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].
翠华控股(01314) - 2019 - 年度财报