Business Challenges and Recovery - The company faced significant challenges in 2022 due to labor shortages, insufficient tourists from mainland China and overseas, and rising operational costs[10]. - The restaurant business was severely impacted by COVID-19, with ongoing public gathering restrictions affecting operations and increasing costs for ingredients and shipping containers[11]. - The company has limited its operations in mainland China due to deteriorating business conditions and disagreements with property owners[12]. - The board is cautious about potential challenges from global political tensions, rising food prices, and increased labor costs in the upcoming year[13]. - The company plans to optimize and transform its existing business in 2023 to improve operational efficiency and capitalize on post-pandemic reopening momentum[13]. - The company aims to continuously review its existing business and seek potential business and investment opportunities to expand revenue sources[15]. Financial Performance - Total revenue decreased by 63.5% from approximately HKD 160.4 million in 2021 to approximately HKD 58.6 million in 2022, primarily due to the termination of operations at Club Cubic Macau and CUBIC SPACE+, as well as the ban on dine-in services from January 7 to April 20, 2022[27]. - Restaurant business generated revenue of approximately HKD 57.7 million in 2022, accounting for about 98.5% of the total revenue, compared to HKD 65.9 million in 2021[19]. - The net loss attributable to owners of the company for 2022 was approximately HKD 32.1 million, a significant decrease from HKD 72.0 million in 2021, mainly due to the sale of Club Cubic Macau[33]. - Current ratio decreased from 0.3 in 2021 to 0.1 in 2022, while the debt ratio increased from 154.4% in 2021 to 358.9% in 2022[34]. - Cash and cash equivalents as of December 31, 2022, were HKD 0.6 million, down from HKD 2.0 million in 2021[34]. - The company received approximately HKD 3.9 million in government subsidies related to COVID-19 in 2022[25]. - The company successfully applied for an 8 million HKD government-guaranteed loan to cover restaurant rent payments[25]. Operational Adjustments - The company will continue to implement various menus for takeout and self-pickup to attract more customers amid ongoing restrictions[11]. - The company implemented stricter measures to improve operational cash flow and closely monitored operating expenses during the challenging business environment[25]. - Cost of goods sold decreased by 56.0% from approximately HKD 41.6 million in 2021 to about HKD 18.3 million in 2022, consistent with the decline in revenue[28]. - Employee costs fell by 62.8% from approximately HKD 86.5 million in 2021 to about HKD 32.2 million in 2022, primarily due to the closure of Club Cubic Macau and CUBIC SPACE+[28]. - Other operating expenses decreased by 42.7% from approximately HKD 27.9 million in 2021 to about HKD 16.0 million in 2022, attributed to the termination of operations at Club Cubic Macau and CUBIC SPACE+[29]. Corporate Governance - The company has complied with the corporate governance code and has taken measures to ensure transparency and accountability to shareholders[57]. - The company emphasizes the importance of maintaining stakeholder trust and confidence through good governance standards[57]. - The company regularly reviews and improves its corporate governance practices to align with the latest developments[60]. - The company has adopted a board diversity policy since November 10, 2016, emphasizing the importance of diverse backgrounds in enhancing company performance[68]. - The board consists of 7 members, including 3 executive directors, 1 non-executive director, and 3 independent non-executive directors[62]. - The company appointed Ms. Xie Meiling as an independent non-executive director and chair of the audit and remuneration committees on January 13, 2023[57]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the period from January 1, 2022, to December 31, 2022, and is prepared according to GEM listing rules[114]. - The company emphasizes reducing environmental impact and providing a safe and pleasant working environment for employees and customers[118]. - The company aims to reduce overall greenhouse gas emissions by 3% to 5% in the coming year to save costs and mitigate global warming impacts[128]. - The company has implemented policies to ensure compliance with environmental laws and to minimize its environmental impact[122]. - The company has engaged independent consultants to assess its ESG performance for the year 2022[110]. Employee Management and Diversity - The company is committed to building an inclusive corporate culture, providing equal employment opportunities without discrimination[154]. - The employee gender ratio as of December 31, 2022, is 67.09% male and 32.91% female, indicating a focus on diversity in hiring practices[71]. - The company has fulfilled all employee responsibilities, including payment of salaries, holidays, and insurance during the reporting period[159]. - Employee turnover rate for the group was 79.75% during the 2022 reporting period, with 63 employees voluntarily leaving for various reasons[161]. - The group maintained a commitment to a diverse and non-discriminatory work environment, ensuring equal opportunities for all employees[164]. Risk Management - The group faces various risks including market risk, credit risk, and liquidity risk, which could significantly impact its financial condition and operational performance[192]. - The board is responsible for the group's risk management and has established a robust internal control system to ensure efficient resource use and compliance with laws[94]. - A risk management team, composed of experienced executives, conducts quarterly risk identification and analysis, assessing potential risks and developing mitigation plans[96]. Community Engagement - During the 2022 reporting period, the group continued to focus on community needs, making donations to local charities and emphasizing local employment[187]. - The company maintains multiple communication channels with shareholders, including annual general meetings and disclosures on its website[100].
陆庆娱乐(08052) - 2022 - 年度财报