Financial Performance - For the year ended 31 March 2023, the Group recorded total revenue of approximately HK$106.6 million, representing an 88.3% decrease compared to HK$910.3 million for the year ended 31 March 2022[14]. - The loss attributable to shareholders for the same period was approximately HK$1.4 million, which is a 77.4% decrease from the previous year[14]. - Revenue from the restaurant operation decreased by 25.3%, or HK$15.7 million, from HK$62.1 million to HK$46.4 million due to prolonged COVID-19 impacts and increased competition[28]. - The trading business revenue decreased by 100%, or HK$842.4 million, from HK$842.4 million to nil, as the management decided to reallocate resources to more profitable segments[29]. - The Group's revenue decreased from HK$910.3 million for the year ended March 31, 2022, to HK$106.6 million for the year ended March 31, 2023, a decline of approximately 88.3%[31]. - Restaurant operating income fell by 25.3% or HK$15.7 million, from HK$62.1 million in 2022 to HK$46.4 million in 2023, primarily due to the prolonged negative impact of the COVID-19 pandemic and increased competition[32]. - Trading business revenue dropped 100% from HK$842.4 million in 2022 to zero in 2023, as management decided to reallocate resources to other business segments[33]. - The loss attributable to shareholders for the year ended March 31, 2023, was approximately HK$1.4 million, a significant improvement from a loss of approximately HK$6.0 million for the year ended March 31, 2022, representing a reduction of about 77.3%[56]. Cost Management - Cost of revenue decreased from HK$873.1 million in 2022 to HK$61.4 million in 2023, a reduction of HK$811.7 million, with the cost of revenue as a percentage of revenue dropping from 95.9% to 57.6%[37]. - The cost of food and beverages decreased by 27.1% or HK$4.8 million, from HK$17.7 million in 2022 to HK$12.9 million in 2023, representing 28.5% and 27.8% of restaurant revenue in 2022 and 2023, respectively[38]. - Staff costs decreased by 4.5% or HK$1.1 million, from HK$24.2 million in 2022 to HK$23.1 million in 2023, primarily due to restaurant closures[47]. - Property rentals and related expenses decreased by 6.2% or HK$1.0 million, from HK$16.2 million in 2022 to HK$15.2 million in 2023, mainly due to restaurant closures[48]. Strategic Focus and Future Plans - The Group plans to consolidate resources and focus on existing businesses while exploring new profit drivers to alleviate profitability pressures[15]. - The Group aims to focus on developing its IT solution business, which is aligned with its strategic goal to diversify into integrated e-commerce[17]. - The Group's strategic goal is to become a diversified and integrated group of high-efficiency industrial chain and scale business, while exploring e-commerce opportunities[112]. - The IT solution business is expected to grow due to the increasing demand for "non-contact" online services and digital transformation in the post-pandemic era[123]. - The Group aims to maintain its existing customer base in the IT solution business and increase market share through e-commerce platform operations and IT solutions outsourcing services[123]. Acquisitions and Investments - The acquisition of Context Image Holdings Limited was agreed upon for a maximum consideration of HK$114.2 million, to be settled through the issuance of up to 171.8 million consideration shares[72]. - The company agreed to acquire 100% equity of Context Image Holdings Limited for a maximum consideration of HK$114,236,118, to be paid in three stages with a total of up to 171,783,636 consideration shares issued at HK$0.665 per share[74]. - The acquisition of the Target Group is viewed as a good investment opportunity, expected to diversify the company's income stream and enhance shareholder value in the long run[84]. - The company sold 100% equity interests in Prosperity One Limited for a cash consideration of HK$31 million on April 27, 2023, to strengthen its cash position[86]. Liquidity and Financial Position - As of March 31, 2023, the Group's cash and cash equivalents decreased by 59.2% to HK$9.7 million from HK$23.8 million as of March 31, 2022[57]. - The current ratio as of March 31, 2023, was approximately 1.9 times, down from 2.5 times in 2022, indicating a decline in liquidity[59]. - The gearing ratio of the Group was 0% as of March 31, 2023, indicating no borrowings against equity attributable to shareholders[62]. - The Group's net debt to equity ratio was at a net cash position as of March 31, 2023, consistent with the previous year[62]. Corporate Governance - The company emphasizes the importance of experienced directors in guiding its strategic direction and financial oversight[144]. - The board of directors includes members with diverse backgrounds in finance, management, and public service, enhancing the company's governance[145]. - The company is committed to maintaining high standards of corporate governance through the expertise of its independent non-executive directors[150]. - The Board comprises six Directors, with three being executive Directors and three independent non-executive Directors, meeting the requirement of at least one-third of the Board members being INEDs[173]. - The independent non-executive Directors (INEDs) contribute a wide range of business and financial expertise, ensuring effective independent judgment on the Board[174]. - The company has established a board independence evaluation mechanism to enhance board effectiveness and safeguard shareholders' interests[181]. - The Board is responsible for overseeing the management of business affairs and overall performance, including formulating business plans and strategies[166]. Human Resources - As of March 31, 2023, the Group had 54 employees, a decrease from 88 employees in 2022[103]. - All directors received formal induction and ongoing professional development to ensure understanding of the company's operations and responsibilities[184]. - The company has purchased liability insurance for all directors to minimize risks associated with their responsibilities[193].
民商创科(01632) - 2023 - 年度财报