COVID-19 Impact and Response - In FY2021, 85% of Singapore's population received two doses of the COVID-19 vaccine, with 42% receiving a booster shot, allowing for a gradual lifting of restrictions[20]. - The company adjusted workflows and resources to meet increased demand from employees working from home, benefiting from food establishments located in residential areas[27]. - There was a notable increase in demand for food delivery services as employees sought convenience, leading the company to maintain ongoing relationships with established food delivery platforms[29]. - The management continually reviewed operations to drive efficiencies amidst frequent regulatory changes due to the pandemic[21]. - The company reported a significant operational review in response to the challenges posed by the COVID-19 pandemic[21]. - The management emphasized a long-term focus on growth despite the uncertainties and challenges faced during the pandemic[21]. - The company leveraged the experience of its directors and management to respond quickly to the evolving situation during the pandemic[21]. - The company has ceased all community activities requiring physical contact due to the pandemic and has instead supported community events such as the annual Chinese New Year light-up and food voucher distribution[61][62]. - The company expressed gratitude to the Singapore Government for continued financial support during uncertain times, which helped mitigate the economic impact of COVID-19 on employees' livelihoods[64]. - The company acknowledged the hard work and resilience of all stakeholders in overcoming challenges posed by the pandemic in 2021[63]. Financial Performance - The Group recorded a consolidated revenue of approximately S$37.4 million for FY2021, an increase of approximately 7.1% from S$34.9 million in FY2020[50]. - The net profit after tax for FY2021 was approximately S$4.6 million, representing an increase of approximately 109.1% from S$2.2 million in FY2020[52]. - The increase in profit after tax was primarily due to a higher revenue of approximately S$2.5 million and a reversal of net loss on fair value changes of investment properties[52]. - The Group generated an operating cash flow of approximately S$6.9 million, with cash and cash equivalents as of December 31, 2021, amounting to approximately S$7.9 million[53]. - Revenue for FY2021 was approximately S$37.4 million, an increase from S$34.9 million in FY2020, primarily driven by higher rental income and sales of cooked food, beverages, and tobacco products[1]. - Revenue from the sale of cooked food, beverages, and tobacco products increased by approximately S$0.6 million or 2.3%, from S$28.3 million in FY2020 to S$28.9 million in FY2021[1]. - Rental income rose by approximately S$1.5 million or 32.0%, from S$4.5 million in FY2020 to S$6.0 million in FY2021, attributed to new operations and reduced rental rebates[1]. - Revenue from management, cleaning, and utilities services increased by approximately S$0.4 million or 18.1%, from S$2.1 million in FY2020 to S$2.5 million in FY2021[1]. - The overall financial performance reflects a recovery trend post-COVID-19, with strategic expansions and operational improvements contributing to revenue growth[1]. Strategic Growth and Expansion - The company focused on expanding its portfolio of food establishments to provide more choices for customers in the new normal[21]. - The company acquired a new headquarters and central kitchen to support its operational needs and expansion plans[26]. - The total investment for the new headquarters and central kitchen in Singapore is about S$22.2 million, with completion expected in approximately 2½ years[30]. - The acquisition of a shop unit in a mixed development was completed in September 2021 for a total consideration of S$7.3 million[31]. - A shophouse was acquired in January 2022 for S$4.8 million, with completion expected in June 2022[32]. - Long-term leases have been established for food courts in high-traffic areas to enhance market presence[39][40]. - The Group aims to increase market share through strategic acquisitions and leases, anticipating revenue and profit growth[40]. - The Group plans to divest underperforming assets to unlock capital and reinvest in F&B businesses and complementary growth areas[128]. - The strategy includes acquiring popular F&B businesses and brands to enhance product offerings[128]. - The Group aims to expand its presence in Singapore by opening new food establishments[128]. - Renovation of existing food centres is planned to improve the dining experience[128]. Leadership and Governance - The company has a strong leadership team with over 19 years of experience in the food and beverage industry[72][79]. - Mr. Wong has over 31 years of banking experience, specializing in syndicated loans, project financing, structured trade financing, and mergers and acquisitions[91]. - Mr. Mah has over 21 years of industry experience, having held managerial positions in various sectors including entertainment content production and private equity fund management[100]. - Mr. Ng has extensive experience in business development, sales and marketing, mergers and acquisitions, and corporate planning, supported by over 30 years in the industry[104]. - K2 F&B Holdings Limited continues to strengthen its board with experienced professionals to enhance governance and strategic direction[108]. Community Engagement and Corporate Responsibility - The company aims to foster a corporate culture that encourages integrity, accountability, communication, teamwork, and innovation[62]. - The company is committed to being a good corporate citizen and actively participating in the communities where it operates[62]. - The company has established community scholarships for students and donated to Sian Chay Medical Institution to subsidize patients' medication expenses[61][62]. - The company has expressed appreciation for the ongoing trust and support from suppliers, clients, landlords, tenants, and other stakeholders[66]. - The company has a strategic vision to grow its businesses and looks forward to a brighter future[65]. Operational Challenges and Market Outlook - The ongoing pandemic and geopolitical tensions have led to increased business costs and uncertainties in the food and beverage industry[47][49]. - The outlook for 2022 remains uncertain due to factors such as public health measures, higher inflation in the food and beverage sector, and increasing operating expenses[128]. - The Group's financial review will provide insights into revenue performance and operational efficiency[130]. - The Group did not experience significant operational difficulties due to foreign exchange fluctuations during FY2021[178].
K2 F&B(02108) - 2021 - 年度财报