Financial Performance - For the financial year ended March 31, 2024, the Group's consolidated revenue was approximately HK$211,845,000, a decrease of 8.5% from HK$231,557,000 in 2023[11]. - The loss attributable to equity holders of the Company was approximately HK$19,352,000, compared to a profit of approximately HK$1,050,000 in 2023, resulting in a loss per share of HK7.45 cents[11]. - Revenue for the catering business decreased by 16.0% to approximately HK$50,431,000 for the current year[67]. - Revenue from the frozen meats trading business was approximately HK$157,525,000, accounting for 74.4% of the Group's total revenue, down from HK$167,635,000 in 2023[90][95]. - The segment loss for the catering business was approximately HK$10,036,000, compared to a loss of approximately HK$2,800,000 in the previous financial year[68]. - The overall gross profit margin slightly decreased from 21.9% in the previous fiscal year to 21.4%[46]. - The gross profit margin slightly decreased to 21.4% from 21.9% in the previous year[77]. Market Challenges - The catering business faced challenges including rising energy prices and fierce market competition, leading to a significant impact on overall performance[27]. - The local market experienced a significant decline in consumption due to increased outbound travel and changes in visitor consumption patterns post-pandemic[21]. - The overall economic recovery in Hong Kong remained slow, impacting consumer confidence and trade dynamics[12]. - The restaurant business faced challenges due to rising energy prices, intense market competition, and changing consumer patterns, impacting overall performance[30]. Strategic Initiatives - The Group introduced the "Hokkaido Snow Dream Pork" brand to the local market and became an exclusive selling agent in Hong Kong and Macau, aiming to increase sales and market penetration[24]. - The Group is focusing on cost control, supply chain optimization, and developing new products to cater to evolving consumer preferences[25]. - The Group aims to strengthen its market competitiveness and adapt to the changing business environment through strategic planning[15]. - The Group plans to explore overseas opportunities and widen its product offerings to adapt to market demands[80]. - The Group plans to expand its sales network by seeking overseas opportunities and broadening its product offerings to meet diverse customer needs[84]. - The Group will implement strict cost control measures to mitigate the impact of rising operating costs due to inflation[89]. - The Group aims to accelerate new product development to achieve higher profit margins amidst challenging market conditions[89]. Investment and Partnerships - The group holds a 29.99% equity interest in Four Seas Mercantile Holdings Limited (FSMHL), which is a strategic investment in the food business[35]. - FSMHL's share of profit for the financial year ended March 31, 2024, was HK$10,393,000, down from HK$12,214,000 in 2023[39]. - The acquisition of Miyata Co., Ltd. has enabled FSMHL to introduce foods produced in the Chinese Mainland into the Japanese market, enhancing synergies and market connections[38]. - FSMHL continues to hold a 29.99% equity interest in FSMHL as a strategic investment in the food business[51]. - The acquisition of Miyata has expanded FSMHL's food agency business by introducing foods produced in the Chinese Mainland into the Japanese market[51]. Product Development - The Group's frozen meats trading segment expanded its product portfolio to include a wider range of high-quality frozen meat products[24]. - The frozen meat trading division has expanded its product range to include high-quality frozen meat products, responding to increasing market demand for Japanese Hokkaido pork[28]. - The introduction of diverse Japanese food products, including ice cream, eggs, milk, tofu, and rice, has generated stable income sources for FSMHL[37]. Financial Ratios and Metrics - The ratio of operating expenses to sales increased to 24.4%, primarily due to a decrease in sales from both trading and catering businesses driven by the economic downturn[51]. - Operating expenses to sales ratio increased to 24.4% from 21.8% in 2023[77]. - The Group's gearing ratio increased to 6% as of March 31, 2024, up from 4% in 2023[59]. - The Group's inventory turnover days were 90 days, with closing inventory amounting to approximately HK$43,182,000, reflecting a decrease in demand for high-quality frozen meats due to changing consumer behavior[51]. Corporate Governance - The Group's financial statements are prepared in accordance with the applicable HKFRSs, ensuring compliance with accounting standards[118]. - The Group's accounting policies have been updated to reflect changes in HKFRSs, with no significant impact expected on the financial statements[129]. - The Group emphasizes food quality and hygiene, achieving numerous accreditations that reflect its commitment to high standards[53]. - The Group has applied amendments on temporary differences related to leases, which did not have a significant impact on the overall deferred tax balance[123].
香港食品投资(00060) - 2024 - 年度财报