Financial Performance - Total revenue for the year ended March 31, 2021, was approximately HKD 51.9 million, a decrease of about 36.0% compared to HKD 81.1 million in 2020[7] - The loss for the year was approximately HKD 13.4 million, reduced from HKD 56.4 million in 2020, primarily due to effective cost control measures and government subsidies[7] - Revenue from external customers in Hong Kong dropped from HKD 67.0 million in 2020 to HKD 46.6 million in 2021, a decline of approximately 30.5%[21] - Other income increased by about HKD 10.1 million, primarily due to government subsidies of approximately HKD 8.0 million and rent concessions of about HKD 2.7 million received during the pandemic[23] - The group recorded a loss of approximately HKD 1.121 million related to rental deposits for the year ended March 31, 2021, which was previously zero in 2020[31] - The impairment losses accounted for approximately 72.4% of the group's net loss for the year ended March 31, 2021, compared to 57.6% for the previous year[32] - The company reported a net income of HKD 28,716,000 for the six months ending March 31, 2021, with a total of HKD 46,146,000 in funds raised, indicating a utilization rate of approximately 62.1%[74] Cost Control Measures - The company implemented various cost control measures and closed underperforming restaurants to reduce losses and better allocate resources[9] - The company aims to maintain competitiveness and restore profitability through ongoing cost control measures[9] - Employee costs decreased by approximately 33.9% from about HKD 34.0 million in 2020 to about HKD 22.5 million in 2021, representing about 43.3% of revenue[25] - Rental and related expenses decreased by approximately 33.6% from about HKD 5.8 million in 2020 to about HKD 3.8 million in 2021[26] - Depreciation and amortization expenses decreased by approximately 54.7% from about HKD 27.5 million in 2020 to about HKD 13.4 million in 2021[27] - Other expenses decreased from approximately HKD 22.0 million for the year ended March 31, 2020, to approximately HKD 16.4 million for the year ended March 31, 2021, representing a reduction of about 25.3%[28] - The group implemented multiple cost control measures that contributed to the reduction in variable operating expenses[28] Operational Changes and Adaptations - The company launched a pre-packaged chilled ramen product in August 2020 to facilitate home consumption and minimize cross-infection risks[9] - The company expanded its takeaway network by developing a phone pickup service and collaborating with more independent online delivery platforms starting from August 2020[9] - The company opened a new store in Nanchang in August 2020 and introduced an electronic ordering system to enhance customer convenience[8] - The management team remains focused on quality control in ingredient sourcing, food processing, and service delivery to provide a memorable dining experience[12] - The company continues to adapt to the changing economic environment and is committed to developing new products[12] - The total number of customers visiting the group's restaurants decreased by approximately 50.5% compared to the previous year, significantly impacting revenue[36] - The ongoing COVID-19 pandemic has negatively impacted the group's business and financial performance, with risks of community outbreaks still high[57] Future Outlook and Expansion Plans - The expected revenue growth rate for the year ending March 31, 2022, is projected to be between 0% and 10.2%, with a gross profit margin range of 66.2% to 74.9%[40] - The company plans to open new branches in Hong Kong, with 60.6% of the net proceeds (approximately HKD 27.964 million) allocated for this purpose, of which HKD 12.853 million has been utilized[70] - The opening of two additional restaurants has been delayed by one year due to social events and the COVID-19 pandemic, with completion now expected by March 31, 2022[70] - The company is actively seeking suitable locations for new restaurant openings and monitoring the status of its central kitchen construction, which was completed and operational by June 2021[74] - The company is exploring potential partnerships to expand revenue sources and enhance shareholder returns[78] - The company has provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[89] - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[93] Corporate Governance and Management - The board is responsible for the group's environmental, social, and governance (ESG) strategies and reporting, ensuring compliance with relevant regulations[17] - The company has established a compensation committee to review the compensation policies based on operational performance and market practices[138] - The board consists of a diverse group of members, with independent non-executive directors exceeding one-third of the board, ensuring a balance of skills and experience[178] - The company has adopted a board diversity policy aimed at enhancing performance quality through diverse perspectives, including gender, age, and professional experience[180] - The nomination committee will oversee the implementation of the board diversity policy and review its effectiveness periodically[184] - The independent non-executive directors will consider the sustainability of profitability and alignment with the company's development strategy when evaluating new business opportunities[156] Shareholder Returns and Dividends - The board will consider various factors, including financial performance and operational capital needs, when proposing dividends[103] - The company has adopted a general dividend policy aimed at providing shareholders with a share of the group's profits, subject to certain conditions[102] - The board does not recommend the distribution of a final dividend for the year ending March 31, 2021[109] - The company reported a total available reserve for distribution to shareholders of approximately HKD 12.1 million as of March 31, 2021, down from HKD 17.3 million in 2020[121] - The board of directors has approved a dividend payout of HKD 0.10 per share, reflecting a commitment to returning value to shareholders[89] Employee Management - As of March 31, 2021, the group had a total of 111 employees, down from 133 employees as of March 31, 2020[69] - Employee performance bonuses are awarded based on various factors, including work experience and performance, as part of the compensation strategy[69] - The compensation committee meets at least once a year to discuss compensation-related matters for directors and senior management[141] - As of March 31, 2021, three senior management members received compensation in the range of HKD 500,001 to HKD 1,000,000[137] Risk Management - The group faced significant operational risks, including labor shortages and increased employee costs, which could impact future business performance[18] - The group has maintained good relationships with employees, customers, and suppliers, which are crucial for operational success[19] - The company is closely monitoring industry trends and economic developments to ensure optimal capital management and strategic planning[44]
赏之味(08096) - 2021 - 年度财报