Restaurant Business Performance - The restaurant business remains the core operation of the company, contributing significantly to overall financial performance despite challenging market conditions[11]. - The company adjusted its marketing strategies flexibly in response to market conditions, allowing its main restaurant and cake shop brand, Italian Tomato, to achieve relatively stable performance[11]. - The company reported that the restaurant industry in Hong Kong showed signs of recovery in early 2023 after the easing of cross-border restrictions[10]. - The flagship brand, Italian Tomato, has become one of the most recognized cake shop brands in Hong Kong, enhancing the company's business resilience[34]. - The restaurant business faced challenges due to the pandemic, but the Italian Tomato brand remains popular, with 4 cafes and 30 cake shops operating in Hong Kong as of March 31, 2023[165]. Oral Care Market - The company began mass production of antibacterial toothpaste during the reporting period, focusing on the oral care market, although contributions were below expectations due to high competition[12]. - The company plans to adopt a long-term development approach for its oral care products and will continue to seek suitable growth opportunities and potential partners for future collaboration[12]. - Despite efforts in the oral care sector, sales performance was below expectations due to intense competition and high industry entry barriers[169]. - The global oral care market was valued at $33.7 billion in 2022, with China's market growing to $2.8 billion due to aging population and technological advancements[163]. Marketing and Customer Engagement - The company has actively collaborated with various third-party delivery platforms to provide exclusive offers, capitalizing on the demand for delivery services[11]. - The company’s marketing strategies have proven effective in maintaining a strong position for Italian Tomato among well-known cake brands in Hong Kong[11]. - The company aims to regularly launch seasonal and festive products, such as mini "cakes," to cater to market trends and consumer demands[14]. - The membership program is moving towards digitization to strengthen customer interaction and improve satisfaction and loyalty, with a focus on utilizing big data analytics[14]. - The company will closely monitor the effectiveness of its multi-channel marketing activities to increase market share and customer loyalty[14]. Economic Environment - The economic growth in China fell to its lowest level in nearly half a century due to unexpected shocks, including frequent pandemic outbreaks and a historic downturn in the real estate market[10]. - The IMF forecasts global economic growth to slow to 2.8% in 2023, influenced by geopolitical tensions and persistent inflation[170]. - In 2022, the global economic growth rate declined to 3.4%, with China's growth at only 3.0%, significantly below its target of 5.5%[160]. - Hong Kong's GDP contracted by 3.5% in 2022, but retail sales showed signs of recovery with a 17.3% increase in the first two months of 2023 compared to the previous year[161]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and has adhered to the GEM listing rules throughout the reporting period[19]. - The board of directors has been restructured, with Zhang Tao appointed as an executive director following the resignation of Huang Li[21]. - Independent non-executive directors are providing valuable insights into strategic development, ensuring high standards of financial reporting and shareholder protection[25]. - The company has established a clear distinction between the roles of the Chairman and the CEO, ensuring compliance with corporate governance codes[32]. - The company has established a corporate governance committee to oversee governance policies and compliance with legal and regulatory requirements[42]. Risk Management and Internal Control - The company emphasizes the importance of risk management and internal control systems in its financial reporting[41]. - The board is committed to maintaining effective risk management and internal control systems, with an external consultant reviewing these systems during the reporting period[67]. - The audit committee assists the board in overseeing financial, operational, compliance, and risk management functions, ensuring the effectiveness of internal controls[70]. - The board will review the effectiveness of risk management and internal control systems annually, confirming their adequacy during the reporting period[71]. Employee and Workforce Management - The company has a total of 115 full-time employees and 105 part-time employees, with a gender distribution of 43 males and 177 females, indicating a diverse workforce[72]. - The employee turnover rate has been increasing, leading to a higher proportion of part-time employees within the company[117]. - The average training hours per employee were 75 hours for males and 92 hours for females, reflecting the company's commitment to employee development[157]. - The company promotes a balanced work-life environment and provides health and safety information to enhance employee awareness[126]. Financial Performance - The audited revenue for the reporting period was approximately HKD 162.5 million, a decrease of about 5.5% compared to HKD 171.9 million in the previous fiscal year[159]. - The loss attributable to the company's owners for the reporting period was approximately HKD 12.4 million, down from HKD 19.8 million in the previous year[159]. - The total revenue for the reporting period was approximately HKD 162.5 million, a decrease of about 4.8% compared to HKD 171.9 million in the previous year[177]. - Operating expenses decreased by about 6% to approximately HKD 105.6 million from HKD 112.3 million in the previous year, reflecting strict cost control measures[182]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a dedicated team to manage ESG matters across its business units[90]. - The ESG report covers the group's performance in environmental, social, and governance aspects during the reporting period from April 1, 2022, to March 31, 2023[86]. - The company has identified significant ESG issues such as water management, waste management, energy efficiency, anti-corruption measures, supply chain management, and product quality[98]. - The company promotes the "3R" initiative (Reduce, Reuse, Recycle) to enhance resource efficiency and reduce waste generation[105]. Future Plans and Strategies - The company plans to focus on the food and beverage business to capture market growth potential amid Hong Kong's economic recovery, with an expected growth rate of 3.5% to 5.5% for 2023[176]. - The company will collaborate with Japanese enterprises to introduce seasonal dishes, enhancing product diversification and customer base[173]. - The company has earmarked HKD 35 million for potential investment opportunities, with HKD 23 million remaining unutilized[200].
荣晖控股(08213) - 2023 - 年度财报