Financial Performance - The Group recorded a consolidated revenue of approximately HK$114.6 million for the year ended March 31, 2022, representing an increase of approximately HK$77.4 million or 208.1% from the previous year's revenue of approximately HK$37.2 million[13][17]. - The audited consolidated loss attributable to shareholders for the same period was approximately HK$14.1 million, with a loss per share of HK$0.72 cents based on 1,946,314,108 ordinary shares in issue[11][15]. - Revenue from the restaurant operations in Hong Kong amounted to approximately HK$40.6 million, an increase of approximately HK$3.4 million or 9.1% from the previous year[20][22]. - Revenue from the property development business in Australia was approximately HK$74.0 million, while revenue from restaurant operations in Hong Kong was approximately HK$40.6 million, reflecting a 9.1% increase from the previous year[47]. - The Group recorded a net loss of approximately HK$14.1 million for the year under review, compared to a net loss of approximately HK$8.8 million for the last corresponding period[48]. - The increase in gross profit of approximately HK$10.0 million was contributed by the property development segment (approximately HK$7.7 million) and the restaurant operations segment (approximately HK$2.3 million)[49]. Impact of COVID-19 - The overall performance of the Group's restaurants was significantly affected by the COVID-19 pandemic, particularly during the fifth wave of infections in early 2022[27]. - The Group's restaurant business faced a significant decline in revenue starting January 2022 due to tightened social distancing measures, resulting in a record low revenue of approximately HK$2.6 million in the first quarter of 2022[27]. - The Group's revenue in the first quarter of 2022 was severely impacted by the COVID-19 pandemic, leading to the suspension of operations at key branches[82]. - The Group's restaurant operations faced challenges due to the tightening of social distancing measures and the need for staff to undergo more frequent COVID-19 testing[67]. - The Group's restaurant operations faced a drastic drop in revenue due to COVID-19 restrictions, resulting in a record low revenue of approximately HK$2.6 million in the first quarter of 2022[30]. Government Support - The Hong Kong government's Consumption Voucher Scheme, amounting to HK$36 billion, positively impacted the overall performance of the Group's restaurants[23]. - The Group received a total of approximately HK$7.25 million in subsidies from the Hong Kong Government under various stages of the Anti-epidemic Fund relief schemes since April 2020[50]. - For the year ended 31 March 2022, the Group recognised subsidies amounting to approximately HK$2.1 million under the Catering Business (Social Distancing) Subsidy Scheme for its restaurants[50]. - The Group received a total of HK$1.35 million from the HK Government's Anti-epidemic Fund under the Catering Business (Social Distancing) Subsidy Scheme[86]. Strategic Plans - The Group plans to open a new branch named "Kwun Tong City Chiu Chow Restaurant" with a right-of-use asset recognized at approximately HK$13.6 million as of the lease commencement[21][25]. - The Group plans to adopt a more cautious approach in capital expenditure and will implement measures to mitigate losses during the challenging operating environment[40]. - The Group aims to continue expanding its property development segment and actively seek investment opportunities in both Australia and Hong Kong[41]. - The Group's strategy for the restaurant business focuses on operating medium-sized restaurants while achieving efficient risk management in a challenging environment[105]. - The Group plans to adopt a more cautious approach in future expansion and capital expenditure while seeking investment opportunities in property development projects in Hong Kong and Australia[105]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the year ended March 31, 2022, except for specific provisions regarding the separation of roles and appointment letters for directors[110]. - The Board consists of four executive directors and three independent non-executive directors, with a mix of competencies in accounting, finance, and business management[117]. - The independent non-executive directors have confirmed their independence annually, ensuring compliance with the relevant Listing Rules[128]. - The Company has received a statement from the auditor regarding their reporting responsibilities, affirming the integrity of the financial reporting process[129]. - The Group's risk management and internal control systems are deemed adequate and effective following an annual review by the Board and management team[134]. Financial Management - As of 31 March 2022, the Group's bank and cash balances amounted to approximately HK$31.7 million, with a gearing ratio of zero due to no bank borrowings[92]. - The Group drew down approximately HK$43.0 million from loan facilities during the year ended 31 March 2022, with accrued loan interests of approximately HK$1.0 million, and fully repaid the loans in October 2021[93]. - Total staff costs increased to approximately HK$19.2 million, reflecting an increase of HK$0.5 million from the last corresponding period[55]. - Total staff costs, including directors' emoluments, amounted to approximately HK$19.2 million for the year ended 31 March 2022, compared to HK$18.7 million for the previous year[99]. Board and Committees - During the year ended March 31, 2022, the Board held six meetings and one general meeting, with individual attendance rates for directors ranging from 3/6 to 6/6 for Board meetings[121]. - The remuneration committee, consisting of three independent non-executive directors, held one meeting during the year ended March 31, 2022, to review and recommend remuneration packages[146]. - The audit committee, consisting of three INEDs, held two meetings during the year ended March 31, 2022, to review audit findings and financial statements[156]. - The nomination committee was established on March 23, 2012, and reviewed the Board's structure, size, composition, and diversity at least annually[150]. - The attendance rate for the nomination committee members was 100% during the year ended March 31, 2022[154].
环科国际(00657) - 2022 - 年度财报