Financial Performance - For the financial year ended March 31, 2023, the Group's consolidated revenue was approximately HK$231,557,000, an increase of 26.4% from HK$183,133,000 in 2022[8]. - The profit attributable to equity holders of the Company was approximately HK$1,050,000, a turnaround from a loss of approximately HK$17,337,000 in 2022, resulting in earnings per share of HK$0.40 compared to a loss per share of HK$6.68[8]. - For the financial year ended March 31, 2023, the company's share of profit from associates, primarily from Four Seas Mercantile Holdings Limited, was HK$12,214,000, a substantial increase from HK$3,789,000 in 2022[38]. - The Group reported a profit of HK$2,341,000 for the year, a significant recovery from a loss of HK$15,760,000 in 2022[106]. - The total assets of the Group decreased to HK$653,561,000 as of March 31, 2023, compared to HK$685,246,000 in 2022[106]. - The Group's cash and cash equivalents were HK$81,505,000, down from HK$92,452,000 in 2022[94]. - The gearing ratio improved to 4% as of March 31, 2023, compared to 6% in 2022, indicating a reduction in financial leverage[94]. - The total number of employees increased to 75 as of March 31, 2023, from 65 in 2022, reflecting growth in operations[95]. - The Group's reserves available for distribution amounted to HK$163,025,000 as of March 31, 2023[111]. Business Segments - Revenue from the frozen meats trading business was approximately HK$167,635,000, representing 72.4% of the Group's total revenue, with a 13.2% increase compared to HK$148,092,000 in the previous year[48]. - The catering business revenue increased by 100.2% to approximately HK$60,028,000, driven by the full-year contribution from one "Gyumai" restaurant and nine months from another[54]. - The overall segment result of the frozen meats trading business showed a loss of approximately HK$4,117,000, an improvement of 42.2% from a loss of HK$7,118,000 in the previous year[50]. - The revenue from the marketing of meat products and communication and advertising design businesses was approximately HK$3,894,000, down 22.9% from HK$5,053,000 in the previous year[56]. Market Environment and Strategy - The overall market environment remains uncertain due to factors such as inflation and geopolitical tensions, impacting consumer confidence and spending[9]. - The Group is committed to exploring and developing suitable market strategies to cope with the changing environment[23]. - The company strategically diversified its product supply, introducing high-quality and specialty products, including plant-based meat products, to adapt to global market trends and customer preferences[27]. - The company plans to strengthen relationships with overseas suppliers and expand its trading product range to cope with rising operational costs due to inflation and other macroeconomic factors[35]. - The company aims to capture market demand for high-quality, cost-effective products by exploring unique offerings from overseas suppliers[35]. - The company is focused on expanding its restaurant network in prime locations to enhance economies of scale and strengthen its brand presence[28]. - The outlook for the coming year indicates challenges due to inflation, monetary tightening, and regional conflicts, which will impact both global and local economies[34]. - The Group anticipates a rebound in the catering business with the relaxation of social distancing and travel restrictions, planning to open more restaurants in prime locations[55]. Operational Efficiency - Cost control measures and new sales strategies were implemented to improve operational efficiency during adverse market conditions[26]. - The gross profit margin improved from 13.9% to 21.9%, primarily due to the trading segment's margin increase from 2.3% to 6.7%[65]. - The group's gross profit margin increased from 13.9% in the previous fiscal year to 21.9%, driven by a focus on high-quality products and an increase in revenue from the catering segment, which has a gross profit margin of 60.6%[67]. - The operating expenses to sales ratio increased to 21.8% from 19.6% in the previous year[63]. - Trade receivables turnover days increased to 26 days from 24 days in 2022, attributed to a higher proportion of sales from customer groups with longer credit payment terms[69]. - Inventory turnover days improved to 93 days from 98 days in 2022, with closing inventory amounting to approximately HK$39,265,000, down from HK$52,894,000 in 2022 due to tighter inventory control[70]. Corporate Governance - The Company does not recommend the payment of any dividend for the year ended March 31, 2023[99]. - The directors' remuneration is determined based on their involvement, experience, and market levels, with details provided in note 8 of the financial statements[122]. - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[119]. - The independent non-executive directors confirmed that the continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[185]. - Ernst & Young issued an unqualified letter regarding the Group's continuing connected transactions for the year ended 31 March 2023, confirming compliance with the Listing Rules[186]. - The audit committee, comprising independent non-executive directors, was established to oversee the Group's financial reporting system and internal control procedures[195]. - There has been no change of auditor in the past three years, with Ernst & Young proposed for reappointment at the upcoming annual general meeting[196]. Shareholding Structure - As of March 31, 2023, Stephen Tai holds 90,739,177 shares, representing approximately 34.95% of the company's total issued shares[135]. - 30,914,000 shares, approximately 11.91% of the company's total issued shares, are held by Careful Guide Limited, which is wholly owned by Stephen Tai[136]. - 52,907,250 shares, approximately 20.38% of the company's total issued shares, are held by Special Access Limited, also wholly owned by Stephen Tai and his spouse[136]. - The company has no management contracts other than employment contracts for the year ended March 31, 2023[130]. - No director had a material interest in any significant transactions or contracts during the year, except as disclosed in note 30 of the financial statements[124]. - A permitted indemnity provision was in force for indemnities against liabilities incurred by the directors to a third party during the year[123]. - The company has received annual confirmations of independence from all independent non-executive directors[119]. - As of March 31, 2023, Stephen Tai Tak Fung holds 259,478,000 shares, representing approximately 67.53% of the total issued shares of FSMHL[138]. - The shares held by CGL amount to 70,000,000, which is about 18.22% of the total issued shares of FSMHL[138]. - SAL holds 74,250,000 shares, accounting for approximately 19.32% of the total issued shares of FSMHL[138]. - Capital Season Investments Limited holds 115,228,000 shares, representing around 29.99% of the total issued shares of FSMHL[138]. - The company’s directors have significant interests in the shares, indicating potential influence over corporate decisions[154]. Transactions and Agreements - A new master supply agreement for premium beef and beef products was established on 25 March 2021, effective for three financial years ending 31 March 2024[177]. - The annual cap for the master supply agreement was revised on 7 December 2021 to accommodate increased sales volume[177]. - For the year ended 31 March 2023, the Group paid approximately HK$28,221,000 to the Supplier for the purchase of premium beef and beef products, which did not exceed the annual cap of HK$45,000,000 for 2023[179]. - The Group has entered into a new Master Supply Agreement with the Supplier for a term of three financial years ending on 31 March 2024, following the expiration of the previous agreement[183].
香港食品投资(00060) - 2023 - 年度财报