中国万天控股(01854) - 2020 - 年度财报

Company Information This section provides an overview of the company's board structure, registration details, and stock information Company Overview The board of directors of Grandeur Holdings Limited comprises executive, non-executive, and independent non-executive directors, with audit, nomination, and remuneration committees - Board members include Mr. Liu Tsz Ching (Chairman), Ms. Wu Suk Kwan (CEO) as executive directors, Mr. Wong Chung Yeung as non-executive director, and Ms. Li On Lei, Mr. Ng Ki Man, Mr. Law Siu Kit as independent non-executive directors[2] - The company has an Audit Committee (Chairman: Mr. Ng Ki Man), a Nomination Committee (Chairman: Mr. Liu Tsz Ching), and a Remuneration Committee (Chairman: Ms. Li On Lei)[2] - The company's stock code is 1854, and its website is www.cyfood.com.hk[2](index=2&type=chunk) Chairman's Statement This section presents the Chairman's review of the company's performance, challenges, and strategic outlook for the year Overview This year, the company faced challenges from the COVID-19 pandemic and a difficult operating environment in the catering industry, leading to reduced food ingredient demand - The outbreak of COVID-19 and school closures in Hong Kong led to reduced demand for food ingredients from catering service operators[4] - The Group has implemented several measures to mitigate risks and impacts, including strengthening accounts receivable control, reviewing procurement processes, negotiating with suppliers, and integrating operational processes to reduce costs[4] Annual Results For the year ended March 31, 2020, the Group's total revenue was approximately HK$154.1 million, a decrease from the previous year, resulting in a net loss of approximately HK$4.7 million Annual Results Overview | Metric | Year Ended March 31, 2020 (HK$ million) | Year Ended March 31, 2019 (HK$ million) | | :--- | :--- | :--- | | Total Revenue | 154.1 | 185.9 | | Net Loss / Profit | (4.7) | 16.1 | - The decrease in revenue and net loss were primarily attributable to adverse catering industry conditions, school closures in Hong Kong, and reduced demand for food ingredients due to the COVID-19 pandemic[5] Outlook The food service industry is expected to continue facing operational pressure, and the Group will monitor the market, adjust operations, and explore retail and OEM services to expand its offerings - The COVID-19 pandemic is expected to continue exerting operational pressure on the food service industry, where increased demand for processed food ingredients offers ancillary opportunities but is insufficient to offset losses[7] - The Group will explore the retail sector and Original Equipment Manufacturer (OEM) services to expand its service scope and product categories, maintaining market position and creating long-term value for shareholders[7] Appreciation The Chairman, on behalf of the Board, thanks all stakeholders for their support and contributions during a challenging economic environment - The Chairman expresses gratitude to shareholders, investors, business partners, directors, management, and staff for their support and contributions during a challenging economic environment[8] - The company remains committed to maintaining its leading position in the industry and creating maximum value for shareholders[8] Management Discussion and Analysis This section provides a detailed review of the Group's business operations, financial performance, and future outlook, including key financial metrics and risk factors Business Review The Group primarily procures, processes, and supplies vegetables and fruits to over 480 catering service outlets in Hong Kong, reporting a net loss of HK$4.7 million this year - The Group supplies over 1,300 types of food ingredients to more than 480 customer outlets[9] Annual Results Comparison | Metric | Year Ended March 31, 2020 (HK$ million) | Year Ended March 31, 2019 (HK$ million) | | :--- | :--- | :--- | | Net Loss / Profit | (4.7) | 16.1 | - The loss was primarily attributable to decreased revenue and a lower gross profit margin[9] Prospects The company's shares were transferred to the Main Board of the Stock Exchange on March 21, 2019, aiming to enhance its image and expand its investor base - The company's shares were transferred to the Main Board of the Stock Exchange on March 21, 2019, aiming to enhance its image, expand its investor base, and create long-term value[10] - Facing the COVID-19 pandemic and social-political tensions, the Group will closely monitor the market, explore new supply sources, fine-tune its product structure, and implement cost management measures[10] Revenue For the year ended March 31, 2020, the Group's revenue was approximately HK$154.1 million, a year-on-year decrease of approximately 17.1%, mainly due to adverse catering industry conditions and school closures Revenue Comparison | Year | Revenue (HK$ million) | Year-on-Year Change | | :--- | :--- | :--- | | Ended March 31, 2020 | 154.1 | -17.1% | | Ended March 31, 