LHGROUP 福棲集團 叙福樓集團有限公司 （於開量詳貨註冊故立的有限公司） 股份代號 1978 2022 中期報告 上半年虽利下降 成本控制很重要 (包括封面設計) 公司資料 2 財務摘要及日曆 4 管理層討論與分析 5 其他資料 14 未經審計簡明合併全面收益表 18 簡明合併財務狀況表 19 未經審計簡明合併權益變動表 21 未經審計簡明合併現金流量表 22 財務報告附註 23 目錄 公司資料 執行董事 獨立非執行董事 聯席公司秘書 董事會 授權代表 高秀芝女士 陳曉誼女士 黃傑龍先生教授，銅紫荊星章，太平紳士 （主席兼行政總裁） 高秀芝女士（副主席） 法律顧問 柯伍陳律師事務所 香港中環 康樂廣場8號 交易廣場第三期19樓 註冊辦事處 Walkers Corporate Limited 190 Elgin Avenue George Town Grand Cayman KY1-9008 Cayman Islands 香港主要營業地點 香港 九龍九龍灣 宏照道38號 企業廣場五期 1座22樓03室 香港證券登記處 香港中央證券登記有限公司 香港 灣仔 皇后大道東183號 合和中心17樓 1712–17 ...

Financial Performance - Revenue for the year ended December 31, 2021, was HKD 997.9 million, an increase of 24.2% from HKD 802.9 million in 2020[17] - Profit attributable to shareholders for 2021 was HKD 90.1 million, a decrease of 35.8% compared to HKD 140.3 million in 2020[17] - Basic and diluted earnings per share for 2021 were HKD 11.26, down from HKD 17.54 in 2020[17] - The group reported a core profit before tax of approximately HKD 88.1 million for the year ended December 31, 2021, representing a significant increase of about 222.8% compared to approximately HKD 27.3 million in the previous year[43] - Profit for the year ended December 31, 2021, decreased by approximately 35.8% or about HKD 50.2 million to approximately HKD 90.1 million[59] - Other income and gains decreased by approximately 69.7% or about HKD 66.2 million to approximately HKD 28.8 million for the year ended December 31, 2021[54] - Food and beverage costs increased by approximately 24.6% or about HKD 62.0 million to approximately HKD 314.2 million, maintaining a stable percentage of revenue at about 31.5%[56] - Employee costs rose by approximately 36.8% or about HKD 78.6 million to approximately HKD 292.5 million, with the percentage of revenue increasing to about 29.3%[57] Business Expansion - The company opened a total of 8 new restaurants in 2021, including 2 new self-operated brands in the second half of the year[20] - The company plans to accelerate the opening of new stores in strategic locations and introduce more new brands in 2022, including emerging hot pot concepts[20] - The group operated a total of 45 restaurants as of December 31, 2021, compared to 38 restaurants in the previous year, reflecting an expansion in operations[46] - The group introduced the franchise brand "The Matcha Tokyo" in January 2022, expanding its business into local specialty restaurants and high-end casual cafes[73] Government Support and Market Conditions - The company received support from the Hong Kong government through the fourth round of anti-epidemic fund measures during challenging times[19] - The group anticipates significant business growth opportunities due to the rising local vaccination rate and the introduction of a new consumption voucher scheme[22] - The group expressed optimism about its financial performance for the second half of 2022, contingent on the local pandemic situation remaining stable[22] - The group has been adversely affected by the Omicron outbreak, leading to a suspension of all restaurant operations starting February 28, 2022[158] - The impact of the Omicron outbreak on the group's 2022 performance is still being assessed, and a quantitative estimate is currently unavailable[159] Dividend and Shareholder Information - Proposed final dividend per share for 2021 is HKD 6.05, down from HKD 13.16 in 2020[17] - The total dividend proposed for the year is HKD 8.45 per share, with a total payout ratio of approximately 75%[23] - The company expects to pay a final dividend of HKD 0.0605 per share for the year ending December 31, 2021, down from HKD 0.1316 per share in 2020, with a total dividend payout ratio of approximately 75%[96] - As of December 31, 2021, the distributable reserves of the company amounted to approximately HKD 332,540,000[115] Employee and Operational Challenges - The company has faced challenges in recruiting and retaining employees, which may impact operational performance[92] - The group had 1,499 employees as of December 31, 2021, compared to 1,344 employees in the previous year[65] - The company provided