Financial Performance - For FY2024, the Group recorded consolidated revenue of approximately S$57.2 million, representing an increase of approximately 2.7% from S$55.7 million for FY2023[29][32]. - The Group's consolidated net profit after tax for FY2024 was approximately S$2.8 million, a decrease of approximately 61.6% from approximately S$7.3 million in FY2023[30][32]. - The decrease in profit after tax was primarily due to a decrease in fair value changes of investment properties by approximately S$4.8 million and an increase in finance costs by approximately S$0.8 million[30][32]. - Revenue from the sale of cooked food, beverages, and tobacco products decreased by approximately S$0.6 million or 1.4% from approximately S$43.9 million for FY2023 to approximately S$43.3 million for FY2024, mainly due to the closure of underperforming stalls[97]. - Rental income from leasing premises to tenants and providing cleaning and utilities services increased by approximately S$2.1 million or 17.8% from approximately S$11.8 million for FY2023 to approximately S$13.9 million for FY2024, attributed to a higher occupancy rate and improved leasing terms[98]. - Other income, gains, and losses decreased by approximately S$0.1 million or 8.3%, from S$1.2 million in FY2023 to S$1.1 million in FY2024, primarily due to the absence of a one-time gain from the disposal of a subsidiary[104]. - Cost of inventories consumed decreased by approximately S$0.2 million or 1.1%, from S$18.7 million in FY2023 to S$18.5 million in FY2024, in line with the decrease in revenue from sales[105]. - Staff costs increased by approximately S$0.4 million or 2.4%, amounting to S$17.4 million in FY2024, which accounted for 30.5% of revenue[106]. - Finance costs increased by approximately S$0.8 million or 28.6%, from S$2.8 million in FY2023 to S$3.6 million in FY2024, attributed to higher interest rates on outstanding loans[117]. - The income tax expense decreased by approximately S$0.3 million or 50.0%, from S$0.6 million in FY2023 to S$0.3 million in FY2024[118]. Strategic Initiatives - The Group's strategic initiatives included divesting assets to reallocate capital towards higher-value growth opportunities[13]. - The Group aims to divest lower-performing assets to reallocate capital towards higher-value growth opportunities[95]. - The Group is adopting an asset-light model to enhance operational efficiency and reduce fixed costs, allowing for greater financial flexibility[41]. - The Group plans to closely track interest rate trends, as elevated rates are expected to affect finance costs[39]. - The Group plans to expand its network of food outlets in high-demand locations to enhance business potential[95]. - The Group's strategic initiatives will focus on upgrading existing food centres to create a distinctive dining experience[95]. Operational Challenges - High interest rates and rising manpower costs have increased operational challenges, particularly in the food and beverage sector[19]. - The ongoing labor shortage in the F&B industry is expected to persist, leading to rising labor costs despite proactive recruitment efforts[40]. - Labor shortages in the food and beverage industry are anticipated to persist, leading to rising labor costs despite efforts to improve compensation packages[43]. - The operating environment in 2024 was characterized by global economic uncertainties and inflationary pressures[12]. - The operating environment for the food and beverage industry in Singapore remains challenging, with elevated interest rates and rising manpower costs impacting operational expenses[92]. Corporate Governance - The company has adopted all applicable corporate governance codes as per the Listing Rules for FY2024, except for a deviation disclosed in the report[149]. - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors, ensuring a strong independence element in its composition[160]. - The company has arranged appropriate liability insurance for Directors, which will be reviewed annually[159]. - The roles of chairman and chief executive officer are held by Mr. Chu, which the Board believes is beneficial for business prospects and management[166]. - The Board met the requirement of having at least three independent non-executive Directors throughout FY2024, representing one-third of the Board[167]. - Independent non-executive Directors provide independent judgment and advice on overall management and lead in potential conflicts of interest[168]. - All independent non-executive Directors confirmed their independence in accordance with the Listing Rules for FY2024[169]. - The Company has established written guidelines for employees regarding securities trading to ensure compliance with the standard code[150]. - The Board has reviewed the delegation of responsibilities to senior management and deemed it appropriate for FY2024[158]. - The Company will continue to review and enhance its corporate governance practices to ensure compliance with the governance codes[149]. Management Team - Mr. Wong has over 30 years of banking experience, including roles in syndicated loans, project financing, and mergers and acquisitions[62]. - Mr. Mah has over 30 years of industry experience, having worked in managerial positions across various sectors including entertainment and investment management[71]. - Mr. Ng has held executive positions in multinational corporations and was the CEO of City Gas and Netlink, showcasing extensive leadership experience[75]. - Mr. Yin, the financial controller, has more than 10 years of experience in external audit, managing statutory audits for several SGX-ST listed companies[81]. - Ms. Koh has been with the Group since 2008 and currently oversees all food establishments, ensuring compliance with laws and regulations[83]. - Mr. Man, the company secretary, holds a master's degree in corporate governance and has extensive experience in the company secretarial profession[78]. - The Group is focused on strategic planning and internal control, as highlighted by Mr. Yin's responsibilities[80]. - The management team includes individuals with significant educational backgrounds, such as Mr. Mah's accountancy degree and Mr. Ng's MBA[70][75]. - The Group's operational management is led by experienced professionals, ensuring effective oversight of business operations[83]. Community Engagement - The Group is committed to corporate social responsibility, actively supporting community initiatives and collaborating with local organizations[34][36]. Property Transactions - The Group disposed of its property at 200 Jalan Sultan for S$8.8 million, recording a gain of S$450,000, resulting in a net profit of approximately S$1.3 million since acquisition[14]. - The Group sold a portion of its current office property for S$2.0 million, resulting in a disposal gain of S$235,000[15]. - In October 2024, the Group acquired a property for S$9.5 million, which will enable the Group to generate additional income[27][31]. - The Group has secured a temporary occupation permit for its new headquarters, with plans to officially launch in 2025[15]. Employee Statistics - The total number of employees decreased to 381 in FY2024 from 412 in FY2023, with a gender ratio of approximately 57.2% male to 42.8% female[141].
K2 F&B(02108) - 2024 - 年度财报