Financial Performance - For the fiscal year ended March 31, 2019, the Group reported revenue of HK$92,099,000, a decrease of 25% from HK$122,653,000 in 2018[34]. - The Group experienced a loss before tax of HK$18,839,000, compared to a loss of HK$10,482,000 in the previous year[34]. - Total comprehensive loss attributable to owners of the Company was HK$20,561,000, up from HK$9,746,000 in 2018, indicating a significant decline in financial performance[34]. - The Group's total assets decreased to HK$66,920,000 in 2019 from HK$90,045,000 in 2018, reflecting a reduction in both current and non-current assets[34]. - Equity attributable to owners of the Company fell to HK$60,447,000 from HK$81,008,000, showing a decline of approximately 25%[34]. - Revenue for the year ended 31 March 2019 decreased by approximately HK$30.6 million to HK$92.1 million, down from approximately HK$122.7 million in 2018[44]. - Gross profit for the year ended 31 March 2019 decreased by approximately HK$14.2 million to HK$56.6 million, while gross profit margin increased by approximately 3.8% to 61.5%[47]. - Loss attributable to owners of the Company for the year ended 31 March 2019 was approximately HK$20.6 million, compared to approximately HK$9.7 million in 2018[53]. - Total liabilities decreased by approximately HK$2.5 million to HK$6.5 million, down from approximately HK$9.0 million in 2018[53]. Market Challenges - The fiscal year 2018/2019 was the toughest in CBK Holdings Limited's operating history due to weakened local consumption power influenced by the Sino-US trade war[21]. - The food and beverage industry remains challenging with rising costs in raw materials, high rental, and high labor costs, coupled with a shortage of manpower and high turnover rates[22]. - Increased competition in the hotpot market has led to saturation, affecting brand loyalty among customers[23]. - The Group anticipates that severe market competition and weakening local economy will continue to adversely affect its performance[24]. - The Group's management anticipates that ongoing market competition and a weak local economy will continue to adversely affect performance in the near future[37]. - Rising costs of raw materials, labor, and rent have been significant challenges impacting the Group's financial results[37]. Strategic Management - CBK Holdings Limited plans to maintain a prudent management approach, adjusting business strategies to balance restaurant expansion and closure of underperforming locations[24]. - The Group aims to adjust its business model to maintain competitive advantage in the hotpot market sector[24]. - The Group plans to maintain a prudent management approach and adjust its business strategies to adapt to industry changes and enhance competitiveness[37]. - The Group plans to maintain a prudent management approach and continuously adjust its business strategies in response to severe market competition and a weakening local economy[56]. - The Group intends to launch more new brands to meet growing customer expectations on dining experience[56]. Operational Adjustments - The Group closed three underperforming restaurants in 2018 and early 2019 to mitigate ongoing losses and focus resources on new brands[39]. - The introduction of the new brand "3H Island Fusion Pot" aims to enhance customer experience by offering both hotpot and barbeque cuisines in a modern setting[39]. - The Company opened only one new restaurant in Yau Tsim Mong district at a cost of approximately HK$8.9 million, despite plans to open five restaurants[60][62]. - A total of approximately HK$0.8 million was spent on establishing a new central kitchen, with the premises already equipped for food processing[65]. - The enhancement costs for three existing hotpot restaurants were approximately HK$1.4 million, HK$3.7 million, and HK$1.4 million respectively[65]. - Approximately HK$0.6 million was spent on upgrading the information technology system, with plans to utilize big data and mobile payment systems for targeted marketing[65]. - The new head office was relocated at a cost of approximately HK$1.5 million, effectively controlling relocation expenses[65]. Corporate Governance - The Company has fully complied with all applicable provisions of the Corporate Governance Code for the year ended March 31, 2019[122]. - The Board consists of two executive directors and three independent non-executive directors, ensuring compliance with GEM Listing Rules[126]. - The Company received annual confirmations of independence from all independent non-executive directors, affirming their compliance with independence guidelines[131]. - The Board Diversity Policy has been adopted and the Group achieved its objectives for diversity in the year ended March 31, 2019[129]. - The roles of the chairman and chief executive are separated, with Ms. Wong Wai Fong as chairman and Mr. Kwok Yiu Chung and Mr. Zhang Chi as chief executive officers[130]. - Continuous professional development for all directors is arranged to ensure their contributions remain informed and relevant[132]. - The Board will periodically review its corporate governance practices to align with statutory requirements and the latest developments[122]. - The Company has established various Board Committees to delegate responsibilities for day-to-day operations and business strategies[122]. Audit and Compliance - The audit committee held four meetings to review the Group's annual results and discuss corporate governance, internal control, and financial reporting matters[156]. - The audit committee is responsible for monitoring the integrity of financial statements and reviewing significant financial reporting judgments[155]. - The audit committee's comprehensive financial statements for the year ended March 31, 2019, were reviewed and approved[157]. - The audit committee consists of three independent non-executive directors, with Mr. Law Yui Lun serving as the chairman[151]. - The company ensures that all Board papers are sent to Directors at least three days before meetings to facilitate informed decision-making[140]. - The company complies with the Code Provision A.6.5 of the CG Code regarding Directors' training[138]. - The company provides sufficient resources to its Board committees to effectively discharge their duties[150]. - The Group does not currently have an internal audit function, as the Board believes there is no immediate need for one based on the effectiveness review conducted[198]. Management Team - The company has a strong management team with extensive experience in the restaurant and catering industry, including over 20 years for Mr. Chan and Mr. Kwok[105][114]. - Mr. Chan Yu Chi has been the Chief Financial Officer since January 2013, overseeing overall financial accounting and reporting[109]. - Mr. Zhang Chi appointed as Chief Executive Officer (China Business) on April 23, 2019, responsible for strategic development in China[107]. - Mr. Chan Chun Ming has over 20 years of experience in the restaurant industry, currently serving as the Human Resources and Administrative System Management Director since January 1, 2015[114]. - The management team has a diverse educational background, including degrees in business administration and electronic commerce[110][116].
国茂控股(08428) - 2019 - 年度财报