Financial Performance - Total revenue for the year ended December 31, 2024, was approximately HKD 470.4 million, a decrease of about 0.3% compared to HKD 471.8 million in 2023[14] - The company reported a profit of approximately HKD 2.4 million for the year, compared to a loss of HKD 0.9 million in 2023, primarily due to reduced cost of goods sold and operating expenses[14] - The company has experienced a significant improvement in its financial performance, transitioning from a loss to a profit in the current fiscal year[14] - For the fiscal year ending December 31, 2024, the company's revenue decreased by approximately 0.3% to about HKD 470.4 million from HKD 471.8 million in the previous year[21] - The revenue generated from Shanghai-style restaurants increased by approximately HKD 39.6 million or about 21.4% to approximately HKD 224.5 million, primarily due to the opening of two new restaurants[24] - The revenue from Japanese restaurants decreased by approximately HKD 7.4 million or about 6.3% to approximately HKD 110.3 million, mainly due to the closure of a restaurant[25] - The revenue from Vietnamese restaurants decreased by approximately HKD 15.8 million or about 24.7% to approximately HKD 48.2 million, primarily due to the closure of a restaurant[26] - The revenue from Thai restaurants decreased by approximately HKD 15.9 million or about 30.1% to approximately HKD 36.9 million, attributed to a reduction in the number of operating restaurants[27] - The revenue from Italian restaurants decreased by approximately HKD 4.5 million or about 8.7% to approximately HKD 47.2 million, mainly due to a decline in sales at a specific restaurant[28] Assets and Liabilities - The total assets amounted to HKD 305.0 million, while total liabilities were HKD 234.2 million, resulting in a net asset value of HKD 70.8 million[11] - The total value of assets decreased from HKD 333.0 million in 2023 to HKD 305.0 million in 2024[11] - The company’s total liabilities decreased from HKD 261.7 million in 2023 to HKD 234.2 million in 2024[11] - The capital debt ratio improved to approximately 55.7% as of December 31, 2024, down from 71.5% as of December 31, 2023[46] Operational Strategy - The company operates thirteen restaurants in Hong Kong, including nine under its own brand and four under franchise agreements[14] - The strategy includes reducing the number of wholly-owned restaurants to focus on providing food management and franchising services, which is expected to enhance profitability and lower capital investment[14] - The company aims to achieve sustainable growth by balancing cost control and product quality through supply chain optimization and innovative cooking techniques[14] - Future plans involve further automation to reduce labor costs and improve cost efficiency[14] - The company is developing a new high-quality food series under the "家嘗菜" brand to diversify revenue sources and reduce reliance on traditional restaurant operations[18] - The company is committed to expanding its B2B2C platform "Shanghui" to enhance market presence and profitability while ensuring customer satisfaction[64] Employee and Operational Costs - Employee benefits expenses increased by approximately 2.3% from HKD 167.7 million for the year ending December 31, 2023, to HKD 171.5 million for the year ending December 31, 2024[31] - Depreciation and amortization expenses rose from approximately HKD 85.6 million for the year ending December 31, 2023, to HKD 89.2 million for the year ending December 31, 2024[32] - Rental expenses increased by approximately 19.4%, from HKD 9.8 million for the year ending December 31, 2023, to HKD 11.7 million for the year ending December 31, 2024[35] - The cost of goods sold was approximately HKD 119.7 million, accounting for about 25.6% of total revenue, a decrease from 26.7% in the previous year[30] Corporate Governance - The company has a diverse board with members holding qualifications in finance, law, and management[72] - The company is focused on regulatory compliance and maintaining high standards in corporate governance[75] - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring compliance with GEM listing rules regarding board composition[171] - The company has established four board committees, including the Audit Committee, Remuneration Committee, Nomination Committee, and Strategy Development Committee, to oversee specific aspects of its affairs[168] - The company has implemented a board diversity policy to enhance performance by considering various factors such as gender, age, cultural background, and professional experience in board composition[173] - The audit committee reviews financial reports and internal control systems, ensuring their adequacy and effectiveness[190] Legal and Compliance - There are no significant legal proceedings or arbitration involving the company as of December 31, 2024[62] - The company has adhered to all relevant laws and regulations, with no significant violations reported during the year[150] - The company confirmed compliance with GEM Listing Rules regarding related party transactions, with no additional disclosures required for the year ending December 31, 2024[147] Shareholder Information - The board does not recommend a final dividend for the year ending December 31, 2024[53] - As of December 31, 2024, Real Hero Ventures Limited holds 274,350,000 shares, representing approximately 71.45% of the company's total shares[118] - The company has maintained at least 25% of its issued shares held by the public, in compliance with GEM Listing Rules[159] Future Outlook - The company plans to continue cautiously expanding its business and exploring opportunities for opening and investing in new restaurants[51] - The company anticipates that the relocation and renovation will not cause significant disruption to its business operations or financial condition[137] - The renewal of the Shili Yangchang lease is expected to have a positive impact on the company's future development[138]
1957 & CO.(08495) - 2024 - 年度财报