2019 | 185.9 | - | - The decrease in revenue was primarily due to the adverse overall catering industry operating environment and school closures, leading to reduced demand for food ingredients from catering service operators[11] Cost of Sales For the year ended March 31, 2020, the cost of sales was approximately HK$134.9 million, a year-on-year decrease of approximately 5.0%, mainly due to reduced demand for food ingredients Cost of Sales Comparison | Year | Cost of Sales (HK$ million) | Year-on-Year Change | | :--- | :--- | :--- | | Ended March 31, 2020 | 134.9 | -5.0% | | Ended March 31, 2019 | 142.0 | - | - The decrease in cost of sales was primarily due to reduced demand for food ingredients from catering service operators, although raw material costs increased due to supply shortages in some regions[12] Gross Profit and Gross Profit Margin For the year ended March 31, 2020, gross profit significantly decreased by approximately 56.4% to HK$19.2 million, and the gross profit margin fell by 11.2 percentage points to 12.5% Gross Profit and Gross Profit Margin Comparison | Metric | Year Ended March 31, 2020 | Year Ended March 31, 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit | HK$19.2 million | HK$44.0 million | -56.4% | | Gross Profit Margin | 12.5% | 23.7% | -11.2 percentage points | - The decline in gross profit and gross profit margin was primarily due to decreased revenue and increased raw material costs[14] Selling and Administrative Expenses For the year ended March 31, 2020, selling and administrative expenses decreased by approximately 8.5% to HK$21.5 million, mainly due to a significant reduction in professional fees related to the board transfer Selling and Administrative Expenses Comparison | Year | Selling and Administrative Expenses (HK$ million) | Year-on-Year Change | | :--- | :--- | :--- | | Ended March 31, 2020 | 21.5 | -8.5% | | Ended March 31, 2019 | 23.5 | - | - The decrease in expenses was primarily due to a reduction in professional fees for the board transfer from approximately HK$4.5 million to approximately HK$1.2 million[15] Finance Costs For the year ended March 31, 2020, finance costs increased by approximately 100.0% to HK$1.0 million, primarily due to an increase in the average bank borrowing balance Finance Costs Comparison | Year | Finance Costs (HK$ million) | Year-on-Year Change | | :--- | :--- | :--- | | Ended March 31, 2020 | 1.0 | +100.0% | | Ended March 31, 2019 | 0.5 | - | - The increase in finance costs was primarily due to an increase in the average bank borrowing balance[16] Share of Loss of a Joint Venture For the year ended March 31, 2020, the Group recorded a share of loss of a joint venture of approximately HK$146,000, a significant increase from HK$2,000 in the prior year Share of Loss of Joint Venture Comparison | Year | Share of Loss of Joint Venture (HK$) | | :--- | :--- | | Ended March 31, 2020 | 146,000 | | Ended March 31, 2019 | 2,000 | Loss / Profit Attributable to Owners of the Company Due to the aforementioned factors, the loss attributable to owners of the company for the year ended March 31, 2020, was approximately HK$4.7 million, compared to a profit of approximately HK$16.1 million in the prior year Loss / Profit Attributable to Owners of the Company Comparison | Year | Loss / Profit Attributable (HK$ million) | | :--- | :--- | | Ended March 31, 2020 | (4.7) | | Ended March 31, 2019 | 16.1 | Comparison of Business Objectives with Actual Business Progress The Group acquired five refrigerated and two non-refrigerated vans to expand its logistics team, but adverse business conditions delayed further acquisitions and staff recruitment, as well as sales channel improvements Comparison of Business Objectives with Actual Progress | Business Plan | Actual Business Progress | | :--- | :--- | | Acquire seven additional 5.5-tonne refrigerated vans and two 5.5-tonne non-refrigerated vans | Five refrigerated vans and two non-refrigerated vans acquired, further acquisition plans delayed | | Recruit eighteen additional distribution staff | Recruitment plan delayed | | Improve sales channels, such as maintaining and enhancing mobile sales applications and developing internet sales platforms | Time required for sales channel improvement exceeded expectations | - The overall adverse business environment was the primary reason for the delay in acquisition and recruitment plans[19] Use of Net Proceeds from Listing As of March 31, 2020, the Group had utilized approximately HK$46.2 million of net proceeds from the listing, primarily for a new processing base, human resources, and logistics expansion, with HK$1.6 million remaining unutilized Use of Net Proceeds from Listing (As of March 31, 2020) | Purpose | Planned Use (HK$ million) | Actual Use (HK$ million) | Unutilized Net Proceeds (HK$ million) | | :--- | :--- | :--- | :--- | | Acquisition of new processing base, facilities, and equipment | 23.7 | 23.7 | – | | Further enhancement of human resources | 9.1 | 9.1 | – | | Expansion of logistics team | 