COVID-19 Impact and Response - The Group faced unprecedented challenges due to COVID-19, with the Singapore Government implementing strict containment measures from April 7, 2020, to June 1, 2020[50]. - During the Circuit Breaker period, all food establishments were limited to takeaway or delivery services only[51]. - The progressive lifting of restrictions began on June 2, 2020, allowing businesses with lower transmission risks to reopen under safe management measures[52]. - By December 28, 2020, Singapore entered the third phase of lifting restrictions, increasing the group size for dine-in from 5 to 8 persons[52]. - The annual report for the year ended December 31, 2020, was presented to shareholders, highlighting the impact of the pandemic on operations[50]. - The Group's financial performance and strategic responses to the pandemic will be detailed in the Management Discussion and Analysis section[48]. - Future outlook and guidance will be provided, focusing on recovery strategies post-COVID-19[48]. - The Group is exploring new product development and market expansion opportunities as part of its recovery strategy[48]. - The Company emphasizes the importance of adapting to changing market conditions and consumer behaviors in the post-pandemic landscape[48]. Financial Performance - For FY2020, the Group recorded a consolidated revenue of approximately S$34.9 million, a decrease of approximately 16.9% from S$42.0 million in FY2019[67]. - The Group's consolidated net profit for FY2020 was approximately S$2.2 million, a decrease of approximately 57.5% from S$5.2 million in FY2019[69]. - The decline in revenue was mainly due to lower sales from cooked food, beverages, and tobacco products caused by COVID-19, along with the termination of the food street in the shopping district[67]. - The Group generated an operating cash flow of approximately S$7.7 million, with cash and cash equivalents as of December 31, 2020, at approximately S$10.2 million[71]. - The Group's revenue decreased by approximately S$7.1 million or 16.9%, from approximately S$42.0 million for FY2019 to approximately S$34.9 million for FY2020, primarily due to lower sales from cooked food, beverages, and tobacco products as a result of the COVID-19 pandemic[155]. - Rental income from leasing premises to tenants fell by approximately S$1.0 million, or 17.9%, from approximately S$5.5 million in FY2019 to S$4.5 million in FY2020, mainly due to rental rebates of approximately S$1.2 million provided to tenants as part of COVID-19 relief measures[159]. Management and Leadership - Mr. Chu has over 18 years of experience in the food and beverage industry, having been with the Group since 2004 and serving as CEO since 2018[85]. - Ms. Leow has over 18 years of experience in the food and beverage industry and has been with the Group since January 2004, primarily responsible for day-to-day operations[89]. - Ms. Chu Pek Si was appointed as an executive Director on October 10, 2020, and is responsible for mergers & acquisitions and property management initiatives[90]. - Mr. Wong has over 30 years of banking experience, including expertise in syndicated loans, project financing, and mergers and acquisitions[102]. - The Group's management team includes family members, with Mr. Chu and Ms. Leow being spouses and both serving as executive Directors[88]. - The Group has a strong focus on strategic planning and operational management, led by experienced executives[88]. - The company has been involved in the food and beverage industry through various businesses since 1993, indicating a long-standing presence in the market[85]. - The Group's operational strategies are supported by a dedicated management team with diverse backgrounds in finance and operations[102]. Strategic Plans and Future Outlook - The Group plans to divest underperforming assets and reinvest in F&B businesses and other synergistic growth opportunities[56]. - The Group aims to respond to fast-evolving market trends by re-evaluating its business strategies[56]. - The Group aims to acquire popular F&B businesses and brands to enhance its product offerings[151]. - Future strategies include expanding the business network in Singapore through the opening of new food establishments[151]. - The Group will also focus on renovating existing food centres to improve the dining experience[152]. - The outlook for 2021 remains uncertain due to ongoing COVID-19 challenges, making it difficult to predict future impacts[146]. Operational Metrics - As of December 31, 2020, the Group owned and managed 19 food centres, unchanged from the previous year[139]. - The Group operated 37 food and beverage stalls as of December 31, 2020, a decrease from 40 stalls in FY2019[142]. - During FY2020, the Group opened 3 new food and beverage stalls but closed 6, resulting in a total of 37 stalls by year-end[145]. Cost