Financial Performance - Total revenue for 2022 was HKD 352.877 million, a decrease of 10.5% from HKD 394.185 million in 2021[12] - The company reported a loss attributable to owners of the company of HKD 0.533 million in 2022, compared to a profit of HKD 13.165 million in 2021[12] - Net profit after tax decreased to HKD 3.3 million from HKD 18.9 million in 2021, primarily due to the impact of the fifth wave of COVID-19 in Hong Kong and related government measures[23] - The group experienced a loss of HKD 17.2 million in the first quarter of 2022, but managed to turn the situation around by the end of the year, achieving profitability[23] - The company's cash and cash equivalents as of December 31, 2022, were approximately HKD 54.2 million, a decrease of about 42.6% compared to HKD 94.4 million in 2021, primarily due to cash used in financing and investment activities[76] - The company recorded a profit of approximately HKD 3.3 million for the year ended December 31, 2022, down from approximately HKD 18.9 million in the previous year, influenced by a government subsidy of about HKD 16.3 million[64] Assets and Liabilities - Total assets increased to HKD 251.523 million in 2022, up from HKD 205.980 million in 2021, representing a growth of 22%[12] - Total liabilities rose to HKD 175.742 million in 2022, compared to HKD 133.113 million in 2021, indicating a 32% increase[12] - The company's capital debt ratio as of December 31, 2022, was approximately 53.8%, up from 18.4% in 2021, mainly due to new bank borrowings during the year[81] Operational Challenges - The company adopted a cautious approach in business expansion and cost control due to the challenging operating environment caused by the COVID-19 pandemic[17] - The company experienced significant impacts on its operations due to the fifth wave of COVID-19 in Hong Kong, which began in early January 2022[17] - The company’s financial performance reflects the ongoing challenges in the Hong Kong economy, particularly in the hospitality sector[17] Business Strategy and Expansion - The company is focused on strategic development and maintaining operational resilience in the face of market volatility[17] - A new joint venture focused on the food supply chain was established in March 2023, aiming to source and sell high-quality fresh food globally[25] - A wholly-owned subsidiary is planned to be established in 2023 to focus on overseas franchise operations, particularly in Southeast Asia[25] - The group plans to expand its wholly-owned subsidiary's business functions into franchise operations in China, targeting new restaurant openings[25] - The company is diversifying its revenue sources and cautiously expanding its restaurant network to benefit shareholders[68] Restaurant Operations - The group currently operates thirteen restaurants in Hong Kong, including eight under its own brand and five under franchise or licensing arrangements[24] - The group opened two new restaurants in Hong Kong during 2022, increasing the total number of operating restaurants to thirteen[44] - Revenue from Shanghai-style restaurants increased by approximately 10.0% to about HKD 125.1 million, while revenue from Japanese restaurants decreased by approximately 27.8% to about HKD 72.3 million[47][48] - The group’s Thai restaurant revenue decreased by approximately 14.1% to about HKD 68.3 million due to tightened social distancing measures[49] - The group’s Vietnamese restaurant revenue decreased by approximately 17.8% to about HKD 43.3 million, also impacted by social distancing measures[51] Employee and Operational Costs - Employee costs increased by approximately 5.4% to about HKD 133.3 million for the year ended December 31, 2022, primarily due to additional labor for a new restaurant[54] - Cost of goods sold was approximately HKD 102.0 million for the year ended December 31, 2022, representing about 29.1% of total revenue, down from approximately HKD 115.5 million or 29.4% in the previous year[53] - Rental expenses decreased by approximately 36.3% to about HKD 5.1 million for the year ended December 31, 2022, compared to approximately HKD 8.0 million in the previous year[60] Governance and Management - The company has established a remuneration committee to review the compensation policies for directors and senior management based on operational performance and market practices[164] - The company’s audit committee is chaired by an independent non-executive director with extensive experience in accounting and corporate finance[119] - The company is committed to maintaining high standards of corporate governance through its various committees, including remuneration and nomination committees[115] Market Outlook - The outlook for the restaurant industry is positive, with expectations of economic recovery and increased inbound tourism driving growth[34] - The total revenue of the restaurant industry in Hong Kong for 2022 was approximately HKD 86.8 billion, a decrease of 6.4% in value and 9.5% in quantity compared to 2021[34] Shareholder Information - The board did not recommend the payment of a final dividend for the year ended December 31, 2022[86] - The company reported no final dividend for the year ended December 31, 2022, compared to zero in 2021[141] - As of December 31, 2022, Real Hero Ventures Limited holds 274,350,000 shares, representing approximately 71.45% of the company's equity[171] Legal and Compliance - The company has no significant contingent liabilities as of December 31, 2022[84] - There were no major lawsuits or arbitrations involving the group as of December 31, 2022[95] - The independent non-executive directors confirmed their independence under GEM Listing Rules, and the company believes they remain independent as of the report date[158]
1957 & CO.(08495) - 2022 - 年度财报