Business Operations - The company operates five restaurants in Hong Kong under the brands "Duo Xiao Yue," "Hanlin Tea House," and "Da Jia Taiwan" as of March 31, 2021[10]. - The company has expanded its own brand restaurant network at Hong Kong International Airport since 2005, including "Nosh Café & Bar" and "Coffee Express" among others[11]. - The company acquired franchise rights for two well-known dining brands in Hong Kong, "Duo Xiao Yue" and "Hanlin Tea House"[12]. - The company aims to strengthen its brand portfolio and expand its restaurant operations in Hong Kong and at the airport[12]. - The company is focused on seeking opportunities to launch well-known restaurant brands and expand its business presence[12]. - The company has a long history in the Hong Kong dining industry, with its first self-owned brand restaurant opening in 1993[11]. - The company operates various restaurant brands, with 100% ownership in several locations, including the "China Kitchen" at Hong Kong International Airport[19]. - The overall economic activity in Hong Kong remains below pre-recession levels due to the ongoing impact of the pandemic, affecting the restaurant industry significantly[17]. - The group recorded a loss of approximately HKD 3.5 million for the year ended March 31, 2021, compared to a loss of approximately HKD 67.9 million for the same period in 2020, primarily due to reductions in employee costs and depreciation expenses, as well as increased government subsidies[36]. - The group operates various restaurant brands in Hong Kong, including "Chinese Kitchen," "Taiwan Diner," and "Hanlin Tea Room," with multiple locations[198]. Financial Performance - The fiscal year ending March 31, 2021, was challenging due to the impact of the COVID-19 pandemic, prompting the company to adopt conservative business strategies[12]. - The company's revenue decreased by approximately 37.9% from about HKD 68.8 million in the year ended March 31, 2020, to about HKD 42.7 million in the year ended March 31, 2021[21]. - The pre-tax loss for the year ended March 31, 2021, was HKD 5.161 million, compared to a loss of HKD 66.867 million in the previous year[21]. - Total assets decreased from HKD 99.595 million in 2020 to HKD 89.922 million in 2021, a reduction of approximately 9.4%[21]. - The total equity decreased from HKD 58.1 million in 2020 to HKD 53.225 million in 2021, reflecting a decline of about 8.5%[21]. - The company's gross profit decreased by approximately 38.4% from HKD 54.9 million in 2020 to HKD 33.8 million in 2021[23]. - Other income increased by approximately 140.0% from about HKD 5.511 million in 2020 to about HKD 13.223 million in 2021, primarily due to government subsidies and rent reductions related to COVID-19[27]. - Employee costs decreased by approximately 39.2% from about HKD 33.7 million in 2020 to about HKD 20.5 million in 2021[28]. - The group has no distributable reserves as of March 31, 2021 (2020: none)[151]. - The group made donations amounting to approximately HKD 103,000 for the year ended March 31, 2021 (2020: HKD 264,000)[148]. Strategic Focus - The company is committed to enhancing its existing restaurant operations for the benefit of its shareholders[12]. - The company plans to adopt a conservative business strategy to support operations amid economic uncertainty and seek opportunities to expand its presence in Hong Kong[20]. - The company aims to strengthen its position in operating restaurants at Hong Kong International Airport and diversify its business in urban Hong Kong, seeking opportunities to introduce popular restaurant brands through franchising or other collaborations[67]. - The management maintains a cautious and prudent attitude towards profitability in the coming months, continuously monitoring business trends to identify favorable conditions for expansion[68]. - The company has adopted a conservative and prudent business strategy due to adverse impacts from economic recession and the pandemic, focusing on maintaining sufficient working capital for daily operations[68]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules, ensuring high standards of transparency and accountability[82]. - The board consists of three executive directors and three independent non-executive directors, maintaining a balanced governance structure[85]. - The company has complied with the corporate governance code for the year ending March 31, 2021, with the exception of deviation from code provision A.2.1[82]. - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the company for effective management[83]. - The company has a financial risk management framework in place, overseen by the finance director, to ensure sound financial planning and internal controls[80]. - The board is responsible for the overall management of the company, including leading and monitoring its operations[86]. - The company has established committees for audit, remuneration, nomination, and investment to enhance governance practices[88]. - Independent non-executive directors constitute at least one-third of the board, ensuring independence and compliance with GEM listing rules[89]. - The board held a total of 8 meetings and 1 annual general meeting during the fiscal year ending March 31, 2021, with all directors attending all meetings[92]. - The Audit Committee convened 5 meetings during the fiscal year, reviewing the financial results for the year ending March 31, 2020, and the quarterly results for the subsequent periods[101]. Risk Management - The group faces significant risks and uncertainties, including potential revenue fluctuations from seasonal factors and the impact of future developments in the Hong Kong urban restaurant sector[43][44]. - The group has established a risk management process that includes risk identification, assessment, management, and control[125]. - The company faces risks related to the commercial real estate leasing market, including potential high rental costs[46]. - The group’s credit risk is primarily associated with accounts receivable, deposits, and cash equivalents, with management implementing monitoring procedures to mitigate this risk[60]. Environmental, Social, and Governance (ESG) - The report covers the operational activities from April 1, 2020, to March 31, 2021, focusing on environmental, social, and governance (ESG) initiatives[198]. - The group aims to provide quality food and a comfortable dining environment while ensuring sustainable development for society and the environment[196]. - Management is committed to promoting environmental protection and corporate governance to achieve long-term goals[196]. - The ESG report outlines the group's efforts in managing its business impacts on the environment and society[197]. - The group emphasizes the importance of stakeholder communication regarding its ESG performance[197]. - The report includes a summary of sustainable practices implemented during the reporting period[197]. - The company encourages environmental protection and promotes environmental awareness among employees[145]. Shareholder Relations - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[135]. - The company’s website provides access to all corporate communications and governance documents, which will be updated regularly[133]. - The board does not recommend the payment of any final dividend for the year ended March 31, 2021 (2020: none)[143]. - The company aims to provide stable and sustainable returns to shareholders through its dividend policy, considering factors such as operating performance, cash flow, and financial condition[120].
皇玺集团(08300) - 2021 - 年度财报