Business Performance - In 2022, the turnover of "Takeaway to Home" exceeded RMB 166 million, reflecting a significant growth in takeaway product offerings [26]. - The debut of Tang Palace's live streaming room in January 2022 recorded a turnover exceeding RMB 0.6 million on a private realm platform and over RMB 1.0 million on a public realm platform [26]. - In 2022, the "Takeaway" business achieved a revenue of over RMB 166 million, with a single private live-streaming event generating over RMB 600,000 in sales [28]. - Takeaway business revenue remained stable at RMB 165.6 million in 2022 despite weak consumption sentiment [59]. - The Group's revenue for the year was RMB 942.0 million, a decrease of 30.8% compared to the previous year [56]. - The catering income in Mainland China decreased by 6.3% year-on-year due to economic downturn and weak consumption [53]. - The Group's overall revenue for the year decreased by 30.8% to approximately RMB 942.0 million, with a gross profit margin of 60.9% compared to 62.2% in 2021 [75]. - The total retail sales of consumer goods in Mainland China decreased by 0.2% year-on-year, reflecting the challenging economic environment [53]. Brand Development and Marketing - The company upgraded its main brand "Tang Palace" and launched a new menu, focusing on cooking techniques, utensils, culinary arts, and service environment to achieve consumption upgrades [25]. - Tang Palace expanded its star brand "Tang's Cuisine," emphasizing quality, safety, health, and environmental friendliness in its offerings [25]. - The company implemented a large-scale marketing model during the Pandemic, establishing store communities and community group purchases to support customers [26]. - The Group is focusing on brand upgrading and cooperation to explore new business growth opportunities [24]. - The Group's membership marketing strategy focuses on stabilizing member consumption, which is higher in frequency and amount compared to non-members [63]. - The Group's online takeaway menu was optimized for better searchability and sales guidance, catering to the changing consumer behavior [60]. Employee and Community Engagement - Over the past three years, the Group provided more than 7,000 training courses with 160,000 participants, resulting in over 200 staff promotions to supervisory roles [38][41]. - The establishment of the Humanity Wellness Department aims to improve employee well-being and corporate culture, focusing on care, connection, praise, and growth [32][35]. - The Group contributed approximately RMB 2 million to various charity activities over the past three years, including medical assistance and support for flood-stricken areas [39][41]. - The Group's "Happiness Credit Points" program has seen over 360,000 happy stories shared by partners since its launch in June 2022 [33][35]. - The Group's community customer base has grown to over 10,000, facilitating targeted sales activities and logistics arrangements [62]. Financial Management and Assets - The Group's cash and cash equivalents decreased by approximately RMB 148.0 million from RMB 403.0 million in 2021 to RMB 255.0 million in 2022 [83]. - Net cash used in operating activities during the year amounted to approximately RMB 44.3 million, while net cash used in financing activities was approximately RMB 108.7 million [84][87]. - The Group's total assets as of December 31, 2022, were approximately RMB 753.1 million, down from approximately RMB 1,034.0 million in 2021 [85]. - The current ratio as of December 31, 2022, was 1.0, down from 1.3 as of December 31, 2021, indicating a decrease in liquidity [90]. - The Group's bank borrowings amounted to approximately RMB 25.8 million as of December 31, 2022, compared to RMB 52.2 million as of December 31, 2021, resulting in a capital debt ratio of 10.5% [88]. Corporate Governance and Leadership - The Group has a strong leadership team with founders who have extensive experience in the restaurant business, including Mr. Yip, Mr. Chan, and Mr. Ku, who have been with the group since its establishment in 1992 [116][120][124]. - The company is focused on corporate strategic development, with all executive directors actively involved in this area [116][120][124]. - The Group has a strong management team with extensive experience in finance, catering, and legal sectors, enhancing corporate governance and strategic development [134]. - The Company has complied with all code provisions of the Corporate Governance Code throughout the year [160]. - The Board consists of nine members, including six executive directors and three independent non-executive directors, with a focus on diversification [167]. Risk Management and Compliance - The Company has established a Risk and Control Committee, which includes the chairman, CEO, CFO, and an independent non-executive director, to review and assess the effectiveness of internal control measures [186]. - The Company ensures compliance with the Listing Rules and applicable laws through the implementation of remedial plans recommended by the internal audit department [187]. - The risk management and internal control systems are designed to manage significant risks, including environmental, social, and governance risks [188]. - The Company promotes anti-corruption laws and regulations through its corporate culture and clear policies, forming an integrity promotion mechanism [193]. - The Company has established a specific whistleblowing policy and system, allowing employees and external parties to anonymously raise concerns about possible improprieties [193].
唐宫中国(01181) - 2022 - 年度财报