Economic Performance - The company reported a significant recovery in the local economy, with a GDP growth of 7.9% year-on-year in the first quarter of 2021[14]. - The restaurant industry in Hong Kong saw total revenue estimated at HKD 79.4 billion in 2020, a year-on-year decline of 29.4%[143]. - The first quarter of 2021 saw an estimated revenue of HKD 19.7 billion for the restaurant industry, a year-on-year decline of 8.8%[143]. - The group anticipates global economic growth of 6% in 2021, with a slowdown to 4.4% in 2022, highlighting the ongoing uncertainty due to the pandemic[156]. Business Strategy and Operations - Despite challenges in the restaurant industry, the main brand Italian Tomato performed satisfactorily, contributing substantial revenue during the reporting period[16]. - The company strategically adjusted its business model to expand takeaway and delivery services, responding to increased demand due to social distancing measures[15]. - The company plans to strategically expand its cake shop business due to strong performance and market opportunities[16]. - The electronic cigarette business is being developed, with the company optimistic about its market potential despite slower-than-expected progress[18]. - The group plans to strategically deepen its takeaway business and collaborate closely with leading third-party delivery platforms to capture the growing demand for delivery services[157]. - The group aims to invest more in the healthcare sector following the acquisition of a 70% stake in Huayin Biotechnology, focusing on strategic partnerships with beauty salons, hospitals, and pharmacies[158]. Financial Performance - The audited revenue for the reporting period was approximately HKD 187.9 million, a decrease of about 0.1% compared to HKD 188.1 million in the previous fiscal year[141]. - The profit attributable to the company's owners was approximately HKD 2.5 million, a turnaround from a loss of HKD 23 million in the previous year[141]. - Other income increased by 236.4% to approximately HKD 18,500,000, primarily due to government subsidies totaling about HKD 15,500,000[163]. - Operating expenses decreased by approximately 6.7% to about HKD 120,100,000, aligning with the reduction in revenue[164]. - The gross profit margin for the group's operations was approximately 58%, down from about 62% in the previous year, primarily due to rising food costs and discounts offered for takeaway services[162]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[26]. - The company has adhered to the GEM listing rules regarding the appointment of at least three independent non-executive directors throughout the reporting period[27]. - The independent non-executive directors provide strategic advice to management and ensure high standards of financial and statutory reporting[31]. - The company is committed to maintaining high standards of corporate governance and continuously reviews its governance practices[24]. - The chairman and CEO roles are clearly defined and not held by the same individual, ensuring proper governance practices are in place[35]. Risk Management and Internal Controls - The board is committed to maintaining effective risk management and internal control systems to protect shareholder interests and group assets[66]. - The company has engaged external consultants to review the effectiveness of its risk management and internal control systems during the reporting period[68]. - The board believes that the risk management and internal control systems are effective and adequate, with sufficient resources and staff qualifications for accounting and internal audit functions[69]. Environmental and Social Responsibility - The company is committed to corporate social responsibility, balancing the interests of stakeholders while providing reliable and valuable services[87]. - Indirect greenhouse gas emissions from electricity consumption decreased to 1,068,800 kg CO2 equivalent in the fiscal year 2021 from 1,380,690 kg in 2020, representing a reduction of approximately 22.5%[106]. - The company has implemented various measures to enhance resource efficiency and reduce waste, including encouraging recycling and minimizing the use of plastic products[98]. - The company emphasizes the importance of biodiversity and aims to source sustainable food ingredients, including seafood from MSC-certified fisheries[104]. - The company recognizes the significance of stakeholder participation in enhancing its environmental, social, and governance standards[93]. Employee Management - As of March 31, 2021, the company had 201 employees in Hong Kong (up from 192 in 2020) and 30 employees in China (down from 83 in 2020)[108]. - The company has implemented regular reviews of employee compensation and benefits to address rising employee turnover rates due to increased market competition[109]. - The company emphasizes equal opportunities and diversity, ensuring no restrictions on hiring based on gender, age, nationality, sexual orientation, family status, race, or religion[110]. - The company provides internal and external training to enhance employee health and safety awareness, including regular fire drills and safety meetings[117]. Audit and Compliance - The audit committee held four meetings during the reporting period to review the group's annual, quarterly, and interim performance and financial statements[38]. - The Audit Committee reviewed and discussed the group's financial performance, risk management, and internal control systems during the review year[42]. - The company has implemented a policy for hiring external auditors for non-audit services to maintain independence[42]. - The company’s governance policies and practices were reviewed to ensure compliance with legal and regulatory requirements[44]. Market Trends - The electronic cigarette market in China grew significantly from RMB 550 million in 2013 to RMB 8.33 billion in 2020, with a compound annual growth rate of 72.5%[147]. - The global electronic cigarette market sales reached USD 42.4 billion in 2020, reflecting a year-on-year growth of 15.6%[147].
荣晖控股(08213) - 2021 - 年度财报