Financial Performance - The group's revenue decreased by approximately HKD 53.2 million or 23.6% to approximately HKD 172.6 million for the year ended March 31, 2021, compared to approximately HKD 225.8 million for the previous year[8] - Revenue for the year ended March 31, 2021, was approximately HKD 172.6 million, a decrease of about HKD 53.2 million or 23.6% compared to HKD 225.8 million for the year ended March 31, 2020[18] - Gross profit was approximately HKD 108.5 million, down about HKD 42.9 million or 28.3% from HKD 151.4 million in the prior year, with a gross margin decrease from 67.1% to 62.9%[22] - Other income and gains increased to approximately HKD 25.1 million from HKD 3.1 million, primarily due to government subsidies and rent concessions related to COVID-19[23] - The company recorded a profit of approximately HKD 3.8 million for the year ended March 31, 2021, compared to a loss of HKD 2.9 million for the year ended March 31, 2020[36] Operational Changes - The group operates twelve restaurants in Hong Kong, including five under the "Mr. Steak" brand and one "Mr. Steak - Buffet à la minute" restaurant[12] - A new restaurant named "德福犇殿" was opened in late August 2020, serving Taiwanese hot pot, to maximize shareholder returns[9] - The group decided not to renew the lease for the "元朗SB" restaurant after careful consideration of its business performance[9] - The management team identified a suitable location for a new restaurant under the "犇殿" brand, expected to open in August 2021[9] - The ongoing COVID-19 pandemic continues to impact the restaurant industry in Hong Kong, with government measures affecting customer numbers[8] Cost Management - Cost of goods sold was approximately HKD 64.1 million, a decrease of about HKD 10.3 million or 13.8% from HKD 74.4 million for the previous year[21] - Employee costs decreased by approximately HKD 17.1 million or 23.8% to HKD 54.6 million from HKD 71.7 million in the previous year[24] - Depreciation expenses decreased to approximately HKD 36.1 million from HKD 42.6 million, mainly due to changes in property leasing arrangements[28] - Financing costs decreased by approximately HKD 0.5 million or 13.9% to HKD 3.1 million from HKD 3.6 million in the previous year[34] Equity and Cash Flow - As of March 31, 2021, the total equity attributable to the owners of the company was approximately HKD 47.6 million, an increase from HKD 43.8 million in 2020[9] - The cash and cash equivalents as of March 31, 2021, were approximately HKD 46.4 million, down from HKD 48.5 million in 2020[9] - Operating cash inflow for the year ended March 31, 2021, was approximately HKD 34.3 million, compared to HKD 41.8 million in 2020[9] - Total bank borrowings as of March 31, 2021, were approximately HKD 10.9 million, a decrease from HKD 11.8 million in 2020[9] Future Outlook and Expansion - The company plans to expand its restaurant network in Hong Kong, with an expected utilization of remaining net proceeds by March 31, 2023[52] - The company has set a future outlook with a revenue growth target of 10% for the next fiscal year, aiming to reach HKD 1.32 billion[66] - New product development initiatives are underway, with an investment of HKD 50 million allocated for the launch of three new restaurant concepts in the upcoming year[66] - The company plans to expand its market presence by opening five new locations in key urban areas, which is expected to increase market share by 5%[66] - A strategic acquisition of a local competitor is being considered, which could potentially increase the company's customer base by 30%[66] Corporate Governance - The management team confirmed the accuracy and completeness of the annual report, ensuring no misleading information is presented[8] - The company is committed to improving corporate governance practices, ensuring compliance with all applicable regulations and enhancing shareholder value[72] - The board of directors has authorized the management team to implement strategic initiatives aimed at achieving long-term growth and sustainability[76] - The company has established a robust internal control and risk management framework to monitor operational and financial performance effectively[78] - The board consists of six directors, with independent non-executive directors making up 50% of the board, exceeding GEM listing rules[79] Risk Management and Compliance - The company has established policies and procedures for risk management and internal control, with no significant deficiencies found in the internal control system[129] - The board of directors is responsible for evaluating the nature and extent of risks the company can take to achieve its strategic objectives[128] - The company has implemented a code of conduct and compliance guidelines applicable to employees and directors[119] - The company has a policy for reviewing and monitoring compliance with legal and regulatory requirements[119] Supplier and Customer Relations - The group maintains good working relationships with its customers and suppliers, emphasizing the importance of these relationships for sustainable development[153] - The group has no reliance on any single customer, as its main customers are individual consumers[153] - The group reported that the total procurement amount from the top five suppliers accounted for approximately 62.6% of the total procurement for the year ended March 31, 2021, compared to 62.1% in 2020[153] Shareholder Information - The company has adopted a dividend policy that requires the board to consider various factors, including actual and expected business performance, before declaring dividends[145] - The board does not recommend the payment of a final dividend for the year ended March 31, 2021, consistent with no dividend in 2020[155] - The total distributable reserves available to the company's equity shareholders were approximately HKD 22.0 million, down from HKD 24.2 million in 2020[165] Social Responsibility - The company is committed to promoting environmental and social sustainability, complying with local environmental laws and regulations in Hong Kong[189] - The total charitable donations made by the group for the year ended March 31, 2021, amounted to HKD 36,000, unchanged from the previous year[160]
MS CONCEPT(08447) - 2021 - 年度财报