Financial Performance - For the fiscal year ending December 31, 2023, Dragon King Group Holdings Limited reported total revenue of approximately HKD 104.5 million, representing a significant increase of about 31.4% compared to the previous year[15]. - The company achieved a profit of approximately HKD 1.3 million for the fiscal year 2023, recovering from a loss of approximately HKD 5.3 million in the fiscal year 2022[15]. - The company recorded total revenue of approximately HKD 104.5 million for the fiscal year 2023, a significant increase of about 31.4% compared to approximately HKD 79.5 million in fiscal year 2022[22]. - Revenue from the "Dragon Emperor" brand increased by approximately HKD 12.4 million or about 22% to HKD 68.8 million in fiscal year 2023, driven by improved customer spending and the full resumption of restaurant operations[26]. - Revenue from the "Dragon Robe" brand rose significantly by approximately HKD 13.6 million or about 61.8% to HKD 35.6 million in fiscal year 2023, attributed to improved consumer sentiment and the full resumption of operations[28]. - The group's gross profit for fiscal year 2023 was approximately HKD 74.7 million, an increase of about HKD 20.6 million or approximately 38.1% from about HKD 54.1 million in fiscal year 2022[29]. - The overall gross profit margin slightly increased by 3.5% in fiscal year 2023 due to improved operational efficiency and cost control measures[29]. - Other income and net gains decreased by approximately HKD 12.3 million or about 93.9% to approximately HKD 0.8 million in fiscal year 2023, primarily due to the absence of government subsidies[30]. - The company reported a profit attributable to owners of approximately HKD 1.3 million for the fiscal year 2023, compared to a loss of approximately HKD 5.3 million in the previous year, indicating a significant improvement driven by revenue growth[40]. Operational Developments - The overall business environment and consumer sentiment in Hong Kong improved following the easing of strict COVID-19 policies, contributing to the recovery in the restaurant industry[15]. - The company has implemented various operational streamlining measures to enhance efficiency and reduce costs in response to the recovery trend[15]. - As of December 31, 2023, the company operated three restaurants in Hong Kong, located in Wanchai, Kwun Tong, and Whampoa[15]. - The company plans to launch a new light meal brand in China, primarily using dining robots to serve customers, and will consider franchising to increase market share[16]. - The company will continue to monitor and flexibly adjust its operational strategies to meet consumer demands and enhance competitive advantages for long-term growth[16]. Financial Position and Debt - As of December 31, 2023, the company's borrowings amounted to approximately HKD 61.4 million, an increase from HKD 60.8 million in 2022, reflecting ongoing operational funding needs[44]. - The capital debt ratio as of December 31, 2023, was approximately 336.5%, up from 314.1% in 2022, indicating a higher level of debt relative to equity[46]. - The company has issued a total of 34,560,000 capitalization shares at HKD 0.1 per share to settle approximately HKD 3.456 million of debt[43]. - The company has outstanding bank and other borrowings amounting to approximately HKD 61.4 million, with financial costs of about HKD 2.6 million for the fiscal year ending 2023[190]. - The group’s net debt was approximately HKD 102.4 million, with total interest-bearing borrowings amounting to about HKD 59.4 million and cash and cash equivalents of approximately HKD 1.0 million[136]. Corporate Governance - The company emphasizes high standards of corporate governance to maintain stakeholder trust and promote accountability[96]. - The independent auditor's report expressed a disclaimer of opinion on the consolidated financial statements for the year ending December 31, 2023, due to insufficient audit evidence[84]. - The company did not establish an internal audit function during the year, which is a requirement under the corporate governance code[101]. - The board did not hold the minimum required four meetings during the year due to delays in the annual results publication and trading suspension[107]. - Following the resignation of independent non-executive directors, the company fell below the minimum number of independent directors required by GEM listing rules[101][102]. - The company has since appointed new independent non-executive directors, restoring compliance with GEM listing rules[102]. - The board is committed to reviewing its corporate governance practices regularly to ensure compliance with the GEM listing rules[106]. - The company has not made appropriate insurance arrangements for directors against potential legal actions, citing minimal risk[101]. - The company has not had a CEO since October 6, 2022, with the role being shared among all executive directors to enhance governance and shareholder interests[112]. Board Composition and Diversity - The board consists of seven members, with five males and two females, actively seeking to enhance gender diversity among board members[145]. - As of December 31, 2023, the employee gender ratio is 66 males to 56 females, with no immediate need for numerical targets for gender diversity on the board[146]. - The company has adopted a board diversity policy to ensure a diverse composition of board members, considering factors such as gender, age, experience, and cultural background[149]. - The nomination committee will consider diversity in various aspects, including gender, age, experience, and professional skills when recommending board appointments[31]. Risk Management and Internal Controls - The company is committed to maintaining a robust internal control system and risk management framework, as reviewed by the audit committee[125]. - The board has confirmed that it will continue to assess the effectiveness of the internal control system at least annually[144]. - The company has established risk management procedures to identify, assess, and mitigate significant risks affecting its objectives[144]. - The company maintains effective internal control and risk management systems to safeguard shareholder investments and group assets[142]. Environmental, Social, and Governance (ESG) - The company is committed to maintaining high standards in environmental protection, social responsibility, and governance practices[193]. - The environmental, social, and governance report reflects the company's performance in these areas for the fiscal year 2023, emphasizing transparency and accountability[195]. - The company has established a dedicated team to manage environmental, social, and governance matters, ensuring effective implementation of related policies[198]. - Stakeholder engagement is prioritized to assess and improve the company's environmental, social, and governance performance based on feedback from various parties[199].
龙皇集团(08493) - 2023 - 年度财报