9.7 | 8.6 | 1.1 | | Improvement of sales channels | 0.5 | – | 0.5 | | General working capital | 4.8 | 4.8 | – | | Total | 47.8 | 46.2 | 1.6 | - The remaining HK$1.6 million of net proceeds is deposited in a licensed bank in Hong Kong, and the Directors will continue to assess and may adjust plans to adapt to market conditions[21] Capital Structure The company's shares were transferred from GEM to the Main Board on March 21, 2019, and its capital structure, consisting solely of ordinary shares, has remained unchanged since the listing date, except for share repurchases - The company's shares were transferred from GEM to the Main Board of the Stock Exchange on March 21, 2019[22] - Except for share repurchases, there have been no changes in the Group's capital structure, which consists solely of ordinary shares, from the listing date to the date of this report[22] Liquidity and Financial Resources The Group primarily funds its liquidity through operating cash and bank borrowings, with borrowings of approximately HK$48.5 million and cash and bank balances of approximately HK$32.8 million as of March 31, 2020 Liquidity and Financial Resources Comparison | Metric | March 31, 2020 (HK$ million) | March 31, 2019 (HK$ million) | | :--- | :--- | :--- | | Borrowings | 48.5 | 26.7 | | Bank Balances and Cash | 32.8 | 24.7 | | Bank Overdrafts | None | None | - Bank borrowings are primarily used for working capital requirements and the acquisition of existing properties[23] - The Directors consider the Group's financial position to be sound and sufficient to expand its core business and achieve its business objectives[23] Gearing Ratio As of March 31, 2020, the Group's gearing ratio was approximately 47.8%, an increase from 24.2% in the prior year, primarily due to increased bank borrowings Gearing Ratio Comparison | Year | Gearing Ratio | | :--- | :--- | | March 31, 2020 | 47.8% | | March 31, 2019 | 24.2% | - The increase in the gearing ratio was due to an increase in bank borrowings[24] Pledge of the Group's Assets As of March 31, 2020, the Group pledged leasehold land and buildings under right-of-use assets with a net book value of approximately HK$59.9 million for its bank facilities Asset Pledge Status | Metric | March 31, 2020 (HK$ million) | March 31, 2019 (HK$ million) | | :--- | :--- | :--- | | Net Book Value of Pledged Assets | 59.9 | 54.4 | - The pledged assets are leasehold land and buildings under right-of-use assets[25] Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries and Affiliated Companies, and Future Plans for Material Investments or Capital Assets For the year ended March 31, 2020, the company had no significant investments, material acquisitions or disposals of subsidiaries and affiliated companies, or other future plans for material investments or capital assets, other than those disclosed in the annual report and prospectus - There were no significant investments, material acquisitions, or disposals of subsidiaries and affiliated companies during the year[25] - As of March 31, 2020, there were no other significant investment or capital asset plans[25] Foreign Exchange Risk As a food ingredient supplier, the Group conducts most transactions in Hong Kong Dollars, and thus the Directors believe it faces no significant foreign exchange risk and has no hedging policy - The majority of the Group's transactions are settled in Hong Kong Dollars, and the Directors believe there is no significant foreign exchange risk[26] - The Group currently has no foreign exchange hedging policy in place[26] Treasury Policy The Directors will continue to follow a prudent policy in managing the Group's cash balances and maintaining strong liquidity to seize future growth opportunities - The Directors will follow a prudent policy in managing cash balances and maintaining strong liquidity[28] - The objective is to ensure the Group is well-positioned to capture future growth opportunities[28] Contingent Liabilities As of March 31, 2020, the Group had no significant contingent liabilities - As of March 31, 2020, the Group had no significant contingent liabilities[29] Commitments The Group's contractual commitments primarily involve rent for processing facilities and parking spaces, with lease commitments of approximately HK$102,000 and no capital commitments as of March 31, 2020 Lease Commitments Comparison | Year | Lease Commitments (HK$) | | :--- | :--- | | March 31, 2020 | 102,000 | | March 31, 2019 | 872,000 | - Effective April 1, 2019, the Group recognized right-of-use assets for leases, except for short-term and low-value leases[30] - As of March 31, 2020, the Group had no capital commitments for the acquisition of property, plant, and equipment[30] Segment Information The Group operates a single business segment, which involves the procurement, processing, and supply of food ingredients to catering service operators in Hong Kong - The Group primarily operates a single business segment: providing food ingredient procurement, processing, and supply services to