Industry Recovery and Challenges - The food and beverage industry did not fully recover to pre-pandemic conditions in 2021, facing challenges from pandemic resurgence and oversupply[20]. - In the first quarter of 2022, the food and beverage industry is expected to face a reshuffle, presenting both challenges and opportunities for the Group[27]. - The performance of the Xinladao Group for the year ended December 31, 2021, was below management's forecast due to the impact of COVID-19[69]. Digital Transformation and Operational Efficiency - The Group is committed to transitioning towards a digital multi-brand operating platform to enhance operational and investment management capabilities[20]. - Digital operations improved efficiency and allowed the Group to better understand customer needs, leading to the development of favored products[20]. - Best Food has developed a one-stop smart cashier system and order-via-mobile-app system during 2021, enhancing operational efficiency[44]. - The Group aims to enhance its capabilities in investment management, operations, and digitalization to build a unique restaurant ecosystem platform[27]. - The company aims to enhance management and operational efficiency comprehensively through the development of a business data analysis system in 2022[42]. Franchise Development and Partnerships - The Group focused on developing a profitable franchise model and identified regional franchisees and real estate developers as partners[20]. - The franchise business strategy focuses on increasing channel development efficiency and establishing a franchise support system, with successful new product launches leading to satisfactory growth in single-store sales[35]. - Best Food plans to continue investing in refined management strategies, including customer-segmentation marketing and the development of an intelligent takeaway system in 2022[42]. - The franchise regions for Yujian Xiaomian have expanded to areas including Fujian, attracting employees to participate in the franchise business[41]. - The Group plans to expedite collaboration with capable regional franchisees to promote optimized store layouts[74]. Financial Performance and Revenue Growth - Revenue increased by 15.7% from RMB650.7 million in 2020 to RMB753.0 million in 2021, driven by the recovery of restaurant operations and increased delivery orders[48]. - Revenue from restaurant operations rose by 11.6% from RMB448.8 million in 2020 to RMB500.9 million in 2021, attributed to the easing of the COVID-19 pandemic[48]. - Delivery business revenue grew by 20.7% from RMB170.8 million in 2020 to RMB206.1 million in 2021, mainly due to an increase in the number of delivery orders[48]. - Raw material used and changes in inventories increased by 15.9% from RMB248.4 million in 2020 to RMB288.0 million in 2021, reflecting the recovery of restaurant operations[46]. Cost and Expense Management - Employee benefit expenses increased by 8.8% from RMB200.2 million in 2020 to RMB217.9 million in 2021, primarily due to increased staff working hours[53]. - Property rentals and other related expenses surged by 236.5% from RMB9.6 million in 2020 to RMB32.3 million in 2021, as a percentage of revenue increased from 1.5% to 4.3%[55]. - Other expenses rose by 24.1% from RMB77.2 million in 2020 to RMB95.8 million in 2021, reflecting the resumption of operations[56]. Losses and Impairments - The Group recorded a loss attributable to equity holders of approximately RMB 639.6 million for the year ended December 31, 2021, compared to a loss of RMB 140.9 million for the year ended December 31, 2020[61]. - Goodwill decreased by 92.2% from RMB 580.9 million as of December 31, 2020, to RMB 45.5 million as of December 31, 2021, primarily due to an impairment loss of RMB 535.4 million recognized in 2021[66]. - As of December 31, 2021, the Group recorded an impairment loss of goodwill and trademark amounting to RMB535 million and RMB31 million respectively[71]. Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2021[102]. - The Board consists of three executive Directors and three independent non-executive Directors, with independent Directors representing more than one-third of the Board[107]. - The Audit Committee, established in 2011, consists of three independent non-executive directors and meets regularly to review the Group's financial reporting and internal controls[121]. - The Company ensures that all Directors have full and timely access to information and can seek independent professional advice at the Company's expense[110]. Risk Management and Internal Controls - The system of risk management and internal controls is designed to assist the Group in identifying and managing significant risks while ensuring compliance with relevant laws and regulations[167]. - The Board is responsible for reviewing the effectiveness of the risk management and internal controls system to safeguard the interests of Shareholders[168]. - The Group has established an internal audit function to continuously review the effectiveness of the risk management and internal control systems[173]. Shareholder Engagement and Dividend Policy - The Company has adopted a dividend policy that allows for the distribution of dividends based on various factors including financial performance, capital requirements, and liquidity position[182]. - The annual general meeting serves as a platform for shareholders to raise comments and exchange views with the Board[189]. - Shareholders can requisition an extraordinary general meeting if they hold not less than one-tenth of the paid-up capital with voting rights[184]. Management Team and Experience - Mr. Wang has been the CEO since August 26, 2019, focusing on investments in the consumer and retail sector for over 18 years[196]. - The management team includes professionals with advanced degrees from prestigious institutions, enhancing the company's strategic capabilities[195][200]. - The company emphasizes investment in fast-moving consumer goods (FMCG) and catering sectors, indicating a strategic focus on these areas[196].
百福控股(01488) - 2021 - 年度财报