Financial Performance - For the year ended 31 March 2021, the revenue decreased by 65.6% to HK$224,081,000 compared to HK$650,801,000 in 2020[13]. - The loss attributable to owners of the Company increased by 10.6% to HK$124,269,000 from HK$112,371,000 in the previous year[13]. - The gross profit margin decreased to 74.3% from 76.6% in 2020[15]. - The net loss margin worsened to (55.5%) compared to (17.3%) in the previous year[15]. - The Group's gross profit decreased by approximately 66.6% from approximately HK$498.8 million for the year ended 31 March 2020 to approximately HK$166.6 million for the year ended 31 March 2021[48]. - The loss for the year increased by approximately HK$11.9 million, from HK$112.4 million for the year ended 31 March 2020 to HK$124.3 million for the year ended 31 March 2021[60]. Operational Challenges - During the year, the Group temporarily closed its restaurants to mitigate losses due to the COVID-19 pandemic[20]. - The Group faced significant operational challenges due to government-imposed restrictions on dining and gatherings[20]. - The management has taken decisive actions to close underperforming restaurants during the epidemic[23]. - The Group's management remains cautious in implementing its expansion plan due to the ongoing uncertainties related to COVID-19[38]. Restaurant Operations - The number of restaurants operated by the Group decreased from 18 at the beginning of the year to 11 at the end of the year, with 1 new restaurant opened and 8 closed during the reporting period[37][41]. - A new restaurant named "Sea Moon Cuisine" was opened in November 2020 to diversify revenue streams[24]. - The geographical advantage of the new restaurant location is expected to enhance revenue after customs clearance resumes between Mainland China, Hong Kong, and Macau[24]. - The Group plans to continue conducting feasibility studies to identify suitable locations for new restaurant openings in preparation for economic recovery[29][31]. Financial Ratios and Borrowings - The gearing ratio significantly increased to 125.9% from 32.4% in 2020[15]. - As at 31 March 2021, the Group's total borrowings amounted to approximately HK$64.0 million, up from HK$44.8 million in 2020[69]. - The current ratio as of March 31, 2021, was approximately 0.9 times, up from 0.8 times in 2020[73]. - The debt-to-equity ratio rose significantly to approximately 125.9% as of March 31, 2021, from 32.4% in 2020, primarily due to losses incurred during the year[74]. Cost Management - The cost of food and beverages decreased by approximately 62.2%, from approximately HK$152.0 million for the year ended March 31, 2020, to approximately HK$57.5 million for the year ended March 31, 2021[43]. - The cost of food and beverages as a percentage of revenue increased from 23.4% for the year ended March 31, 2020, to approximately 25.7% for the year ended March 31, 2021[43]. - Staff costs decreased by approximately 60.1%, from approximately HK$232.2 million for the year ended March 31, 2020, to approximately HK$92.6 million for the year ended March 31, 2021[49]. - The percentage of staff costs to revenue increased to approximately 41.3% for the year ended 31 March 2021, up from 35.7% in 2020[49]. - Property rentals and related expenses decreased by approximately 25.3%, from approximately HK$66.8 million for the year ended March 31, 2020, to approximately HK$49.9 million for the year ended March 31, 2021[50]. Shareholder Information - The Board does not recommend a final dividend for the financial year ended March 31, 2021, due to challenging business conditions and low-season cash flow requirements[106]. - As of March 31, 2021, the issued share capital of the Company was 1,150,000,000 ordinary shares at HK$0.01 each[144]. - The Company's reserves available for distribution as of March 31, 2021 totaled approximately HK$38,649,000, down from HK$83,687,000 in 2020[155]. - The Company did not purchase, redeem, or sell any of its listed securities during the year[148]. Corporate Governance and Compliance - The Group has established a restaurant licensing compliance committee to oversee compliance with necessary licenses and permits for operations[126]. - The Group is committed to ESG policies, ensuring compliance with applicable laws and focusing on sustainability and corporate social responsibility initiatives[128]. - The Company has taken measures to indemnify Directors against actions incurred in the execution of their duties[179]. Employee Relations - The Group maintained a good relationship with its employees, providing competitive remuneration and continuous training[161]. - There were no material disputes between the Group and its employees, suppliers, or customers during the Reporting Year[162].
维力生活科技(01703) - 2021 - 年度财报