COVID-19 Impact and Response - The Group faced unprecedented challenges due to COVID-19, with the Singapore Government implementing strict containment measures from April 7, 2020, to June 1, 2020[50]. - During the Circuit Breaker period, all food establishments were limited to takeaway or delivery services only[51]. - The progressive lifting of restrictions began on June 2, 2020, allowing businesses with lower transmission risks to reopen under safe management measures[52]. - By December 28, 2020, Singapore entered the third phase of lifting restrictions, increasing the group size for dine-in from 5 to 8 persons[52]. - The annual report for the year ended December 31, 2020, was presented to shareholders, highlighting the impact of the pandemic on operations[50]. - The Group's financial performance and strategic responses to the pandemic will be detailed in the Management Discussion and Analysis section[48]. - Future outlook and guidance will be provided, focusing on recovery strategies post-COVID-19[48]. - The Group is exploring new product development and market expansion opportunities as part of its recovery strategy[48]. - The Company emphasizes the importance of adapting to changing market conditions and consumer behaviors in the post-pandemic landscape[48]. Financial Performance - For FY2020, the Group recorded a consolidated revenue of approximately S$34.9 million, a decrease of approximately 16.9% from S$42.0 million in FY2019[67]. - The Group's consolidated net profit for FY2020 was approximately S$2.2 million, a decrease of approximately 57.5% from S$5.2 million in FY2019[69]. - The decline in revenue was mainly due to lower sales from cooked food, beverages, and tobacco products caused by COVID-19, along with the termination of the food street in the shopping district[67]. - The Group generated an operating cash flow of approximately S$7.7 million, with cash and cash equivalents as of December 31, 2020, at approximately S$10.2 million[71]. - The Group's revenue decreased by approximately S$7.1 million or 16.9%, from approximately S$42.0 million for FY2019 to approximately S$34.9 million for FY2020, primarily due to lower sales from cooked food, beverages, and tobacco products as a result of the COVID-19 pandemic[155]. - Rental income from leasing premises to tenants fell by approximately S$1.0 million, or 17.9%, from approximately S$5.5 million in FY2019 to S$4.5 million in FY2020, mainly due to rental rebates of approximately S$1.2 million provided to tenants as part of COVID-19 relief measures[159]. Management and Leadership - Mr. Chu has over 18 years of experience in the food and beverage industry, having been with the Group since 2004 and serving as CEO since 2018[85]. - Ms. Leow has over 18 years of experience in the food and beverage industry and has been with the Group since January 2004, primarily responsible for day-to-day operations[89]. - Ms. Chu Pek Si was appointed as an executive Director on October 10, 2020, and is responsible for mergers & acquisitions and property management initiatives[90]. - Mr. Wong has over 30 years of banking experience, including expertise in syndicated loans, project financing, and mergers and acquisitions[102]. - The Group's management team includes family members, with Mr. Chu and Ms. Leow being spouses and both serving as executive Directors[88]. - The Group has a strong focus on strategic planning and operational management, led by experienced executives[88]. - The company has been involved in the food and beverage industry through various businesses since 1993, indicating a long-standing presence in the market[85]. - The Group's operational strategies are supported by a dedicated management team with diverse backgrounds in finance and operations[102]. Strategic Plans and Future Outlook - The Group plans to divest underperforming assets and reinvest in F&B businesses and other synergistic growth opportunities[56]. - The Group aims to respond to fast-evolving market trends by re-evaluating its business strategies[56]. - The Group aims to acquire popular F&B businesses and brands to enhance its product offerings[151]. - Future strategies include expanding the business network in Singapore through the opening of new food establishments[151]. - The Group will also focus on renovating existing food centres to improve the dining experience[152]. - The outlook for 2021 remains uncertain due to ongoing COVID-19 challenges, making it difficult to predict future impacts[146]. Operational Metrics - As of December 31, 2020, the Group owned and managed 19 food centres, unchanged from the previous year[139]. - The Group operated 37 food and beverage stalls as of December 31, 2020, a decrease from 40 stalls in FY2019[142]. - During FY2020, the Group opened 3 new food and beverage stalls but closed 6, resulting in a total of 37 stalls by year-end[145]. Cost Management - The cost of inventories consumed decreased by approximately S$3.0 million, or 18.1%, from approximately S$16.5 million in FY2019 to approximately S$13.5 million in FY2020, aligning with the revenue decline[172]. - Staff costs decreased by approximately S$3.4 million, or 29.4%, from S$11.7 million in FY2019 to S$8.3 million in FY2020, representing 28.0% and 23.8% of revenue for the respective periods[173]. - Property rentals and related expenses decreased by approximately S$1.5 million, or 34.4%, from approximately S$4.3 million in FY2019 to approximately S$2.8 million in FY2020, due to rental rebates and non-renewal of food establishments[178]. - Management, cleaning, and utilities expenses decreased by approximately S$0.4 million, or 23.2%, from approximately S$1.8 million in FY2019 to approximately S$1.4 million in FY2020, attributed to fewer food establishments managed and reduced electricity expenses[179]. - Other operating expenses increased by approximately S$0.1 million, or 5.3%, from approximately S$2.7 million in FY2019 to approximately S$2.8 million in FY2020, mainly due to increased repairs and maintenance costs[180]. Governance and Compliance - The company emphasizes independent judgment in policy and resource management through its board committees[101]. - The Group's leadership structure includes a mix of family and independent directors, ensuring a balance of interests and expertise[104]. - Mr. Loh was appointed as an independent non-executive Director on February 1, 2019, and serves as the chairman of the Remuneration Committee and the Internal Control Compliance Committee[108]. - Mr. Mah was appointed as an independent non-executive Director on February 1, 2019, and is the chairman of the Audit Committee[116]. - Mr. Cui has over 13 years of work experience in accounting and finance, having held various positions in reputable firms including Ernst & Young LLP and Mapletree Logistics Trust Management Ltd[128]. - K2 F&B Holdings Limited's management team includes experienced professionals with backgrounds in finance, law, and corporate governance[120]. - The company secretary, Mr. Man, holds a bachelor's degree in business administration and management and a master's degree in corporate governance[121]. - Mr. Loh has served as an independent director for multiple listed companies, enhancing the board's governance and oversight capabilities[114]. - The company is focused on strategic planning and internal control, as evidenced by the roles of its senior management team[126]. - The board includes members with extensive experience in various sectors, contributing to informed decision-making and policy development[116]. - The company emphasizes compliance with SGX-ST reporting requirements, as demonstrated by Mr. Cui's previous roles[128]. - The management team is committed to maintaining high standards of accountability and resource management[116].
K2 F&B(02108) - 2020 - 年度财报