Financial Performance - For the nine months ended December 31, 2020, the total revenue was approximately HKD 21,900,000, a decrease from approximately HKD 36,500,000 for the previous fiscal year[12]. - The total comprehensive income for the same period was approximately HKD 14,200,000, compared to total expenses of approximately HKD 94,000,000 for the previous fiscal year[12]. - The total comprehensive income for the nine months ended December 31, 2020, was approximately HKD 14,200,000, a significant turnaround from a loss of about HKD 94,000,000 for the year ended March 31, 2020[29]. - Basic earnings per share for the nine months ended December 31, 2020, was approximately HKD 0.0153, compared to a loss of about HKD 0.1177 per share for the year ended March 31, 2020[30]. - As of December 31, 2020, the group reported a loss of HKD 2,717,000 for the nine months, compared to a loss of HKD 31,259,000 for the previous fiscal year[179]. Impact of COVID-19 - The decline in revenue was primarily due to the ongoing impact of COVID-19, which led to reduced customer traffic and consumption sentiment in the restaurant industry[13]. - The company estimates that the impact of COVID-19 will depend on the effectiveness of preventive measures and the duration of the pandemic[57]. - The COVID-19 pandemic significantly impacted the company's restaurant business, with ongoing monitoring of its effects on operations and financial status[132]. Cost Control and Operational Measures - The company has intensified cost control measures related to raw material procurement and other operational costs, resulting in a downward trend in various costs[13]. - The cost of raw materials and consumables decreased from approximately HKD 12,700,000 to about HKD 6,800,000 due to reduced usage caused by COVID-19 and changes in the fiscal year-end[20]. - Employee costs reduced from approximately HKD 12,900,000 to about HKD 9,100,000, primarily due to a decrease in employee numbers and salary adjustments[21]. - Cost reduction measures were implemented, including adjustments to employee numbers and operating costs to enhance sustainability[59]. - The management is committed to maintaining profitability and market competitiveness through ongoing cost control and exploration of new opportunities[14]. Business Strategy and Development - The company is currently establishing a distribution network and researching the implementation of an online sales platform for food and beverages[13]. - The company will continue to explore new business opportunities to maintain market position and diversify revenue sources[14]. - The group plans to establish an online platform to sell and distribute premium Japanese beef and wine, anticipating immediate cash flow from this new business[183]. - The company is actively controlling costs related to raw material procurement and operations in response to the impact of COVID-19, which has begun to show positive results[57]. Financial Position and Assets - The total assets as of December 31, 2020, were approximately HKD 12,700,000, an increase from about HKD 9,000,000 as of March 31, 2020[37]. - The group’s cash and bank balances increased to approximately HKD 9,000,000 from about HKD 1,200,000 as of March 31, 2020[37]. - The total liabilities of the group exceeded total assets by HKD 15,758,000 as of December 31, 2020, compared to HKD 64,978,000 for the previous fiscal year[179]. - The group has cash and cash equivalents of HKD 9,024,000, which, combined with the new loan, supports operational sustainability[183]. Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[134]. - The board of directors consists of two executive directors and three independent non-executive directors as of the report date[145]. - The company has adopted mandatory trading standards for directors in compliance with GEM listing rules, confirming adherence to these standards for the nine months ending December 31, 2020[162]. - The board regularly reviews the delegation of authority and responsibilities to ensure effective governance[164]. Legal and Compliance Issues - The company has received multiple lawsuits related to overdue rent and salaries, which have been recognized in other payables and accrued expenses[50]. - The company faced claims totaling HKD 629,404 related to unpaid director fees as of February 1, 2021[130]. - A claim of HKD 2,777,566 was made by Times Square Limited regarding unpaid rent and related expenses on February 16, 2021[130]. - There are no significant legal proceedings or arbitrations involving the company as of December 31, 2020[123]. Risk Management - The company has established a risk management policy and formal risk assessment system, identifying key risks annually that may impact operations[188]. - The board reviewed the effectiveness of the risk management and internal control systems and found them to be effective and adequate[192]. - The internal audit function is managed by the company secretary and the financial director, reporting at least annually to the board[191]. Shareholder Information - The board of directors did not recommend the payment of a final dividend for the nine months ended December 31, 2020[52]. - The company has maintained at least 25% of its issued shares held by the public as of December 31, 2020[136]. - The company has not established any equity-linked agreements that would lead to the issuance of shares as of December 31, 2020[109].
TOPSTANDARDCORP(08510) - 2020 - 年度财报