Financial Performance - Revenue for the year ended December 31, 2023, was RMB 82,273,000, an increase of 13.8% from RMB 72,279,000 in 2022[27]. - Net loss for the year was RMB 14,544,000, a significant improvement of 76.8% compared to a net loss of RMB 62,690,000 in the previous year[27]. - Adjusted EBITDA for the year was RMB 7,319,000, representing a 147.8% increase from a loss of RMB 15,302,000 in 2022[27]. - Operating profit for the year was RMB 5,747,000, compared to an operating loss of RMB 10,722,000 in the previous year, indicating a significant turnaround[57]. - The total comprehensive loss for the year was RMB 13,418,000, a reduction from RMB 68,481,000 in 2022[33]. - The company reported a basic loss per share of RMB 14.3, improved from RMB 77.2 in the previous year[33]. - The company reported a net loss attributable to shareholders of RMB 14,355,000 in 2023, compared to a loss of RMB 62,305,000 in 2022, indicating a significant improvement[76]. - The company reported a pre-tax loss of RMB 14,571,000 for the year, an improvement from a pre-tax loss of RMB 23,478,000 in 2022[57]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 45,401,000, up from RMB 43,902,000 in 2022[31]. - Non-current liabilities increased to RMB 17,828,000 from RMB 14,801,000 in the previous year[36]. - Current liabilities totaled RMB 218,275,000, slightly up from RMB 216,574,000 in 2022[36]. - The company faces significant uncertainty regarding its ability to continue as a going concern due to its net current liabilities of approximately RMB 192,536,000[42]. - The company’s total assets decreased to RMB 7,800,000 in 2023 from RMB 8,330,000 in 2022[86]. - The net current liabilities as of December 31, 2023, were approximately RMB 192,500,000, slightly up from RMB 189,500,000 in 2022[150]. - The company's debt-to-asset ratio was approximately 0.50 as of December 31, 2023, compared to about 0.47 in 2022[150]. Cash Flow and Financing - Cash and cash equivalents as of December 31, 2023, were RMB 2,928,000, compared to RMB 1,701,000 in 2022[34]. - The company incurred financing costs of RMB 3,864,000 in 2023, compared to RMB 3,864,000 in 2022, indicating stable financing expenses[57]. - The company aims to improve its financial condition through cost control measures and potential fundraising activities[113]. - The company is actively considering fundraising activities, including rights issues and public offerings, to raise new capital[44]. - The net proceeds from the share placement were approximately HKD 17,640,000, fully utilized for repaying existing debts and daily operational funding[153]. Employee and Operational Metrics - The number of employees as of December 31, 2023, was 272, down from 350 in 2022[8]. - Employee costs and benefits accrued expenses increased to RMB 58,174,000 in 2023 from RMB 56,938,000 in 2022, reflecting a rise of about 2.2%[104]. - Employee benefits and related expenses decreased by about 2.2% from approximately RMB 38,800,000 in 2022 to about RMB 38,000,000 in 2023, mainly due to the closure of several restaurants[137]. - The company closed three underperforming restaurants, reducing the total number of restaurants from 12 in 2022 to 9 in 2023[136]. Market and Consumer Trends - Following the relaxation of epidemic prevention measures by the central government in early 2023, there are signs of recovery in the Chinese consumer market, with a noticeable increase in customers dining in restaurants[23]. - The group expects steady recovery in the consumer market due to the full opening of domestic epidemic prevention measures, which will expand domestic demand and promote consumption[23]. - The average daily customer count in Shanghai rose from 39 in 2022 to 48 in 2023, while the national average increased from 19 to 48[123]. - The average daily sales per store in Shanghai increased from RMB 36,039 in 2022 to RMB 38,363 in 2023, with national average sales rising from RMB 17,459 to RMB 38,363[123]. Compliance and Governance - The group has not identified any significant violations of applicable laws and regulations that would have a material impact on its business and operations during the year[9]. - The company has established an audit committee to review its half-year and annual results, ensuring effective risk management and internal controls[163]. - The audit committee consists of three independent non-executive directors, ensuring compliance with applicable accounting standards and regulations[164]. - The financial statements for the year have been verified by the external auditor, confirming consistency with the audited consolidated financial statements[165]. Brand and Market Position - The group has established two brands, "Hui Ge" targeting the high-end market and "Xiao Hui Ge Hotpot" serving the mid-range market, with operations primarily in China[55]. - The performance of the "Hui Ge" brand is particularly evaluated in Shanghai, while "Xiao Hui Ge Hotpot" is assessed in both Shanghai and Wuxi[55]. - The "Hui Ge" brand was recognized as one of the "Top 10 Hot Pot Brands" by the China Hotel Association in 2016[115]. - The company aims to maintain product quality as a top priority and plans to introduce more innovative ideas to strengthen its leading position in the restaurant industry[127].
龙辉国际控股(01007) - 2023 - 年度业绩