Corporate Governance - The board acknowledges the responsibility for publishing clear and accurate annual and interim reports as required by listing rules[1] - The independent auditor for the year is Forvis Mazars LLP, with fees paid or payable listed in thousands[3] - The nomination committee held one meeting during the year, with all members present[10] - The remuneration committee held three meetings during the year, with all members present[11] - The audit committee held four meetings during the year, with all members present[14] - All directors participated in continuous professional development to enhance their knowledge and skills[15] - The board diversity policy is regularly reviewed to ensure its ongoing effectiveness[7] - The company emphasizes the importance of good corporate governance elements in its management structure and internal controls[7] - The audit committee reviews the group's financial and accounting policies and practices[20] - The board has reviewed the company's corporate governance policies and practices and made relevant recommendations during the year[92] - The board is responsible for ensuring the company maintains and implements comprehensive corporate governance practices[92] - The board has adopted a diversity policy to ensure a range of perspectives in decision-making, considering factors such as knowledge, gender, age, and professional experience[132] - The board's diversity policy encompasses the composition of the board and the assessment of the independence of independent non-executive directors[198] - The company has confirmed the independence of all non-executive directors, ensuring no circumstances affect their independent judgment[173] - The company has adhered to all mandatory disclosure requirements and best practices outlined in the corporate governance code for the year[195] - The company has not yet established an internal audit function as per the corporate governance code, but is reviewing the need for it annually[176] Financial Performance - The group's total revenue decreased from approximately 26.4 million SGD in the previous year to about 25.2 million SGD, a decline of approximately 4.5%[75] - The group's gross profit for the year was approximately 15.6 million SGD, down about 3.1% from approximately 16.1 million SGD in the previous year, with a stable gross margin maintained at around 61-63%[78][77] - Employee costs increased from approximately 8.6 million SGD in the previous year to about 9.8 million SGD, an increase of approximately 14% due to salary adjustments and incentives to attract and retain talent[54] - Administrative expenses rose from approximately 7.6 million SGD to about 9.2 million SGD, representing an increase of approximately 21%[57] - The group recorded interest-bearing bank borrowings of about 2.0 million SGD as of March 31, 2024, with an interest rate increase from 3.4% to 4.8%[58] - The group's debt-to-equity ratio as of March 31, 2024, is approximately 22%, compared to 18% on March 31, 2023[95] - As of March 31, 2024, the group's cash and cash equivalents were approximately SGD 22.1 million, a decrease of about SGD 1.4 million from SGD 23.5 million on March 31, 2023[164] - The total current assets and current liabilities as of March 31, 2024, were approximately SGD 25.8 million and SGD 5.4 million, respectively, resulting in a current ratio of approximately 4.8 times, down from 5.7 times on March 31, 2023[164] Business Operations and Expansion - The company has closed 1 Shilin specialty store in Singapore and Malaysia, while opening 4 new stores in Singapore and 2 in Malaysia[24] - The company acquired a central kitchen in Singapore, expected to be operational by Q2 2024/2025, aimed at increasing product supply and improving operational efficiency[25] - The company has expanded its Eat Pizza brand, opening 2 new stores this year and planning to open 3 more in Singapore[40] - Revenue from Singapore's Shilin brand self-operated stores decreased by approximately SGD 0.6 million due to increased dining options post-pandemic and competition[51] - Franchise fees decreased by approximately SGD 0.1 million, mainly due to reduced fees from new store openings in Indonesia and the USA[52] - The company is actively seeking new locations for Shilin specialty stores and dining outlets in Singapore and Malaysia[47] - The company has strengthened its team at the Singapore headquarters to support digital development and business expansion[26] - The group opened 6 new specialty stores in Singapore and West Malaysia during the year and is actively seeking better locations for future expansions[98] - The group has signed a master franchise agreement for the Korean pizza brand Eat Pizza in Singapore and Malaysia, with two self-operated stores opened in Singapore, increasing to four by the report date[72] Marketing and Customer Engagement - The company continues to collaborate with influencers for marketing and has created official accounts on TikTok and Xiaohongshu to attract more consumers[41] - The company aims to expand its menu offerings in specialty stores and enhance brand visibility through social media marketing[43] - The company emphasizes high-quality customer service as a key factor in building customer loyalty[124] - The company has a vision to bring authentic street food to customers worldwide, actively participating in exhibitions to attract franchisees[123] - The group has extended the operating hours of two stores and introduced all-day dining services on weekends, along with group ordering and promotional menu offerings[66] Digital Transformation and Efficiency - The group is undergoing a digital transformation with the establishment of an ERP system aimed at streamlining processes and improving operational efficiency, expected to be completed by Q2 2024/2025[65] - Future outlook includes continuing digitalization and automation to improve operational efficiency, seeking suitable locations to expand the store network, enhancing the menu offered to consumers, and exploring additional revenue streams to create shareholder value[167] Employee Development and Training - The company encourages directors to attend training courses, with costs covered by the company[15] - The company has provided comprehensive training programs for employees, focusing on operational safety and customer service, to improve frontline service quality[190] - The company has a strong focus on maintaining service quality and consistency across its outlets through employee training[126] Compliance and Risk Management - The company is committed to maintaining compliance with anti-corruption and fraud regulations, providing regular training to employees[138] - The company has implemented a whistleblowing policy to maintain high standards of transparency and accountability, allowing employees to report misconduct anonymously[136] - The company will take necessary measures to ensure foreign currency risks are manageable as needed[100] - The company does not currently use derivative financial instruments to hedge foreign currency risks and will continue to monitor currency fluctuation risks closely[100] - The company has not identified any significant fraud or misconduct that would materially impact its financial statements for the year[184] Future Plans and Investments - The company has allocated 47.7% of its net proceeds, amounting to 6,200 thousand SGD, for general working capital[189] - The company plans to open new self-operated stores in Singapore and West Malaysia, with allocations of 1,280 thousand SGD (9.8%) and 1,228 thousand SGD (9.4%) respectively, expected to be completed by March 2025[189] - The company is enhancing its workforce with an allocation of 1,060 thousand SGD (8.2%), with a remaining balance of 46 thousand SGD expected to be utilized by March 2025[189] - The company is investing 1,060 thousand SGD (8.2%) in upgrading IT infrastructure and data management systems, with a remaining balance of 829 thousand SGD expected to be utilized by March 2027[189] - The group plans to undertake a brand revitalization initiative aimed at attracting a new generation of customers, expected to be completed by March 2026[165] - The group has no significant investment or capital asset plans aside from the use of proceeds from the share sale as of March 31, 2023, and March 31, 2024[105] - The group has no plans for significant investments or capital assets beyond the use of proceeds from the share sale[105]
快餐帝国(01843) - 2024 - 年度财报