competitive compensation to attract and motivate employees, regularly reviewing and adjusting salaries to meet market standards[120] Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[162] - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a high level of independence[171] - The board has adopted a diversity policy, emphasizing the importance of diverse perspectives in decision-making and aiming for gender balance among directors[176][177] - The company has established appropriate insurance for directors and senior management against legal claims arising from corporate activities[167] - The board's decision-making includes approving and supervising all policy matters, overall strategy, and significant financial and operational transactions[167] Risk Management and Future Outlook - The company has faced several risks, including the impact of COVID-19 on the Hong Kong economy and consumer sentiment, which may continue to affect operations[92] - The management is confident in the group's ability to navigate future challenges better than ever before[73] - The management believes that the global economy is expected to recover as countries gradually reopen their international borders[71] - The company has consolidated its plans for opening new restaurants to respond more flexibly to changing customer demands and the COVID-19 pandemic[107] Supplier and Procurement Information - The largest supplier accounted for 27.7% of the total procurement amount for the reporting year, compared to 24.8% in 2020[119] - The top five suppliers collectively represented 52.5% of the total procurement amount for the reporting year, down from 54.4% in 2020[119] - There were no significant disputes with suppliers or customers during the reporting year[120] Miscellaneous - The company has not engaged in any off-balance-sheet transactions or significant capital commitments as of December 31, 2021[70] - The company has not purchased, sold, or redeemed any of its listed securities during the year ending December 31, 2021[111] - The company has not disclosed any new product or technology developments in the current report[141] - There are no reported mergers or acquisitions in the current reporting period[141]

Financial Performance - For the six months ended June 30, 2021, the company's revenue increased by 4.6% to approximately HKD 422.9 million, compared to HKD 404.2 million in the same period last year[11]. - The profit attributable to shareholders rose by 5.7% to HKD 25.6 million, up from HKD 24.3 million year-on-year[11]. - The earnings per share increased to HKD 3.20, a 5.7% rise from HKD 3.03 in the previous year[11]. - Revenue for the six months ended June 30, 2021, was HKD 422,881,000, an increase of 4.1% compared to HKD 404,234,000 in 2020[85]. - The company's profit before tax increased to HKD 28,824,000, up 9.8% from HKD 26,245,000 in the previous year[85]. - Net profit attributable to shareholders rose to HKD 25,638,000, compared to HKD 24,255,000, reflecting a growth of 5.7%[85]. - Basic and diluted earnings per share improved to HKD 3.20, up from HKD 3.03, indicating a 5.6% increase[85]. - Profit for the period increased by approximately 5.7% from about HKD 24.3 million to about HKD 25.6 million, with core profit rising significantly by approximately 140.2% to about HKD 17.6 million from about HKD 7.3 million in the previous period[31]. Revenue Sources - The number of Asian cuisine restaurants operated increased to 39, up from 36 in the previous year, with a notable rise in franchise brands[15][18]. - Revenue from Asian cuisine restaurants under franchise brands grew by 14.0% to approximately HKD 304.1 million, accounting for 71.9% of total revenue[22][25]. - Revenue from self-owned Asian cuisine restaurants increased by 4.5% to approximately HKD 98.9 million, while revenue from self-owned Cantonese restaurants decreased to HKD 18.1 million from HKD 40.4 million[23][25]. - The overall restaurant operations accounted for 99.6% of total revenue, with minimal contributions from other sales[25]. - Restaurant operations generated revenue