Financial Performance - The company recorded a consolidated loss attributable to shareholders of approximately HKD 278 million for the year ended December 31, 2022, compared to a profit of HKD 49 million for 2021[4]. - Total revenue decreased to HKD 607 million in 2022, down from HKD 649 million in 2021, with contributions of 64% from Singapore and 32% from Hong Kong[12]. - The food business remained the primary revenue source, accounting for 92% of total revenue, but experienced a 6% decline due to ongoing pandemic-related restrictions, particularly in Hong Kong[12]. - The company faced significant challenges in 2022, including high inflation, geopolitical tensions, and supply chain disruptions, impacting overall economic activity[11]. - The economic growth in Singapore for 2022 was 3.6%, down from 8.9% in 2021, reflecting the broader economic challenges faced[11]. - The food business segment recorded revenue of HKD 560 million, down from HKD 596 million in 2021, with an overall segment loss increasing to HKD 111 million from HKD 67 million in the previous year[15]. - The property investment segment generated total revenue of HKD 21 million, a slight decrease from HKD 22 million in 2021, resulting in a segment loss of HKD 23 million compared to HKD 7 million in the prior year[17]. - The financial and securities investment segment reported total income of HKD 15 million, down from HKD 19 million in 2021, with a net loss of HKD 97 million compared to a profit of HKD 215 million in the previous year[19]. - The company recorded a net fair value loss of HKD 105 million from its securities investments, compared to a gain of HKD 218 million in 2021[5]. - Total assets as of December 31, 2022, were HKD 4,400,000,000, down from HKD 5,000,000,000 in 2021[36]. - Total liabilities decreased to HKD 1,400,000,000 as of December 31, 2022, from HKD 1,500,000,000 in 2021[36]. - The cash and cash equivalents totaled HKD 700,000,000 as of December 31, 2022, down from HKD 900,000,000 in 2021[36]. - The net asset value attributable to equity holders was HKD 2,700,000,000 as of December 31, 2022, down from HKD 3,100,000,000 in 2021[41]. - The total dividend for the year is HKD 32.2 million, equating to HKD 0.35 per share, down from HKD 41.3 million or HKD 0.45 per share in 2021[51]. Business Developments - The company launched a mobile application named "Cuisine Rewards" in the Hong Kong market to enhance customer communication and provide efficient marketing and online ordering channels[4]. - Healthway Medical Corporation Limited, a joint venture, opened new clinics and acquired new specialty services to expand its network in Singapore, now managing over 100 clinics[5]. - The company plans to open two new "Chatterbox" brand stores in 2023 to enhance competitiveness[16]. - The new concept store "Délifrance Bistro" opened in March 2023 and has been well received[16]. - The company continues to seek attractive investment opportunities to strengthen and expand its business scope[47]. Employment and Human Resources - As of December 31, 2022, the group had 740 full-time employees, a decrease from 787 employees in 2021, with employee costs amounting to HKD 283 million, down from HKD 315 million in 2021[43]. - The company emphasizes competitive compensation packages to attract and retain employees[131]. Corporate Governance - The company has a commitment to corporate governance, with one-third of directors required to retire at each annual general meeting[69]. - The board consists of eight members, including four executive directors and four non-executive directors, with a commitment to high-quality corporate governance practices[148]. - The company has established various committees, including audit, remuneration, and nomination committees, to ensure effective governance[79][80]. - The board will review the implementation and effectiveness of its mechanisms annually to ensure independent perspectives and opinions are obtained[156]. - The company has established a written guideline for employees regarding the trading of company securities, ensuring compliance with the standard code[147]. - The company has maintained ongoing dialogue with shareholders and has reviewed its shareholder communication policy, finding it effectively implemented[189]. Risk Management and Compliance - The company has identified various risks and uncertainties that may impact its financial condition and operational performance, detailed in the risk management report[134]. - The company has adopted an insider information policy to ensure timely and fair disclosure of inside information to the public[182]. - The company has established a whistleblowing policy and anti-corruption policy to ensure compliance with applicable laws and regulations[182]. - The board is responsible for maintaining adequate risk management and internal control systems, with a review of their effectiveness conducted annually[182]. Shareholder Information - As of December 31, 2022, the company holds 6,890,184,389 shares, representing approximately 74.99% of the total issued shares[89]. - The company has no interests in any equity derivatives or related securities as of December 31, 2022[92]. - The company and its subsidiaries did not engage in any arrangements that would allow directors to benefit from purchasing shares or debt securities during the year[93]. - The company has maintained directors and officers liability insurance to provide appropriate protection for its directors and senior officers[96]. Franchise Agreements - The Maxx Coffee franchise agreement allows exclusive rights to operate under the "Maxx Coffee" brand in Singapore for an initial period of ten years[104]. - The annual cap for total transactions under the Maxx Coffee franchise agreement is set at HKD 14,500,000, which includes a maximum franchise fee of HKD 5,900,000 and procurement costs of HKD 8,600,000[105]. - The franchise fee for Maxx Coffee will increase from 2.5% of monthly net sales to 4% starting January 1, 2023[106]. - The Chatterbox franchise agreements allow for the operation of "Chatterbox Café" and "Chatterbox Express" restaurants in Hong Kong for an initial term of seven years[113]. - The annual cap for transactions under the Chatterbox franchise agreements is set at HKD 5,000,000[116]. Community Engagement and Social Responsibility - The group’s charitable and other donations for the year amounted to HKD 5,524,000, an increase from HKD 4,726,000 in 2021[67]. - The company has a commitment to corporate social responsibility, actively supporting the welfare of the communities in which it operates[199].
力宝华润(00156) - 2022 - 年度财报