Financial Performance - The Group's total revenue for the year ended 31 December 2022 was approximately HK$135.6 million, a decrease of approximately 50.6% compared to HK$274.6 million in 2021[16]. - Loss attributable to the owner of the Company amounted to approximately HK$41.4 million in 2022, compared to a loss of approximately HK$92.4 million in 2021[16]. - The Group's total revenue for 2022 was approximately HKD 135.6 million, a decrease of about 50.6% compared to HKD 274.6 million in 2021[18]. - The loss attributable to the owners of the company for the year was approximately HKD 41.4 million, compared to HKD 92.4 million in 2021 (restated)[18]. - Revenue from four Chinese restaurants in Hong Kong was approximately HK$22.3 million, down 66.7% from HK$66.7 million in 2021, primarily due to the closure of three restaurants and COVID-19 restrictions[43]. - Revenue from three Chinese restaurants in Shenzhen was approximately HK$108.9 million, a decrease of 38.9% from HK$178.2 million in 2021, impacted by government restrictions and temporary lockdowns[43]. - The Group's gross profit amounted to approximately HK$83.8 million, representing a decrease of 50.2% from HK$168.2 million in 2021, with a slight increase in gross profit margin to 61.8%[44]. - Employee benefits expense was approximately HK$50.8 million, a decrease of 35% compared to HK$78.2 million in 2021, aligned with the revenue decline and restaurant closures[45]. - Other expenses totaled approximately HK$44.4 million, down 40.6% from HK$74.7 million in 2021, due to various cost reductions related to restaurant operations[51]. - The Group recorded a loss attributable to owners of approximately HK$41.4 million for the Year, a decrease of approximately HK$51.1 million compared to a loss of HK$92.4 million in the previous year[60]. - The aggregate operating losses of the Group's restaurant operations increased by approximately HK$7.8 million during the Year[60]. Operational Changes - The Group ceased operations of three Chinese restaurants and one Thai restaurant in Hong Kong to mitigate losses and reallocate working capital[14]. - The Group ceased operations of four restaurants in Hong Kong due to unsatisfactory customer visits and unfavorable market conditions[29]. - The Group opened a new high-class Chinese restaurant in a high-end location at the end of November 2022 to attract high-spending customers[15]. - The Group opened a new full-service restaurant in Hong Kong under the brand "Li Bao House" in November 2022, focusing on high-class Cantonese cuisine[118]. - The Group's expansion plans have been delayed due to the impact of COVID-19[39]. Future Outlook - The Group expects its overall financial performance in 2023 to improve compared to the same period in 2022, as economic activities gradually resume in Hong Kong and China[21]. - The management expects the Hong Kong economy to gradually rebound in 2023, which may improve consumer confidence[103]. - The Group is optimistic about the gradual rebound of the Hong Kong economy in 2023, which is expected to improve consumer confidence levels[107]. - The Group anticipates facing various challenges in the foreseeable future due to economic conditions and rising interest rates[100]. Strategic Initiatives - The Group aims to maximize returns to shareholders by continuing to develop the "Star of Canton" brand and expanding its catering business in Hong Kong and the PRC[20]. - The Group plans to develop a coffee business in the PRC to diversify its catering operations[20]. - The Group plans to implement a multi-brand strategy for steady growth and prudent expansion in Hong Kong and progressive expansion in the PRC market[105]. - The Group intends to enhance its marketing initiatives to promote brand image and recognition while focusing on online marketing to increase market share[105]. - The Group will consider expanding its catering business into other types of cuisines and operation modes when opportunities arise[106]. - The Group is considering expanding its menu and business model to maximize returns for shareholders[108]. Environmental, Social, and Governance (ESG) Initiatives - The Board is committed to maintaining high standards of business practices related to environmental protection, social responsibility, and corporate governance[124]. - The Group has established an ESG taskforce responsible for collecting information on ESG aspects and reporting to the Board[126]. - The Board is accountable for setting the