of HKD 421,092,000, up from HKD 401,832,000 in 2020, indicating a growth of about 4.8%[113]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 2.40 per share, which is a new introduction as there was no dividend declared in the previous year[11]. - The interim dividend declared for the period is HKD 0.024 per share, totaling HKD 19.2 million, compared to no dividend in the same period last year[59]. - The company paid dividends totaling HKD 105,280,000 during the period[101]. Costs and Expenses - Food and beverage costs increased by approximately 6.9% from about HKD 125.1 million to about HKD 133.7 million, representing about 31.6% of revenue, up from approximately 30.9% in the previous period[29]. - Employee costs rose by approximately 5.9% from about HKD 128.3 million to about HKD 135.8 million, with employee costs accounting for about 32.1% of revenue, slightly up from approximately 31.7% in the previous period[30]. - Other income and gains decreased by approximately 63.9% from about HKD 42.3 million to about HKD 15.3 million due to the absence of net gains from lease modifications recorded in the previous period[28]. Liquidity and Financial Position - As of June 30, 2021, the group had short-term bank deposits of approximately HKD 102.7 million and cash and cash equivalents of about HKD 182.9 million, indicating a stable liquidity position[34]. - The group maintained a current ratio of approximately 1.4 times as of June 30, 2021, down from about 1.8 times at the end of the previous year[34]. - Total assets decreased to HKD 676,892,000 from HKD 747,497,000, a decline of 9.4%[89]. - Cash and cash equivalents at the end of the period were HKD 182,942,000, slightly up from HKD 179,148,000[101]. - The total equity attributable to shareholders decreased to HKD 334,959,000 from HKD 414,601,000, a drop of 19.2%[92]. Management Outlook and Strategy - The company continues to focus on expanding its franchise operations and enhancing its market presence in the Asian cuisine sector[22]. - Management expects significant business growth opportunities due to the large-scale vaccination program and the recently launched consumption voucher scheme[49]. - Management remains optimistic about recovery in the restaurant industry as COVID-19 restrictions ease in Hong Kong[22]. - Management remains optimistic about the financial performance for the second half of 2021, expecting to achieve better results under stable pandemic conditions in Hong Kong[50]. - The board believes that the change in the use of proceeds will allow for more agile and flexible business expansion in developing its restaurant network and brand portfolio[54]. Shareholding Structure - As of June 30, 2021, the directors and key executives collectively hold 600,000,000 shares, representing 75% of the company's equity[71]. - Mr. Huang Jielong and Ms. Gao Xiuzhi each hold 600,000,000 shares, accounting for 75% of the equity in the controlled corporation[71]. - The major shareholders, including 叙福樓控股, collectively own 600,000,000 shares, which is 75% of the equity[80]. - The company is controlled by a group of individuals, including Mr. Huang Jielong and Ms. Gao Xiuzhi, who are considered acting in concert under the takeover code[83]. Compliance and Governance - The company has adopted the corporate governance code and believes it has complied with all significant aspects of the code during the reporting period[61]. - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited interim results for the period[67]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[66].

年報 叙福樓集團有限公司 股份代號：1978 (於開曼群島註冊成立的有限公司) 2020 : 199 目錄 公司資料2 財務摘要及日曆4 主席致辭5 管理層討論與分析8 董事及高級管理層 18 董事報告 23 企業管治報告 37 環境、社會及管治報告 48 獨立核數師報告 83 合併全面收益表 89 合併財務狀況表 90 合併權益變動表 92 合併現金流量表 93 合併財務報表附註 94 財務資料摘要 160 公司資料 | --- | --- | |---------------------------------------------------------------------------------------------|--------------------------------------------------------| | | | | 董事會 | 授權代表 | | 執行董事 | 陳曉誼女士 高秀芝女士 | | 黃傑龍先生 教授，太平紳士 | （自二零二零年九月一日起獲委任） | | （主席兼行政總裁） 高秀芝女士 （副主席） 何志偉先生 （自二零二零年九月一日起辭任） | 何志偉先 ...

