Sales Revenue Performance - The Group's sales revenue in Hong Kong decreased by 3.1% in 2022 compared to 2021, aligning with the overall market trend where the restaurant sector revenue fell by 6.4%[15]. - The Group's sales revenue in Mainland China dropped by over 15% in 2022 due to significant pandemic-related restrictions and lockdowns[34]. - The Group recorded total revenue of HK$695.9 million for the year ended December 31, 2022, a decrease of HK$70.9 million, or 9.2%, compared to HK$766.8 million in 2021[62]. - Revenue from the beverage solutions segment decreased by HK$70.0 million, or 9.3%, from HK$750.0 million in 2021 to HK$680.0 million in 2022[64]. - Revenue from food products decreased from HK$16.8 million in 2021 to HK$15.9 million in 2022, a decline of 5.2%[45]. - Revenue generated in Hong Kong decreased by HK$14.6 million, or 3.1%, from HK$473.8 million for the year ended 31 December 2021 to HK$459.2 million for the year ended 31 December 2022[73]. - Revenue generated in Mainland China decreased by HK$57.6 million, or 20.4%, from HK$281.8 million for the year ended 31 December 2021 to HK$224.2 million for the year ended 31 December 2022[74]. - Revenue from other markets increased by HK$1.3 million, or 11.6%, from HK$11.2 million for the year ended 31 December 2021 to HK$12.5 million for the year ended 31 December 2022[79]. Cost Control and Operational Efficiency - The Group implemented strict cost control measures in 2022, resulting in a decrease in sales costs compared to 2021[1]. - The Group's operational efficiency was enhanced through various initiatives, including the consolidation of routing systems and upgrading of internal procedures[22]. - The cost of sales decreased by HK$6.6 million, or 1.4%, from HK$467.8 million in 2021 to HK$461.2 million in 2022, mainly due to lower raw material costs resulting from decreased overall sales volume[105][106]. - The Group implemented stringent cost control measures in 2022, which contributed to a reduction in the cost of sales compared to 2021[39]. - The Group will implement stringent cost control measures, including commodities hedging and sourcing from competitive suppliers, in 2023[95]. Gross Profit and Margin - Gross profit for the year ended December 31, 2022, amounted to HK$234.8 million, representing a decrease of HK$64.2 million, or 21.5%, compared to HK$298.9 million in 2021[62]. - The gross profit margin decreased from 39.0% in 2021 to 33.7% in 2022[62]. - The increase in raw material costs, particularly for coffee beans, negatively impacted the gross profit margin, despite some relief from commodity hedging[57]. - Gross profit fell by HK$64.2 million, or 21.5%, from HK$299.0 million in 2021 to HK$234.8 million in 2022, with the gross profit margin decreasing from 39.0% to 33.7%[106]. - Gross profit decreased by HK$1.5 million or 60.0% from HK$2.5 million for the year ended 31 December 2021 to HK$1.0 million for the year ended 31 December 2022, with gross profit margin decreasing from 14.9% to 6.3%[70]. Market Outlook and Strategic Initiatives - The Group is optimistic about the recovery of its Hong Kong market business in 2023, supported by a robust customer network[19]. - The Group is preparing for a rebound in business following the expected relaxation of pandemic control measures in 2023[33]. - The management expressed confidence in the Group's prospects following the relaxation of pandemic measures in early 2023, anticipating opportunities for economic recovery[50]. - The Group is keen to explore opportunities to bring in potential strategic partners in Mainland China to strengthen its market presence[96]. - The Group aims to expand product penetration to current customers and under-developed channels, as well as enhance its pre-cooked product portfolio[83]. - The Group will focus on business development in the Greater Bay Area and Greater Shanghai, targeting key food service channels such as tea bistros and hotels[87]. - The management is focusing on improving its marketing strategies and smart pricing policies to adapt to the changing market conditions[33]. Shareholder and Corporate Governance - As of December 31, 2022, the Company had 720,731,512 shares issued[163]. - Mr. Wong and Ms. Li are deemed to be interested in 514,667,312 shares as of December 31, 2022[163]. - No continuing connected transactions were entered by the Group during the year ended December 31, 2022[171]. - The Company has maintained the prescribed public float under the Listing Rules as of the date of the Annual Report[166]. - There were no significant transactions involving Directors or their close associates during the year[167]. - The Group's consolidated financial statements were audited in accordance with Hong Kong Standards on Auditing[190]. Environmental and Employee Initiatives - The Group strives to minimize its environmental impacts through effective air emissions control and superior water and energy efficiency[175]. - The Company has adopted a share option scheme to incentivize outstanding employees[172]. - Remuneration packages for employees are structured based on qualifications, experience, performance, and market terms[200]. - The Company has adopted share option schemes to motivate valued employees, as detailed in the Prospectus[200]. Product Development and Supply Chain - The Group upgraded its coffee plant in China to reduce manpower needs and further automated the production line to achieve quality standardization[22]. - The launch of tea machines has been delayed due to supply chain issues related to the Pandemic, affecting the utilization of remaining Net Proceeds[197]. - The expected timeline for utilizing the remaining Net Proceeds for product customization and development has been extended to December 31, 2023[197]. - The Group has applied the Net Proceeds according to previously disclosed plans and continues to monitor market conditions[198]. - Unutilized Net Proceeds have been placed as bank balances/time deposits with licensed banks in Hong Kong as of the date of the Annual Report[198].
捷荣国际控股(02119) - 2022 - 年度财报