Financial Performance - The group reported a significant recovery in revenue for the year ending December 31, 2023, compared to the previous year, as the economy gradually revived post-pandemic [10]. - Total revenue increased by 63.3% from approximately HKD 58.6 million in 2022 to approximately HKD 95.7 million in 2023, attributed to the recovery of restaurant performance post-COVID-19 [22]. - The company recorded a profit attributable to owners of approximately HKD 14.9 million in 2023, a significant increase from a loss of approximately HKD 32.1 million in 2022 [26]. - Cost of goods sold rose by 47.0% from approximately HKD 18.3 million in 2022 to approximately HKD 26.9 million in 2023, consistent with revenue growth [24]. - Employee costs increased by 10.9% from approximately HKD 32.2 million in 2022 to approximately HKD 35.7 million in 2023, reflecting a rebound in sales revenue [24]. Business Strategy and Development - The restaurant business has returned to pre-pandemic revenue levels, driven by increased local consumption and a rise in tourist numbers following the full resumption of cross-border travel on February 6, 2023 [16]. - The group plans to adopt a cautious approach towards business development in the restaurant sector for 2024, focusing on operational efficiency improvements [12]. - The management is exploring investment opportunities in the restaurant and/or new business sectors to diversify revenue sources [12]. - The group continues to regularly review its existing operations to enhance business performance and financial health [12]. - The restaurant business remains a stable source of income for the group, contributing positively to overall financial performance [16]. Capital and Financing - The group completed a share consolidation and rights issue during the year to enhance its working capital and improve financial conditions [12]. - The company successfully raised approximately HKD 6.9 million from the placement of 450,880,000 new shares on March 17, 2023 [17]. - The company plans to raise up to approximately HKD 43.9 million through a rights issue based on a one-for-one share basis announced on April 6, 2023 [17]. - The actual net proceeds from the rights issue completed on August 18, 2023, were approximately HKD 40.9 million, fully utilized according to the intended purposes [46]. - The company is in discussions with banks to renew financing and believes that existing bank financing will be renewed upon expiration [49]. Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM listing rules, ensuring transparency and accountability to shareholders [59]. - The board consists of 4 directors, including 1 executive director and 3 independent non-executive directors, with recent changes in board composition noted [63]. - The company emphasizes the importance of board diversity, which has been in place since November 2016, to enhance performance and achieve strategic goals [66]. - The board is responsible for leading and monitoring the company, including business strategy formulation and performance oversight [61]. - The company has established a policy for board diversity, considering various factors such as gender, age, and cultural background in director selection [66]. Risk Management and Internal Control - The board is responsible for the final oversight of the group's risk management and internal control systems, ensuring efficient use of resources to achieve business objectives [96]. - A risk management team, composed of executive directors and management with over ten years of experience, conducts quarterly risk identification and analysis [98]. - The internal control system aims to ensure operational efficiency, reliability of financial reporting, and compliance with applicable laws and regulations [99]. - The company has engaged external consultants to review the effectiveness of its internal control system, with corrective measures implemented for identified weaknesses [99]. - The board has reviewed the effectiveness of the risk management and internal control systems and considers them adequate and effective [101]. Environmental, Social, and Governance (ESG) - The company aims to become a leading music entertainment and restaurant operator in the Greater China region, providing reasonable returns to shareholders while being socially and environmentally responsible [118]. - The company has established a stakeholder engagement and materiality assessment process to identify significant environmental, social, and governance issues for the year [116]. - The environmental, social, and governance report has been reviewed and approved by the board, ensuring compliance with principles of materiality, quantification, balance, and consistency [116]. - The company emphasizes its commitment to reducing environmental impact and providing a safe working environment for employees and customers [119]. - The board is responsible for identifying and managing environmental, social, and governance (ESG) risks to ensure stable business development [122]. Employee Relations and Workplace Safety - The group employed a total of 87 employees at the end of the reporting period, consisting of 70 full-time and 17 part-time employees [174]. - Employee turnover rate significantly decreased to 19.28% in 2023 from 79.75% in 2022, attributed to reduced impact from the COVID-19 pandemic [185]. - The group recorded 3 injury cases during the reporting period, all classified as minor injuries, with 55 workdays lost due to these injuries [193]. - The group maintained compliance with labor laws, providing statutory benefits including mandatory provident fund coverage and workers' compensation [190]. - The group aims to achieve zero work-related fatalities in the coming year through continuous training and monitoring of health and safety practices [193].
陆庆娱乐(08052) - 2023 - 年度财报