Financial Performance - The Group's consolidated results for the year ended March 31, 2023, were presented alongside comparative figures for 2022[18]. - Revenue from continuing operations for the year ended March 31, 2023, increased by approximately HK$2.7 million to approximately HK$30.0 million, compared to HK$27.3 million in 2022[42]. - Loss for the year from continuing operations improved to HK$24.975 million in 2023, down from HK$33.141 million in 2022[28]. - The Group's total assets decreased to HK$21.359 million in 2023 from HK$36.733 million in 2022[30]. - The equity attributable to owners of the Company fell to HK$3.596 million in 2023 from HK$22.820 million in 2022[30]. - The cost of inventories sold increased by approximately HK$1.5 million to approximately HK$13.0 million, with the cost as a percentage of revenue rising to 43.2% in 2023 from 42.1% in 2022[43]. - The Group's food processing business generated revenue of HK$5.6 million in 2023, up from HK$2.0 million in 2022[42]. - Revenue for the year ended March 31, 2023, increased by approximately HK$2.7 million to approximately HK$30.0 million, compared to HK$27.3 million in 2022[45]. - Cost of goods sold increased by approximately HK$1.5 million to approximately HK$13.0 million, with the cost as a percentage of revenue rising by approximately 1.1% to 43.2%[46]. - Gross profit increased by approximately HK$1.3 million to approximately HK$17.1 million, while the gross profit margin decreased by approximately 1.1% to 56.8%[47][48]. - Other revenue increased by approximately HK$0.5 million to approximately HK$1.9 million for the year ended March 31, 2023[49]. - Employee benefit expenses decreased by approximately HK$6.3 million to approximately HK$13.1 million, primarily due to one-off payments made in the previous year[50][54]. - Depreciation increased by approximately HK$2.9 million to approximately HK$9.5 million, mainly due to new restaurants and central kitchen operations starting after December 2021[51][55]. - Loss attributable to owners of the Company for the year was approximately HK$22.2 million, a decrease from approximately HK$40.3 million in 2022, mainly due to no loss from discontinued operations recognized in the previous year[61][66]. - Total assets decreased by approximately HK$15.3 million to approximately HK$21.4 million, while total liabilities increased by approximately HK$6.6 million to approximately HK$23.7 million[68][69]. - Equity attributable to owners of the Company decreased by approximately HK$19.2 million to approximately HK$3.6 million, primarily due to losses recognized in the current financial year[70]. Business Strategy and Outlook - The catering industry faced challenges due to stringent dine-in restrictions, leading to a shift towards high takeaway and lower turnover rates[19]. - Management is optimistic about recovering the catering business as Hong Kong reopens its borders and removes anti-epidemic measures[20]. - The Group aims to enhance customer experience by offering more diverse cuisines, although progress has been slow due to limited financial resources[19]. - The management plans to seek potential expansion opportunities with additional resources obtained from a rights issue exercise[20]. - The Group's performance has been persistently below expectations, prompting a focus on restoring profitability[20]. - The operating environment is expected to improve as the economic conditions return to pre-COVID-19 levels[20]. - The strategic direction includes careful consideration to avoid overexpansion in a weak business environment[19]. - The Group has implemented cost-saving measures, including negotiating rent concessions and expanding the take-away product line[36]. - Management plans to actively seek opportunities for expansion in the catering service business following a rights issue completed on June 14, 2023[40]. - The Group is actively seeking opportunities to expand its restaurant services following a successful placement of shares to enhance financial resources[44]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and compliance[114]. - The company has complied with the Corporate Governance Code except for the requirement of having at least three independent non-executive directors on the Board, which was addressed by appointing Ms. Lau Man Kei on February 16, 2023[121]. - The Board consists of two executive directors and three independent non-executive directors, meeting the GEM Listing Rules requirements for independent directors[128]. - The company received annual confirmations of independence from all independent non-executive directors, affirming their compliance with independence guidelines[135]. - The Board Diversity Policy has been adopted, recognizing the importance of diversity in maintaining competitive advantage, with measurable objectives set for its implementation[137]. - The Nomination Committee has reviewed the Board Diversity Policy and confirmed that the Group achieved its diversity objectives for the year ended March 31, 2023[139]. - The company has established various Board Committees to delegate responsibilities for day-to-day operations and business strategies[127]. - The Company has provisions in place for directors to abstain from voting on transactions where they have a material interest[155]. - The Company Secretary is responsible for maintaining minutes of all Board and committee meetings, ensuring transparency and accountability[152]. - The Company ensures that Board papers are sent to Directors at least three days before meetings to facilitate informed decision-making[150]. - The Board will periodically review its structure and make appointments as necessary to ensure effective governance[122]. - The Company held ten Board meetings, one annual general meeting, and two extraordinary meetings during the year ended 31 March 2023[156]. - All Directors confirmed compliance with the continuous professional development requirement, participating in training to enhance their knowledge and skills[145]. Audit and Compliance - The audit committee consists of three INEDs, including Mr. Chong Alex Tin Yam as chairman, to oversee financial reporting and internal controls[161]. - The audit committee's primary responsibilities include monitoring the integrity of financial statements and discussing the internal control system with management[163]. - The audit committee aims to ensure compliance with legal and regulatory requirements through the development and review of corporate governance policies[164]. - The audit committee held six meetings during the year ended March 31, 2023, to review the Group's financial results and discuss corporate governance effectiveness[164]. - The consolidated financial statements for the year ended March 31, 2023, were reviewed by the audit committee, with no disagreements regarding the selection of external auditors[164]. - The audit committee recommended the re-appointment of Mazars CPA Limited as the Company's auditor at the upcoming AGM[164]. - An external professional consultant was engaged to conduct an independent internal control review for the year ended March 31, 2023, which has been completed[194][198]. - The Group believes that good corporate governance practices are essential for maintaining investor confidence and sustainable growth, and has established a highly effective system of internal controls[195]. - The Board confirmed that there are no irregularities, improprieties, fraud, or deficiencies indicating material deficiencies in the effectiveness of the Group's internal control system[196]. - The Directors are responsible for preparing the consolidated financial statements in accordance with the Hong Kong Companies Ordinance, ensuring a true and fair view of the Group's state of affairs[199]. - Appropriate and consistent accounting policies were adopted by the Directors in preparing the consolidated financial statements for the year ended 31 March 2023[200].
汉诺佳池(08428) - 2023 - 年度财报