Financial Performance - The total amount of loans provided increased by approximately 4% from HKD 560.75 million to HKD 585.07 million[11]. - Revenue from the food business decreased by about 4% to HKD 119.06 million, down from HKD 124.66 million in the previous year[12]. - The food business recorded an increased segment loss of approximately HKD 2.67 million, compared to HKD 1.30 million in the previous year[12]. - The group achieved a gain of approximately HKD 7.77 million from the sale of financial assets measured at fair value through profit or loss[13]. - The wine business recorded revenue of approximately HKD 109.74 million, with a segment profit of about HKD 10.27 million, compared to approximately HKD 52.91 million and HKD 3.04 million in the previous year, representing an increase of 107.5% in revenue and 237.8% in profit[16]. - The group recorded a segment profit reduction to approximately HKD 1.65 million, down from HKD 10.35 million in 2018[32]. - The group's total revenue for the year was approximately HKD 230.69 million, representing a 25% increase compared to the previous year[40]. - The group’s loss attributable to owners improved to approximately HKD 53.42 million from HKD 97.37 million in the previous year[41]. - The company raised approximately HKD 33.2 million through a rights issue, with planned uses including repayment of HKD 30.12 million for notes and HKD 3.08 million for general working capital[50]. Business Segments - The dessert business segment reported a loss of approximately HKD 28.60 million from the group's share of the dessert joint venture[15]. - The food business revenue decreased from approximately HKD 124.66 million to about HKD 119.06 million, reflecting a decline of around 4% due to a reduction in the number of specialty stores and increased operational costs[30]. - The group's share of losses from the dessert business was approximately HKD 28.60 million, compared to HKD 19.19 million in 2018[35]. - The dessert business operated nine restaurants in China as of December 31, 2019, up from six in 2018, through local business partners[35]. - The cost of goods sold for the wine business was approximately HKD 90.25 million, which accounted for 82% of the wine business revenue[42]. Investment and Growth Strategies - The board is actively seeking potential investment opportunities to diversify the business portfolio and expand revenue sources, aiming to improve operational and financial conditions[18]. - The company plans to establish long-term partnerships with multiple potential suppliers to gain cost advantages and expand its product portfolio in the wine business[16]. - The company aims to diversify its existing business and expand revenue sources, particularly in the wine business, which has shown positive performance and growth potential in Hong Kong[44]. - The company is actively seeking acquisition opportunities to enhance its wine business and expand its customer base[44]. - The group completed the acquisition of the Palida Group, enhancing its wine business sales capabilities, with a guaranteed profit of no less than HKD 10 million for the fiscal year ending March 31, 2019[37]. Risk Management - The group faces significant risks from the COVID-19 pandemic, which has adversely affected the business environment, particularly in Hong Kong and mainland China[69]. - The lending business is exposed to credit risk, as clients may default on loans, potentially impacting the group's financial condition and profitability[70]. - The group has established procedures to identify and mitigate significant risks that could adversely affect operations and performance[69]. - The group has not identified any major risks beyond those disclosed in the financial statements, but acknowledges the potential for unknown risks to emerge[69]. - The wine business may experience cost fluctuations due to climate change and extreme weather events affecting grape quality and supply[79]. Corporate Governance - The role of the chairman and CEO is clearly separated to ensure independence and accountability[137]. - The audit committee consists of three independent non-executive directors as of December 31, 2019[132]. - The company has adopted various policies to ensure compliance with the corporate governance code[135]. - The company has undergone several changes in its board of directors during the year, with multiple appointments and resignations[116]. - The company has adopted a board diversity policy in 2013, revised in 2018, to enhance board effectiveness through various factors including gender, age, and professional experience[144]. Compliance and Regulations - The company has maintained compliance with relevant laws and regulations, with no significant violations reported during the year[84]. - The company ensures compliance with the latest developments in GEM listing rules and other applicable regulations[148]. - The independent auditor's report confirmed that the financial statements were free from material misstatement due to fraud or error[198]. - The board of directors is responsible for ensuring the financial statements are prepared in compliance with applicable regulations and internal controls[198]. Employee and Stakeholder Relations - The company has over 220 employees as of December 31, 2019, down from 250 in 2018, and offers competitive compensation and training programs to retain talent[58]. - The company offers a competitive compensation package to attract and retain high-quality employees, with regular reviews based on market conditions and individual qualifications[108]. - The company recognizes the importance of maintaining good relationships with suppliers, customers, and stakeholders for achieving both immediate and long-term goals[85]. - The company encourages two-way communication with shareholders and potential investors, ensuring timely access to relevant information[176]. Financial Position - As of December 31, 2019, the company's equity attributable to owners was approximately HKD 360.32 million, an increase from HKD 348.99 million in 2018[48]. - The company's cash balance as of December 31, 2019, was approximately HKD 4.08 million, a decrease of about 44% from HKD 7.22 million in 2018[49]. - The debt-to-equity ratio as of December 31, 2019, was approximately 20%, a slight decrease from 21% in 2018[52]. - The company's distributable reserves as of December 31, 2019, were approximately HKD 251,337,000, a decrease from HKD 283,051,000 in 2018[90]. Future Outlook - The group is committed to ongoing business expansion and revenue growth strategies as part of its future outlook[195]. - The company plans to close underperforming food retail locations while seeking new high-traffic locations for expansion[44]. - The management will continue to monitor the impact of COVID-19 on business performance and financial conditions, as the pandemic has adversely affected the global business environment[46].
百利达集团控股(08179) - 2019 - 年度财报