catering service operators in Hong Kong[30] Final Dividend The Board of Directors does not recommend the payment of a final dividend for the year ended March 31, 2020 - The Board of Directors does not recommend the payment of a final dividend for the year ended March 31, 2020[31] Information on Employees As of March 31, 2020, the Group had 77 employees based in Hong Kong, a decrease from the previous year, with total staff costs of approximately HK$21.9 million Employee Headcount and Costs Comparison | Metric | March 31, 2020 | March 31, 2019 | | :--- | :--- | :--- | | Employee Headcount | 77 | 98 | | Total Staff Costs (HK$ million) | 21.9 | 22.3 | - Employee remuneration includes salaries, allowances, and discretionary bonuses, with various training programs provided[31] Key Risks and Uncertainties The Group faces credit and liquidity risks, with credit risk primarily from trade receivables where the top five customers account for 65.4% of the total, and liquidity risk managed by maintaining sufficient cash and bank facilities - The Group's credit risk primarily arises from trade receivables and bank deposits[32] - As of March 31, 2020, trade receivables from the top five customers accounted for 65.4% (2019: 56.2%) of total trade receivables, indicating credit concentration risk[32] - Liquidity risk is managed by maintaining sufficient cash and bank facilities to meet daily operating and capital commitments[34] Environmental Policies and Performance The Group is committed to environmental protection, implementing green initiatives in resource use, energy saving, waste management, and carbon emission reduction, in compliance with Hong Kong environmental laws - The Group has implemented various green environmental measures, including reusing and recycling paper, replacing with LED lights, and switching off air conditioners and electrical appliances[36] - The operations for the year complied in all material respects with currently applicable local environmental laws and regulations in Hong Kong[36] Compliance with Relevant Laws and Regulations To the best of the Board's knowledge, the Group has complied with relevant laws and regulations significantly impacting its business and operations, with no material breaches or non-compliance for the year ended March 31, 2020 - The Group has complied with relevant laws and regulations that have a significant impact on its business and operations[37] - For the year ended March 31, 2020, the Group had no material breaches or non-compliance with applicable laws and regulations[37] Relationships with Suppliers, Customers and Other Stakeholders The Group is committed to maintaining good relationships with its suppliers, customers, and other stakeholders, with no significant or serious disputes occurring for the year ended March 31, 2020 - The Group understands the importance of maintaining good relationships with its suppliers, customers, and other stakeholders[38] - For the year ended March 31, 2020, the Group had no significant or serious disputes with its stakeholders[38] Environmental, Social and Governance Report This section details the Group's environmental, social, and governance (ESG) performance for the year, adhering to the guidelines of Appendix 27 of the Listing Rules Overview This ESG report covers Grandeur Holdings Limited's environmental, social, and governance performance for the year ended March 31, 2020, in compliance with the Listing Rules - This ESG report covers the environmental and social subject areas for the year ended March 31, 2020[39] - The report content complies with the Environmental, Social and Governance Reporting Guide set out in Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[39] Reporting Scope This report aims to provide a balanced account of the Group's environmental and social performance, covering overall operations for the period from April 1, 2019, to March 31, 2020 - This report covers the Group's overall operations for the reporting period from April 1, 2019, to March 31, 2020[40] - The Board of Directors assumes full responsibility for the Group's ESG strategy and reporting, and is responsible for evaluating ESG-related risks and ensuring the effectiveness of risk management and internal control systems[40] About the Group The Group operates in Hong Kong, primarily engaged in the procurement, processing, and supply of vegetables and fruits to over 480 customer outlets across the city - The Group operates in Hong Kong, primarily engaged in the procurement, processing, and supply of vegetables and fruits[41] - It serves over 480 customer outlets across Hong Kong[41] Strategy The Group is committed to corporate social responsibility, integrating environmental and social considerations into daily operations, and executing its ESG strategy through legal compliance, KPI disclosure, and risk monitoring - The Group's objectives are to protect the environment, provide a friendly working environment for employees, and contribute to local communities[42] - Environmental objectives