Financial Performance - Turnover for 2019 was HK$1,142,308, representing a slight increase of 0.8% from HK$1,133,308 in 2018[4] - Gross operating profit decreased by 15.6% to HK$123,954 from HK$146,818 in 2018[4] - Loss attributable to owners of the Company surged by 526.8% to HK$376,838 compared to HK$60,125 in the previous year[4] - Basic loss per share increased to HK(54.28) cents, up 526.8% from HK(8.66) cents in 2018[4] - Total assets decreased by 3.5% to HK$1,737,395 from HK$1,800,387 in 2018[4] - Net assets dropped by 34.6% to HK$641,727 from HK$981,501 in the previous year[4] - Gearing ratio increased to 130.0%, up from 74.8% in 2018, indicating higher financial leverage[4] - The company did not declare a special final dividend per share, compared to HK1.0 cent in 2018, marking a 100% reduction[4] - Net ordinary operating loss increased by 552.9% to HK$360,031 from HK$55,144 in 2018[4] - Total assets to total liabilities ratio decreased to 1.59 from 2.20 in 2018, reflecting a decline in asset coverage[4] Operational Challenges - The Group recorded a loss attributable to owners of HK$376.8 million for the Year, compared to a loss of HK$60.1 million in 2018, reflecting a significant deterioration in financial performance[14] - Turnover increased by approximately 0.8%, while cost of sales (food costs) rose by 1.5%, and direct operating expenses increased by 4.1% compared to 2018[14] - The gross operating profit dropped by 15.6% compared to the previous year, indicating challenges in maintaining profitability[14] - The Group's net ordinary operating loss was HK$360.0 million, compared to a loss of HK$55.1 million in 2018, highlighting a worsening operational performance[17] - The Group's restaurant chain business incurred a loss of HK$22.5 million in the first half and HK$156.3 million in the second half of the Year[25] Business Segments Performance - The same store performance of the restaurant and industrial catering business increased by 2.4%, while the food souvenir business saw a significant increase of 36.2% compared to 2018[17] - Total turnover for the Group's restaurant and food court operations in Hong Kong was approximately HK$950.1 million, reflecting a decrease of 1.5% compared to 2018[26] - The Group's Japanese restaurants recorded a turnover of approximately HK$286.9 million, down 9.6% from HK$317.3 million in 2018[26] - Franchise restaurants generated a turnover of approximately HK$221.4 million, an 8.9% decrease from HK$243.0 million in 2018[26] - The Group's industrial catering business achieved a total turnover of approximately HK$40.7 million, representing a decline of about 16.4% compared to HK$48.7 million in 2018[32] Investment and Property Management - The Key Investment Property was valued at HK$560.0 million as of December 31, 2019, up from HK$505.0 million in 2018[19] - A net fair value loss of HK$20.2 million was recorded for the Key Investment Property, which included a gross fair value loss of HK$23.0 million[19] - The Group signed a lease agreement in July 2019 to lease its Key Investment Property for a period of 8 years, with rent expected to start from April 2020[41] - The Group sold its equity interest in a subsidiary in Macau for RMB300 million (approximately HK$335.7 million), resulting in a gross disposal loss of about HK$140.6 million[41] Impact of Covid-19 - The Group's operations have been critically affected by the Covid-19 outbreak, leading to a temporary closure of most restaurants and shops for about two weeks in February 2020[41] - Management expects a tough operating environment in the first three quarters of 2020 due to the adverse impact of Covid-19 on visitor numbers to Hong Kong and Macau[41] Sustainability and Environmental Initiatives - The Group emphasizes sustainability as a strategic priority, committing to support staff, businesses, communities, and the environment[51] - The Group's total greenhouse gas (GHG) emissions in 2019 were 19,771 tCO2e, an increase of 4.1% from 18,988 tCO2e in 2018[73] - Annual NOx emissions in 2019 totaled 187.2 kg, up from 166.0 kg in 2018, representing a 12.7% increase[66] - The Group has implemented waste management policies focusing on reducing non-hazardous waste, which includes waste oil, food waste, paper waste, and wastewater[78] - The Group generated an estimated 296 tonnes of food waste in 2019, an increase from 292 tonnes in 2018, while waste oil consumption decreased to 74,096 litres from 79,169 litres[87] Employee Management and Training - The Group employed a total of 2,130 full-time staff and 824 part-time workers as of December 31, 2019, reflecting a diverse workforce that enhances its business capabilities[159] - The Group provided an average of 7 training hours per employee, with employees below 30 receiving 8 hours on average[1] - The average monthly turnover rate for employees in Hong Kong was 5.8%, while Taiwan reported a higher rate of 14.3%[1] - The Group has established a scholarship scheme since 1999, awarding 19 employees' children for academic excellence during the year[1] Compliance and Governance - The Group has implemented a code of business conduct to ensure compliance with anti-corruption laws, with no material non-compliance reported during the year[181] - The Group's internal control system on quality and food safety is enhanced through regular assessments and supplier compliance checks[144] - There were no material non-compliance issues related to labor laws, including child and forced labor, during the year[156] - The Group's policy includes regular reviews of internal policies and systems to ensure compliance with intellectual property rights, with no issues reported during the Year[192]
FUTURE BRIGHT(00703) - 2019 - 年度财报