Management - The cost of inventories consumed decreased by approximately S$3.0 million, or 18.1%, from approximately S$16.5 million in FY2019 to approximately S$13.5 million in FY2020, aligning with the revenue decline[172]. - Staff costs decreased by approximately S$3.4 million, or 29.4%, from S$11.7 million in FY2019 to S$8.3 million in FY2020, representing 28.0% and 23.8% of revenue for the respective periods[173]. - Property rentals and related expenses decreased by approximately S$1.5 million, or 34.4%, from approximately S$4.3 million in FY2019 to approximately S$2.8 million in FY2020, due to rental rebates and non-renewal of food establishments[178]. - Management, cleaning, and utilities expenses decreased by approximately S$0.4 million, or 23.2%, from approximately S$1.8 million in FY2019 to approximately S$1.4 million in FY2020, attributed to fewer food establishments managed and reduced electricity expenses[179]. - Other operating expenses increased by approximately S$0.1 million, or 5.3%, from approximately S$2.7 million in FY2019 to approximately S$2.8 million in FY2020, mainly due to increased repairs and maintenance costs[180]. Governance and Compliance - The company emphasizes independent judgment in policy and resource management through its board committees[101]. - The Group's leadership structure includes a mix of family and independent directors, ensuring a balance of interests and expertise[104]. - Mr. Loh was appointed as an independent non-executive Director on February 1, 2019, and serves as the chairman of the Remuneration Committee and the Internal Control Compliance Committee[108]. - Mr. Mah was appointed as an independent non-executive Director on February 1, 2019, and is the chairman of the Audit Committee[116]. - Mr. Cui has over 13 years of work experience in accounting and finance, having held various positions in reputable firms including Ernst & Young LLP and Mapletree Logistics Trust Management Ltd[128]. - K2 F&B Holdings Limited's management team includes experienced professionals with backgrounds in finance, law, and corporate governance[120]. - The company secretary, Mr. Man, holds a bachelor's degree in business administration and management and a master's degree in corporate governance[121]. - Mr. Loh has served as an independent director for multiple listed companies, enhancing the board's governance and oversight capabilities[114]. - The company is focused on strategic planning and internal control, as evidenced by the roles of its senior management team[126]. - The board includes members with extensive experience in various sectors, contributing to informed decision-making and policy development[116]. - The company emphasizes compliance with SGX-ST reporting requirements, as demonstrated by Mr. Cui's previous roles[128]. - The management team is committed to maintaining high standards of accountability and resource management[116].

Financial Performance - Revenue for the six months ended June 30, 2020, was SGD 16,208 thousand, a decrease of 24.5% compared to SGD 21,514 thousand for the same period in 2019[7] - The net profit for the period was SGD 986 thousand, compared to a loss of SGD 1,166 thousand in the first half of 2019, representing a turnaround[7] - Total revenue for the six months ended June 30, 2020, was 16,208 thousand Singapore dollars, with 13,026 thousand from shop management and 3,182 thousand from food stall operations[51] - Customer contract revenue for the six months ended June 30, 2020, was SGD 16,208,000, a decrease of 24.8% from SGD 21,514,000 in the same period of 2019[72] - The company reported a pre-tax profit of approximately SGD 986,000 for the six months ended June 30, 2020, compared to a loss of SGD 1,166,000 in the same period of 2019[81] Cash Flow and Assets - Operating cash flow for the six months was SGD 2,705 thousand, an increase from SGD 1,441 thousand in the same period last year[17] - Total assets as of June 30, 2020, were SGD 135,503 thousand, up from SGD 118,515 thousand as of December 31, 2019[12] - Cash and cash equivalents at the end of the period were SGD 10,483 thousand, down from SGD 11,688 thousand at the beginning of the period[17] - Trade receivables as of June 30, 2020, were SGD 213,000, a decrease of 59.8% from SGD 529,000 at the end of 2019[83] - The group's current assets decreased from SGD 15,574,000 on December 31, 2019, to SGD 14,187,000 on June 30, 2020, a reduction of approximately 8.9%[129] Liabilities and Borrowings - Non-current liabilities increased to SGD 69,375 thousand from SGD 53,373 thousand at the end of 2019, primarily due to increased borrowings[13] - The group reported total liabilities of 83,280 thousand Singapore dollars, with segment liabilities of 73,987 thousand for shop management and 2,972 thousand for food stalls[51] - The company’s interest-bearing loans as of June 