Revenue and Profit Performance - Revenue for the six months ended June 30, 2020, decreased by 22.3% to HKD 404.2 million from HKD 520.0 million in the same period last year[10]. - Profit attributable to shareholders dropped by 38.9% to HKD 24.3 million compared to HKD 39.7 million in the previous year[11]. - The decline in revenue was significantly impacted by COVID-19, with restaurant closures and restrictions affecting operations[19]. - The company did not declare an interim dividend for the period, compared to HKD 4.96 per share in the previous year[11]. - Basic and diluted earnings per share were HKD 3.03, down from HKD 4.96, representing a decline of 38.9%[71]. - The total comprehensive income for the period was HKD 24,255,000, a decrease of 38.8% compared to HKD 39,627,000 in 2019[71]. - The company reported a profit before tax of HKD 26,245,000, down 41.0% from HKD 44,519,000 in the previous year[71]. Cost Management - Food and beverage costs decreased by 16.8% to HKD 125.1 million, representing 30.9% of revenue, up from 28.9% in the previous year[24]. - Employee costs fell by 20.6% to HKD 128.3 million, maintaining a stable percentage of 31.7% of revenue compared to 31.1% in the previous year[25]. - Property rental and related expenses decreased by approximately 59.5% to about HKD 18.1 million from approximately HKD 44.6 million in the same period last year[26]. - The company is focusing on cost control, with food and beverage costs reduced to HKD 125,089,000 from HKD 150,344,000, a decrease of 16.7%[71]. Operational Changes - The number of restaurants operated increased to 38 in 2020 from 36 in 2019, with 36 Asian cuisine restaurants including 14 owned brands and 22 franchised brands[16]. - The company operated two owned Cantonese restaurants and 36 Asian cuisine restaurants as of June 30, 2020[13]. - The group operates primarily in Hong Kong, with all revenue generated from this market, and all non-current assets located in Hong Kong as of June 30, 2020[106]. - The group operates several restaurant brands, including "煲仔王" and "叙福樓金閣" for Cantonese cuisine, and franchise brands such as "牛角" and "溫野菜" for Asian cuisine[102][103]. Financial Position - As of June 30, 2020, the group's cash and cash equivalents were approximately HKD 193.4 million, an increase from approximately HKD 130.8 million as of December 31, 2019[30]. - The current ratio improved to approximately 1.3 times as of June 30, 2020, compared to approximately 1.1 times as of December 31, 2019[30]. - Total equity attributable to shareholders increased to HKD 298,528,000 as of June 30, 2020, up from HKD 274,273,000 as of December 31, 2019, representing an increase of approximately 8.8%[77]. - The total liabilities decreased to HKD 422,463,000 as of June 30, 2020, from HKD 467,942,000 as of December 31, 2019, indicating a reduction of approximately 9.7%[77]. - The company's total assets amounted to HKD 720,991,000 as of June 30, 2020, down from HKD 742,215,000 as of December 31, 2019, reflecting a decrease of approximately 2.9%[77]. Governance and Management - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring high standards of governance to protect shareholder interests[47]. - Mr. Huang serves as both Chairman and CEO, a decision supported by the board due to his leadership and strategic direction[47]. - The audit committee, composed of three independent non-executive directors, oversees financial reporting and internal controls[50]. - The board consists of three executive directors and three independent non-executive directors, ensuring a high level of independence[47]. - The company has complied with all provisions of the corporate governance code except for the separation of the roles of Chairman and CEO[47]. Impact of COVID-19 - The COVID-19 pandemic is expected to continue to adversely impact the business for the remainder of the year due to social distancing regulations and low consumer sentiment[41]. - The group recognized COVID-19 related rent concessions amounting to HKD 8,319,000 as variable lease payments, which were accounted for in the consolidated comprehensive income statement for the six months ended June 30, 2020[98]. - The estimated annual revenue growth rate for restaurants during the remaining lease term ranged from -20% to 13% as of June 30, 2020[138]. Future Outlook - The company plans to continue focusing on its diverse brand portfolio to cater to various customer preferences in the mid to high-end market[13]. - The company plans to explore market expansion opportunities and enhance product offerings in the upcoming quarters[66].

