and Futures Commission[136]. - The company has implemented a whistleblowing policy applicable to all stakeholders, allowing confidential reporting of any misconduct[121].

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 838,173,000, a decrease of 6.4% compared to HKD 895,772,000 in 2018[8] - Loss attributable to owners of the company was HKD 44,502,000, compared to a profit of HKD 14,410,000 in the previous year[8] - The group reported a net loss of approximately HKD 45.4 million for the period, compared to a profit of HKD 14.5 million in the same period last year[32] - The total comprehensive loss for the period was HKD 72,557,000, compared to a profit of HKD 14,410,000 in the previous period[67] - The group reported a basic loss per share of HKD 3.15 for the period, compared to earnings of HKD 1.02 per share in the previous year[51] Operational Changes - The number of restaurants increased to 41 in Hong Kong and 38 in Mainland China as of September 30, 2019, compared to 36 and 34 respectively in 2018[8] - The company plans to enhance its market presence by investing more in marketing to attract a diverse customer base[13] - The company aims to integrate overlapping restaurant locations in Hong Kong and Mainland China to improve operational efficiency[13] - New initiatives include a one-stop delivery service under the "Supreme Catering" brand to meet various customer needs[13] - The company will focus on technology development to enhance internal operating systems, including automated ordering and payment services[13] Financial Position - Cash and cash equivalents amounted to approximately HKD 335.9 million, a decrease of about 20.9% from HKD 424.5 million as of March 31, 2019[36] - The current ratio was approximately 1.1 times, down from 2.1 times as of March 31, 2019, indicating a decline in liquidity[36] - Total non-current assets amounted to HKD 1,528,438,000, an increase from HKD 842,080,000[62] - Current assets totaled HKD 539,056,000, down from HKD 591,763,000[62] - Current liabilities increased to HKD 469,821,000 from HKD 280,006,000[62] Employee Costs and Training - Employee costs increased to approximately HKD 291.4 million, representing 34.8% of revenue, up from 31.8% in the previous period, due to an increase in the number of restaurants from 74 to 84[27] - The group employed 3,785 staff as of September 30, 2019, and has implemented training programs to enhance service quality[45] - The company is committed to providing appropriate training for employees to improve service quality[13] Market Expansion and Strategy - The group plans to expand its business in Hong Kong and beyond, focusing on delivery platforms and new brand development[46] - The group is actively seeking opportunities for market expansion in Southeast Asia to strengthen its brand presence[46] - The overall strategy aims to improve financial performance and deliver better returns to shareholders[14] Cash Flow and Investments - Operating cash flow for the six months ended September 30, 2019, was HKD 72,018,000, an increase of 15.5% from HKD 62,392,000 in 2018[70] - Cash generated from operations was HKD 71,761,000, compared to HKD 68,411,000 in the previous year, reflecting a growth of 3.9%[70] - Net cash used in investing activities was HKD (22,706,000), an improvement from HKD (44,217,000) in the prior period, indicating a reduction of 48.7%[70] Lease Liabilities and Financial Obligations - The company incurred lease payments of HKD 93,579,000, which is a new financial obligation under the adoption of HKFRS 16[70] - The group’s lease liabilities as of September 30, 2019, were HKD 832,212,000, reflecting changes due to new leases and adjustments[98] - The total liabilities increased significantly, with non-current liabilities rising to HKD 638,718,000 from HKD 44,051,000[64] Shareholder Information - The company paid a final dividend of HKD 14,112,000 for the year[67] - The group did not declare an interim dividend for the six months ended September 30, 2019, compared to an interim dividend of HKD 0.01 per share totaling HKD 14,112,000 in the previous period[119] - As of September 30, 2019, Mr. Li holds 878,956,000 shares, representing approximately 62.28% of the company's equity[164] Regulatory and Compliance - The company has adopted a share incentive plan to reward and motivate eligible participants, effective until the 10th business day prior to the adoption date's anniversary[197] - The company has not made any arrangements for directors or senior management to purchase shares or debt securities during the review period[176] - No significant events occurred after the reporting period and up to the date of the interim report[200]

