Financial Performance - For FY2019, the Group recorded a revenue of approximately S$42.0 million, a decrease of approximately 7% from S$45.0 million in FY2018, primarily due to the closure of one top-performing food outlet and five food stalls[30]. - The Group achieved a consolidated net profit of approximately S$5.2 million in FY2019, an increase of approximately 29% from S$4.0 million in FY2018, largely attributed to fair value gains of the Group's properties[30]. - The Group recorded a revenue decrease of approximately S$3.0 million or 6.7%, from approximately S$45.0 million in FY2018 to approximately S$42.0 million in FY2019[94]. - Revenue from the sale of cooked food, beverages, and tobacco products decreased by approximately S$2.8 million or 7.6%, from approximately S$36.9 million in FY2018 to approximately S$34.1 million in FY2019[98]. - Rental income from leasing premises to tenants decreased by approximately S$0.2 million or 2.4%, from S$8.1 million in FY2018 to S$7.9 million in FY2019[104]. - The cost of inventories consumed decreased by approximately S$0.7 million or 4.1%, from approximately S$17.2 million in FY2018 to approximately S$16.5 million in FY2019[114]. - Staff costs amounted to approximately S$11.7 million in FY2019, representing 28.0% of revenue, an increase of 1.9% from S$11.5 million in FY2018[115]. - Property rentals and related expenses decreased by approximately S$1.9 million, or 30.9%, from S$6.2 million in FY2018 to S$4.3 million in FY2019, primarily due to the purchase of a food center[115]. - Finance costs increased from approximately S$1.2 million in FY2018 to S$1.4 million in FY2019, reflecting a 12.2% rise due to additional loans for property acquisitions[120]. - Profit after tax increased by approximately S$3.0 million, or 151.2%, from S$2.1 million in FY2018 to S$5.1 million in FY2019, driven by unrealized gains on investment properties[123]. Strategic Initiatives - The Group plans to continue seeking investment properties with good yields to expand its property portfolio, aiming for superior long-term shareholder value[22]. - The Group plans to continue expanding its presence in Singapore through the acquisition of new properties or food centres[90]. - The Group aims to enhance the dining experience by renovating existing food centres[91]. - The Group is investing in technology, including developing an information management system and point-of-sale system to improve operational efficiency[92]. - The Group's development initiatives include increasing market share in the food and beverage industry in Singapore and expanding to other regions[90]. - The Group's strategic planning includes reviewing business strategies in response to the dynamic nature of the COVID-19 situation[83]. Operational Changes - The implementation of cashless payment systems across all food establishments has improved the efficiency of cash collection and management processes[20]. - The Group's food establishments are currently limited to takeaway and delivery services only, with no dine-in options allowed due to government restrictions[25]. - The Group has reinforced staff training on cleanliness and hygiene to ensure food quality and has implemented necessary health and safety precautions for staff, customers, and suppliers[27]. - The Group's operational strategies are designed to adapt to market trends and consumer preferences in the food and beverage sector[41]. Community Engagement - The Group donated approximately S$174,000 to The Community Chest of Hong Kong and contributed S$287,000 to recognized charities in Singapore in FY2019[30]. - The company is actively involved in civic organizations, reflecting its commitment to community engagement and corporate social responsibility[50]. Management and Governance - The Group's overall strategy planning, management, and operations are primarily overseen by Mr. Chu, who has over 17 years of experience in the food and beverage industry[38]. - Ms. Leow, with over 17 years of experience in the food and beverage sector, is responsible for the day-to-day operations and strategic planning of the Group[41]. - The management team is committed to providing independent judgment on policy and accountability, ensuring robust governance practices[50]. - The Group's leadership structure includes a mix of executive and non-executive directors, enhancing decision-making and strategic oversight[50]. - The management team includes professionals with diverse backgrounds, contributing to a well-rounded governance structure[67]. Market Conditions - The Singapore economy contracted by 2.2% year-on-year in Q1 2020, reversing the 1% growth in the previous quarter, with a quarter-on-quarter annualized shrinkage of 10.6%[23]. - The outlook for 2020 is uncertain due to COVID-19, with various precautionary measures implemented across Singapore[83]. - The Group is closely monitoring the impact of COVID-19 on its operations, including food establishments, inventories, and supply chains[83]. Property Acquisitions - The Group utilized approximately S$7.2 million of the listing proceeds to acquire two properties in Singapore's Chinatown and northern regions[14]. - On February 14, 2020, the Group acquired nine shop units in a mixed-use development for S$22.2 million, intending to open an air-conditioned food outlet upon expiration of existing tenancy agreements[15]. - On 24 March 2020, the Group's subsidiary completed the acquisition of properties at 101 Upper Cross Street for a total consideration of S$22.2 million, partially financed by net proceeds from the Share Offer[139]. - The acquisition is expected to lead to an increase in revenue, profit, and market share, as well as improve the Group's ability to withstand rising rental costs[139].
K2 F&B(02108) - 2019 - 年度财报