Financial Performance - For the fiscal year ending December 31, 2024, the group reported total revenue of HKD 54,444,000, a decrease of 47.9% compared to HKD 104,453,000 for the fiscal year ending December 31, 2023[5]. - The group incurred a loss attributable to owners of the company amounting to HKD 27,039,000 for the fiscal year 2024, compared to a profit of HKD 1,327,000 in 2023[6]. - The gross profit for the fiscal year 2024 was HKD 38,879,000, down 48.0% from HKD 74,713,000 in the previous year[5]. - The group's revenue from continuing operations for the year 2024 was approximately HKD 54,444,000, a decrease of 48% compared to HKD 104,453,000 in 2023[23]. - The group recorded total revenue of approximately HKD 54.4 million for the fiscal year 2024, a decrease of about 47.9% compared to approximately HKD 104.5 million in fiscal year 2023, primarily due to the closure of two restaurants in the first half of fiscal year 2024[51]. - Revenue from the "Dragon King" brand decreased from HKD 68.8 million in fiscal year 2023 to HKD 27.8 million in fiscal year 2024, a decline of approximately 59.6%[52]. - Revenue from the "Dragon Robe" brand decreased from HKD 35.6 million in fiscal year 2023 to HKD 26.7 million in fiscal year 2024, a decline of approximately 25.0%[53]. - The group's gross profit for fiscal year 2024 was approximately HKD 38.9 million, a significant decrease of about 47.9% from approximately HKD 74.7 million in fiscal year 2023[54]. - The overall gross profit margin remained stable at 71.4% for fiscal year 2024, compared to 71.5% in fiscal year 2023[54]. - Other income and net gains decreased by approximately 75.0% to about HKD 0.2 million in fiscal year 2024, down from approximately HKD 0.8 million in fiscal year 2023[55]. Financial Position - The group’s total assets less current liabilities amounted to HKD (120,898,000) as of December 31, 2024, compared to HKD (99,902,000) in 2023, indicating a worsening financial position[7]. - Current liabilities increased to HKD 172,014,000 in 2024 from HKD 144,687,000 in 2023, reflecting a rise in financial obligations[7]. - The group’s total equity deficit increased to HKD (120,898,000) in 2024 from HKD (102,379,000) in 2023, indicating a decline in shareholder equity[8]. - The group has current liabilities exceeding current assets by approximately HKD 146,570,000 as of December 31, 2024, with net liabilities of about HKD 120,898,000[21]. - The total interest-bearing borrowings amounted to approximately HKD 93,470,000, with HKD 79,839,000 due within one year[22]. - The company's bank and other borrowings amounted to approximately HKD 93.5 million as of December 31, 2024, an increase from HKD 61.4 million as of December 31, 2023[66]. - The company's debt-to-capital ratio was approximately 375.9% as of December 31, 2024, up from 336.5% as of December 31, 2023[67]. - The group's net liabilities amounted to approximately HKD 120.9 million as of December 31, 2024[93]. - Total interest-bearing borrowings were approximately HKD 93.5 million, while cash and cash equivalents were about HKD 6.9 million as of December 31, 2024[93]. Liquidity and Cash Management - The group’s cash and cash equivalents rose significantly to HKD 6,891,000 in 2024 from HKD 1,014,000 in 2023, indicating improved liquidity[7]. - The company has maintained a prudent cash management policy to ensure readiness for future growth opportunities[72]. - The company plans to allocate 50% of the net proceeds from a recent share placement, approximately HKD 4.26 million, for general working capital and the other 50% for repaying outstanding debts[64]. Employee Costs and Management - The company’s employee costs decreased to HKD 25,291,000 in 2024 from HKD 38,840,000 in 2023, a reduction of 34.9%[5]. - Employee benefits expenses (excluding directors and key management personnel) decreased from HKD 37,178,000 in 2023 to HKD 23,750,000 in 2024, a reduction of approximately 36.0%[32]. - Employee costs decreased by approximately 34.8% to about HKD 25.3 million in fiscal year 2024, down from approximately HKD 38.8 million in fiscal year 2023, due to the closure of certain restaurants[56]. - The number of employees reduced from 122 to 41[76]. Legal and Compliance Issues - A subsidiary, 富聚有限公司, received a winding-up petition due to a refusal to repay approximately HKD 17,000 in debts, with the restaurant operations ceasing in June 2024[88]. - The group faced a legal claim for HKD 2 million related to a bounced cheque, resulting in a final judgment requiring payment of the amount plus interest and legal costs[89]. - The group has adopted the GEM Listing Rules regarding the code of conduct for securities transactions by directors, with all directors confirming compliance throughout the year[85]. - The audit committee believes that the consolidated financial statements comply with applicable accounting standards and GEM Listing Rules, ensuring adequate disclosure[92]. Future Outlook and Strategic Plans - The group is actively considering financing arrangements, including issuing new shares or convertible bonds, to enhance its market value[22]. - The group plans to diversify its restaurant portfolio by opening smaller restaurants with a variety of dishes, aiming to expand revenue sources in Hong Kong and China[22]. - The company is facing a challenging environment in the Hong Kong restaurant industry but is committed to seeking transformation and exploring new opportunities[63]. - The group has implemented strong measures to improve liquidity and financial conditions, including monitoring operating costs and cost-saving initiatives[22]. Audit and Governance - The group has not established an internal audit function during the year, and the audit committee will continue to review the need for such a function annually[84]. - The audit committee held two meetings during the year to review the group's annual and interim financial performance and internal control procedures[92]. - The chairman of the board was unable to attend the annual general meeting due to other commitments, and the meeting was chaired by an executive director[84]. - The financial statements for the year have been prepared on a going concern basis, indicating confidence in the group's future operations[94]. - The auditor, Baker Tilly, confirmed that the figures in the preliminary announcement align with the group's consolidated financial statements[95].
龙皇集团(08493) - 2024 - 年度业绩