Financial Performance - The company recorded revenue of approximately HKD 258.6 million for the fiscal year, a decrease of about HKD 4.2 million or 1.6% compared to the previous year[11]. - Profit attributable to owners of the company was approximately HKD 0.8 million, a decrease of about HKD 4.8 million or 85.7% from HKD 5.6 million in the previous year[11]. - The decrease in profit was primarily due to increased director remuneration and professional fees following the IPO[11]. - The company experienced closures of two restaurants during the year, impacting overall revenue[11]. - For the fiscal year ending March 31, 2019, the company's revenue was approximately HKD 258.6 million, a decrease of about HKD 4.2 million or 1.6% compared to HKD 262.8 million for the previous year[21]. - Gross profit for the fiscal year was approximately HKD 175.7 million, down by about HKD 2.6 million or 1.5% from HKD 178.3 million the previous year[23]. - The overall gross margin remained stable at approximately 67.8% and 67.9% for the years ending March 31, 2018, and March 31, 2019, respectively[24]. - Employee costs rose by approximately HKD 5.0 million or 6.8% to HKD 78.2 million, representing about 30.2% of revenue for the fiscal year ending March 31, 2019[28]. - Administrative expenses increased by approximately HKD 2.9 million or 14.4% to HKD 23.0 million, driven by increased professional fees post-IPO[34]. - The net profit for the fiscal year was approximately HKD 0.8 million, a decrease of about HKD 4.8 million or 85.7% from HKD 5.6 million the previous year[37]. Dividend and Shareholder Information - The company proposed a final dividend of HKD 0.015 per share, totaling HKD 15 million, subject to approval at the annual general meeting[13]. - The proposed final dividend is HKD 0.015 per share, totaling HKD 15 million, subject to shareholder approval[56]. - The board will continue to review the dividend policy and retains the discretion to update or modify it at any time[144]. - The total distributable reserves available to the company’s equity shareholders as of March 31, 2019, amounted to approximately HKD 26.8 million, compared to none in 2018[159]. Restaurant Operations and Expansion - The company plans to open a new restaurant under the "Hana" brand in Tung Chung, expected to commence operations in Q3 2019[14]. - The company aims to expand its restaurant network in Hong Kong by identifying strategically suitable locations[14]. - The company has a total of 11 restaurants operating as of the report date, including five "Mr. Steak" restaurants[10]. Financial Position and Cash Flow - The net proceeds from the IPO were approximately HKD 39.6 million, providing additional financial resources for business goals[9]. - As of March 31, 2019, the current ratio and quick ratio both stood at 2.3, significantly improved from 0.6 in 2018[39]. - The debt-to-equity ratio decreased to 27.4% in 2019 from 468.9% in 2018, indicating a stronger capital structure[39]. - Cash and cash equivalents increased to approximately HKD 65.8 million in 2019, up from HKD 15.8 million in 2018[39]. - Operating cash inflow for the year ended March 31, 2019, was approximately HKD 2.6 million, down from HKD 24.0 million in 2018[39]. - Total bank borrowings amounted to approximately HKD 16.9 million as of March 31, 2019, a slight decrease from HKD 18.6 million in 2018[40]. Corporate Governance - The board of directors is responsible for overseeing the management and overall performance of the group, ensuring adequate financial and human resources support to achieve goals[81]. - The board consists of six members, with independent non-executive directors making up 50% of the board, exceeding GEM listing rules requirements[82]. - All directors confirmed compliance with the trading standards set forth in GEM listing rules during the reporting period[78]. - The company has adopted and complied with all applicable provisions of the corporate governance code since its listing date[77]. - The board meets quarterly, with at least four regular meetings scheduled each year[90]. - The company provides training for directors to enhance their knowledge and skills related to their duties[88]. - The board has established committees to monitor operational and financial performance, ensuring appropriate internal controls and risk management measures are in place[81]. - The company has received independent confirmation of the independence of all independent non-executive directors during the reporting period[86]. - The board has authorized executive directors and senior management to implement strategies and manage daily operations[79]. - The company has arranged proper insurance for legal actions against directors' responsibilities[87]. Employee and Social Responsibility - The management team is focused on providing an "affordable luxury" dining experience with quality food and attentive service[14]. - The company has implemented various green measures to promote environmental and social sustainability, ensuring compliance with local environmental laws and regulations in Hong Kong[62]. - The company has a competitive compensation package for employees, including attractive salaries, benefits, and internal promotion opportunities[65]. - The company employed approximately 209 employees as of March 31, 2019, down from 256 employees in 2018, indicating a reduction of about 18.3%[65]. - The group made charitable donations totaling HKD 36,000 for the year ended March 31, 2019, down from HKD 686,000 in 2018[154]. Risk Management - The company faces risks related to rising minimum wage regulations in Hong Kong, which could increase employee costs[48]. - The company is committed to maintaining compliance with relevant laws and regulations that could significantly impact its business and operations[63]. - The company has established policies and procedures for risk management and internal control, with the board overseeing their effectiveness[127]. - An independent internal control consultant was appointed to assess the internal control system, concluding that there are no significant deficiencies[128]. Related Party Transactions - The company has confirmed that all related party transactions comply with GEM listing rules and have been conducted on normal commercial terms[177]. - The independent non-executive directors have reviewed the ongoing related party transactions and confirmed their fairness and reasonableness[174]. Share Option Scheme - The company has adopted a share option scheme approved by shareholders on March 23, 2018, but there were no unexercised options granted as of March 31, 2019[65]. - The total number of shares that can be issued under the share option plan is capped at 10% of the shares issued as of the listing date, which is equivalent to 100,000,000 shares based on 1,000,000,000 shares issued[200]. - The exercise price for any shares under the share option scheme will be determined by the board and must be at least the highest of the closing price on the grant date, the average closing price for the five trading days preceding the grant date, or the nominal value of the shares[198]. - The company may grant options exceeding the plan authorization limit only after obtaining shareholder approval, and such options can only be granted to specifically designated eligible persons[200].
MS CONCEPT(08447) - 2019 - 年度财报