Financial Performance - Total revenue increased by 28.8% from approximately HKD 95.7 million in 2023 to approximately HKD 123.3 million in 2024, primarily due to the successful revival of the annual music festival, contributing an additional HKD 41.9 million[15]. - Restaurant sales experienced a decline of HKD 14.3 million as Hong Kong residents shifted their consumption to mainland China[15]. - The successful return of the "Ultra Hong Kong" music festival significantly contributed to the overall performance of the group, generating approximately HKD 41.9 million in revenue[14]. - The company reported a loss attributable to owners of approximately HKD 9.4 million in 2024, compared to a profit of approximately HKD 14.9 million in 2023, mainly due to the sale of a subsidiary generating a gain of approximately HKD 25.2 million in 2023[19]. Operational Efficiency - The company maintained stable operations at its two restaurants, HEXA and SIXA, while optimizing the menu and enhancing cost control to adapt to challenging market conditions[14]. - The company is implementing measures to strengthen its financial position, including streamlining operations and renegotiating supplier contracts[14]. - The board remains cautiously optimistic for 2025, focusing on improving operational efficiency and exploring brand diversification opportunities[10]. - Cost of goods sold decreased by 5.2% from approximately HKD 26.9 million in 2023 to about HKD 25.5 million in 2024, attributed to successful cost control measures in restaurant operations[16]. - Employee costs reduced by 12.0% from approximately HKD 35.7 million in 2023 to about HKD 31.4 million in 2024, mainly due to strict cost control measures[16]. Financial Position - Current ratio and quick ratio remained stable at 0.2 for both 2024 and 2023, indicating liquidity challenges[21]. - Debt ratio increased from 196.0% in 2023 to 227.3% in 2024, reflecting a rise in total liabilities relative to total assets[21]. - Cash and cash equivalents improved to HKD 4.0 million in 2024 from HKD 0.8 million in 2023, while external borrowings decreased from HKD 17.4 million in 2023 to HKD 8.8 million in 2024[25]. Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM listing rules, enhancing transparency and accountability[52]. - The board consists of 5 members, including 2 executive directors and 3 independent non-executive directors, ensuring a diverse governance structure[54]. - The board is committed to reviewing and improving corporate governance practices to align with the latest developments[53]. - The company has established a corporate governance report to ensure compliance with relevant regulations and principles[54]. Risk Management - The board is responsible for overseeing the effectiveness of the group's risk management and internal control systems, which are reviewed at least annually[87]. - A risk management team, consisting of experienced executives, conducts quarterly risk identification and analysis, assessing potential impacts and developing mitigation plans[88]. - The audit committee is responsible for monitoring the effectiveness of the financial reporting process and internal controls[73]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the period from January 1, 2024, to December 31, 2024[106]. - The company has identified key areas for managing environmental, social, and governance (ESG) aspects, including employee development, environmental pollution, and product quality[109]. - The company aims to balance shareholder returns with sustainable practices, minimizing environmental impact while maximizing operational efficiency[114]. - The company is committed to sustainable development and has set goals to reduce energy, water, and resource consumption[144]. Employee Relations - The company employed a total of 135 employees at the end of the reporting period, an increase from 87 employees in 2023, with 52 full-time and 83 part-time employees[157]. - The employee turnover rate for the reporting period was 52.25%, significantly higher than the 19.28% rate in 2023, primarily due to strategic expansion of part-time staff[165]. - The company recorded no work-related injuries during the reporting period, a decrease from 3 cases in 2023, and no work-related fatalities have occurred in the last three fiscal years[172]. - The company has implemented a training system linking employee compensation and promotions to their experience, capabilities, and performance[174]. Supply Chain Management - The supply chain management system includes regular evaluations of suppliers, with a focus on quality and compliance with legal standards[179]. - The company has maintained a list of 10 local suppliers, supporting the strategy of using local and fresh ingredients[179]. - There have been no significant issues with the quality of fresh food or beverages from suppliers during the reporting period[179]. Legal and Compliance - The company has not faced any legal actions or complaints regarding privacy violations during the reporting period[183]. - The company has not made any specific donations or contributions in 2023 but continues to focus on local community needs and charitable contributions[190]. - The board acknowledges that the group has complied with relevant laws and regulations that significantly impact its business and operations as of December 31, 2024[199].
陆庆娱乐(08052) - 2024 - 年度财报