Financial Performance - The Group's revenue decreased by approximately 11.7% from approximately RMB184.4 million in 2020 to approximately RMB162.9 million in 2021[11]. - Loss for the year attributable to owners of the Company for 2021 was approximately RMB34.0 million, compared to approximately RMB69.1 million in 2020[11]. - Basic loss per share for 2021 was approximately RMB5.50 cents, down from approximately RMB20.9 cents in 2020[11]. - The decrease in loss was mainly due to the closure of underperforming restaurants, leading to a significant reduction in food and beverage costs, employee benefits, and property rentals[11]. - The Group's revenue for the year ended December 31, 2021, was RMB 83,290,000, an increase from RMB 77,807,000 in 2020, representing a growth of approximately 6.4%[34]. - Adjusted EBITDA for 2021 was approximately RMB22.0 million, representing an increment of 186.9% compared to approximately RMB7.7 million in 2020[55]. Operational Changes - The number of restaurants nationwide decreased from 24 in 2020 to 12 in 2021, a reduction of 50% as part of resource reallocation[24]. - The Group closed 12 underperforming restaurants to better reallocate resources[43]. - The average daily revenue per restaurant in Shanghai increased to RMB 55,781 in 2021 from RMB 52,884 in 2020, reflecting a growth of about 3.4%[34]. - The average number of customers per day per restaurant nationwide rose to 109 in 2021, compared to 89 in 2020, indicating a growth of approximately 22.5%[24]. - The Group's Shanghai restaurants served an average of 111 customers per day in 2021, up from 92 in 2020, representing an increase of approximately 20.7%[24]. - The seat turnover rate per day per restaurant nationwide was 1.1 in 2021, compared to 0.9 in 2020, indicating an increase of about 22.2%[24]. Cost Management - The costs of food and beverage and other materials consumables decreased by approximately 30.9% from approximately RMB84.5 million in 2020 to approximately RMB58.4 million in 2021[50]. - Employee benefit and related expenses decreased by approximately 12.2% from approximately RMB66.2 million in 2020 to approximately RMB58.1 million in 2021[50]. - Labour outsourcing expenses decreased by approximately 16.4% from approximately RMB47.7 million in 2020 to approximately RMB39.9 million in 2021[50]. - The Group's property rentals and related expenses decreased by approximately 30.8% from approximately RMB19.5 million in 2020 to approximately RMB13.5 million in 2021[52]. - Depreciation, amortisation, impairment and written-off of property, plant and equipment decreased by approximately 26.4% from approximately RMB70.1 million in 2020 to approximately RMB51.6 million in 2021[52]. - Other operating expenses decreased by approximately 5.8% from approximately RMB17.1 million in 2020 to approximately RMB16.1 million in 2021[52]. Future Outlook - The Group expects the COVID-19 pandemic to continue impacting the catering industry in the following months[11]. - Management will focus on operating restaurants effectively and exploring solutions to maintain brand value[11]. - The Group aims to develop into the brand with the highest market capitalization in the Asia-Pacific catering industry[45]. - The Group plans to open more restaurants but will slow down expansion due to COVID-19 uncertainties[57]. - A new hotpot restaurant brand named "HUN" was opened in Shanghai in early 2022, targeting better operating performance[58]. - The Group aims to attract high-end customers by introducing diversified food materials, including seafood, in its hotpot offerings[59]. Governance and Management - The Board is committed to supervising management and maintaining effective internal controls to safeguard shareholders' investments[11]. - The Group aims to continuously strengthen corporate governance to establish a solid foundation for future growth[11]. - The Group's financial performance is supported by a robust governance structure, including independent non-executive directors overseeing key committees[134]. - The Group's management continues to focus on quality and innovation in operations since the current chairman took over business development[115]. - The Group's employee remuneration policies are competitive and based on performance appraisals, with annual reviews[109]. Shareholder Information - The Company completed a Rights Issue on February 22, 2021, issuing 318,680,121 ordinary shares at HK$0.142 per share, raising net proceeds of approximately HK$43.25 million[69]. - As of December 31, 2021, the total net proceeds from the Rights Issue were fully utilized, with amounts allocated for repayment of existing indebtedness and general working capital[72]. - The repayment of existing indebtedness from independent third parties utilized approximately HK$25.88 million of the net proceeds[72]. - The repayment of bank loans accounted for approximately HK$3.75 million of the net proceeds[72]. - The Group's gearing ratio as of December 31, 2021, was approximately 0.09, up from approximately 0.04 in 2020, with total debts of approximately RMB8.0 million against total assets of approximately RMB90.5 million[66]. Market Position - The Group's brand Faigo was recognized as one of the top 10 hotpot brands in 2016 by the China Hotel Association, enhancing its market position[19]. - Xiao Faigo Hotpot was awarded "China's Top 100 Hotpot Enterprises in 2017" by the China Cuisine Association, reflecting its growing reputation in the industry[19]. - The Group's restaurant network has expanded to major cities including Shanghai, Beijing, Shenzhen, Nanjing, and Hangzhou since its inception in 2004[18]. - The Group's revenue from the top five largest customers accounted for less than 30% of total revenue for the year ended December 31, 2021[148]. - Purchases from the Group's top five largest suppliers accounted for approximately 47.13% of total purchases, with the largest supplier accounting for approximately 24.71%[149].
龙辉国际控股(01007) - 2021 - 年度财报