Financial Performance - The Group reported an audited consolidated loss attributable to shareholders of approximately HK$21.6 million for the year ended March 31, 2023, compared to a loss of approximately HK$14.1 million in 2022, resulting in a loss per share of HK$1.11 cents[11][16]. - Consolidated revenue for the year was approximately HK$45.2 million, representing a decrease of approximately HK$69.4 million or 60.6% from last year's revenue of approximately HK$114.6 million[13][18]. - The Group recorded a net loss of approximately HK$21.6 million for the year, compared to a net loss of approximately HK$14.1 million in the previous year, primarily due to increased non-cash impairment losses[45]. - Gross profit decreased by approximately HK$4.0 million from HK$35.5 million in 2022 to approximately HK$31.5 million in 2023, with no gross profit recognized from the property development segment[46]. - Other income and gains for the year amounted to approximately HK$3.4 million, including a subsidy of HK$2.3 million from the Hong Kong government[49]. Revenue Breakdown - Revenue from the restaurant operations in Hong Kong amounted to approximately HK$45.2 million, an increase of approximately HK$4.6 million or 11.3% from the previous year's revenue of approximately HK$40.6 million[14][19]. - The turnover for the first half of the year was approximately HK$20.6 million, a decrease of approximately 30.8% or HK$9.2 million compared to the last corresponding period, primarily due to changes in operating floor area[20]. - The second half of the year saw a turnover of approximately HK$24.6 million, a significant increase of approximately HK$13.8 million compared to the last corresponding period's turnover of approximately HK$10.8 million[23][25]. - Overall turnover for the Group's restaurant operations for the year under review was 25% below the target revenue[89]. Operational Challenges - The restaurant operations were significantly impacted by the fifth wave of the COVID-19 pandemic, leading to a record low revenue of approximately HK$2.6 million in the first quarter of 2022[25]. - The Group's financial results were adversely affected by the COVID-19 pandemic, with operational suspensions in multiple branches during the fifth wave of outbreaks[69]. - The operating environment for the restaurant business remains challenging despite the stabilization of the COVID-19 pandemic[106]. Impairments and Asset Management - The Group decided to recognize non-cash impairments of approximately HK$7.5 million and HK$4.6 million on the right-of-use assets and property, plant, and equipment, respectively, due to uncertainties regarding the outlook and cash flows for the Kwun Tong City Chiu Chow Restaurant[24][27]. - Non-cash impairment losses on right-of-use assets and property, plant, and equipment were recognized at approximately HK$7.5 million and HK$4.6 million respectively, compared to HK$3.1 million and HK$1.9 million in the previous year[60]. - The closure of Hover City Chiu Chow Restaurant resulted in an additional loss of approximately HK$2.0 million due to the write-off of property, plant, and equipment[61]. Employee Costs and Management - Employee costs totaled approximately HK$22.5 million, an increase of approximately HK$3.3 million from HK$19.2 million in the previous year, driven by labor shortages in the restaurant industry[50]. - Total staff costs increased by approximately HK$3.3 million to approximately HK$22.5 million, reflecting higher pay to retain staff amid labor shortages[53]. - Employee remuneration packages are reviewed annually, ensuring competitive salary and benefits, including medical coverage and a provident fund scheme[101]. Strategic Direction - The Group plans to adopt a more cautious approach in committing further capital expenditure due to the challenging operating environment[35]. - The Group will continue to review and revise its business strategies to better position itself for future challenges and investment opportunities[39]. - The Group aims to enhance shareholder value through business diversification and identifying new business opportunities[105]. - The Group will adopt a cautious approach towards future expansion and capital expenditure while seeking investment opportunities in property development in Hong Kong and Australia[106]. Corporate Governance - The Board consists of four executive Directors and three independent non-executive Directors, ensuring a mix of competencies in accounting, finance, and business management[118]. - The Company has complied with Listing Rules by maintaining at least one-third of the Board as independent non-executive Directors since December 1, 2012[129]. - The Board recognizes its overall responsibility for the establishment, maintenance, and review of risk management and internal control systems, providing reasonable assurance on the reliability and integrity of financial and operational information[144]. - The Company has adopted guidelines for handling inside information, ensuring confidentiality and limiting access to authorized personnel only[149]. Shareholder Communication - The Company has established multiple channels for shareholder communication, including annual reports, interim reports, and corporate information on its website[187]. - The Company encourages direct communication between shareholders and the Board, providing contact details for inquiries[188]. - The Board considers the Company's communication with shareholders to be effective during the year under review[196].
环科国际(00657) - 2023 - 年度财报