Financial Performance - For the fiscal year ending December 31, 2021, the group recorded an increase in revenue of approximately HKD 28.2 million or about 14.3%[8] - The group's total revenue for the year ended December 31 was approximately HKD 224.2 million, an increase of about HKD 28.2 million or approximately 14.3% compared to HKD 196.0 million for the previous year[24] - The gross profit for the year ended December 31 was approximately HKD 152.0 million, an increase of about HKD 17.0 million or approximately 12.6% from HKD 135.0 million the previous year[36] - Revenue from the "Long Wong" brand increased from approximately HKD 122.2 million to approximately HKD 139.0 million, a rise of about HKD 16.8 million or approximately 13.7%[28] - Revenue from the "Long Xi" brand surged from approximately HKD 24.1 million to approximately HKD 37.4 million, an increase of about HKD 13.3 million or approximately 55.3%[29] - Revenue from the "Long Pao" brand rose from approximately HKD 17.8 million to approximately HKD 25.7 million, an increase of about HKD 7.9 million or approximately 44.5%[30] - Revenue from the "Huang Xi" brand decreased from approximately HKD 29.4 million to approximately HKD 22.0 million, a decline of about HKD 7.3 million or approximately 24.9% due to the closure of the restaurant[31] - Other income and net gains decreased significantly from approximately HKD 33.5 million to approximately HKD 12.1 million, a reduction of about HKD 21.4 million[38] - The loss attributable to owners of the company was approximately HKD 50.8 million for the year ended December 31, 2021, compared to a loss of HKD 74.8 million in 2020, attributed to improved revenue as COVID-19 was effectively controlled[47] Operational Challenges - The group is facing significant challenges due to the ongoing COVID-19 pandemic, including weakened consumer sentiment and government-imposed restrictions on dining establishments[9] - The group operates six full-service restaurants in Hong Kong, but due to low customer traffic, it was necessary to close locations in Hong Kong and Macau[8] - The group closed its restaurant in Macau in early October 2021 and the Shanghai restaurant at the end of September 2021, as part of a strategic decision to manage operational funds[20] - The company is adopting a conservative approach in its operations due to the ongoing economic downturn and challenges posed by COVID-19, including reduced consumer sentiment and government restrictions[50] - The company has decided to delay the opening of new restaurants and will reallocate unutilized funds for general working capital due to the unfavorable market conditions[52] - The company is focusing on consolidating its resources and operations in response to changing consumer trends and the ongoing COVID-19 pandemic[182] Cost Management - Employee and food costs remain relatively high, putting pressure on the group to balance cost control with food and service quality[9] - The group is negotiating rent reductions with landlords, as some restaurants are unable to operate normally due to restrictions[9] - A series of cost-saving measures and contingency plans have been implemented to overcome the current business environment challenges[12] - The group will continue to monitor its cost structure and reduce expenses to enhance efficiency and ultimately create more value for shareholders[13] - Employee costs for the year were approximately HKD 91.2 million, a slight increase of about HKD 3.7 million or approximately 4.2% compared to HKD 87.5 million the previous year[39] - Rental and related expenses decreased by approximately HKD 10.4 million or 41.8% to about HKD 14.5 million for the year ended December 31, 2021, primarily due to rent waivers from landlords[44] - Other operating expenses slightly increased by approximately HKD 5 million or 11% to about HKD 50.4 million for the year ended December 31, 2021, mainly due to increased revenue[45] - Financial costs decreased by approximately HKD 1.7 million or 31.4% to about HKD 3.8 million for the year ended December 31, 2021, primarily due to reduced interest on lease liabilities[46] Legal and Compliance Issues - The company has been involved in multiple legal cases, including a claim for approximately HKD 1,500,000 from 富比資本有限公司 and a claim for HKD 2,000,000 from 東方電子商貿有限公司[187][193] - The company’s bank accounts were partially frozen due to an investigation related to money laundering, but some accounts have since been restored for daily operations[179] - The company has received court judgments requiring it to repay a total of approximately HKD 453,200, HKD 1,500,000, and HKD 366,000 in various legal cases[186][189] - The company is facing a claim for HKD 2,117,469.59 related to an unpaid loan from 交通銀行[194] - The company has submitted a defense statement regarding the lawsuits DCCJ1225/2022, DCCJ838/2022, and HCA457/2022[200] Human Resources - The company had 240 employees as of December 31, 2021, a decrease from 390 employees in 2020[167] - The total employee cost for the year ended December 31, 2021, was approximately HKD 91.2 million, an increase from HKD 87.5 million in 2020[167] Financial Position - As of December 31, 2021, the company's borrowings amounted to approximately HKD 60.6 million, a decrease from HKD 76.4 million in 2020[155] - The company's cash and cash equivalents were approximately HKD 6.3 million as of December 31, 2021, down from HKD 11.7 million in 2020[155] - The capital debt ratio as of December 31, 2021, was approximately 274.8%, compared to 145.0% in 2020[156] - The company did not recommend a final dividend for the year ended December 31, 2021, consistent with no dividends in 2020[166] - The net proceeds from the share placement amounted to approximately HKD 5,788,400 after deducting commissions and related expenses[153] - The company had no significant investments, acquisitions, or disposals of subsidiaries or associated companies during the year ended December 31, 2021[161] Environmental Initiatives - The company has implemented various green initiatives to reduce environmental impact, including energy-saving projects and waste management[174] Strategic Decisions - The company closed its Global Trade Square branch in early January 2022 due to lease expiration and decided not to renew the Causeway Bay branch lease, focusing resources on remaining restaurants[182] - The company further closed the New Peking branch in July 2022 due to poor performance, currently operating only the Wanchai, Kwun Tong, and Whampoa branches[184] - The total unutilized proceeds from the IPO have been fully utilized by December 31, 2021, with the board believing that the reallocation of these funds is in the best interest of the company and its shareholders[53] - The company maintains a prudent policy to manage cash reserves and ensure a strong liquidity position for future growth opportunities[163] - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2021[176]
龙皇集团(08493) - 2022 - 年度财报