Business Recovery and Market Outlook - Best Food Group experienced significant challenges in 2022 due to the COVID-19 pandemic, leading to rigorous "stress testing" of its brands[15]. - The company reported a recovery in consumer sentiment following the adjustment of China's pandemic-control policy in December 2022, allowing for rapid business recovery[15]. - The catering industry is gradually recovering, and the company is confident in the long-term potential of the Chinese catering market[22]. - Many of the Group's brands have strengthened their foundations during market testing and are poised for growth in the coming years[22]. - The Board anticipates that several brands will enter a rapid growth stage within the next three years, contributing significant value to the Group's performance[22]. Financial Performance - The Group's revenue for 2022 was RMB 537.5 million, representing a year-on-year decrease of 28.6% compared to 2021[32]. - Total system sales for the Group amounted to RMB 2,670 million in 2022, reflecting a year-on-year increase of 5.1%[32]. - Revenue decreased by 28.6% from RMB 753.0 million in 2021 to RMB 537.5 million in 2022, with restaurant operations revenue dropping by 43.6% from RMB 500.9 million to RMB 282.5 million due to pandemic impacts[42]. - The Group recorded a loss for the year attributable to equity holders of approximately RMB 156.2 million, a decrease from a loss of RMB 639.6 million for the year ended 31 December 2021[53]. - The total loss for the year amounted to RMB (166,708) thousand, compared to RMB (651,837) thousand in the prior year, showing a reduction in overall losses[63]. Membership and Customer Engagement - The number of members in the Group increased from approximately 16.0 million at the beginning of the year to approximately 23.0 million by the end of 2022[33]. - The group’s membership and points program grew from approximately 16.0 million to 23.0 million members during the year[38]. - The amount of revenue recognized from the customer loyalty program is determined based on the number of points redeemed relative to the total number expected to be redeemed[4]. Digital Transformation and Technology - Best Food is committed to leveraging technology to enhance its food and beverage operations, achieving tangible progress in building digital-driven platform capabilities[20]. - The digital team developed a smart cashier system, mobile app ordering system, and membership management system, enhancing operational efficiency across multiple brands[41]. - The intelligent delivery system was preliminarily formed, providing timely support for operational decision-making through data dashboards[41]. Franchising and Expansion - The Group actively expanded its franchising network, focusing on cross-regional franchisees to promote brand presence beyond local communities[32]. - "Yujian Xiaomian" solidified its presence in the Beijing market and opened stores at transportation hubs in various cities[32]. - "King of Clay Pot" expanded its franchising model into new regions including Jiangsu, Anhui, Zhejiang, Fujian, and Sichuan, with over 70 stores outside Beijing by the end of 2022[32]. - The Group established a franchise expansion team to facilitate cross-region development and entered into strategic cooperation agreements with national commercial property enterprises[35]. Cost Management and Expenses - Employee benefit expense decreased by 20.6% from RMB217.9 million for the year ended 31 December 2021 to RMB173.0 million for the corresponding period of 2022, while the percentage of revenue increased from 28.9% to 32.2%[50]. - Depreciation of right-of-use assets decreased by 18.1% from RMB103.4 million for the year ended 31 December 2021 to RMB84.7 million for the corresponding period of 2022, with the percentage of revenue increasing from 13.7% to 15.8%[50]. - Property rentals and other related expenses decreased by 41.8% from RMB32.3 million for the year ended 31 December 2021 to RMB18.8 million for the corresponding period of 2022, with the percentage of revenue decreasing from 4.3% to 3.5%[51]. - Other expenses decreased by 42.5% from RMB95.8 million for the year ended 31 December 2021 to RMB55.1 million for the corresponding period of 2022, with the percentage of revenue decreasing from 12.7% to 10.3%[51]. Financial Risk Management - The Group's financial risk management focuses on minimizing potential adverse effects on financial performance due to market risks, credit risks, and liquidity risks[84]. - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk, which are managed by the finance department[84]. - The Group's risk management policies are approved by the Board of Directors and cover specific areas such as foreign exchange risk and credit risk[84]. Leadership and Governance - The Company held an annual general meeting on 2 June 2022, allowing shareholders to communicate their views with the chairman of the Board[180]. - The Company has maintained sufficient contact details for shareholders to put forward inquiries to the Board[180]. - Corporate communications were published on the websites of the Company and the Stock Exchange in a timely manner[180]. Strategic Initiatives - The Group plans to enhance digital development and operation capabilities to improve performance and create shareholder value[68]. - The Group aims to develop and better serve franchisors as part of its future growth strategy[69]. - The Group will facilitate the increase in values of brands and enterprises it invests in, contributing profits to the Company[70].
百福控股(01488) - 2022 - 年度财报