Financial Performance - The total revenue for the fiscal year ending March 31, 2019, was approximately HKD 129.2 million, an increase from HKD 116.1 million in 2018[8]. - The total loss and comprehensive expenses amounted to approximately HKD 37.7 million, significantly up from HKD 21.9 million in 2018, primarily due to new restaurant operating costs and increased employee expenses[8]. - The company reported a revenue increase of approximately HKD 13,100,000, growing from about HKD 116,100,000 in the previous year to approximately HKD 129,200,000, representing an 11.3% growth[12]. - Revenue contributions from new restaurants, including HKD 6,900,000 from "Mian Jiang Hong" in Tsim Sha Tsui and HKD 3,500,000 from "Xin Zhai" in Taipei, significantly boosted overall income[14]. - The total comprehensive loss increased by approximately HKD 15,800,000, from about HKD 21,900,000 to approximately HKD 37,700,000[22]. - Basic loss per share increased from approximately HKD 0.035 to about HKD 0.047, reflecting the overall increase in losses[23]. Operating Costs and Expenses - The increase in operating costs is attributed to the launch of new restaurants, including "Man Jiang Hong" in Tsim Sha Tsui and "Xinzai" in Taipei[8]. - Employee costs rose from approximately HKD 41,300,000 to about HKD 53,400,000, marking a 29.3% increase, primarily due to hiring for new restaurants[16]. - The cost of raw materials and consumables increased by approximately 32.0%, from about HKD 34,700,000 to approximately HKD 45,800,000, driven by the operations of new restaurants[15]. - Depreciation expenses surged by 59.6%, increasing from about HKD 5,700,000 to approximately HKD 9,100,000, due to renovations of new restaurant properties[18]. - Other expenses nearly doubled, rising by 97.4% from approximately HKD 7,700,000 to about HKD 15,200,000, largely due to legal and professional fees post-IPO[21]. Capital and Funding - The company raised approximately HKD 42.3 million from its IPO, which strengthened its financial position for further expansion in the restaurant business[7]. - The net proceeds from the share offering amounted to approximately HKD 42,300,000, which will be allocated according to the adjusted business strategies outlined in the prospectus[25]. - The company plans to utilize the net proceeds for various purposes, including HKD 10,000,000 for the establishment of "Mian Jiang Hong" and HKD 7,800,000 for "Xin Zhai" in Taipei[27]. Assets and Liabilities - As of March 31, 2019, the total assets of the group were approximately HKD 65 million, down from HKD 89.1 million in 2018, with total liabilities and equity at approximately HKD 53.1 million and HKD 11.9 million respectively[29]. - The current ratio as of March 31, 2019, was approximately 0.5, a decrease from 1.5 in 2018[29]. - The net cash used in operating activities was approximately HKD 23.1 million, with bank balances and cash at approximately HKD 1.9 million, down from HKD 52.1 million in 2018[29]. - The total borrowings as of March 31, 2019, were approximately HKD 23 million, compared to HKD 21.7 million in 2018, with interest rates ranging from 3.4% to 6.4%[34]. - The group has committed future minimum lease payments under operating leases amounting to approximately HKD 52.4 million as of March 31, 2019, up from HKD 42.3 million in 2018[37]. Business Operations and Strategy - The company operates six restaurants in Hong Kong, including brands such as "Sanxi Lou," "Xinzai," and "Man Jiang Hong," catering to diverse culinary preferences[9]. - The company is actively seeking opportunities to expand its restaurant network, indicating a focus on growth and market expansion[9]. - The company has diversified its revenue sources through a multi-brand strategy, allowing it to serve different customer tastes and preferences[9]. - The company has ceased operations at its "Ronin Central" restaurant, repurposing the location for "Xinzai Central"[9]. - The group plans to relocate its restaurant "Shin Zai" to a new property, with renovations expected to be completed by August 2019, aiming to enhance customer retention and attract new clients[45]. Corporate Governance and Management - The company has a strong focus on compliance and corporate governance, with independent directors providing independent advice to the board[55]. - The management team includes individuals with diverse backgrounds in finance, management, and engineering, enhancing the company's strategic capabilities[60]. - The company is committed to expanding its market presence and enhancing operational efficiency through experienced leadership[59]. - The board includes members with significant experience in various sectors, ensuring a well-rounded approach to business strategy and governance[54]. - The company has established three board committees: Audit and Risk Management Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of governance[140]. Employee and Stakeholder Relations - The total number of full-time and part-time employees as of March 31, 2019, was 241, an increase from 229 in 2018[96]. - Total employee costs, including director remuneration, amounted to approximately HKD 53.4 million for the year ended March 31, 2019, compared to approximately HKD 41.3 million in 2018[96]. - The company maintains effective communication and good relationships with key stakeholders, including employees, customers, and suppliers[124]. Compliance and Risk Management - The company has established a risk management policy and formal risk assessment system to identify and manage risks[180]. - The internal control system was reviewed and deemed effective, with no significant deficiencies identified as of March 31, 2019[185]. - The external auditor provided audit services amounting to approximately HKD 520,000 and non-audit services totaling HKD 20,000 for the fiscal year ending March 31, 2019[190]. - The company has complied with all relevant laws and regulations affecting its business operations during the reporting period[122]. Shareholder Information - The board of directors did not recommend the payment of a final dividend for the year ended March 31, 2019[41]. - The company confirmed that the financial statements for the year ending March 31, 2019, fairly reflect the group's performance and cash flow[174]. - The company has maintained at least 25% of its total issued shares held by the public as of March 31, 2019, in compliance with GEM listing rules[133].
TOPSTANDARDCORP(08510) - 2018 - 年度财报