include incorporating environmentally friendly measures into daily operations, reducing greenhouse gas emissions, efficiently utilizing energy and resources, and continuously improving waste management[43] - Social objectives include respecting employee rights, promoting equal opportunities, focusing on occupational safety and health, ethical business practices, and promoting community engagement[43] Stakeholder Engagement Stakeholder engagement is a critical success factor for the Group's ESG strategy, involving communication with customers, suppliers, employees, and management through surveys and discussions to understand their views and continuously improve performance - Key stakeholders include customers, suppliers, employees, and management personnel[46] - The Group communicates with stakeholders through surveys and discussions to understand their opinions and provide effective responses[46] Stakeholder Expectations and Engagement Channels | Stakeholder | Expectations and Concerns | Engagement Channels | | :--- | :--- | :--- | | Customers | Quality of products and services | After-sales service, feedback channels | | Employees | Employee salaries and benefits, workplace health and safety, training and development | Training, performance reviews and interviews, internal announcements and publications, suggestion box | | Suppliers | Timely payment for goods supplied/services rendered | Site visits | | Shareholders | Corporate governance, return on investment | Annual General Meetings, annual and interim reports, press releases and announcements | | Community | Community engagement, environmental protection awareness | Community activities, subsidies, and charitable donations | Materiality Assessment The Group has conducted a materiality assessment to identify key concerns and interests of internal and external stakeholders, covering social, operational, and environmental performance topics, presented in a materiality matrix - The Group has conducted a materiality assessment, aiming to identify the key concerns and interests of internal and external stakeholders[48] - The assessment results are presented in a materiality matrix, covering environmental, operational, and social-related topics[48][49][50][51] Environment The Group is committed to developing its business in an environmentally protective manner, limiting negative impacts on ecosystems, and closely monitoring resource use, greenhouse gas and exhaust emissions, and waste management - The Group is committed to developing and managing its business in an environmentally protective manner, limiting negative impacts on ecosystems[53] Resource Usage The Group closely monitors energy, water, and raw material consumption, implementing energy-saving measures and encouraging the use of recycled or recyclable packaging materials - The Group consumed a total of 825,390 kWh of electricity during the reporting period, an increase from last year, mainly due to increased use of electronic equipment for food ingredient production and the addition of cold storage facilities[55] - The Group consumed 5,056 liters of petrol and 46,580 liters of diesel, with changes primarily due to re-designated delivery routes[56] - The Group consumed a total of 10,261 cubic meters of water during the reporting period, an increase from last year, mainly due to the commencement of operations at the new Kwai Chung production plant[57] - The Group consumed a total of 24 tonnes of packaging materials and encourages the use of recycled or recyclable materials[59] Greenhouse Gas and Exhaust Emissions The Group's greenhouse gas emissions primarily stem from fossil fuel and electricity consumption, with direct CO2e emissions of 142 tonnes and indirect emissions of 520 tonnes during the reporting period - The Group's operations directly emitted a total of 142 tonnes of CO2e greenhouse gases from fuel consumption (2019: 158 tonnes)[61] - Greenhouse gas equivalent emissions from fugitive refrigerant emissions were approximately 133 tonnes of CO2e (2019: 170 tonnes)[63] - Greenhouse gas equivalent emissions related to electricity consumption were 520 tonnes of CO2e (2019: 467 tonnes)[64] - Indirect greenhouse gas emissions from waste paper disposed of in landfills were 5.8 tonnes of CO2e (2019: 10.2 tonnes)[65] Waste Management The Group encourages environmentally friendly waste disposal, participates in official recycling programs for hazardous waste, and promotes waste reduction, reuse, and recycling for non-hazardous waste, generating 22 tonnes this year - The Group participates in official recycling programs for the safe disposal of hazardous waste, such as computers, discarded electrical appliances, and fluorescent lamps[68] - The Group promotes waste reduction at source, reuse, clean recycling, and recycling of non-hazardous waste, and donates vegetables and fruits to local food assistance organizations[69] Non-hazardous Waste Generation Comparison | Year | Total Non-hazardous Waste (tonnes) | | :--- | :--- | | 2019 to 2020 | 22 | | 