overall direction of the Group's ESG strategy and ensuring the effectiveness of internal control mechanisms[128]. - The ESG Report covers the Group's performance in environmental and social areas, including operations in Hong Kong and the PRC[130]. - Key performance indicators (KPIs) in environmental and social areas are collected through the Group's operational control mechanisms[130]. - The Group adheres to the "comply or explain" provisions of the HKEX ESG Reporting Guide in preparing the ESG Report[131]. - Stakeholder engagement is prioritized to understand concerns and identify crucial environmental and social issues[140]. - The Group conducts regular materiality assessments to identify relevant ESG issues and their importance to the business and stakeholders[146]. - Communication channels with stakeholders include annual meetings, financial reports, and customer satisfaction surveys[142]. - The Group aims to collaborate with stakeholders to improve ESG performance and create greater value for the community[144]. Environmental Performance - The Group's nitrogen oxides (NOx) emissions decreased from 1,905.33 kg in 2021 to 707.18 kg in 2022, representing a reduction of approximately 62.9%[161]. - Sulphur oxides (SOx) emissions fell from 8.90 kg in 2021 to 3.23 kg in 2022, a decrease of about 63.7%[161]. - Particulate matter (PM) emissions reduced from 15.36 kg in 2021 to 10.04 kg in 2022, showing a decline of approximately 34.7%[161]. - The Group's total greenhouse gas (GHG) emissions significantly decreased during the Reporting Period due to the closure of several Hong Kong restaurants and lockdowns in the PRC, leading to reduced vehicle, electricity, and towngas usage[163]. - Total GHG emissions (Scope 1 and 2) decreased to 11,968.59 tCO2e in 2022 from 31,150.97 tCO2e in 2021, representing a reduction of approximately 61.6%[164]. - Direct GHG emissions (Scope 1) dropped to 8,011.18 tCO2e in 2022 from 23,170.59 tCO2e in 2021, a decrease of about 65.4%[164]. - Indirect GHG emissions (Scope 2) fell to 3,957.41 tCO2e in 2022 from 7,980.38 tCO2e in 2021, a reduction of approximately 50.4%[164]. - Total GHG emissions intensity improved to 0.09 e/tCO2 per thousand revenue in 2022 from 0.11 e/tCO2 in 2021[164]. - The Group has implemented emission reduction measures, including the use of vehicles that meet government emission standards and regular vehicle maintenance to enhance fuel economy[157]. - The Group's commitment to environmental sustainability includes adopting environmentally friendly business practices and educating employees on environmental protection[152]. - The Group's policies align with the waste management principles of "Reduce, Reuse, Recycle and Replace" to minimize adverse environmental impacts[153]. - The Group's exhaust gas emissions control includes the installation of exhaust emission systems and air pollution control equipment in all restaurants[157]. - The Group actively encourages the use of public transport for business commuting to further reduce emissions[158]. Resource Consumption - Total energy consumption decreased significantly to 45,403.95 MWh in 2022 from 125,638.08 MWh in 2021, representing a reduction of approximately 63.9%[191]. - Total energy consumption intensity improved to 0.33 MWh/thousand revenue in 2022 from 0.46 MWh/thousand revenue in 2021, indicating a 28.3% increase in efficiency[191]. - Water consumption decreased to 87,008 m³ in 2022 from 150,099 m³ in 2021, a reduction of approximately 42%[197]. - Water consumption intensity increased to 0.64 m³/thousand revenue in 2022 from 0.55 m³/thousand revenue in 2021, reflecting a 16.4% rise[197]. - The Group consumed approximately 0.83 tonnes of plastic packaging materials in 2022, down from 1.02 tonnes in 2021, a decrease of about 18.6%[200]. - The amount of plastic packaging materials per thousand revenue increased to 0.006 kg in 2022 from 0.004 kg in 2021, attributed to higher demand for take-away containers[200]. - The Group aims to maintain lower total energy consumption intensity in the coming reporting period compared to 2022[189]. - The Group has prioritized using unleaded petrol and did not consume diesel during the reporting period, contributing to reduced energy consumption[189]. - Regular maintenance of restaurant and office facilities is conducted to ensure optimal energy efficiency[187]. - The Group encourages employees and customers to develop water-saving habits to minimize water consumption[193].
利宝阁集团(01869) - 2022 - 年度财报