Company Overview - The company operates in the GEM market, which is designed for small to medium-sized companies with higher investment risks compared to other listed companies[1]. - The company is listed on the Hong Kong GEM with the stock code 8432, and the trading unit is set at 10,000 shares[11]. - The company’s headquarters and main operating location are situated in Hong Kong, specifically in Hung Hom[11]. - The company has undergone changes in its independent auditor, with Deloitte resigning on October 29, 2019, and Hong Kong Shinewing CPA Limited being appointed on October 30, 2019[10]. - The company confirms that the information in the annual report is accurate and complete, with no misleading or fraudulent elements[1]. Financial Performance - The group's operating profit before tax for bars was HKD 13.2 million, an increase of 30.7% compared to the previous year[14]. - The total revenue from bar operations for the year was HKD 167.0 million, representing an 11.1% increase from approximately HKD 150.3 million in the previous year[23]. - Same-store sales growth was recorded at 3.4% for the year[20]. - The number of operating stores increased to 40, up by 8.1% from 37 stores in the previous year[20]. - The gross profit for bar operations was HKD 128.9 million, a 10.5% increase from HKD 116.6 million in the previous year, with a stable gross margin of approximately 77.2%[23]. - Employee costs rose to approximately HKD 45.5 million, an increase of about 2% from HKD 44.7 million in the previous year[26]. - Depreciation expenses for property, plant, and equipment increased by approximately 12% to about HKD 9.3 million due to the opening of three new stores during the year[27]. - Other income for the year was approximately HKD 5.3 million, including government subsidies of HKD 3.2 million under the epidemic prevention fund[25]. - Property rental and related expenses decreased by approximately 77.9% from about HKD 29.8 million in the previous year to about HKD 6.6 million this year, primarily due to the adoption of HKFRS 16[28]. - Other operating expenses decreased by approximately 3.5% from about HKD 25.7 million to about HKD 24.8 million, mainly due to improved internal cost control[29]. - Financing costs increased dramatically to HKD 2.9 million from HKD 30,000 in the previous year, primarily due to new bank loan interest of HKD 0.4 million and lease liabilities interest of HKD 2.5 million[30]. - Tax expenses totaled HKD 1 million this year, down from HKD 1.5 million in 2019, with current tax expenses increasing to HKD 2.4 million due to higher operating profits[31]. - As of March 31, 2020, the group had capital commitments of HKD 900,000, compared to none in 2019[32]. - The group had no contingent liabilities as of March 31, 2020, consistent with the previous year[33]. - Cash and cash equivalents decreased to HKD 32.6 million from HKD 50.3 million in 2019, with bank borrowings of HKD 32.4 million reported for the first time[48]. Corporate Governance - The company has a diverse board of directors, including an independent non-executive director and various committees for audit, remuneration, and nomination[10]. - The company has a strong emphasis on governance, with independent directors serving on key committees to ensure accountability and transparency[60][61][62]. - The board consists of five members, with independent non-executive directors accounting for over 50% of the board, exceeding GEM listing rules requirements[80]. - The company has adopted and complied with all applicable code provisions of the corporate governance code as per GEM listing rules, except for the separation of the roles of chairman and CEO[77]. - The company is committed to identifying and establishing good corporate governance practices to enhance shareholder value[74]. - The board is responsible for overseeing the management of the group's business affairs and overall performance[78]. - The company has made appropriate insurance arrangements for legal liabilities of directors and senior management[82]. - The independent non-executive directors have confirmed their independence in accordance with GEM listing rules[81]. - The company has a balanced composition of executive and independent non-executive directors to ensure high independence and effective independent judgment[80]. - The board has established various committees to delegate responsibilities and ensure effective governance[78]. - The company has a diversity policy for the board, focusing on a balanced mix of skills, experience, and diverse perspectives to meet business needs[100]. - The company has established a clear process for nominating directors, considering various diversity aspects including gender, age, and professional experience[102]. - The company is committed to reviewing and monitoring compliance with legal and regulatory requirements as part of its corporate governance practices[113]. - The company has a structured succession plan for the board, ensuring a smooth transition and continuity in governance[102]. - The Audit Committee is responsible for reviewing the effectiveness of the internal control systems within the group[108]. - The company emphasizes the importance of training and continuous professional development for directors and senior management[113]. Shareholder Information - The board declared an interim dividend of HKD 0.55 per share, totaling HKD 4.73 million, an increase from HKD 4.3 million in the previous year[36]. - The board's dividend policy aims to balance shareholder profit sharing with sufficient liquidity for future growth opportunities[94]. - The company is committed to reviewing its dividend policy regularly, without guaranteeing specific amounts for any designated period[95]. - The board considers various factors, including financial performance and capital requirements, when deciding on dividend payments[97]. - The board proposed a final dividend of HKD 0.55 per share for the current year, totaling HKD 4,730,000, pending shareholder approval at the 2020 annual general meeting[132]. - The company reported a mid-term dividend of HKD 0.55 per share, totaling HKD 4,730,000, paid on December 11, 2019, compared to HKD 0.50 per share in 2019[132]. Risk Management - The board is responsible for evaluating and determining the nature and extent of risks involved in achieving the group's strategic objectives, maintaining effective risk management and internal control systems[116]. - The audit committee assists the board in overseeing the risk management and internal control systems, with annual reviews conducted by independent professional advisors[117]. Market Strategy - The company plans to maintain its core bar business and existing brand strategy to increase market share in Hong Kong, leveraging its established customer base[39]. - The company is actively pursuing market expansion strategies, leveraging its experienced management team to drive growth[57]. - The company has a commitment to developing new products and technologies to stay competitive in the market[57]. - The company is exploring potential partnerships and collaborations to enhance business development opportunities[57]. Compliance and Regulations - The company emphasizes compliance with GEM listing rules and corporate governance codes in its operations[86]. - The company has adopted the GEM listing rules regarding securities trading standards, confirming compliance by all directors for the year[123]. - The company has maintained compliance with relevant laws and regulations without any significant violations during the year[184]. - The compliance advisor, Choy Yau Capital Limited, has no relevant interests to disclose under GEM Listing Rules[152]. Social Responsibility - The company is committed to environmental protection through green office measures, including the use of energy-efficient LED lighting and electronic billing[186]. - The company has adopted a sustainable development strategy focusing on environmental sustainability, respect for human rights, and community relations[197]. - The group made charitable donations of approximately HKD 32,500 in the current year, compared to HKD 27,224 in 2019[182]. - The company has provided ongoing professional training to employees to enhance their skills and knowledge[189]. - The company has engaged in various activities to promote employee well-being and teamwork, including overseas trips and annual dinners[189]. - The company has conducted a comprehensive review of its environmental, social, and governance performance to improve overall results in the future[198].
太平洋酒吧(08432) - 2020 - 年度财报