Financial Performance - The Group recorded a consolidated revenue of approximately HK$85.4 million for the year ended 31 March 2019, representing a decrease of approximately HK$1.5 million or 1.8% from last year's revenue of approximately HK$86.9 million[16]. - The audited consolidated loss attributable to shareholders for the year was approximately HK$12.8 million, compared to a net loss of approximately HK$8.9 million in the previous year[14]. - The net loss for the year increased due to a drop in revenue and an increase in rental and staff expenditures[24]. - For the year ended 31 March 2019, the Group recorded consolidated revenue of approximately HK$85.4 million, representing a decrease of 1.8% from the previous year's revenue of approximately HK$86.9 million[31]. - The net loss for the Group increased to approximately HK$12.8 million for the year under review, compared to a net loss of approximately HK$8.9 million for the previous year, reflecting an increase of approximately HK$3.9 million[31]. Revenue Sources - The restaurant business continued to be the major contributor to the Group's revenue, although there was a notable decrease in revenue in the second half of the year due to a challenging operating environment[17]. - Revenue from Hover City Chiu Chow Restaurant decreased by approximately HK$4.9 million, significantly impacted by a competitive operating environment and a five-week renovation starting in mid-March 2019[32]. - The Tsim Sha Tsui branch's revenue improved by approximately HK$3.4 million, recovering from a previous three-week closure for kitchen maintenance in April 2017[32]. - The Group's restaurant business remains the core business and is expected to provide a stable source of revenue[25]. Cost Management - The Group plans to implement more cost control measures while maintaining the quality of food and services to address the increased net loss due to rising rental and staff expenditures[24]. - The Group's gross profit margin was negatively impacted by a loss of profit margin of approximately HK$1.5 million due to reduced revenue, alongside increased rental costs of approximately HK$1.4 million and staff costs of approximately HK$0.8 million[33]. - Total staff costs, including directors' emoluments, reached approximately HK$35.8 million for the year under review, an increase from HK$34.9 million in the previous year[42]. - The restaurant business remains the core operation, but the Group will continue to monitor operating costs due to rising rentals and increasing food and staff costs[48]. Corporate Governance - The Board has resolved not to recommend the payment of a final dividend for the year ended 31 March 2019[15]. - The Company did not have formal letters of appointment for certain directors, but all directors are required to follow guidelines from the Companies Registry and the Hong Kong Institute of Directors[55]. - The Board consists of four executive directors and three independent non-executive directors, with a recent change in the independent non-executive director position[60]. - The Company has complied with the Listing Rules regarding the number of independent non-executive directors, maintaining at least one-third representation since December 2012[70]. - The directors acknowledge their responsibility for preparing financial statements that reflect the Group's financial position accurately and in accordance with applicable standards[71]. Risk Management - The Board recognizes its overall responsibility for establishing and reviewing risk management and internal control systems to ensure the reliability of financial and operational information[75]. - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[75]. - The Group's risk management and internal control systems are deemed adequate and effective following an annual review by the Board and the audit committee[81]. Shareholder Relations - The Company encourages direct communication with shareholders and provides contact details for inquiries[113][115]. - Shareholders holding at least one-tenth of the paid-up capital can request a special general meeting[122]. - The company regularly monitors and reviews the process of general meetings to ensure shareholders' needs are met[117]. - The board members and external auditors attend annual general meetings to address shareholders' questions[118]. Compliance and Ethics - The Company emphasizes compliance with legal and regulatory requirements in its corporate governance practices[120]. - The Company has adopted the "Guidelines on Disclosure of Inside Information" to handle and disseminate inside information, with strict prohibition on unauthorized use of confidential information[80]. - The Company confirmed compliance with the Model Code for Securities Transactions by Directors, with all directors affirming adherence to the required standards during the year[59]. Business Development - The Group is actively seeking suitable investment opportunities for business diversification across different industry sectors[26]. - The Group aims to enhance shareholder value through business diversification and by identifying new business opportunities[47]. - The Group will regularly review and revise its business strategies to better position itself for future challenges and potential acquisition opportunities[48]. Sustainability and Community Engagement - The Company is committed to sustainable development and adheres to environmental protection laws and regulations[162]. - The Group made charitable donations of HK$20,000 during the year, consistent with the previous year[169]. - There were no material breaches of applicable laws and regulations that significantly impacted the Group's business and operations during the year[158].
环科国际(00657) - 2019 - 年度财报