Financial Performance - The company reported total revenue of 24,262 thousand SGD for the year, an increase of 13.7% from 21,325 thousand SGD in the previous year[16]. - The company generated revenue from franchise sales, which amounted to 9,035 thousand SGD, up from 8,383 thousand SGD the previous year[16]. - The group’s total revenue increased from approximately SGD 21,325,000 in 2019 to approximately SGD 24,262,000 in the current year, representing a growth of about 13%[20]. - The group’s gross profit for the current year was approximately SGD 15,373,000, up about 22% from SGD 12,624,000 in 2019, primarily due to an increase in self-operated stores[24]. - The company reported a franchise fee income of 684 thousand SGD, an increase from 511 thousand SGD in the previous year[16]. - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% growth compared to the previous year[62]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming for $625 million[62]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on expanding the product line[62]. - Market expansion plans include entering three new countries, which are projected to generate $30 million in additional revenue[62]. Store Operations and Expansion - The company operates 248 stores across various regions, including 16 self-operated stores in Singapore and 14 in West Malaysia[17]. - The company plans to open new self-operated stores and dining locations in Singapore and West Malaysia, as well as expand its non-self-operated store network[12]. - The company has launched its first concept store in Singapore's PLQ Mall, which has received positive feedback and plans to open a similar store in West Malaysia[10]. - Sales to franchisees/licensees increased by approximately 7%, with the number of non-self-operated stores rising from 175 in 2019 to 218 in the current year[20]. - The group plans to expand into multiple overseas markets and enhance marketing efforts to attract a diverse customer base[39]. Financial Health and Liquidity - Cash and cash equivalents increased from approximately SGD 4.3 million in 2019 to about SGD 21.6 million in the current year, a rise of approximately SGD 17.3 million[29]. - The current ratio improved to approximately 7.0 times from 1.7 times in 2019, indicating better liquidity[29]. - The company recorded a debt-to-equity ratio of approximately 16% as of March 31, 2020, a significant decrease from 92% in 2019[30]. - Employee costs rose from approximately SGD 3.2 million in 2019 to about SGD 4.8 million in the current year, an increase of approximately 50%[25]. - The cost of goods sold increased from approximately SGD 8,701,000 in 2019 to about SGD 8,889,000 in the current year, reflecting a 2% increase[23]. Corporate Governance - The board of directors held three meetings during the review period, with all directors attending 100% of the meetings[72]. - The company has three independent non-executive directors, meeting the requirement that they constitute at least one-third of the board[76]. - The roles of the chairman and the CEO are separated to ensure a balance of power within the board[78]. - The company has implemented appropriate and sufficient directors' and officers' liability insurance to protect against legal claims arising from their duties[79]. - The company has adopted and adhered to the principles of the corporate governance code, emphasizing transparency and accountability[70]. - The board regularly reviews and follows up on corporate governance policies to ensure compliance with the code[69]. - The company provides training for all directors to enhance their understanding of corporate governance and their responsibilities[81]. - The company has established various committees within the board, including a remuneration committee and an audit committee, to oversee specific responsibilities[73]. Risk Management - The board of directors confirmed the effectiveness of the group's risk management and internal control systems, with no significant issues identified during the review period[112]. - The company has engaged external consultants to review its risk management and internal control systems, ensuring independent and objective assurance and advisory services[112]. - The company faces significant risks related to the market recognition of its Shilin Taiwan Snack® brand, which is crucial for its success and brand value[135]. - The company acknowledges that maintaining consistent quality may become more challenging as it expands its scale and product variety[135]. - Any delays or cancellations of major sales orders by franchisees could lead to revenue fluctuations and negatively impact financial performance[137]. Shareholder Relations and Dividends - The company has adopted a dividend policy, proposing to distribute no less than 40% of net profit as dividends, subject to board discretion and shareholder approval[128]. - The company has declared an interim dividend of 1.0 million SGD to shareholders, which was paid in October 2019[149]. - No final dividend is recommended for the current fiscal year, indicating a cautious approach to cash distribution amid potential financial uncertainties[150]. - The company has no distributable reserves as of March 31, 2020, which may limit future dividend payments[153]. - The company emphasizes the importance of maintaining transparent and effective communication with shareholders to build investor confidence and attract new investors[121]. Operational Improvements and Efficiency - Operational improvements have led to a 10% reduction in costs, contributing to higher profit margins[62]. - The company is investing $10 million in research and development for new technologies aimed at improving operational efficiency[62]. - The company is actively seeking additional opportunities to expand revenue sources and enhance shareholder value[12]. Employee Training and Development - Regular training will be provided to employees to enhance service levels within the group[39]. - The board has reviewed and monitored the training and continuous professional development of directors and senior management[104].
快餐帝国(01843) - 2020 - 年度财报