Financial Performance - The total revenue for 2021 was HKD 394,185,000, an increase of 23% compared to HKD 320,452,000 in 2020[40] - The pre-tax profit for 2021 was HKD 22,737,000, recovering from a loss of HKD 19,280,000 in 2020[40] - The net profit attributable to the owners of the company for 2021 was HKD 13,165,000, compared to a loss of HKD 12,909,000 in 2020[40] - The total equity increased to HKD 72,867,000 in 2021 from HKD 56,374,000 in 2020, marking a growth of approximately 29%[40] - The company's capital debt ratio as of December 31, 2021, was approximately 18.4%, a decrease from 33.8% in 2020, primarily due to the repayment of bank loans and an increase in total equity from operating activities[144] - The company recorded a profit of approximately HKD 18.9 million for the year ended December 31, 2021, compared to a loss of HKD 17.7 million in 2020, driven by an increase in revenue of about HKD 73.7 million due to improved pandemic conditions[97] Assets and Liabilities - Total assets decreased to HKD 205,980,000 in 2021 from HKD 221,629,000 in 2020, reflecting a decline of approximately 7%[40] - Total liabilities decreased to HKD 133,113,000 in 2021 from HKD 165,255,000 in 2020, a reduction of about 19%[40] - As of December 31, 2021, the total bank borrowings were approximately HKD 5.8 million, down from HKD 11.4 million in 2020, with interest rates ranging from 2.7% to 3.5%[141] Restaurant Operations - The group operated twelve restaurants in Hong Kong, including seven under its own brand and five under franchise or sub-licensing arrangements[51] - The group did not open any new restaurants in Hong Kong during the year, but has signed three lease agreements for existing restaurants[53] - The group plans to cautiously explore opportunities for opening new restaurants with lower capital expenditure and more favorable rental terms[54] - The group aims to continue developing its brand portfolio and expanding its restaurant network through various strategies, including improving existing brands and launching new ones[51] - The group plans to continue opening new restaurants in Hong Kong and may invest up to 25% in holding companies of new restaurants in China[72] Revenue Breakdown - Revenue from the Shanghai-style restaurant increased by approximately 35.4% to about HKD 113.7 million for the year ended December 31, 2021, up from approximately HKD 84.0 million in the previous year[77] - Revenue from the Japanese restaurant rose by approximately 22.8% to about HKD 100.2 million for the year ended December 31, 2021, compared to approximately HKD 81.6 million in 2020[80] - Revenue from the Thai restaurant increased by approximately 30.1% to about HKD 79.5 million for the year ended December 31, 2021, up from approximately HKD 61.1 million in the previous year[81] Economic Environment - The economic environment in Hong Kong showed signs of recovery in 2021, with lower COVID-19 case numbers and relaxed dining restrictions contributing to improved revenue[47] - Future prospects are heavily dependent on the evolution of the COVID-19 pandemic, and the group will continue to monitor developments closely[66] - The company maintained a cautious approach in response to ongoing economic challenges and the impact of the pandemic[46] Employee and Operational Costs - Employee costs rose by approximately 14.3% to about HKD 126.5 million for the year ended December 31, 2021, due to increased labor needs and bonus provisions[85] - Rental expenses for the year ended December 31, 2021, were approximately HKD 8.0 million, an increase of about 2.6% from HKD 7.8 million in 2020, primarily due to increased revenue from Shanghai-style restaurants[92] - The cost of goods sold increased to approximately HKD 115.5 million for the year ended December 31, 2021, representing about 29.4% of total revenue from operating restaurants[84] Strategic Focus and Future Plans - The company is focused on monitoring restaurant performance and implementing strategies to balance financial improvement with providing quality dining experiences[97] - The company is actively considering expansion plans, including opening new restaurants in Hong Kong and China, with ongoing negotiations for leasing several units in shopping malls[107] - The company aims to strengthen existing business development and provide stable returns and growth prospects for shareholders[166] Corporate Governance and Management - The company has a strong commitment to corporate governance, with independent non-executive directors overseeing audit and remuneration committees[180] - The company has a strong management team with over 15 years of experience in financial management and over 20 years in marketing and public relations[198][199] Miscellaneous - The company has not proposed any final dividends for the year ended December 31, 2021, consistent with 2020[151] - The company has not engaged in any significant litigation or arbitration as of December 31, 2021[161] - The company has not issued any stock options under its stock option plan adopted on November 6, 2017[160]
1957 & CO.(08495) - 2021 - 年度财报