Financial Performance - For the fiscal year ending March 31, 2019, the total revenue of Simplicity Holdings Limited was approximately HKD 142.4 million, an increase from HKD 135.6 million in the previous year, representing a growth of about 6.0%[23] - The net loss attributable to owners for the year was approximately HKD 16.1 million, compared to a loss of HKD 12.2 million in the previous year, indicating an increase in losses of about 31.9%[23] - Total revenue for the year was HKD 142,407,000, compared to HKD 135,624,000 in the previous year, marking an increase of 5.8%[32] - Revenue increased by approximately 5.0% from about HKD 135.6 million for the year ended March 31, 2018, to about HKD 142.4 million for the year ended March 31, 2019, primarily due to the opening of six new restaurants[52] - The total number of customers visiting the restaurants decreased by 80,933 or 3.1% year-over-year, totaling 2,534,463 customers[27] - Average spending per customer increased from HKD 51.9 to HKD 56.2, representing a growth of 5.8%[27] Operational Changes - As of March 31, 2019, the company operated 14 restaurants under five self-owned brands, an increase from 10 restaurants in the previous year, marking a 40% growth in restaurant count[24][25] - During the fiscal year, the company opened six new restaurants, enhancing its brand portfolio and customer base[24] - The company closed one restaurant and rebranded three others after lease expirations, indicating a strategic shift in operations[24] - The restaurant count as of the report date was 13, showing a slight decrease from 14 due to closures and rebranding efforts[25] - The company closed two restaurants during the year due to their adverse financial performance, reallocating resources to other locations[49] Cost Management - Employee costs increased by approximately HKD 10.5 million, contributing to the overall loss[23] - Employee costs rose by approximately 21.5% to about HKD 59.4 million for the year ended March 31, 2019, driven by restaurant expansion and increased labor costs in Hong Kong[55] - Food costs rose from 27.2% to 28.2% of total revenue, reflecting increased operational expenses[23] - The cost of materials and consumables increased from about HKD 36.9 million to about HKD 40.2 million, representing approximately 27.2% and 28.2% of total revenue for the respective periods[54] - Other expenses increased by approximately 44.7% from about HKD 8.1 million to about HKD 11.7 million, mainly due to legal and professional fees related to compliance and the opening of new restaurants[56] Strategic Initiatives - The company aims to diversify its offerings and expand its customer base through new brand developments and restaurant openings[24] - The company introduced new brands, including "牛布拉" (Beef Brunch), "緣蝦壹麵" (Shrimp Noodle), and "峇峇娘惹" (Nyonya Cuisine), to expand its restaurant portfolio and capture more market share[28] - The company is optimistic about the prospects of a joint venture established for operating a frozen warehouse business[28] - The company is diversifying its operations by establishing a joint venture in the frozen warehouse business, with 50% ownership held by its wholly-owned subsidiary[51] - The company is undergoing a brand transformation for "Ma Sun Lok" to attract new customers, with a redesigned menu and restaurant theme[48] Governance and Compliance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied with all applicable provisions throughout the year ending March 31, 2019[76] - The board consists of eight directors, including three independent non-executive directors, ensuring a balance of skills and experience[77] - The company has implemented a board diversity policy to enhance the selection of candidates based on various diversity criteria, including gender and professional experience[80] - The company has received annual confirmations from controlling shareholders regarding compliance with non-competition commitments, with no interests in competing businesses reported for the year ending March 31, 2019[85] - The board has established three committees: the remuneration committee, nomination committee, and audit committee, each with defined responsibilities[102] Financial Position - The total assets decreased from HKD 116,640,000 to HKD 97,693,000, a decline of 16.2%[32] - Total liabilities decreased from HKD 33,069,000 to HKD 30,804,000, a reduction of 6.8%[32] - The net current assets decreased significantly from HKD 42,608,000 to HKD 18,716,000, a drop of 56.1%[32] - The group’s cash and bank balances were approximately HKD 21.8 million, down from HKD 49.2 million in the previous year[149] - The group’s trade and other receivables were approximately HKD 7.6 million, an increase from HKD 6.7 million in the previous year[149] Future Outlook - The company plans to continuously evaluate its business objectives and may revise its plans based on market conditions[177] - The company plans to expand its restaurant network, having signed a letter of intent for a new "Baba Nyonya" restaurant in Ngau Tau Kok, expected to open in October 2019[48] - The company will continue to closely monitor its cost structure and reduce expenses to enhance revenue and create more value for shareholders[29] - The company continues to monitor restaurant performance and aims to balance financial improvement with providing a pleasant dining experience[59] Shareholder Relations - The company encourages shareholder communication policies to improve relations with shareholders[92] - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[119] - The company regularly monitors and reviews its annual general meeting processes to meet shareholder needs effectively[120]
倩碧控股(08367) - 2019 - 年度财报