30, 2020, amounted to SGD 77,575,000, an increase from SGD 56,151,000 at the end of 2019[94] - Total outstanding bank borrowings rose from approximately SGD 56.2 million to SGD 77.6 million, an increase of SGD 21.4 million or 38.2%[130] - Current liabilities increased significantly from SGD 10,045,000 to SGD 13,905,000, representing a rise of about 38.5%[129] Operational Highlights - The company plans to focus on market expansion and new product development in the upcoming quarters[6] - The group operates two main business segments: shop management and food stall operations, focusing on leasing and management services[44] - Employee costs for the shop management segment were 3,294 thousand Singapore dollars, reflecting the operational expenses incurred during the period[51] - Employee costs for the six months ended June 30, 2020, were SGD 4,124,000, down from SGD 6,085,000 in the previous year, reflecting a reduction of 32.3%[76] - The company acquired property, plant, and equipment at a cost of approximately SGD 118,000 during the reporting period, significantly lower than SGD 3,003,000 in the same period of 2019[82] COVID-19 Impact - The group recognized a rental reduction of 236,000 Singapore dollars due to COVID-19 related rent concessions during the reporting period[43] - For the six months ended June 30, 2020, the company's revenue decreased by approximately SGD 5.3 million or 24.7% to about SGD 16.2 million, primarily due to the nationwide lockdown in Singapore to curb COVID-19 transmission[111] - Rental income from leasing properties to tenants decreased by approximately SGD 0.7 million or 23.8% to about SGD 2.1 million, mainly due to the temporary closure of food courts and rental concessions provided to tenants[114] - Employee costs decreased by approximately SGD 1.7 million or 27.3%, attributed to government employment support measures during the COVID-19 outbreak[118] - Property rental and related expenses decreased by approximately SGD 1.1 million or 42.8% to about SGD 1.5 million, mainly due to rental concessions provided by landlords during the COVID-19 outbreak[119] Shareholder Information - The company did not recommend any interim dividend for the reporting period, consistent with the previous year[78] - The board resolved not to declare any interim dividend during the reporting period[169] - The company maintained the required percentage of public float as per listing rules as of the report date[170] - The company expressed gratitude to shareholders, business partners, and customers for their continued support[172] Governance and Compliance - The audit committee reviewed the accounting standards and policies adopted by the group during the reporting period[171] - There were no changes in the disclosed information regarding directors as of the report date[153] - No rights were granted to directors or their family members to acquire shares or bonds during the reporting period[166]

Financial Performance - For FY2019, the Group recorded a revenue of approximately S$42.0 million, a decrease of approximately 7% from S$45.0 million in FY2018, primarily due to the closure of one top-performing food outlet and five food stalls[30]. - The Group achieved a consolidated net profit of approximately S$5.2 million in FY2019, an increase of approximately 29% from S$4.0 million in FY2018, largely attributed to fair value gains of the Group's properties[30]. - The Group recorded a revenue decrease of approximately S$3.0 million or 6.7%, from approximately S$45.0 million in FY2018 to approximately S$42.0 million in FY2019[94]. - Revenue from the sale of cooked food, beverages, and tobacco products decreased by approximately S$2.8 million or 7.6%, from approximately S$36.9 million in FY2018 to approximately S$34.1 million in FY2019[98]. - Rental income from leasing premises to tenants decreased by approximately S$0.2 million or 2.4%, from S$8.1 million in FY2018 to S$7.9 million in FY2019[104]. - The cost of inventories consumed decreased by approximately S$0.7 million or 4.1%, from approximately S$17.2 million in FY2018 to approximately S$16.5 million in FY2019[114]. - Staff costs amounted to approximately S$11.7 million in FY2019, representing 28.0% of revenue, an increase of 1.9% from S$11.5 million in FY2018[115]. - Property rentals and related expenses decreased by approximately S$1.9 million, or 30.9%, from S$6.2 million in FY2018 to S$4.3 million in FY2019, primarily due to the purchase of a food center[115]. - Finance costs increased from approximately S$1.2 million in FY2018 to S$1.4 million in FY2019, reflecting a 12.2% rise due to additional loans for property acquisitions[120]. - Profit after tax increased by approximately S$3.0 million, or 151.2%, from S$2.1 million in FY2018 to S$5.1 million in FY2019, driven by unrealized gains on investment properties[123]. Strategic Initiatives - The Group plans to continue seeking investment properties with good yields to expand its property portfolio, aiming for superior long-term shareholder value[22]. - The Group plans to continue expanding its presence in Singapore through the acquisition of new properties or food centres[90]. - The Group aims to enhance the dining experience by renovating existing food centres[91]. - The Group is investing in technology, including developing an information management system and point-of-sale system to improve operational efficiency[92]. - The Group's development initiatives include increasing market share in the food and beverage industry in Singapore and expanding to other regions[90]. - The Group's strategic planning includes reviewing business strategies in response to the dynamic nature of the COVID-19 situation[83]. Operational Changes - The implementation of cashless payment systems across all food establishments has improved the efficiency of cash collection and management processes[20]. - The Group's food establishments are currently limited to takeaway and delivery services only, with no dine-in options allowed due to government restrictions[25]. - The Group has reinforced staff training on cleanliness and hygiene to ensure food quality and has implemented necessary health and safety precautions for staff, customers, and suppliers[27]. - The Group's operational strategies are designed to adapt to market trends and consumer preferences in the food and beverage sector[41]. Community Engagement - The Group donated approximately S$174,000 to The Community Chest of Hong Kong and contributed S$287,000 to recognized charities in Singapore in FY2019[30]. - The company is actively involved in civic organizations, reflecting its commitment to community engagement and corporate social responsibility[50]. Management and Governance - The Group's overall strategy planning, management, and operations are primarily overseen by Mr. Chu, who has over 17 years of experience in the food and beverage industry[38]. - Ms. Leow, with over 17 years of experience in the food and beverage sector, is responsible for the day-to-day operations and strategic planning of the Group[41]. - The management team is committed to providing independent judgment on policy and accountability, ensuring robust governance practices[50]. - The Group's leadership structure includes a mix of executive and non-executive directors, enhancing decision-making and strategic oversight[50]. - The management team includes professionals with diverse backgrounds, contributing to a well-rounded governance structure[67]. Market Conditions - The Singapore economy contracted by 2.2% year-on-year in Q1 2020, reversing the 1% growth in the previous quarter, with a quarter-on-quarter annualized shrinkage of 10.6%[23]. - The outlook for 2020 is uncertain due to COVID-19, with various precautionary measures implemented across Singapore[83]. - The Group is closely monitoring the impact of COVID-19 on its operations, including food establishments, inventories, and supply chains[83]. Property Acquisitions - The Group utilized approximately S$7.2 million of the listing proceeds to acquire two properties in Singapore's Chinatown and northern regions[14]. - On February 14, 2020, the Group acquired nine shop units in a mixed-use development for S$22.2 million, intending to open an air-conditioned food outlet upon expiration of existing tenancy agreements[15]. - On 24 March 2020, the Group's subsidiary completed the acquisition of properties at 101 Upper Cross Street for a total consideration of S$22.2 million, partially financed by net proceeds from the Share Offer[139]. - The acquisition is expected to lead to an increase in revenue, profit, and market share, as well as improve the Group's ability to withstand rising rental costs[139].

K2 F&B Holdings Limited 於開曼群島註冊成立的有限公司 K2 F&B Holdings Limited K2 F&B Holdings Limited Incorporated in the Cayman Islands with limited liability Stock Code: 2108 Interim Report 2019 Interim Report 2019 中期報告 股份代號 : 2108 中期報告 2019 公司資料 Singapore 468164 註冊辦事處 Cricket Square Hutchins Drive P.Q. Box 2681 Grand Cayman KY1-1111 Cayman Islands 總部及新加坡主要營業地點 83 Genting Lane #08-00 1 | --- | --- | |------------------------|---------------------------| | | | | Genting Building | 合規顧問 | | Singapore 349568 | 香江資本有限公司 香港九 ...

K2 F&B Holdings Limited ANNUAL REPORT 2018 年報 K2 F&B Holdings Limited K2 F&B Holdings Limited Incorporated in the Cayman Islands with limited liability 於開曼群島註冊成立的有限公司 Stock Code 股份代號 : 2108 2018 ANNUAL REPORT 年報 Contents 目錄 2 Company Information 公司資料 5 Chairman's Statement 主席報告書 | --- | --- | |------------------------------------------------------------------------------|--------------------------| | | | | | | | 7 Directors and Senior Management | 董事及高級管理層 | | 15 Corporate Governance Report | 企業管治報告 | | 29 ...