Business Operations - The company operates 111 self-operated stores in Hong Kong, maintaining its position as the largest herbal product retailer in the region[19] - The company has expanded its wholesale business in mainland China, with products available in over 13,000 convenience stores and various supermarkets across 13 provinces[21] - The company has successfully entered the Mexican market, expanding its overseas wholesale business despite global economic challenges[21] - The company continues to enhance its retail network and innovate to meet the diverse needs of its customers[19] - The company plans to maintain 100 to 110 retail stores in 2024, focusing on cost control and operational efficiency[25] - The company plans to open approximately two new retail stores in 2024 while closing underperforming locations[46] - The company aims to expand its wholesale network in the Guangdong-Hong Kong-Macao Greater Bay Area to enhance brand value[25] - The company continues to expand its overseas wholesale business to mitigate the impacts of fluctuating economic conditions in mainland China and Hong Kong[110] Financial Performance - Total revenue decreased by 2.0% to HKD 672.7 million, down from HKD 686.7 million in the previous year[30] - Gross profit fell by 3.0% to HKD 393.5 million, with a gross margin of 58.5%, down from 59.1%[30] - The Hong Kong retail segment generated revenue of HKD 503.8 million, a decline of 2.6% year-on-year, accounting for 74.9% of total revenue[32] - The company recorded a loss attributable to shareholders of HKD 34.6 million, compared to a profit of HKD 5.3 million in the previous year[30] - Wholesale revenue for the year was HKD 168,900,000, a slight decrease from HKD 169,300,000 in the previous year, accounting for 25.1% of total revenue[37] - Hong Kong wholesale revenue grew by 1.1% to HKD 144,500,000, up from HKD 142,900,000 in the previous year[40] - Revenue from the mainland China wholesale business decreased by 7.7% to HKD 24,400,000, down from HKD 26,400,000 in the previous year[41] - For the fiscal year ending December 31, 2023, the company recorded revenue of HKD 672.7 million, a decrease of 2.0% compared to HKD 686.7 million in 2022[54] - The retail business in Hong Kong generated revenue of HKD 503.8 million, down 2.6% from HKD 517.4 million in 2022[54] Product Development - The company introduced new product lines, including gourmet coffee, vegetarian options, and various baked goods, catering to health-conscious consumers[19] - New product offerings include convenient options for popular items, such as new packaging for ginger vinegar and instant herbal drinks[30] - The company will continue to develop new products targeting the health and wellness market, including food therapy sets for pregnant women and postpartum care[35] - New product launches in 2024 will include festive series and postpartum care products, along with more natural ingredient baked goods[46] - The company is focused on launching more flavors to meet the evolving preferences of high-end consumers in mainland China and Hong Kong[108] - New product development includes the launch of a herbal beverage line, expected to contribute an additional $50 million in revenue[88] Sustainability and Social Responsibility - The company has reduced carbon emissions by approximately 38 tons by using rPET recycled bottles for its iced lemon tea[13] - Despite a challenging business environment, the company remains committed to sustainable development and business growth[19] - The company has eliminated plastic utensils across 111 stores, resulting in a reduction of 39 tons of disposable plastic, a 92% year-on-year decrease[75] - In 2023, the company recycled approximately 960 tons of food waste, equivalent to a reduction of about 205 tons of CO2 emissions[76] - The company generated around 1,368 MWh of renewable energy from solar panels installed on the rooftop of its Kaiping factory in 2023[76] - The company has implemented a member reward program encouraging the use of reusable containers, promoting environmental sustainability[75] - The company donated over 5,600 boxes of emergency supplies to Turkish earthquake victims in February 2023[79] - The company sponsored over 17,000 food vouchers, raising more than HKD 1.1 million for the needy through community initiatives[80] - The company has received multiple awards for its commitment to social responsibility and environmental sustainability, including the "Green Office 5+" label[83] Membership and Customer Engagement - Membership in the "HFT Club" has surpassed 1,300,000, reflecting a significant increase in brand loyalty and new member acquisition[20] - The number of "自家CLUB" members exceeded 1,300,000, with an increase of approximately 99,500 members during the year[36] - The mobile app download increased by 17% year-on-year, with over 40% of members completing transactions through the app[36] - The company is enhancing its digital marketing efforts to encourage app downloads and usage, while offering exclusive discounts to "self-owned CLUB" members[25] - The company is actively promoting its mobile application to enhance customer engagement and encourage electronic transactions[108] - The company promotes the use of its mobile application to enhance shopping convenience for its "self-owned CLUB" members[115] Corporate Governance - The board of directors is committed to maintaining the highest standards of corporate governance to enhance and protect shareholder interests[170] - The company has adopted the corporate governance code as per the listing rules, emphasizing effective internal controls and risk management systems[170] - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced skill set and experience[176] - The company has established a remuneration committee to formulate the remuneration policy for directors, which must be approved by shareholders[158] - The independent non-executive directors have confirmed compliance with the non-competition agreements during the year ended December 31, 2023[160] - The company has established a code of conduct for directors regarding securities trading, ensuring compliance with relevant regulations[145] Employee Welfare and Training - Employee costs increased by 6.6% to HKD 212.2 million, compared to HKD 199.1 million in 2022, resulting in an employee cost to revenue ratio of 31.5%[59] - The company has conducted over 8,000 hours of training for more than 700 employees, enhancing their skills and sense of belonging[79] - The company has a strong emphasis on employee welfare, training, and development, particularly in the context of ensuring a safe working environment post-COVID-19[114] - Employee training programs have been enhanced, with a budget increase of 20% to improve service quality and operational efficiency[95] Future Outlook - The management anticipates a challenging business environment in 2024 due to high interest rates and geopolitical tensions[45] - The company has set a future outlook with a revenue guidance of $500 million for the next fiscal year, reflecting a 10% growth target[89] - The company is investing in new technology for supply chain optimization, which is expected to reduce costs by 15%[96] - A strategic acquisition of a local competitor is in progress, projected to enhance operational efficiency and increase customer base by 30%[88] - The company has maintained a cautious approach to development while ensuring growth momentum in its retail business[110]
鸿福堂(01446) - 2023 - 年度财报