Financial Performance - The company recorded revenue of approximately HKD 225.8 million for the year, a decrease of about HKD 32.8 million or 12.7% compared to HKD 258.6 million for the previous year[8]. - The company reported a loss attributable to shareholders of approximately HKD 2.9 million for the year[8]. - For the fiscal year ending March 31, 2020, the company's revenue was approximately HKD 225.8 million, a decrease of about HKD 32.8 million or 12.7% compared to HKD 258.6 million for the previous year[17]. - Gross profit was approximately HKD 151.4 million, down by about HKD 24.3 million or 13.8% from HKD 175.7 million year-on-year, with a gross margin decrease from 67.9% to 67.1%[21]. - The company recorded a loss of approximately HKD 2.9 million for the year ended March 31, 2020, compared to a profit of HKD 0.8 million for the previous year[33]. - Current ratio decreased from 2.3 in 2019 to 1.1 in 2020, and quick ratio also decreased from 2.3 to 1.1, primarily due to the adoption of HKFRS 16 which resulted in lease liabilities of HKD 29.1 million[34]. - Total equity attributable to owners was approximately HKD 43.8 million as of March 31, 2020, down from HKD 61.7 million in 2019[36]. - Cash and cash equivalents were approximately HKD 48.5 million as of March 31, 2020, compared to HKD 65.8 million in 2019[36]. - Operating cash inflow for the year was approximately HKD 41.8 million, significantly up from HKD 2.6 million in the previous year[36]. Operational Challenges - The company has experienced challenges due to the COVID-19 pandemic, which has affected consumer spending and restaurant operations[8]. - The company acknowledges the ongoing uncertainty in the economic environment and its impact on the restaurant industry[11]. - The management team is focused on cost-saving measures and exploring suitable opportunities for restaurant expansion in Hong Kong[11]. Restaurant Operations - The company operates 12 restaurants in Hong Kong, including five under the "Mr. Steak" brand and two under the "Hana" brand[9]. - The company opened a new restaurant named "Hana" in Tung Chung in August 2019, contributing additional revenue[8]. - The company plans to open a new restaurant serving Asian cuisine in Kowloon Bay, with an estimated opening date in August 2020[11]. - The company plans to open a new restaurant in Kowloon Bay by August 2020, following the recent opening of a restaurant in Tung Chung in August 2019[46]. Cost Management - The cost of goods sold was approximately HKD 74.4 million, a decrease of about HKD 8.5 million or 10.3% from HKD 82.9 million in the prior year[18]. - Employee costs decreased to approximately HKD 71.7 million, down by about HKD 6.5 million or 8.3% from HKD 78.2 million in the prior year[23]. - Rental and related expenses significantly decreased to approximately HKD 14.9 million, a reduction of about HKD 38.9 million or 72.3% from HKD 53.8 million in the previous year[26]. - Depreciation expenses increased to approximately HKD 42.6 million, up by about HKD 37.4 million from HKD 5.2 million in the prior year due to the adoption of new accounting standards[24]. - Financing costs rose to approximately HKD 3.6 million, an increase of about HKD 2.8 million from HKD 0.8 million in the previous year, mainly due to the recognition of lease liabilities[29]. Corporate Governance - The board of directors emphasizes the importance of good corporate governance to enhance shareholder value[63]. - The company has adopted all applicable corporate governance code provisions as of March 31, 2020, except for one specific provision[65]. - The board is responsible for overseeing the company's business affairs and overall performance, ensuring adequate financial and human resources support[69]. - The company has a clear delegation of authority to executive directors and senior management for daily operations and business management[67]. - The company has established audit and remuneration committees to monitor operational and financial performance[69]. - The company has a commitment to maintaining compliance with securities trading standards as per GEM listing rules[66]. - The board consists of six directors, with independent non-executive directors making up 50% of the board, exceeding GEM listing rules requirements[70]. - All independent non-executive directors confirmed their independence according to GEM listing rules, ensuring compliance with regulations[74]. - The company held six board meetings during the year, with all directors attending 100% of the meetings[78]. - The company adopted a board diversity policy in March 2018, focusing on measurable objectives for diversity in skills, experience, and perspectives[82]. Risk Management - The company has established policies and procedures for risk management and internal control, with the board responsible for monitoring their effectiveness at least annually[111]. - An independent internal control consultant was engaged to assess the group's internal control system, concluding that there were no significant deficiencies[112]. - The company has adopted various internal guidelines and written policies to monitor and mitigate risks associated with its business operations[111]. Shareholder Information - No dividends were declared or proposed for the year ended March 31, 2020, compared to HKD 0.015 per share in 2019[53]. - The board does not recommend the payment of a final dividend for the year ended March 31, 2020, compared to a dividend of HKD 0.015 per share in 2019[134]. - The company has established a dividend policy that requires the board to consider various factors, including actual and expected business performance and future expansion plans[126]. - Shareholders do not have the right to propose resolutions at the annual general meeting but can call a special general meeting to make suggestions[118]. Supplier Relationships - The group reported that the total procurement amount from the top five suppliers accounted for approximately 62.1% of the total procurement for the year ended March 31, 2020, compared to 67.3% in 2019[132]. - The largest supplier accounted for approximately 45.8% of the total procurement for the year ended March 31, 2020, up from 41.4% in 2019[132]. - The group maintains good working relationships with its customers and suppliers, continuously communicating through various channels to gather feedback[132]. Environmental and Social Responsibility - The company has implemented various green measures to promote environmental and social sustainability, complying with local environmental laws[164]. - The total charitable donations made by the group for the year ended March 31, 2020, amounted to HKD 36,000, unchanged from 2019[138].
MS CONCEPT(08447) - 2020 - 年度财报