Financial Performance - For the fiscal year ending March 31, 2022, the group recorded revenue of approximately HKD 993.3 million, a slight increase of about 3.9% compared to HKD 956.4 million for the fiscal year ending March 31, 2021[11]. - The group's revenue for the year was approximately HKD 993.3 million, an increase of about 3.9% compared to HKD 956.4 million in the previous year[26]. - The cost of goods sold for the year was approximately HKD 282.1 million, a decrease of about 1.2% from HKD 285.4 million in the previous year, representing 28.4% of total revenue[27]. - Gross profit for the year was approximately HKD 711.2 million, up 6.0% from HKD 671.0 million in the previous year[28]. - Employee costs for the year were approximately HKD 334.0 million, an increase of about 7.1% from HKD 311.8 million in the previous year[31]. - The group recorded a post-tax loss of approximately HKD 124,000,000, slightly improved from a loss of HKD 126,100,000 in the previous year[43]. - As of March 31, 2022, the group's cash and cash equivalents were approximately HKD 103,300,000, a decrease of about HKD 63,900,000 from HKD 167,200,000 in the previous year[44]. - The current ratio improved to approximately 1.0 times, up from 0.7 times in the previous year, with current assets totaling approximately HKD 411,000,000[44]. - The group's asset-to-equity ratio was approximately 12.8%, an increase from 9.3% in the previous year[45]. - The financing cost for the year was approximately HKD 19,800,000, a decrease of about HKD 5,300,000 from the previous year[39]. Business Operations - The group opened 3 new restaurants in mainland China and 3 in Singapore during the fiscal year, bringing the total number of restaurants operated in Hong Kong, Macau, mainland China, and Singapore to 85[10]. - The group closed 4 "Tsui Wah" restaurants in Hong Kong and opened 4 new restaurants under different brands during the year[20]. - The group opened 3 new "Tsui Wah" restaurants in Guangzhou, Nanjing, and Shenzhen during the year[21]. - The group expanded its restaurant network in Singapore from 1 to 4 locations during the year[24]. - Following the relaxation of social distancing measures on April 21, 2022, the group plans to continue promoting takeaway services and seek cost-reduction solutions[13]. - The group has established close cooperation with popular delivery service providers in mainland China, such as Meituan and Ele.me, to enhance its takeaway services[10]. - The group actively promoted its takeaway services in mainland China, collaborating closely with popular delivery service providers[21]. - The group has implemented promotional discounts for takeaway customers to encourage the use of self-pickup services during the pandemic[10]. - The group adjusted its operational hours and staffing in response to the pandemic's impact on business in Macau[24]. Financial Position and Strategy - The group maintained a strong financial position with ample cash on hand and unused bank financing, sufficient to meet business needs[11]. - The group entered into a sale agreement for certain units in the Kwai Chung Dali Centre for approximately HKD 264 million, aimed at realizing cash and releasing investment value[11]. - The company plans to diversify its business and revenue sources in response to the pandemic, focusing on developing new brands and exploring new business models[59]. - The company aims to accelerate its entry into overseas markets and the Guangdong-Hong Kong-Macao Greater Bay Area, enhancing marketing efforts to expand its customer base[59]. - The company will actively promote takeaway services and implement various marketing promotions to attract more customers, countering the negative impacts of social distancing measures[59]. - The company is taking decisive measures to improve efficiency and productivity by controlling costs, such as rent and labor costs, while reviewing and restructuring regular expenses to maintain profit margins[59]. - The company maintains a strong cash flow and resource reserves, allowing it to choose the most advantageous ways to improve operations and seize attractive business opportunities[60]. Corporate Governance - The company has maintained compliance with all applicable corporate governance codes since January 2022[85]. - The board of directors held 7 meetings during the year, with all directors attending the annual general meeting[92]. - The board consists of 9 members, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, meeting the requirement for independent representation[96]. - The company has established a robust internal control and risk management system, ensuring transparency and accountability[88]. - The chairman and CEO roles are separated, aligning with corporate governance best practices[93]. - The company has received written confirmations of independence from all independent non-executive directors, ensuring their impartiality[97]. - The company has adequate directors' and officers' liability insurance in place, reviewed annually[99]. - The company emphasizes high standards of corporate governance to enhance shareholder value and ensure sustainable development[85]. - The board regularly reviews and adheres to corporate governance policies to ensure compliance with applicable codes[87]. Risk Management - The company’s risk management framework is based on a "three lines of defense" model, clearly defining roles and responsibilities[144]. - The board has conducted an annual review of the effectiveness of the group's risk management and internal control systems, finding them to be effective and adequate[150]. - The internal audit team operates independently and reports directly to the audit committee, conducting audits based on risk assessments to cover high-risk business activities annually[150]. - The company has established policies and procedures for handling and disclosing inside information to ensure the accuracy, completeness, and timeliness of public disclosures[151]. - The internal audit plan is developed annually based on risk assessments and is executed in collaboration with external consultants[150]. Social Responsibility - The company is committed to corporate social responsibility, encouraging employee participation in charitable activities and promoting environmental measures[58]. - The company is conducting surveys among key stakeholders to assess its environmental and social policies, which will inform its next environmental, social, and governance report[58]. Shareholder Communication - The company emphasizes the importance of transparent and timely communication with shareholders to build investor confidence and attract new investments[162]. - The company has invited independent auditors to attend the annual general meeting to address shareholder inquiries regarding audit work and accounting policies[163]. - The company maintains high transparency by publishing corporate communications on its website, ensuring shareholders receive accurate and timely information[162]. Challenges and Future Outlook - The company has faced significant challenges in the restaurant industry since the second half of 2019, exacerbated by the pandemic, leading to a decline in customer numbers[180]. - The company expresses confidence in its long-term prospects, thanking its management, employees, shareholders, and partners for their support[61].
翠华控股(01314) - 2022 - 年度财报