Financial Performance - The total revenue for the year ended March 31, 2019, was approximately HKD 108.7 million, representing a year-on-year growth of about 9.1% compared to HKD 99.6 million in 2018[7]. - The company reported a loss attributable to owners of approximately HKD 12.3 million for the year, a significant decrease from a profit of HKD 13.0 million in 2018, primarily due to one-time listing expenses and initial operating costs of new stores[7]. - The group recorded a loss of approximately HKD 11.3 million for the year ended March 31, 2019, compared to a profit of about HKD 13.0 million for the year ended March 31, 2018, primarily due to one-time listing expenses of about HKD 23.5 million[32]. - Revenue from Hong Kong operations rose significantly to HKD 85.1 million in 2019 from HKD 74.0 million in 2018, while revenue from China decreased to HKD 17.7 million from HKD 19.9 million[19]. - Cost of goods sold increased by approximately 6.5% from about HKD 21.2 million in 2018 to about HKD 22.6 million in 2019, representing 21.3% and 20.8% of total revenue respectively[20]. - Employee costs rose by approximately 15.3% from about HKD 27.2 million in 2018 to about HKD 31.3 million in 2019, accounting for 28.8% of revenue[25]. - Rental and related expenses increased by approximately 19.5% from about HKD 16.6 million in 2018 to about HKD 19.8 million in 2019, representing 18.2% of revenue[26]. - As of March 31, 2019, the group's cash and bank balances amounted to approximately HKD 84.5 million, an increase of about HKD 69.4 million from HKD 15.1 million in 2018[33]. - As of March 31, 2019, the total current assets and current liabilities of the group were approximately HKD 92.4 million and HKD 19.6 million, respectively, resulting in a current ratio of about 4.7 times[34]. - The group had a debt-to-equity ratio of approximately 3.7% as of March 31, 2019, a significant decrease from 21.2% in the previous year[34]. - The company reported a significant increase in revenue, with a year-on-year growth of 25% in the last fiscal year[63]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 20%[63]. Business Operations - The company operates ten ramen restaurants in Hong Kong and China as of the report date[12]. - The company has introduced self-branded instant cup noodles to meet the growing demand for takeout in the food industry[8]. - The company has implemented multiple mobile payment platforms, such as WeChat Pay and Alipay, across its restaurants in Hong Kong and China to enhance customer payment convenience[8]. - The company plans to open several new stores in Hong Kong and expand its central kitchen to support growth[6]. - The management team focuses on high-quality ingredient sourcing, food preparation, and service quality control to enhance customer dining experiences[7]. - The company is actively assessing the overall market environment and responding to challenges posed by changing market conditions and intensified competition[7]. - The company is currently exploring suitable locations for business expansion and is researching appropriate social media platforms and marketing systems[51][52]. - The company aims to improve operational efficiency, targeting a 10% reduction in costs over the next year[63]. Financial Position and Capital Management - The net proceeds from the IPO on March 15, 2019, amounted to approximately HKD 46.1 million, with plans to allocate 60.6% for opening new branches in Hong Kong[51]. - The group has no significant contingent liabilities or major litigation that could adversely affect its business or financial condition as of March 31, 2019[39]. - The group has no major investments or acquisitions related to subsidiaries or associates during the year ended March 31, 2019[42]. - The group has no assets pledged as collateral for borrowings as of March 31, 2019[40]. - The company has not declared or recommended any dividends since its establishment, including for the year ended March 31, 2019[41]. - The company’s operational capital needs and future expansion plans are key considerations for dividend declarations[92]. - As of March 31, 2019, the company's distributable reserves amounted to approximately HKD 41.1 million[102]. Shareholder and Governance Structure - The board of directors includes both executive and independent non-executive members, with specific appointments made in 2018 and 2019[106]. - As of March 31, 2019, the company has a total of 341,250,000 shares held by major shareholders, representing 68.25% of the issued share capital[124]. - Major shareholders include Mr. Tang Zhenhao and Mr. Tang Qingzhi, each holding 341,250,000 shares, equating to 68.25% ownership[126]. - The company has established a non-competition agreement with major shareholders to prevent any potential competition in core business activities[133]. - The independent non-executive directors have confirmed their independence according to GEM Listing Rules[143]. - The company has established a remuneration committee to review the remuneration policies based on operational performance and market practices[120]. - The company has established a nomination policy to ensure a balanced skill set and experience on the board[162]. - The company emphasizes the importance of ongoing professional development for directors, providing training on the latest corporate governance practices[182]. Risk Management and Compliance - The company has established risk management procedures, including annual risk identification and assessment, with results documented for board and management review[196]. - The board is responsible for overseeing the internal control and risk management systems, which are reviewed at least annually for effectiveness[195]. - The company does not have an internal audit function but relies on its internal control system, which has been deemed effective by the audit committee and board[197]. - The audit committee reviewed the consolidated financial statements for the year ended March 31, 2019, and confirmed compliance with applicable accounting standards and GEM listing rules[187]. - The independent auditor's fees for audit services and non-audit services were approximately HKD 1.0 million and HKD 3.4 million, respectively, for the year ended March 31, 2019[192].
赏之味(08096) - 2019 - 年度财报