Financial Performance - The group's revenue slightly decreased by 0.8% from HKD 418.5 million in 2017 to approximately HKD 415.0 million in 2018[12]. - The group recorded a significant loss attributable to owners of approximately HKD 58.1 million, primarily due to factors such as decreased consumer sentiment from the US-China trade war and operational losses from newly opened restaurants[12]. - The group recorded total revenue of approximately HKD 415.0 million for the year ended December 31, 2018, a slight decrease of about HKD 3.5 million or approximately 0.8% compared to HKD 418.5 million for the year ended December 31, 2017[27]. - Revenue from the "Dragon Emperor" brand decreased by approximately HKD 4.7 million or about 1.9% to approximately HKD 251.7 million, primarily due to the closure of the Wanchai branch and the relocation of the new Wanchai branch under the "Dragon Robe" brand[30]. - Revenue from the "Dragon Seal" brand increased by approximately HKD 5.2 million or about 9.4% to approximately HKD 60.4 million, mainly due to an increase in the number of banquets[31]. - The overall gross profit was approximately HKD 280.4 million, a decrease of about HKD 6.6 million or approximately 2.3% compared to HKD 287.0 million for the previous year, with the gross profit margin slightly declining from approximately 68.6% to 67.6%[36]. - The group recorded a loss attributable to owners of approximately HKD 58.1 million for the year ended December 31, 2018, compared to a loss of approximately HKD 10.2 million for the year ended December 31, 2017, indicating a significant increase in losses[48]. Operational Changes - The group opened a new "Dragon King" restaurant in Kwai Chung and relocated the "Dragon King" restaurant in Wan Chai to a new location under the "Dragon Robe" brand[11]. - The group plans to enhance its marketing efforts and regularly introduce promotional menus and seasonal dishes to maintain competitive advantage[13]. - The group will continue to monitor its cost structure and reduce expenses to improve efficiency and ultimately create more value for shareholders[18]. - The group aims to strengthen and diversify its own brands, believing that brand recognition along with quality dishes and service is key to operational success[16]. - The group will adjust its business strategies in response to market changes and evaluate overall market conditions for future expansion[13]. - The group faced challenges in the operating environment, including increased rental and labor costs, impacting overall business stability[11]. - The group aims to balance the expansion of new branches with the closure of underperforming ones in response to market conditions[49]. Employee and Management - Employee costs increased by approximately HKD 18.7 million or about 14.2% to approximately HKD 150.1 million, mainly due to one-time discretionary bonuses and wages for the new branches[38]. - The group will enhance its management team and increase training for all employees, particularly in environmental awareness and waste recycling[17]. - The company had 650 employees as of December 31, 2018, an increase from 600 employees in 2017[73]. - The total employee cost for the year ended December 31, 2018, was approximately HKD 150.1 million, compared to HKD 131.4 million in 2017[73]. Financial Position - As of December 31, 2018, the group had bank borrowings of approximately HKD 50.5 million, an increase from approximately HKD 48.5 million in 2017[62]. - The group had cash and cash equivalents of approximately HKD 18.0 million as of December 31, 2018, compared to approximately HKD 15.9 million in 2017[62]. - As of December 31, 2018, the company's debt-to-equity ratio was approximately 70.0%, up from 66.0% in 2017[63]. - The company's operating lease commitments amounted to approximately HKD 157.7 million as of December 31, 2018, down from HKD 175.4 million in 2017[71]. Corporate Governance - The board has emphasized the importance of corporate governance, ensuring compliance with regulations and maintaining stakeholder trust[116]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[121]. - The independent non-executive directors have confirmed their independence, complying with GEM listing rules[123]. - The remuneration committee reviewed the compensation of directors and senior management, deeming it fair and reasonable as of December 31, 2018[132]. - The audit committee held four meetings during the year to review the company's annual and interim results, as well as internal control procedures[135]. - The nomination committee evaluates the composition and independence of the board, considering diversity factors such as gender and industry experience[134]. - The company emphasizes the importance of continuous professional development for directors, ensuring they stay updated on corporate governance practices[130]. - The roles of the chairman and CEO are separated to maintain a balance of power within the board[126]. - The company has established clear written terms of reference for all board committees, which are available on the stock exchange and company websites[131]. - The board is committed to adhering to corporate governance codes and regularly reviews its policies and practices[135]. Environmental and Social Responsibility - The company aims to maintain high standards in environmental protection and social responsibility, with annual disclosures of its performance in these areas[182]. - The environmental, social, and governance report is prepared in accordance with GEM listing rules and summarizes the group's performance during the reporting period from January 1, 2018, to December 31, 2018[183]. - In 2018, the group reported a total indirect CO2 emissions of 4,271 tons from energy use, a decrease of approximately 4% compared to 4,438 tons in 2017[200]. - The group generated NOx emissions of 0.080 tons in 2018, down from 0.090 tons in 2017, indicating a reduction of about 11.1%[195]. - The group has implemented measures to reduce vehicle emissions, including avoiding peak traffic times and encouraging public transport use[194]. - The group has established a comprehensive data collection system to enhance understanding of environmental, social, and governance (ESG) issues[186]. - The group engages with stakeholders through various channels, including annual general meetings and regular communications, to gather feedback on ESG performance[189]. - The group reported a total of 112.30 tons of indirect CO2 emissions from water treatment in 2018, a reduction of approximately 8% from 122.05 tons in 2017[200]. - The group focuses on sustainable operational performance, ensuring compliance with legal requirements and maintaining food safety and quality[190]. - The group aims to continuously improve its ESG reporting principles to better align with stakeholder expectations[192].
龙皇集团(08493) - 2018 - 年度财报