Financial Performance - The Group recorded a loss attributable to equity holders of approximately RMB151.7 million for the year ended 31 December 2023, a slight improvement from a loss of RMB156.2 million in 2022[30]. - The adjusted loss for the year was RMB 53.4 million, a significant improvement from the adjusted loss of RMB 102.98 million in 2022, reflecting a reduction of approximately 48%[49]. - The Group recognized an impairment loss on trademarks amounting to approximately RMB95.3 million in 2023, compared to nil in 2022[30]. - The impairment of intangible assets amounted to RMB 95.3 million for the year ended December 31, 2023, with a tax impact of RMB 23.8 million[49]. - As of December 31, 2023, the total equity of the Group was RMB 46.8 million, a decrease from RMB 210.6 million as of December 31, 2022[66]. - The Group's current assets amounted to RMB 201.6 million, down from RMB 226.5 million in the previous year, while current liabilities decreased to RMB 298.0 million from RMB 339.6 million[66]. - The Group's debt-to-asset ratio rose to 92% as of December 31, 2023, compared to 72% a year earlier[80]. - As of December 31, 2023, the Group's gearing ratio was 92%, an increase from 72% in the previous year[130]. Revenue and Expenses - Employee benefit expenses increased by 0.9% from RMB173.0 million in 2022 to RMB174.6 million in 2023, while the percentage of revenue decreased from 32.2% to 28.6%[42]. - Depreciation of right-of-use assets decreased by 16.7% from RMB84.7 million in 2022 to RMB70.6 million in 2023, with the percentage of revenue dropping from 15.8% to 11.6%[44]. - Finance expenses net decreased by 9.0% from RMB51.9 million in 2022 to RMB47.2 million in 2023, mainly due to lower interest on convertible bonds and lease liabilities[29]. - Other expenses increased by 7.1% from RMB55.1 million in 2022 to RMB59.0 million in 2023, but as a percentage of revenue, it decreased from 10.3% to 9.7%[46]. - Property rentals and related expenses decreased from RMB18.8 million in 2022 to RMB18.3 million in 2023, with the percentage of revenue declining from 3.5% to 3.0%[45]. - The Group's other expenses as a percentage of revenue decreased from 10.3% in 2022 to 9.7% in 2023, attributed to revenue growth during the reporting period[48]. Strategic Direction and Market Outlook - The Group remains confident in the long-term potential of the Chinese catering market and will continue to focus on franchise and digital operations strategies[12]. - The Group's strategic direction includes enhancing its franchise business to adapt to local market needs across different regions in China[20]. - The Xinladao Group plans to continue focusing on profitable direct-sales stores while expanding its franchised store network, adapting to changes in the consumer market and macro-economy[55]. - The Group expects intense competition in the food and beverage industry to persist in 2024, with continued growth in the franchise business[60]. Governance and Compliance - The Company has established mechanisms to ensure independent views and input are available to the Board, with independent non-executive Directors representing more than one-third of the Board[119]. - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2023[141]. - The Company’s governance structure includes a clear distinction of responsibilities between the Chairman and the CEO[150]. - The Audit Committee regularly reviews the effectiveness and objectivity of the Group's financial reporting, internal control systems, and risk management processes[200]. - The Remuneration Committee's terms of reference were amended in December 2023 to align with relevant code provisions of the CG Code[184]. - The Company ensures that no Director is involved in deciding his own remuneration, maintaining independence in the remuneration process[184]. Risk Management - The Company faces risks related to discretionary spending and increased competition, which may adversely affect its business and financial condition[135]. - The Company has not entered into any forward contracts to hedge its foreign exchange risks for the year ended December 31, 2023[103]. Workforce and Employee Relations - The Group's workforce decreased to approximately 1,779 employees as of December 31, 2023, down from about 2,162 employees in 2022[138]. - The Company has adopted a share award scheme to provide incentives to employees and recognize their contributions[138].
百福控股(01488) - 2023 - 年度财报