Financial Performance - For the year ended 31 March 2023, revenue increased by approximately HK$10.3 million, or 3.5%, to HK$304.4 million from HK$294.1 million for the year ended 31 March 2022[11]. - The loss for the year attributable to the owners of the Company decreased by 78.3% to HK$6.94 million from HK$32.01 million in the previous year[11]. - The gross profit margin for the year was 74.6%, slightly down from 74.9% in the previous year[13]. - The net loss margin improved to (2.3)% from (10.9)% in the previous year[13]. - Gross profit increased by approximately 3.1% from HK$220.2 million to HK$227.0 million, while the gross profit margin decreased from 74.9% to 74.6%[33]. - Cost of food and beverages increased by approximately 4.7% from HK$73.9 million to HK$77.3 million, with the cost as a percentage of revenue rising from 25.1% to approximately 25.4%[32]. - Staff costs rose by approximately 5.0% from HK$108.0 million to HK$113.4 million, with staff costs as a percentage of revenue increasing from approximately 36.7% to 37.3%[40]. - Property rentals and related expenses increased by approximately 27.0% from HK$16.3 million to HK$20.7 million due to reduced rent concessions[41]. - Net other gains and losses decreased by approximately 77.6% from HK$10.5 million to HK$2.4 million, primarily due to an impairment loss on goodwill[39]. Business Strategy and Expansion - The management is conducting feasibility studies for new restaurant locations to prepare for economic recovery and market expansion[18]. - The Group aims to consolidate its leadership as a full-service restaurant group in Hong Kong and expand into the PRC market[18]. - The Group plans to explore business and investment opportunities in different areas to enhance long-term growth potential[30]. - The Group will consider different business models, including cooperation with third-party restaurant operators, to strengthen competitiveness in the banquet market[30]. - The company plans to allocate approximately HK$5 million to open new restaurants offering different cuisines to adapt to changes in the catering industry[114]. Market Conditions and Challenges - The business environment was significantly affected by the COVID-19 pandemic, leading to temporary restaurant suspensions[23]. - The gradual recovery of restaurant business began following the easing of COVID-19 measures in late December 2022[23]. - The Group anticipates gradual recovery in the Hong Kong and PRC markets following the relaxation of COVID-19 prevention measures[30]. - The company faced risks related to the commercial real estate rental market, which could adversely affect profitability and growth if new leases cannot be secured[118]. - The profitability of the company is significantly impacted by fluctuations in procurement costs for food and beverages, which are subject to external factors[119]. Employee and Operational Insights - The Group had approximately 224 employees as of March 31, 2023, an increase from 137 employees in 2022, with competitive wages and benefits offered to restaurant employees[69]. - The Group maintains good relationships with its employees by offering competitive compensation and ongoing training[166]. - The Group's liquidity requirements primarily relate to working capital needs for procurement, staff costs, property rents, and various operating expenses, with the main source of funds being internally generated working capital, bank borrowings, and net proceeds from the listing[54]. Financial Position and Capital Management - As of March 31, 2023, the Group's total borrowings amounted to approximately HK$37.4 million, down from HK$44.4 million in 2022, with borrowings denominated in Hong Kong dollars and repayable on demand[60]. - The Group's gearing ratio increased to approximately 315.0% as of March 31, 2023, compared to 236.8% in 2022, primarily due to the recognition of the loss for the year, which decreased total equity[61]. - The Group's cash and cash equivalents were approximately HK$95.8 million as of March 31, 2023, compared to HK$100.2 million in 2022, with total current assets and liabilities of approximately HK$113.5 million and HK$170.1 million, respectively[59]. - The Group's life insurance policy deposit pledged to secure bank borrowings amounted to approximately HK$16.2 million, up from HK$15.9 million in 2022[78]. - The company does not recommend a final dividend for the financial year ended March 31, 2023, due to challenging business conditions and low cash flow requirements[113]. Governance and Compliance - The Group has complied with relevant laws and regulations, with no material breaches reported during the year[133]. - The restaurant licensing compliance committee will report to the Board at least four times a year to oversee licensing compliance matters[132]. - The Company is in the process of identifying a suitable candidate for a new independent non-executive Director to ensure compliance with relevant Listing Rules[170]. - The company maintains a register of substantial shareholders' interests as required by the SFO[198]. - The company is compliant with the requirements of the Securities and Futures Ordinance regarding the disclosure of interests[199]. Charitable Contributions and ESG - The Group's total charitable contributions for the year amounted to approximately HK$1,060,000, an increase from HK$667,000 in 2022[156]. - The Group's environmental, social, and governance (ESG) policies are aimed at ensuring sustainable business practices[134].
维力生活科技(01703) - 2023 - 年度财报