Industry Competition and Market Trends - The catering industry faced intensified competition in 2024, requiring companies to have a profound understanding of industry development patterns to achieve solid returns[19]. - The intense competition in the catering industry has led to a decline in same-store sales and profit margins, increasing corporate losses[34]. - The Group aims to stabilize existing business and explore new growth opportunities despite intense competition in the catering sector[98]. Business Development and Strategy - Best Food Group has seen positive results from its business development model focused on investment and operational empowerment, particularly through franchise operations and digital user engagement[20]. - The Group aims to consolidate existing restaurant operations while expanding its franchise network to adapt to regional dining demands across China[21]. - Best Food is exploring new growth opportunities by leveraging industry resources to establish a closed-loop business model, driving corporate innovation and performance[22]. - The Group's commitment to its business development model emphasizes investment and operational empowerment as key to future success[23]. - Best Food's strategic focus includes both consolidating existing operations and exploring new business avenues to drive growth[22]. Financial Performance - The annual report was presented for the year ended December 31, 2024, highlighting the Group's strategic directions and operational achievements[18]. - The Group's total system sales for 2024 reached RMB3,526 million, a 6.1% increase compared to 2023[33]. - Revenue for 2024 decreased by 22.3% to RMB474 million from RMB610.6 million in 2023[41]. - Revenue from restaurant operations fell by 33.6% to RMB213.2 million, while delivery business revenue decreased by 21.0% to RMB168.6 million[41]. - The Group recorded a loss attributable to equity holders of approximately RMB 241.8 million for the year ended December 31, 2024, compared to a loss of approximately RMB 151.7 million for the year ended December 31, 2023[59]. - The adjusted loss for the year was RMB 76.5 million for 2024, compared to RMB 51.5 million for 2023[67]. Cost Management - Raw material costs decreased by 14.4% to RMB199.3 million, with raw material costs as a percentage of revenue increasing from 38.1% to 42.0%[42]. - Employee benefit expenses decreased by 17.5% to RMB144.1 million, with expenses as a percentage of revenue rising from 28.6% to 30.4%[47]. - Online platform service charges and delivery fees decreased by 14.3% to RMB33.6 million, while their percentage of delivery revenue increased from 18.4% to 19.9%[46]. - Depreciation of right-of-use assets decreased from RMB 70.6 million for the year ended December 31, 2023, to RMB 55.7 million for the corresponding period of 2024, a decline of 21.1%[53]. - Other asset depreciation and amortization decreased from RMB 22.6 million for the year ended December 31, 2023, to RMB 16.8 million for the corresponding period of 2024, a decline of 25.7%[54]. - Property rental and related expenses decreased from RMB 18.3 million for the year ended December 31, 2023, to RMB 14.7 million for the corresponding period of 2024, a decline of 19.7%[55]. - Other expenses decreased by 12.7% from RMB 59.0 million for the year ended December 31, 2023, to RMB 51.5 million for the corresponding period of 2024[56]. Asset Management and Impairment - As of December 31, 2024, the Group recognized right-of-use assets amounting to RMB 95.3 million, down from RMB 149.0 million as of December 31, 2023, mainly due to restaurant closures[71]. - The impairment loss on investments in associates for the year ended December 31, 2024, was approximately RMB 71 million, significantly higher than RMB 1.9 million in the corresponding period of 2023, representing a substantial increase[74][79]. - The net book amount of the Group's trademarks decreased by 25.1% from RMB 373.0 million as of December 31, 2023, to RMB 279.5 million as of December 31, 2024, due to an impairment loss of RMB 93.5 million recognized in 2024[76][80]. - An impairment loss of RMB 93.5 million on trademarks was recorded for the year ended December 31, 2024, based on the higher of fair value less costs of disposal and value in use assessments[84]. Corporate Governance and Management - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2024[145]. - The Board comprises three executive directors and three independent non-executive directors, with independent directors representing more than one-third of the Board[148]. - The Company has a share award scheme in place to incentivize employees and recognize their contributions since November 11, 2019[140]. - The Board is collectively responsible for promoting the Company's success through strategic decisions and oversight of performance[162][167]. - Independent non-executive Directors play a crucial role in ensuring effective corporate governance[170][175]. Employee and Operational Insights - The Group had a workforce of approximately 1,582 employees as of December 31, 2024, a decrease from about 1,779 employees in 2023[139]. - The Company has established food safety risk assessment and control mechanisms across various operations, including procurement and restaurant operations[136]. - The Company plans to adopt a more prudent restaurant opening strategy and introduce meal sets to enhance value for customers in response to potential declines in sales[138]. Financial Position and Ratios - The Group's total deficit as of December 31, 2024, was RMB 220.2 million, compared to total equity of RMB 46.8 million as of December 31, 2023[99]. - The current ratio was 0.17 as of December 31, 2024, down from 0.68 as of December 31, 2023[102]. - The Group's gearing ratio increased to 152% as of December 31, 2024, compared to 92% as of December 31, 2023[129]. - The net cash to equity ratio as of December 31, 2024, was -0.002, a significant decrease from 0.53 as of December 31, 2023[109]. - The Group's debt-to-equity ratio was 152%, up from 92% on December 31, 2023[133]. Investments and Market Position - The Group's significant investments include a 17.16% stake in Yujian Xiaomian valued at RMB 56.7 million and a 25.03% stake in Tianshuilai valued at RMB 54.3 million as of December 31, 2024[116]. - Yujian Xiaomian has expanded to over 300 stores nationwide, focusing on first-tier and new first-tier cities[117]. - Tianshuilai operates over 200 stores, primarily in first-tier and new first-tier cities, with a focus on premium dining experiences[118]. - The Group has established a multi-brand investment matrix to enhance value and investment returns across diverse catering categories[119].
百福控股(01488) - 2024 - 年度财报