Financial Performance - Revenue for the six months ended September 30, 2019, was approximately HKD 121.6 million, a decrease of about HKD 11.8 million or 8.8% compared to HKD 133.4 million for the same period in 2018[7] - The company recorded a net profit of approximately HKD 1.0 million, compared to a net loss of approximately HKD 1.7 million for the six months ended September 30, 2018[7] - Operating profit decreased by approximately HKD 4.5 million or 81.8% to about HKD 1.2 million, excluding non-recurring listing expenses from the previous period[7] - Gross profit for the six months was approximately HKD 81.4 million, down from HKD 89.6 million in the same period last year[8] - Basic and diluted earnings per share for the six months was HKD 0.10, compared to a loss per share of HKD 0.18 for the same period in 2018[8] - Total comprehensive income for the period attributable to owners of the company was approximately HKD 1.0 million, compared to a loss of HKD 1.7 million in the previous year[8] - The company reported a total comprehensive income of HKD 1,018,000 for the six months ended September 30, 2019, compared to a loss of HKD 1,740,000 in the previous period[10] - The company reported a pre-tax loss of HKD 1.9 million for the six months ended September 30, 2019, compared to a profit in the same period of 2018[52] - The profit for the same period was approximately HKD 1 million, a decrease of about HKD 4.5 million or 81.8% compared to approximately HKD 5.5 million for the six months ended September 30, 2018, after excluding non-recurring listing expenses[69] Expenses and Costs - The company reported a decrease in employee costs to approximately HKD 37.8 million from HKD 38.1 million in the previous period[8] - Depreciation of property, plant, and equipment increased significantly to approximately HKD 21.6 million from HKD 2.7 million in the previous year[8] - The company incurred financing costs of approximately HKD 1.9 million, up from HKD 0.4 million in the same period last year[8] - The cost of goods sold for the six months ended September 30, 2019, was HKD 40.2 million, compared to HKD 43.8 million in 2018, reflecting a decrease of 8.8%[52] - Employee benefits expenses for the six months ended September 30, 2019, totaled HKD 18.6 million, slightly down from HKD 18.7 million in 2018[52] - Rental and related expenses significantly decreased by approximately HKD 20.8 million or 74.6% to HKD 7.1 million due to the adoption of HKFRS 16[79] - Administrative expenses decreased by approximately HKD 2.0 million or 16.9% to HKD 9.8 million, primarily due to reduced professional fees[82] - Financing costs increased by approximately HKD 1.4 million to HKD 1.9 million, mainly due to the recognition of lease liabilities interest following the adoption of HKFRS 16[83] - Income tax expense decreased by approximately HKD 0.7 million or 77.8% to HKD 0.2 million for the six months ended September 30, 2019[84] Assets and Liabilities - As of September 30, 2019, total assets minus current liabilities amounted to HKD 77,444,000, an increase from HKD 61,701,000 as of March 31, 2019[9] - Cash and cash equivalents decreased to HKD 51,700,000 as of September 30, 2019, down from HKD 65,804,000 at the beginning of the period[12] - Current liabilities totaled HKD 72,310,000 as of September 30, 2019, compared to HKD 35,656,000 as of March 31, 2019, indicating a significant increase in short-term obligations[9] - The company’s equity decreased to HKD 47,719,000 as of September 30, 2019, from HKD 61,701,000 as of March 31, 2019, reflecting a decline in retained earnings[10] - The company incurred a net cash outflow from financing activities of HKD 37,780,000 for the six months ended September 30, 2019, compared to an inflow of HKD 56,126,000 in the same period of 2018[12] - Trade receivables decreased to HKD 2,078,000 as of September 30, 2019, from HKD 3,096,000 as of March 31, 2019, suggesting improved collection efforts[9] - Trade payables as of September 30, 2019, totaled HKD 17,011,000, an increase from HKD 15,170,000 as of March 31, 2019[61] - The company had secured bank borrowings of HKD 14,205,000 as of September 30, 2019, down from HKD 16,879,000 as of March 31, 2019[62] Accounting Standards and Compliance - The group has adopted the new and revised Hong Kong Financial Reporting Standards effective from April 1, 2019, which includes HKFRS 16 on leases[20] - HKFRS 16 replaces HKAS 17 and introduces significant changes in accounting policies related to leases, impacting the recognition of right-of-use assets and lease liabilities[23] - The group applies a short-term lease exemption for leases with a term of 12 months or less, recognizing lease payments as expenses on a straight-line basis[26] - Right-of-use assets are recognized at the commencement date and measured at cost, less accumulated depreciation and impairment losses[27] - Lease liabilities are measured at the present value of unpaid lease payments at the lease commencement date, using the incremental borrowing rate if the implicit rate is not readily determinable[30] - The transition to HKFRS 16 did not have a significant impact on the financial performance and position of the group for the current and prior periods[20] - The group will reassess lease liabilities in case of lease modifications, using the revised discount rate to measure the remeasured lease liability[35] - Deferred tax related to lease transactions will be determined based on whether the tax deductions relate to right-of-use assets or lease liabilities[36] - The group has chosen to apply a practical expedient for contracts previously identified as leases under HKAS 17, without reassessing contracts that were not previously identified as leases[39] - As of April 1, 2019, the company recognized lease liabilities of approximately HKD 61.1 million and right-of-use assets of approximately HKD 62.9 million[41] - The weighted average incremental borrowing rate applied was 5.0%[41] Business Operations and Strategy - The company opened a new restaurant "Hana" in Tung Chung in August 2019, expanding its network to 12 restaurants in Hong Kong[70] - The company continues to evaluate its business objectives and may adjust its business plans in response to changing market conditions[88] - The company plans to allocate approximately 63.5% of the net proceeds, or HKD 25.1 million, for expanding its restaurant network in strategic locations across Hong Kong[86] Corporate Governance - The board of directors has confirmed compliance with the corporate governance code, except for the separation of roles between the chairman and CEO[109][110] - The company has appointed a compliance advisor, Tong Ren Financing Limited, with no interests in the company as of September 30, 2019[114] - The company has adopted trading standards for directors in compliance with GEM listing rules[115] - The audit committee has been established in accordance with GEM listing rules and corporate governance codes, consisting of independent non-executive directors[118] - The committee reviewed the unaudited consolidated financial results for the six months ended September 30, 2019, and confirmed compliance with applicable accounting standards and GEM listing rules[118] Shareholder Information - As of September 30, 2019, Future More holds 750,000,000 shares, representing 75% of the issued shares of MS Concept Limited[106] - The total issued shares of MS Concept Limited as of September 30, 2019, is 1,000,000,000 shares[106] - The ownership percentages of Future More are distributed as follows: Mr. Kwan 14%, Ms. Kwan 18%, Mr. Kwan 18%, Mr. Kwan 25%, and Ms. Kwan 25%[104] - No stock options have been granted under the stock option plan since its adoption on March 23, 2018[107] - The company has maintained the public float required by GEM listing rules as of the report date[112]
MS CONCEPT(08447) - 2020 - 中期财报