Business Operations and Expansion - The group operated a total of 83 restaurants as of March 31, 2019, with 44 located in Hong Kong, 35 in mainland China, three in Macau, and one in Singapore[17]. - The company plans to consolidate overlapping restaurant locations in Hong Kong and mainland China to enhance operational efficiency[21]. - The group has established a strategic partnership with Jumbo Group to open its first store in Singapore in June 2018[17]. - The company is actively expanding its "Supreme Catering" and "Fast Tsui Delivery" services to diversify its business[17]. - The company is actively capturing opportunities in the Greater Bay Area, having opened a store at the Hong Kong-Zhuhai-Macao Bridge[17]. - The group plans to open new restaurants in key traffic hubs in the Greater Bay Area and Singapore, with a second restaurant in Singapore under preparation[23][30]. - The group operates a total of 83 restaurants as of March 31, 2019, with plans for further expansion in high-traffic areas[30]. Financial Performance - The group's revenue decreased by approximately 2.9% from about HKD 1,839,800,000 in 2018 to about HKD 1,786,800,000 in the current year[34]. - The gross profit margin remained stable at 72.2%, compared to 72.1% in the previous year, despite a slight decrease in gross profit from about HKD 1,327,400,000 to about HKD 1,289,300,000[31][39]. - The net profit margin dropped significantly from approximately 4.4% in 2018 to about 0.3% in the current year, primarily due to increased operating costs[31]. - The cost of goods sold decreased by about HKD 14,900,000 or approximately 2.9% to about HKD 497,500,000, maintaining a stable proportion of about 27.8% of total revenue[35]. - Profit after tax decreased by approximately HKD 76.1 million or about 94.2% to approximately HKD 4.7 million, primarily due to increased costs and expenses to support business development in a challenging operating environment[48]. Cost Management and Efficiency - The group remains committed to cost control measures to maintain operational efficiency amid rising ingredient, rent, and labor costs[31]. - Property rental and related expenses decreased by approximately HKD 24.6 million or about 7.3% to approximately HKD 313.9 million due to the group's efforts to adjust its store portfolio[42]. - Other operating expenses increased by approximately HKD 35.2 million or about 21.1% to approximately HKD 201.9 million, accounting for about 11.3% of the group's revenue, primarily due to increased initial and operational costs of new restaurants and exchange losses from RMB depreciation[45]. - Employee costs increased by approximately HKD 43,300,000 to about HKD 575,500,000 due to the expansion of restaurant locations and the establishment of the central bakery[40]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules[91]. - The board of directors regularly reviews and adheres to the company's corporate governance policies[93]. - The company has established a nomination committee and a remuneration committee to oversee board appointments and compensation matters[102]. - The board has a policy for the re-election of directors, requiring all directors to retire at least every three years and be eligible for re-election[108]. - The company has maintained appropriate and sufficient directors' and officers' liability insurance to protect against legal claims arising from their duties[107]. Risk Management - The company has established a risk management framework based on a "three lines of defense" model to identify, assess, mitigate, and monitor risks[152]. - The company is committed to maintaining effective internal controls and risk management systems, with annual reviews conducted[152]. - The internal audit team provides independent assurance and consulting services for risk management and internal controls, reporting directly to the audit committee[154]. - The board conducted an annual review of the effectiveness of the group's risk management and internal control systems for the year ending March 31, 2019, finding no significant issues and deeming the systems effective[154]. Corporate Social Responsibility - The group has committed to corporate social responsibility by encouraging employee participation in charitable activities and promoting environmental sustainability[61]. - The group is actively exploring opportunities to reduce resource consumption and minimize its environmental impact[62]. Management and Leadership - The company appointed a new CEO, Mr. Li Zhi Jian, effective June 1, 2019, following the resignation of the previous CEO, Mr. Zhang Hong Hao[101]. - The management team is confident in the company's ability to implement its business strategies and enhance brand recognition for maximum shareholder returns[67]. Shareholder Communication and Transparency - The company is committed to high transparency, ensuring shareholders receive accurate and timely information through annual reports and other communications[163]. - The board emphasizes the importance of transparent and timely communication with shareholders and investors to build confidence and attract new investments[163]. - The company invites independent auditors to attend annual general meetings to address shareholder inquiries regarding audit work and financial reporting[186].