Financial Performance - Revenue for the year ended December 31, 2019, was HKD 1,005.8 million, a slight increase of 0.2% compared to HKD 1,004.1 million in 2018[7] - The company reported a loss attributable to shareholders of HKD 11.2 million for 2019, a significant decline of 131.9% from a profit of HKD 35.2 million in 2018[7] - Basic and diluted loss per share was HKD 1.40, down 128.6% from earnings of HKD 4.90 per share in the previous year[7] - For the year ended December 31, 2019, the total revenue of the company was approximately HKD 1,005.8 million, a slight increase of about 0.2% or HKD 1.7 million compared to the previous year[32] - The Asian cuisine restaurant segment contributed approximately 83.7% of total revenue, with franchised brands and owned brands contributing about 56.3% and 27.4% respectively[32] - Revenue from the Asian cuisine restaurant segment increased by approximately HKD 92.0 million or 19.4% compared to the previous year, while revenue from the Cantonese restaurant segment decreased by approximately HKD 124.7 million or 45.6%[32] - The company recorded a loss attributable to shareholders of approximately HKD 11.2 million for the year ended December 31, 2019[15] - The food and beverage cost increased by approximately HKD 4.9 million or 1.7% to about HKD 292.8 million, maintaining a percentage of approximately 29.1% of total revenue[35] - Employee costs slightly decreased by approximately HKD 2.5 million or 0.8% to about HKD 301.4 million, representing approximately 30.0% of total revenue[36] - The company reported a loss of approximately HKD 11.3 million for the year ended December 31, 2019, a decline of about 132.0% from a profit of approximately HKD 35.2 million for the previous year[39] Impact of COVID-19 - The ongoing COVID-19 pandemic has created significant challenges for the global economy and the restaurant industry, affecting the company's financial outlook[11] - The company is enhancing hygiene controls and implementing various health measures in response to the pandemic[14] - The company plans to adjust its operational model to address declining consumer sentiment and dining demand[14] - The company anticipates significant adverse impacts on its business due to the COVID-19 outbreak and ongoing macroeconomic risks, affecting its performance in 2020[51] - The company plans to negotiate rent reductions and adjust restaurant operating hours to optimize resources in response to the challenging business environment[51] - The group experienced a decrease in overall revenue compared to the same period in 2019 due to the adverse effects of the COVID-19 outbreak[137] - The group is currently assessing the impact of the COVID-19 outbreak on its 2020 performance, with no quantifiable impact estimated at this time[138] Business Strategy and Expansion - The company aims to strategically expand its business when appropriate conditions arise[10] - The company plans to continue opening new restaurants in Hong Kong as part of its expansion strategy, identifying suitable opportunities for new openings[29] - The number of Asian cuisine restaurants operated increased from 34 in 2018 to 36 in 2019, while the number of Cantonese restaurants decreased from 5 to 2[28] - The management emphasized