Financial Performance - The Group's total revenue for 2021 was approximately HK$274.6 million, representing a year-on-year increase of approximately 16.2% compared to HK$236.4 million in 2020[25]. - Loss attributable to the owner of the Company amounted to approximately HK$92.5 million in 2021, compared to a loss of approximately HK$39.8 million in 2020[25]. - For the year ended December 31, 2021, the Group recorded total revenue of approximately HK$274.6 million, representing an increase of approximately 16.2% compared to approximately HK$236.4 million for the year ended December 31, 2020[40]. - The Group's gross profit amounted to approximately HK$168.2 million for the year ended December 31, 2021, representing an increase of approximately 22.5% from approximately HK$137.3 million for the year ended December 31, 2020[43]. - Employee benefits expense for the year ended 31 December 2021 was approximately HK$78.2 million, an increase of approximately 18.3% compared to HK$66.2 million in 2020[45]. - Other expenses for the year ended 31 December 2021 amounted to approximately HK$74.7 million, representing an increase of approximately HK$13.2 million or 21.5% from HK$61.5 million in 2020[50]. - Depreciation for the year ended 31 December 2021 was approximately HK$39.3 million, down from HK$43.8 million in 2020[47]. - Finance costs for the year ended 31 December 2021 were approximately HK$10.9 million, a decrease from HK$12.9 million in 2020[52]. - Cash and cash equivalents as of 31 December 2021 were approximately HK$26.8 million, a decrease of approximately HK$2.1 million from HK$28.9 million as of 31 December 2020[54]. - As of 31 December 2021, cash and cash equivalents and restricted bank deposits totaled approximately HK$30.9 million, with HK$10.2 million in Hong Kong dollars and HK$20.7 million in Renminbi[54]. Economic Outlook - The economic environment remains challenging in the short term due to the ongoing impact of COVID-19 on the catering and retail industries[28]. - Management is optimistic about a gradual recovery of the Hong Kong economy in the second half of 2022, which may improve consumer confidence[29]. - The reopening of borders between Hong Kong and China is expected to accelerate the recovery of economic activities to pre-pandemic levels[29]. - The gradual reopening of the Hong Kong and China economies is expected to accelerate the recovery of economic activities[31]. - The Group anticipates facing various challenges in the foreseeable future due to uncertainties in the Hong Kong and China economies and the ongoing impact of the Pandemic, which has severely affected the catering industry since January 2020[69]. - The management is optimistic that the Pandemic will stabilize in the second half of 2022, which may create conditions for reopening the borders between Hong Kong and China[74]. - The Group expects the Hong Kong economy to gradually recover in the second half of 2022, potentially improving consumer confidence levels[75]. Business Operations - The Group operates four full-service restaurants in Hong Kong and three in Shenzhen, with a focus on mid-to-high end spending customers[36]. - The Group's restaurants are strategically located in prime areas, targeting quality food and services at reasonable prices[36]. - The Group's business is expected to recover quickly once external uncertainties are eliminated, with full operation of restaurants anticipated to resume[30]. - The expansion plan of the Group has been delayed due to the impact of the pandemic[38]. - The Group closed four food counters in Shenzhen and Shanghai during 2021 due to unsatisfactory performance, and all twenty food counters under the "Sun Kau Kee" brand in Shanghai were also closed[98]. - There was no significant investment, acquisition, or disposal of subsidiaries during the year ended December 31, 2021[60]. Employee Management - The Group had approximately 537 employees as of December 31, 2021, a decrease from 683 in 2020, with employee benefits expense increasing by approximately 18.3% to HK$78.2 million[62]. - The overall employee turnover rate during the reporting period is 73%, primarily due to the closure of Chinese restaurants[191]. - The turnover rate by gender shows 76% for males in Hong Kong and 65% for females in the People's Republic of China[191]. - The turnover rate by age group indicates 100% for employees under 30 years old, 55% for those aged 31-50, and 34% for employees over 50 years old[191]. - The Group provides a remuneration package that includes various types of leave and compensatory leave for public holiday work[193]. - Employees in Hong Kong participate in the Mandatory Provident Fund scheme, while those in the PRC are covered by "five social insurance and one housing fund"[194]. - The Group has established policies for working hours, limiting full-day shifts to a maximum of 10 hours and half-day shifts to 5 hours[195]. - The Group is committed to creating an inclusive workplace culture, ensuring equal opportunities and zero tolerance for discrimination[199]. Environmental, Social, and Governance (ESG) Initiatives - The Board is responsible for overseeing the Group's ESG governance, focusing on environmental, climate, and social aspects[98]. - The Group aims to maintain high standards of business practices related to environmental protection, social responsibility, and