Financial Performance - For the fiscal year ended March 31, 2020, the company reported revenue of HKD 68,837,000, a decrease of 25.8% from HKD 92,662,000 in the previous year[14]. - The company experienced a pre-tax loss of HKD 66,867,000, compared to a pre-tax loss of HKD 15,909,000 in the prior year, indicating a significant decline in profitability[14]. - The total comprehensive loss attributable to owners of the company was HKD 65,476,000, up from HKD 18,377,000 in the previous year, reflecting the adverse impact of social unrest and the COVID-19 pandemic[14]. - The group recorded a loss of approximately HKD 67.9 million for the year ended March 31, 2020, compared to a profit of approximately HKD 17.4 million in the same period in 2019[47]. - The group's gross profit for the year ended March 31, 2020, was approximately HKD 55.0 million, a decrease of about 27.3% from approximately HKD 75.7 million for the year ended March 31, 2019[33]. - Other income and gains increased by approximately 34.2% to about HKD 5.5 million for the year ended March 31, 2020, from approximately HKD 4.1 million for the year ended March 31, 2019[35]. - The cost of goods sold decreased by approximately 17.8% from about HKD 16.9 million for the year ended March 31, 2019, to about HKD 13.9 million for the year ended March 31, 2020[32]. - Administrative expenses increased by approximately 13.2% to about HKD 28.3 million for the year ended March 31, 2020, from approximately HKD 25.0 million for the year ended March 31, 2019, mainly due to increased marketing and promotional expenses[42]. - Employee costs remained stable at approximately HKD 32.8 million and HKD 33.7 million for the years ended March 31, 2019, and 2020, respectively[36]. Assets and Equity - As of March 31, 2020, total assets decreased to HKD 99,595,000 from HKD 165,718,000 in the previous year, representing a decline of 40%[14]. - Total equity fell to HKD 58,100,000 from HKD 133,762,000, a decrease of 56.5% year-on-year[14]. - The company reported a net current asset value of HKD 17,280,000, down from HKD 73,658,000 in the previous year, indicating liquidity challenges[14]. - As of March 31, 2020, the group's cash and cash equivalents were approximately HKD 39.5 million, a decrease of about 29.0% from HKD 55.6 million as of March 31, 2019[79]. - The total borrowings of the group as of March 31, 2020, were approximately HKD 26.2 million, an increase from approximately HKD 10.1 million as of March 31, 2019[81]. - The capital debt ratio as of March 31, 2020, was approximately 45.3%, significantly up from about 8.0% as of March 31, 2019[83]. Business Strategy and Expansion - The company plans to adopt a conservative business strategy to navigate the uncertain economic environment and seek opportunities to strengthen its restaurant operations in Hong Kong[10]. - The company aims to expand its restaurant network at Hong Kong International Airport and in urban areas, as well as enter the Asian leisure dining market[10]. - The company is focused on enhancing its brand portfolio and expanding its operational scope in the dining industry to align with the interests of its shareholders[10]. - The company aims to strengthen its position in the Hong Kong International Airport while seeking opportunities to expand its business in urban areas[30]. - The group is actively seeking opportunities to establish franchises or partnerships with popular restaurant brands to expand its business[73]. - The group plans to continue monitoring and exploring market opportunities in Asia for future expansion[73]. Impact of External Factors - The ongoing protests and pandemic have significantly impacted consumer confidence and dining demand, leading to a deterioration in financial performance[30]. - The economic growth in Hong Kong has been severely affected by protests and the pandemic, with GDP contracting by 8.9% in Q1 2020[17]. - The financial performance for the fiscal year 2020 was adversely affected by the anti-extradition protests and the COVID-19 pandemic, prompting the board to adopt a conservative business strategy[50]. - Approximately 25% of the company's revenue is generated from restaurants located in urban Hong Kong, making it susceptible to future developments in the area[64]. - The company has faced a decline in recent revenues due to the pandemic and social unrest caused by protests[64]. Corporate Governance - The company was successfully listed on the GEM of the Stock Exchange on August 8, 2016, emphasizing the importance of transparency and accountability for listed companies[120]. - The company has adopted the Corporate Governance Code as per the GEM Listing Rules, ensuring compliance with high standards of corporate governance[120]. - The board of directors includes experienced professionals with over 20 years of experience in finance and accounting, enhancing the company's governance structure[109][114]. - The company has a dedicated audit committee to oversee financial reporting and internal controls, ensuring accuracy and reliability in financial disclosures[120]. - The company emphasizes the importance of independent non-executive directors in its governance framework, ensuring diverse perspectives in decision-making[120]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring compliance with GEM listing rules[123]. - The company has established four board committees, including the audit committee, to oversee various governance responsibilities[131]. - The audit committee is chaired by an independent non-executive director and is tasked with reviewing the independence of external auditors[133]. - The company has adopted a code of conduct for securities trading by directors, with no violations reported during the fiscal year[122]. - The board is responsible for maintaining high standards of corporate governance, including the review of policies and compliance with legal regulations[126]. Employee and Operational Management - The group had 98 employees as of March 31, 2020, down from 131 employees as of March 31, 2019, mainly due to restaurant closures[36]. - The group’s employees are considered its most important asset, with various training programs provided, including internal professional development and safety training[200]. - The company has committed to maintaining relationships with external investment managers, banks, and brokerage firms to manage its investment portfolio effectively[147]. Environmental and Social Responsibility - The group has maintained strict compliance with environmental regulations and promoted environmental awareness among employees[176]. - The group has established a continuous improvement environmental management system to implement strict monitoring[176]. - Donations made by the group amounted to approximately HKD 264,000 for the year ended March 31, 2020, compared to HKD 295,000 in 2019[193]. Future Outlook and Financial Planning - The company plans to utilize the unallocated portion of the net proceeds from the listing by March 31, 2021, to address future economic uncertainties[50]. - The company has allocated approximately HKD 64.79 million from previous share placements for potential acquisitions and general operating funds[54][55]. - The total unutilized net proceeds from the first and second placements amount to HKD 43.68 million, with specific allocations for operational expenses and property-related costs[60]. - The company has no significant contingent liabilities, compared to zero on March 31, 2019[89]. - The company has no foreign exchange contracts or financial derivatives for hedging purposes as of March 31, 2020[91].
皇玺集团(08300) - 2020 - 年度财报