the importance of flexibility and adaptability to changing market conditions and macroeconomic risks in the coming months and years[16] Corporate Governance - The board consists of six members, including three executive directors and three independent non-executive directors, complying with the listing rules regarding board composition[147] - The company has adopted the corporate governance code and has complied with all provisions except for a deviation related to the roles of the chairman and CEO[141] - The independent non-executive directors confirmed their independence, and the company believes all independent non-executive directors are independent[148] - The company has established three committees: Nomination, Remuneration, and Audit, each with specific written terms of reference[162] - The audit committee is responsible for monitoring the relationship between the company and external auditors[176] - The company has confirmed compliance with the corporate governance code during the reporting year[178] - The board has implemented appropriate procedures to safeguard the company's assets and ensure compliance with relevant laws and regulations[189] Shareholder Information - The company reported a total dividend of HKD 9.96 per share for the year ended December 31, 2019, which includes an interim dividend of HKD 4.96 and a special dividend of HKD 5.00[79] - The board proposed a dividend policy of at least 50% of the profit attributable to shareholders and after-tax comprehensive income for the fiscal year[85] - The company has ensured a minimum of 25% public float of its issued shares throughout the reporting year[133] - The major shareholders, including Xufu Holdings, collectively own 600,000,000 shares, which is 75% of the total[129] Risk Management - The company faces several business risks, including limited attractive locations, potential inability to implement growth strategies, and fluctuations in food supply and costs[73] - The company has a risk management and internal control system in place to minimize risks and ensure efficient operations[189] - A three-tier risk management approach is adopted to identify, assess, mitigate, and respond to risks, with business units responsible for the first line of defense[192] Sustainability Initiatives - The company is committed to sustainable development and has implemented measures to control environmental and social impacts[76] - The company emphasizes the importance of effective risk management and internal control systems for long-term business development[191] - The company is committed to pursuing environmental sustainability, respecting human rights, supporting employees, and maintaining local communities as part of its sustainability strategy[197]

LHGROUP 叙福樓集團 叙福樓集團有限公司 （微雕雕雕刻胡朝鮮烈 股份代號：1978 中期業績報告 200 | --- | --- | |----------------------------|-------| | | | | 公司资料 | | | 財務摘要及日曆 | | | 管理層討論與分析 | | | 其他资料 | | | 未經審計簡明合併全面收益表 | | | 簡明合併財務狀況表 | | | 未經審計簡明合併權益變動表 | | | 末經審計簡明合併現金流量表 | | | 財務報告附註 | | 4 5 12 17 18 20 21 22 l ( C 2 公司资料 董事會 執行董事 黃傑 龍 先 生 教 授 · 太 平 紳 士 (董事會主席兼行政總裁) 高秀芝女士(副主席) 何 志 偉 先 生 獨立非執行董事 單日堅先生銀紫前星章, CSDSM 熊璐珊女士 洪爲民先生太平紳士 審核委員會 熊璐珊女士(主席) 洪 鳥 民 先 生 ★ 平 紳 士 單日堅先生銀紫荊星章, CSDSM 薪酬委員會 單日堅先生銀紫荊星章, CSDSM (主席 ) 黃傑 龍 先 生 教 授 · 太 平 紳 士 熊璐珊女士 提名委 ...

