Financial Performance - Total revenue for the year ended March 31, 2020, was approximately HKD 81.1 million, a decrease of about 25.4% compared to HKD 108.7 million in 2019[5] - Loss attributable to owners for the year was approximately HKD 56.4 million, significantly increased from HKD 12.3 million in 2019[5] - The decline in revenue was primarily due to social events since June 2019 and the outbreak of COVID-19[5] - The group's revenue decreased by approximately 25.4% from about HKD 108.7 million for the year ended March 31, 2019, to about HKD 81.1 million for the year ended March 31, 2020[19] - Revenue from external customers was HKD 81.1 million, with HKD 67.0 million from Hong Kong, HKD 9.0 million from China, and HKD 5.1 million from Macau[20] - The group reported a loss of approximately HKD 56.4 million for the year ended March 31, 2020, an increase from a loss of HKD 11.3 million for the year ended March 31, 2019[34] Cost Management - Cost of inventory decreased by approximately 19.3% from about HKD 22.6 million to about HKD 18.2 million, maintaining a stable ratio of cost to total revenue[21] - Employee costs increased by approximately 8.6% from about HKD 31.3 million to about HKD 34.0 million, representing 42.0% of total revenue, up from 28.8%[24] - Rental and related expenses decreased by approximately HKD 14.0 million or 70.8% due to the adoption of HKFRS 16, with depreciation of right-of-use assets recorded at about HKD 16.4 million[25] - Depreciation and amortization expenses increased by approximately 33.9% to about HKD 8.1 million, driven by new restaurant openings and additional asset depreciation[26] - Other expenses rose by approximately 55.7% from about HKD 14.1 million to about HKD 22.0 million, primarily due to new restaurant operations and increased utility costs[27] - The company is implementing various cost control measures to maintain competitiveness and restore profitability amid a challenging operating environment[6] Business Operations - The company closed several loss-making restaurants in Hong Kong and China to mitigate losses and better allocate resources[6] - The group operates nine ramen restaurants in Hong Kong and China as of the report date[12] - A new restaurant in Nanchang is expected to open in July 2020, and a new restaurant in Tseung Kwan O opened in September 2019[7] - The company introduced a new ramen brand from Japan and opened a franchised restaurant in Sha Tin in October 2019[7] - The company is collaborating with independent online delivery platforms to capitalize on the growing demand for takeout in the food industry[9] Employee Relations - The group has maintained good relationships with employees, customers, and suppliers, which are crucial for operational success[18] - As of March 31, 2020, the group had a total of 133 employees, down from 185 employees as of March 31, 2019, with employee costs amounting to approximately HKD 34.0 million, an increase from HKD 31.3 million in 2019[49] Financial Position - As of March 31, 2020, the group's cash and bank balances amounted to approximately HKD 37.7 million, a decrease of approximately HKD 46.8 million from HKD 84.5 million as of March 31, 2019[35] - The group's current ratio was approximately 1.9 times as of March 31, 2020, down from approximately 4.7 times as of March 31, 2019[36] - The group's total interest-bearing bank borrowings were approximately HKD 2.6 million as of March 31, 2020, compared to HKD 3.4 million as of March 31, 2019[36] - The group had no significant contingent liabilities or guarantees that could adversely affect its business or financial condition as of March 31, 2020[39] Shareholder Information - The group did not declare or recommend any dividends for the year ended March 31, 2020[41] - The group has no significant future capital expenditure plans other than those disclosed in the report as of March 31, 2020[47] - The group has committed capital expenditures of HKD 2.25 million for purchases and installations as of March 31, 2020[48] - The company reported a total available reserve for distribution to shareholders of approximately HKD 17.3 million as of March 31, 2020[98] - The board of directors does not recommend the distribution of a final dividend for the fiscal year ending March 31, 2020[85] Corporate Governance - The board is responsible for the group's environmental, social, and governance strategies and reporting[15] - The company has established a compensation committee to review the compensation policy based on operational performance and market practices[112] - The board of directors includes Mr. Tang Zhenhao as the CEO and Mr. Tang Qingzhi as the Chairman[100] - The company has maintained good corporate governance practices, believing it is essential for enhancing shareholder value and business development[135] - The board consists of a balanced mix of executive and independent non-executive directors, with independent directors exceeding one-third of the board's composition[143] Risk Management - The company has established risk management procedures, including annual risk identification and assessment, with results documented for board and management review[182] - The company has established a risk identification and assessment framework to evaluate significant risks that may impact the achievement of its objectives[184] Future Outlook - The company is actively seeking potential business opportunities and partnerships to expand revenue sources and enhance shareholder returns[54] - The company aims to improve operational efficiency and has invested HKD 2.030 million in upgrading office equipment and systems, with HKD 1.648 million already utilized[52] - The company has initiated marketing activities to enhance brand awareness, with an allocated budget of HKD 2.4 million, of which HKD 2.147 million has been spent[52]
赏之味(08096) - 2020 - 年度财报