Company Overview - Longhui International Holdings Limited was formerly known as Daqing Dairy Holdings Limited[1] - The Company changed its name to "Longhui International Holdings Limited" on 30 July 2018, which does not affect its operations or financial position[118] - The Company underwent a change in directors effective from 6 July 2018, with several resignations and new appointments[110] Financial Performance - The Group's revenue decreased by approximately 10.8% from approximately RMB 700.4 million in 2017 to approximately RMB 624.7 million in 2018[17] - Loss for the year attributable to owners of the Company for 2018 was approximately RMB 451.1 million, compared to a profit of approximately RMB 25.7 million in 2017[17] - Basic loss per share for 2018 was approximately RMB 0.1 cents, compared to basic earnings per share of approximately RMB 0.01 cents in 2017[17] - The net loss was mainly due to listing expenses, decreased revenue from existing restaurants, thin profit margins, delays in opening new restaurants, and impairment provisions[22] - The Group reported a loss attributable to owners of approximately RMB 451.1 million for 2018, compared to a profit of approximately RMB 25.7 million in 2017, marking a significant decline in performance[75] - Other expenses increased by approximately 43.1% from approximately RMB 35.5 million in 2017 to approximately RMB 50.8 million in 2018, primarily due to professional fees related to the resumption of trading and listing application[70] Market Strategy and Operations - The company is focused on expanding its market presence and exploring new strategies for growth[4] - The company aims to enhance its product offerings through new product development and technological advancements[4] - The Group plans to open about 14 new restaurants in first and second-tier cities in the PRC in 2019, continuing its expansion strategy[76] - The Group aims to refine current operations to enhance same-store sales growth and profitability through improved marketing, new product development, and optimized workflows[87] - The Group will continue to seek opportunities for opening more restaurants under the Faigo brand, which currently has 7 locations[86] Governance and Corporate Structure - Longhui International is committed to maintaining high corporate governance standards as outlined in their corporate governance report[4] - There were notable changes in the audit and remuneration committees, indicating a restructuring of governance[9] - The Group plans to strengthen corporate governance and internal controls to safeguard shareholder investments[22] Business Performance Metrics - The average daily restaurant sales nationwide decreased to RMB 15,317.8 in 2018 from RMB 17,111.5 in 2017, reflecting a decline of 10.5%[38] - The average customer per day per restaurant nationwide was 122.3 in 2018, down from 143.7 in 2017, indicating a decline of 14.8%[35] - The average daily customer count in Shanghai dropped to 132.8 in 2018 from 170.2 in 2017, a decrease of 22%[35] - The average spending per customer nationwide was RMB 125.2 in 2018, slightly down from RMB 119.0 in 2017, reflecting a decrease of 5.2%[38] - The seat turnover rate per day per restaurant nationwide decreased to 1.2 in 2018 from 1.6 in 2017, indicating a decline of 25%[38] Employee and Management - The company had a total of 3,057 employees as of December 31, 2018, representing an increase of approximately 8.2% from 2,826 employees in 2017[143] - Employee compensation is reviewed annually based on performance evaluations and other relevant factors, ensuring competitive remuneration packages for eligible employees[143] - The board of directors includes experienced professionals with extensive backgrounds in management and operations within the catering sector[156] Future Outlook - Future outlook includes strategic initiatives aimed at increasing operational efficiency and market share[4] - The Group is optimistic about the future prospects of the hotpot business, expecting it to generate satisfactory income[22] - The company aims to become the brand with the highest market capitalization in the Asia-Pacific catering industry through transformation and product quality improvements[61] Financial Position and Capital Management - As of December 31, 2018, the Group recorded cash and bank balances of approximately RMB 51.6 million, down from RMB 60.4 million in 2017[94] - The net current liabilities increased to approximately RMB 53.5 million as of December 31, 2018, compared to RMB 25.2 million in 2017[94] - The board resolved not to recommend the payment of any dividend for the year ended December 31, 2018[93] - The Company had no charges on its assets as of December 31, 2018, maintaining a clean balance sheet[109]
龙辉国际控股(01007) - 2018 - 年度财报