Financial Performance - For the year ended December 31, 2018, the company reported revenue of HKD 1,004.1 million, an increase of 21.1% compared to HKD 829.2 million in 2017[9] - The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for 2018 was HKD 94.4 million, reflecting a growth of 24.7% from HKD 75.7 million in the previous year[9] - Net profit attributable to shareholders for the year was HKD 35.2 million, representing a significant increase of 57.1% from HKD 22.4 million in 2017[9] - Basic earnings per share for 2018 were HKD 4.90, up 31.4% from HKD 3.73 in 2017[9] - The proposed final dividend per share for the year is HKD 5.40[9] - The profit for the year ended December 31, 2018, increased by approximately 46.3% from about HKD 24.0 million to approximately HKD 35.1 million[37] - The proposed final dividend is HKD 0.054 per share, totaling HKD 43.2 million, subject to shareholder approval[80] - The proposed dividend represents approximately 123% of the profit attributable to shareholders for the reporting year[84] Revenue Growth and Segmentation - Revenue from the Asian cuisine restaurant segment, led by brands like "Gyukaku" and "Onyvasai," increased by approximately 48.4%, accounting for about 47.2% of total revenue for the year[15] - The revenue from Asian cuisine restaurants under franchise brands rose by about HKD 154.6 million or approximately 48.4%, contributing to an increase in total revenue[29] - The revenue contribution from franchise brands increased from approximately 38.6% in 2017 to about 47.2% in 2018[29] Expansion and Development - The company opened eight new restaurants under its franchise and self-owned brands during the year, contributing to a total of 39 restaurants by December 31, 2018[13] - The company plans to expand its traditional Cantonese noodle brand "Yonghua Noodle House" into the Chinese noodle market, identifying suitable locations for its first restaurant[13] - The company plans to continue opening new restaurants in Hong Kong as part of its expansion strategy[24] - The company plans to open a total of eight self-owned brand restaurants, including four Chinese cuisine restaurants and four Asian cuisine restaurants, utilizing approximately 34% of the net proceeds from the IPO[86] Costs and Expenses - Food and beverage costs rose by approximately 25.9% to about HKD 287.9 million, maintaining a stable percentage of about 28.7% of total revenue[31] - Employee costs increased by approximately 17.1% to about HKD 303.9 million, while the percentage of employee costs to revenue decreased to about 30.3%[34] - Property rental and related expenses increased by approximately 19.0% to about HKD 181.5 million, remaining stable at about 18.1% of total revenue[35] Assets and Liabilities - As of December 31, 2018, the group's short-term bank deposits were approximately HKD 148.0 million, and cash and cash equivalents were about HKD 142.3 million, compared to HKD 70.0 million in the previous year[39] - The group's current assets and current liabilities totaled approximately HKD 371.1 million and HKD 147.4 million, respectively, resulting in a current ratio of approximately 2.5 times, up from 1.1 times the previous year[39] - The group had no bank borrowings or finance lease payables as of December 31, 2018[40] Corporate Governance - The company has maintained high standards of corporate governance, adhering to the corporate governance code as per the Stock Exchange listing rules[136] - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a high level of independence[142] - The company has held two regular board meetings since its listing in May 2018, with full attendance from both executive and non-executive directors[143] - The roles of chairman and CEO are currently held by the same individual, Professor Huang, which the board believes is beneficial for the company's overall interests[146] - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and ensure transparency of company information[183] Risk Management and Compliance - The company has identified several risks that may impact its business performance, including location selection, growth strategy implementation, and food quality incidents[76] - The company has established a three-tier risk management approach to identify, assess, mitigate, and respond to risks, with business units responsible for the first line of defense[188] - The board confirmed its awareness of the responsibilities for preparing the financial statements for the year ended December 31, 2018, and is not aware of any significant uncertainties affecting the company's ability to continue as a going concern[189] Sustainability and Social Responsibility - The group emphasizes the importance of monitoring risks and exploring potential opportunities to balance business needs, social demands, and environmental impacts[194] - The group has adopted a top-down approach to implement sustainability strategies across all levels of management and employees, focusing on environmental sustainability, human rights, employee support, and local community maintenance[194] - The group reported significant ESG issues for the year, including energy conservation, food waste reduction, promoting diversity in the workplace, food safety, and community investment[198] Employee and Director Information - The group had 1,041 employees as of December 31, 2018, a slight decrease from 1,052 employees the previous year[47] - The company provided competitive compensation to attract and motivate employees, regularly reviewing compensation to align with market standards[100] - The company has implemented a board diversity policy, considering measurable objectives such as skills, professional experience, and gender[157] Shareholder Information - The controlling shareholders, including Huang Jielong and Chen Huizhen, each hold 36.67% of the shares in Hequn Holdings, collectively controlling 75% of the company[125] - The company maintains a public float of at least 25% of its issued shares since the listing date[126] - The annual general meeting for shareholders is scheduled for June 19, 2019, with notices sent out 20 business days prior[183]