Business Performance - The company reported a satisfactory performance from its main restaurant, café, and cake shop brand, Italian Tomato, during the reporting period[12]. - The company aims to expand its cake shop business strategically due to the significant market opportunities and the brand's impressive performance[12]. - The restaurant industry in Hong Kong showed signs of recovery after the government implemented economic stimulus measures, although it faced challenges from the fifth wave of the pandemic[11]. - The company maintained its profitability during challenging times by promoting online and offline business development[11]. - The company designed and launched seasonal and holiday products to increase marketing and promotional efforts, contributing to brand recognition[12]. - The group anticipates a recovery in the restaurant industry as the fifth wave of the pandemic stabilizes, with expectations of increased consumer visits[15]. - The company has continued to develop its new healthcare business, which has required significant financial resources[157]. - The company plans to increase the number of Italian Tomato stores, having opened 6 new cake shops and closed 3 locations during the reporting period, resulting in a total of 5 cafes and 25 cake shops in Hong Kong[166]. Strategic Initiatives - The company adjusted its strategy in Hong Kong by launching multiple promotional activities and collaborating with third-party delivery platforms to boost local consumption[11]. - The company focused on providing a diverse range of cuisines and excellent dining experiences while expanding takeaway and delivery services to meet increasing customer demand[11]. - The company emphasized the importance of adapting to market changes to ensure business resilience and growth[12]. - The group has expanded into the healthcare market, focusing on oral hygiene business after acquiring 70% of Huayin Biotechnology[14]. - The group plans to invest more resources in brand building and marketing to increase market share and brand awareness in the oral hygiene sector starting from April 2022[15]. - The company is actively promoting new products through online platforms and has established strategic partnerships for joint promotions[169]. - The company is adjusting its strategy to capture local consumption opportunities following the government's introduction of consumption vouchers[174]. Financial Overview - The audited revenue for the reporting period was approximately HKD 171.9 million, a decrease of about 8.5% compared to HKD 187.9 million in the previous fiscal year[157]. - The loss attributable to the company's owners was approximately HKD 19.8 million, compared to a profit of HKD 2.5 million in the previous year, primarily due to a decrease in other income and increased operating expenses[157]. - The total revenue value of the restaurant industry in Hong Kong increased by 29.1% in Q4 2021, reflecting a rebound from a low base in the previous year[159]. - The restaurant industry in Hong Kong faced a 23.1% year-on-year decline in total revenue value in Q1 2022 due to the fifth wave of the pandemic and related restrictions[161]. - Other income decreased by 81.9% to approximately HKD 3,300,000, down from HKD 18,500,000 in 2021, mainly due to the absence of government subsidies received in the previous year[180]. - Operating expenses decreased by approximately 6.5% to about HKD 112,300,000, compared to HKD 120,100,000 in 2021, reflecting strict cost control measures[181]. - The group recorded a loss of approximately HKD 1,700,000 from the sale of a subsidiary due to poor performance in the beauty products sector impacted by the pandemic[187]. Governance and Compliance - The company held four audit committee meetings during the reporting period to review and discuss the group's annual, quarterly, and interim performance and financial statements[34]. - The audit committee is composed of three independent non-executive directors, with Mr. Chan Yi Ping serving as the chairman, possessing appropriate professional qualifications in accounting or related financial management knowledge[32]. - The company has established a corporate governance committee, chaired by Mr. Chan Yi Ping, to review and monitor the company's compliance with legal and regulatory requirements[38]. - The company has implemented sufficient measures to ensure the separation of roles between the chairman and the CEO, with Mr. Wong Chao as chairman and Mr. Ng Siu Man as CEO[31]. - The audit committee's responsibilities include reviewing the group's quarterly, interim, and annual financial statements before submission to the board[35]. - The company aims to appoint at least one female director by December 31, 2024, to enhance board diversity, which currently consists of five male members[54]. - The company recognizes the importance of board diversity and will review its diversity policy regularly to ensure effectiveness[54]. Risk Management - The board is committed to maintaining effective risk management and internal control systems to protect shareholder interests and group assets[59]. - The group employs a risk self-assessment approach to identify, assess, prioritize, manage, and monitor risks continuously, categorizing them into strategic, operational, financial, and compliance risks[62]. - An external consultant was hired to review the effectiveness of the group's risk management and internal control systems during the reporting period[63]. - The board believes that the risk management and internal control systems are effective and adequate, based on the annual review conducted by the audit committee[63]. Environmental, Social, and Governance (ESG) - The company has identified key ESG issues including water management, waste management, energy efficiency, and anti-corruption measures[93]. - The company is committed to reducing energy consumption and has implemented measures such as encouraging employees to turn off idle lights and appliances[96]. - The company promotes the use of video conferencing to reduce business travel and associated carbon emissions[96]. - The company has a dedicated team to assess and prioritize ESG issues based on stakeholder concerns and industry trends[92]. - The company has established strict supplier evaluation procedures to ensure compliance with environmental and social standards, with all suppliers passing the assessment before engagement[131]. - The company emphasizes employee development and provides training opportunities to enhance job satisfaction and career growth[126]. - The company has maintained strict adherence to food safety standards, with no product recalls due to safety or health reasons during the reporting period[137]. Employee and Workplace - The group has 198 full-time employees and 128 part-time employees, with a gender distribution of 97 males and 229 females, indicating a diverse workforce[64]. - The employee turnover rate has been increasing, leading to a higher proportion of part-time employees[112]. - The company promotes a diverse and inclusive work environment, ensuring equal opportunities for all employees[113]. - The company has implemented various health and safety measures to ensure a safe working environment, including regular inspections and safety training for employees[119]. - The company encourages a work-life balance for employees and promotes mental health awareness[121]. - The total number of employees is 296, with 77 males and 219 females, indicating a gender distribution of approximately 26% male and 74% female[151]. - The employee turnover rate is 125.97% for males and 113.24% for females, with the highest turnover rate of 171.43% for employees aged 20 or below[151][152].
荣晖控股(08213) - 2022 - 年度财报