corporate governance[98]. - The Group has established an ESG taskforce responsible for collecting relevant information on ESG aspects and reporting to the Board[100]. - The ESG Report covers the Group's performance in environmental and social areas across its headquarters and eight restaurant operations in Hong Kong and the PRC[100]. - The Group conducts stakeholder engagement through interviews and surveys to understand and address concerns related to ESG issues[104]. - Major stakeholders include investors, customers, suppliers, employees, government bodies, and NGOs, with specific communication channels established for each[107][109]. - The Group aims to improve ESG performance by collaborating with stakeholders to create greater societal value[109]. - A materiality assessment is conducted to identify relevant ESG issues and their importance to the business and stakeholders[113]. - The Group's management and ESG taskforce are involved in the preparation of the ESG Report, ensuring comprehensive input from various departments[113]. Environmental Impact and Sustainability - The Group's exhaust gas emissions for 2021 included 1,905.33 kg of Nitrogen Oxides (NOx), 8.90 kg of Sulphur Oxides (SOx), and 15.36 kg of Particulate Matter (PM), showing slight increases compared to 2020[134]. - The major sources of the Group's GHG emissions are direct emissions from towngas cooking and diesel and petrol consumed by vehicles (Scope 1), and indirect emissions from towngas cooking and purchased electricity (Scope 2)[135]. - The Group has not identified any material non-compliance with environmental laws and regulations during the reporting period, ensuring adherence to relevant legislation[124]. - The Group has implemented various emission reduction measures, including encouraging public transportation for business commuting and reducing business trips through electronic communication[131]. - The Group's commitment to environmental sustainability includes energy conservation, waste reduction, and compliance with environmental laws and regulations[123]. - The Group's policies aim to minimize adverse environmental impacts through the principles of "Reduce, Reuse, Recycle and Replace"[122]. - The overall exhaust gas emissions slightly increased during the reporting period due to the relaxation of social distancing measures[133]. - The Group's environmental policies are designed to ensure emissions and waste are managed in an environmentally responsible manner[122]. - The Group's restaurants are equipped with exhaust emission systems and air pollution control equipment to manage emissions effectively[129]. - The Group actively adopts measures for environmental protection, energy conservation, and water-saving to reduce GHG emissions[136]. - The Group's total GHG emissions increased to 31,150.97 tCO2 in 2021 from 30,283.98 tCO2 in 2020, representing a rise of approximately 2.87%[139]. - Direct GHG emissions (Scope 1) rose to 23,170.59 tCO2 in 2021, up from 21,986.63 tCO2 in 2020, indicating an increase of about 5.38%[139]. - Indirect GHG emissions (Scope 2) decreased to 7,980.38 tCO2 in 2021 from 8,297.35 tCO2 in 2020, showing a reduction of approximately 3.82%[139]. - The Group aims for a 5% reduction in total GHG emissions intensity over three years compared to the reporting period, targeting optimal indoor temperature management and timely shutdown of unused equipment[141]. - The Group has set a target to achieve a 10% reduction in total non-hazardous waste intensity by 2031 from a base year of 2021[151]. - Food waste is identified as a major non-hazardous waste type, with the Group implementing stringent policies for its management and disposal[150]. - The Group has appointed qualified third parties for the collection and handling of food waste, ensuring proper disposal and recycling of waste oil into biodiesel[150]. - The Group maintains high standards in waste reduction and educates employees on sustainable development practices[144]. - The Group's waste management practices comply with relevant environmental protection laws and regulations[144]. - Total non-hazardous waste increased from 2.45 tonnes in 2020 to 3.46 tonnes in 2021, representing a 41.2% increase[152]. - Total energy consumption rose by approximately 5.4%, from 119,188.69 MWh in 2020 to 125,638.08 MWh in 2021[162]. - Total water consumption increased from 142,985.00 m³ in 2020 to 150,099.00 m³ in 2021, marking a rise of 5.5%[168]. - Water consumption intensity decreased from 0.60 m³ per thousand revenue in 2020 to 0.55 m³ in 2021[168]. - The Group aims to reduce total energy consumption intensity over the next three years by prioritizing energy-saving equipment purchases[162]. - The Group consumed approximately 1.02 tonnes of plastic packaging materials during the reporting period, equating to 0.004 kg per thousand revenue[171]. - Direct energy consumption from diesel decreased significantly from 19.15 MWh in 2020 to 0.66 MWh in 2021[160]. - Unleaded petrol consumption also decreased from 253.07 MWh in 2020 to 130.00 MWh in 2021[160]. - The Group's total energy consumption intensity improved from 0.50 MWh per thousand revenue in 2020 to 0.46 MWh in 2021[160]. - The Group has set a conservative target to reduce water consumption intensity by 3% per square meter over the next five years[167].
利宝阁集团(01869) - 2021 - 年度财报