Financial Performance - The group's revenue for the year ended December 31, 2018, decreased by SGD 0.55 million or 3% to approximately SGD 19.14 million compared to SGD 19.69 million for the year ended December 31, 2017[14]. - The group recorded a loss of approximately SGD 2.52 million for the year ended December 31, 2018, compared to a loss of SGD 2.26 million for the previous year, primarily due to listing-related expenses of approximately SGD 1.57 million and SGD 3.16 million for the respective years[14]. - Excluding non-recurring listing expenses, the group would have recorded a loss of approximately SGD 0.95 million for 2018 and a profit of SGD 0.90 million for 2017[14]. - Revenue for the year ended December 31, 2018, decreased by approximately SGD 0.55 million or 3% to about SGD 19.14 million from approximately SGD 19.69 million for the year ended December 31, 2017[27]. - Other income increased significantly by approximately SGD 0.13 million or 90% to about SGD 0.27 million for the year ended December 31, 2018, primarily due to the reversal of a deposit related to a guarantee to the landlord[28]. - Cost of goods sold increased by approximately SGD 0.35 million or 8% to about SGD 4.95 million for the year ended December 31, 2018, mainly due to rising raw material costs[29]. - Employee benefits expenses rose by approximately SGD 0.72 million or 12% to about SGD 6.61 million for the year ended December 31, 2018, due to one-time bonuses and additional staff costs from the opening of Central (NP) in Singapore[30]. - Rental and related expenses increased by approximately SGD 0.41 million or 10% to about SGD 4.68 million for the year ended December 31, 2018, primarily due to leasing additional properties for Central (NP) opened in January 2018[31]. - The company recorded a loss of approximately SGD 2.52 million for the year ended December 31, 2018, compared to a loss of SGD 2.26 million for the year ended December 31, 2017, mainly due to non-recurring listing expenses[35]. Business Expansion and Strategy - The company opened a new BreadStory outlet in Berjaya Times Square, Kuala Lumpur, in the second half of 2018, and plans to open a dim sum café under the Black Society brand in Singapore in mid-2019[13]. - The company plans to expand its restaurant business in Singapore and its bakery chain in Malaysia to enhance brand awareness and service quality[23]. - A new dessert concept brand "Lady Croissant" was introduced under the BreadStory line in August 2018, offering a variety of croissants[24]. - The company is adopting a more cautious approach to expansion due to labor shortages and intense competition in the restaurant industry in Singapore and Malaysia[24]. - The company aims to strengthen its marketing team to explore new strategies and increase customer loyalty through online platforms and delivery services[24]. - The company anticipates that its expansion plans in Singapore may not be as promising due to labor resource scarcity and government restrictions on foreign employee dependency[17]. Leadership and Governance - Liu Wan-Zhen, the executive director and CEO, has over 16 years of experience in the restaurant industry since founding the group in 2002[64]. - Liu Yao-Xiong, the executive director and general manager, has over 7 years of experience in the restaurant industry and has been overseeing the Greyhound Café since December 2016[66]. - Zhao Jia-Wei, the executive director and group executive chef, has over 42 years of experience in the restaurant industry, joining the group in 2006[69]. - The company has a strong leadership team with diverse backgrounds in various sectors, including energy, real estate, and tourism[73]. - The company is focused on strategic planning and overall business development under the leadership of Liu Wan-Zhen[64]. - The company has a strong board with members holding significant experience in finance, law, and management, enhancing its strategic decision-making capabilities[79]. - The management team is committed to implementing business plans that align with the company's long-term growth objectives[83]. - The company has established a robust governance framework to guide its operations and ensure compliance with regulatory standards[81]. Financial Management and Compliance - The company has a responsibility to maintain proper accounting records to disclose the financial status of the group accurately[97]. - The board communicates with major stakeholders, including shareholders and regulatory bodies, regarding significant transactions and financial goals[97]. - The company has established policies and procedures to identify, assess, and manage significant risks, with the board overseeing the effectiveness of the risk management and internal control systems[130]. - The internal audit function has been outsourced to a professional risk advisory firm, which conducts annual reviews of the group's control environment and key business processes[132]. - The company ensures compliance with all relevant insider trading policies and keeps directors and employees updated on regulatory news[132]. - The company is committed to timely and transparent financial reporting, with quarterly results published within the deadlines set by GEM listing rules[127]. Shareholder Information - As of December 31, 2018, Ms. Liu Wan-Zhen holds a beneficial interest in 282,000,000 shares, representing 56.4% of the company's ordinary shares[170]. - Mr. Cai Da, through his controlled corporation, holds 93,000,000 shares, accounting for 18.6% of the company's ordinary shares[171]. - Major shareholders, including Zhengqi Capital, hold 93,000,000 shares, representing 18.6% of the company's ordinary shares[181]. - Ms. Fan Li, as the spouse of Mr. Cai, is also deemed to have an interest in the 93,000,000 shares held by Zhengqi Capital[182]. - The company has adopted a share option scheme on April 4, 2018, allowing participants to acquire shares as an incentive for their contributions[174]. - The maximum number of shares that can be issued under the share option scheme is limited to 10% of the company's issued shares, which is 50,000,000 shares[176]. - No share options were granted, exercised, or cancelled during the year ended December 31, 2018[178]. - The company has no unexercised share options or similar rights as of December 31, 2018[178]. Market Conditions and Competition - The company continues to face challenges and intense competition in the food and beverage industry, with a 15% decline in tourism-related dining expenditure in the first half of 2018 compared to the same period in 2017[15]. - The group faces intense competition from numerous restaurants and bakery retailers in Singapore and Malaysia, which may negatively impact existing revenue if competitors open new locations nearby[155]. - The company emphasizes the importance of brand reputation, as any negative publicity could significantly affect business performance[154]. Corporate Social Responsibility - The company has not made any charitable donations during the year[161]. - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year ending December 31, 2018[166].
聚利宝控股(08527) - 2018 - 年度财报