2018 to 2019 | 30 | Summary This section summarizes the Group's key performance indicators for emissions and resource consumption during the reporting period, including consolidated data on energy consumption, greenhouse gas emissions, exhaust emissions, waste management, and resource usage Consolidated Environmental Key Performance Indicators | Category | Environmental KPI Unit | 2018 to 2019 | 2019 to 2020 | | :--- | :--- | :--- | :--- | | Total Energy Consumption | Gigajoules | 5,059 | 4,948 | | Total Greenhouse Gas Emissions | Tonnes of CO2e | 808 | 806 | | Nitrogen Oxides Emissions | Kilograms | 544.0 | 447.7 | | Total Non-hazardous Waste Generated | Tonnes | 30 | 22 | | Water Consumption | Cubic meters | 6,120 | 10,261 | | Total Packaging Materials | Tonnes | 24 | 24 | Society The Group is committed to corporate social responsibility, fostering harmonious relationships with employees, customers, suppliers, and the community, covering employment, occupational health, training, supply chain management, product responsibility, anti-corruption, and community engagement - The Group is committed to fulfilling its social responsibilities and building harmonious relationships with employees, customers, suppliers, and the community[76] Employment The Group has comprehensive employment policies covering compensation, recruitment, promotion, working hours, holidays, equal opportunities, and diversity, aiming to attract and retain talent with competitive remuneration and benefits - The Group has formulated employment policies covering remuneration, dismissal, recruitment, promotion, working hours, holidays, equal opportunities, diversity, and anti-discrimination[77] - As of March 31, 2020, the Group employed a total of 77 staff members, comprising 37 males (48%) and 40 females (52%)[78][79] - The Group offers competitive remuneration, which is regularly reviewed to ensure alignment with the employment market, while complying with minimum wage and statutory social welfare regulations[80] Equal Opportunity, Diversity and Anti-Discrimination As an equal opportunity employer, the Group is committed to providing a fair workplace, with recruitment, compensation, promotion, and benefits based on objective assessments, and prohibits discrimination based on gender, disability, family status, and race - The Group is an equal opportunity employer, committed to providing a fair workplace for employees and adhering to principles of equality and anti-discrimination[83] - The Group complies with relevant Hong Kong laws and regulations, including the Sex Discrimination Ordinance, Disability Discrimination Ordinance, Family Status Discrimination Ordinance, and Race Discrimination Ordinance[83] Occupational Health and Safety The Group is dedicated to maintaining a healthy and safe workplace for employees, implementing safety policies and procedures, regularly monitoring workplace conditions, and providing safety awareness education and training to prevent injuries and illnesses - The Group is committed to maintaining a healthy and safe workplace for employees and preventing workplace injuries and illnesses[84] - The Group maintains workplace safety and health by regularly monitoring cleanliness, pest control, safety, emergency supplies, and fire safety measures in processing plants, logistics centers, warehouses, and offices[84] - A Health, Safety and Environment Committee has been established, responsible for policy formulation, implementation, and review[84] Employee Development and Training The Group is committed to providing adequate training for employees, including internal and external vocational training courses, to enhance their knowledge and skills, with 562 training hours recorded during the reporting period - The Group provides adequate training for employees, including induction for new staff, continuous education, and skill enhancement courses[85] - During the reporting period, the Group's employees received a total of 562 training hours[86] Training Distribution | Category | Percentage (%) | | :--- | :--- | | By Gender: Male | 55.4 | | By Gender: Female | 44.6 | | By Seniority: Directors | 39.5 | | By Seniority: Senior Management | 1.2 | | By Seniority: Middle Management | 16.7 | | By Seniority: Employees | 42.6 | Labor Standards The Group strictly prohibits child and forced labor, is committed to protecting human rights, and complies with all applicable Hong Kong labor laws and regulations to create a respectful and fair working environment - The Group prohibits child and forced labor and is committed to protecting human rights[87] - The Group complies with Hong Kong laws and regulations related to all applicable labor standards, including the Employment Ordinance[87] Supply Chain Management and Product Quality Control The Group considers supply chain management a critical area, strictly managing environmental and social risks, requiring suppliers to meet quality, health, and safety standards, and ensuring the procurement of safe and healthy food ingredients