Financial Performance - Turnover for the year ended 31 December 2018 was HK$1,133,308, representing an increase of 18.4% from HK$957,054 in 2017[6] - Gross margin increased to HK$793,172, up 17.6% from HK$674,513 in the previous year[6] - The company reported a loss attributable to owners of the Company of HK$60,125, compared to a profit of HK$11,015 in 2017[6] - Net ordinary operating loss increased by 240.9% to HK$55,144 from a loss of HK$16,176 in 2017[6] - Basic loss per share was HK(8.66) cents, compared to earnings of HK1.59 cents per share in 2017[6] - Total assets decreased by 2.1% to HK$1,800,387 from HK$1,838,812 in 2017[6] - Net assets fell by 8.4% to HK$981,501 from HK$1,071,124 in the previous year[6] - The gearing ratio increased to 74.8%, up from 55.2% in 2017, indicating higher financial leverage[6] - The total assets to total liabilities ratio decreased to 2.20 from 2.40 in 2017, reflecting a decline in asset coverage[6] Business Segments Performance - The Group experienced an overall turnover growth of approximately 18.4% in 2018, despite challenges in the operating environment[19] - Same store sales growth for the food and catering and food souvenir businesses was recorded at 16.3% in 2018[19] - The total turnover for restaurant and food court operations in Hong Kong reached approximately HK$212.5 million, representing a 79.5% increase compared to 2017[19] - The food souvenir business incurred a loss of HK$18.7 million in 2018[20] - The industrial catering business achieved a total turnover of approximately HK$48.7 million in 2018, reflecting a 13.0% increase from 2017[33] - The wholesale business of Japanese food and materials improved with a turnover of approximately HK$42.0 million, marking a growth of 34.2% compared to 2017[33] - The food souvenir business recorded a total turnover of approximately HK$78.4 million in 2018, with a loss attributable to owners of HK$18.7 million, compared to HK$62.5 million turnover and HK$21.0 million loss in 2017[35] - Same store performance of food souvenir shops improved by 20.4% in 2018[35] Dividends and Shareholder Returns - The company declared a special final dividend of HK1.0 cent per share, unchanged from the previous year[6] - The Directors proposed a special final dividend of HK1.0 cent per share for 2018, reflecting a non-recurrent special dividend due to the operating loss[27] Strategic Developments - Management plans to open 10 food court counters at a new shopping mall in Kowloon and 1 counter at Hong Kong International Airport by the end of Q3 2019[33] - The Group's central food and logistic processing center in Macau became operational in the last quarter of 2018[33] - The Group's key investment property was vacant in 2018, and management is working with a property agent to find tenants[37] - The development project at Hengqin Land has faced significant delays, leading to continuous losses, prompting the Group to consider all alternatives, including the potential sale of its interests in the project[38] - The Group is currently negotiating with a potential buyer for the sale of controlling or all equity interest in its wholly owned subsidiary that owns the Hengqin Land development project[45] Corporate Governance - The Board of Directors consists of independent non-executive directors who account for at least one-third of the board, ensuring a balanced composition for effective decision-making[59] - The Company has established a code of conduct for directors' dealings in securities, which complies with the Model Code, with no incidents of non-compliance reported in 2018[66][67] - The nomination committee, which is primarily composed of independent non-executive directors, did not hold any meetings in 2018 as no new directors were proposed or appointed[74] - All directors confirmed their participation in continuous professional development during 2018, attending seminars and reading relevant materials to enhance their knowledge and skills[62] - The Company has implemented updated procedures for shareholders to propose candidates for election as directors, which are published on the Company's and Stock Exchange's websites[63] - The Board regularly reviews the contributions and time commitments of each director to ensure effective governance[60] - The Company has a clear division of responsibilities between the Chairman and the Managing Director to enhance independence and ensure balanced power distribution[59] Risk Management and Internal Controls - The audit committee reviewed the draft interim and annual financial statements and assessed the potential impacts of changes in accounting standards on the Group's financial statements[105] - The risk committee appointed ZHONGHUI ANDA Risk Services Limited to review the Group's internal control system during the year of 2018[114] - The Board has overall responsibility for maintaining a sound and effective internal control system, supported by the audit and risk committees[119] - The internal audit review conducted in 2018 included scoping and planning audit locations, reviewing the design of internal control structures, testing key controls, and reporting major design weaknesses to enhance internal controls[133] - Management confirmed to the Board that the company maintained an effective risk management mechanism and internal control system during the financial year ended December 31, 2018[134] Shareholder Communication - Shareholders holding at least one-tenth of the paid-up capital can requisition a special general meeting by written request[141] - The company encourages shareholders to attend annual general meetings where the Board chairman and committee chairmen are available to answer questions[144] - The company has established communication with shareholders through the publication of announcements, notices, circulars, interim, and annual reports on its website[135]
FUTURE BRIGHT(00703) - 2018 - 年度财报