Financial Performance - Total revenue for the fiscal year 2023 was approximately HKD 471.8 million, a year-on-year increase of about 33.7% from HKD 352.9 million in 2022[13]. - The company reported a net loss of approximately HKD 0.9 million for 2023, compared to a net profit of HKD 3.3 million in 2022, primarily due to a decrease in other income and government subsidies[13]. - The group recorded a net other loss and income of approximately HKD 0.1 million for the year ended December 31, 2023, a significant decrease from a net other income of HKD 18.8 million in 2022, primarily due to the absence of government subsidies during the year[34]. - The group recorded a loss of approximately HKD 0.9 million for the year ended December 31, 2023, compared to a profit of HKD 3.3 million in 2022, primarily due to a decrease in other income and revenue from government subsidies[45]. - The company's distributable reserves as of December 31, 2023, were approximately HKD 61.8 million, down from HKD 68.1 million in 2022[119]. Assets and Liabilities - Total assets increased to HKD 333.0 million in 2023, up from HKD 251.5 million in 2022, reflecting a growth of approximately 32.3%[9]. - Total liabilities rose to HKD 261.7 million in 2023, compared to HKD 175.7 million in 2022, indicating an increase of about 49.0%[9]. - The total value of assets decreased from HKD 283.7 million in 2019 to HKD 333.0 million in 2023, indicating fluctuations in asset management over the years[9]. - As of December 31, 2023, the capital-to-debt ratio was approximately 71.5%, up from 53.8% in 2022, primarily due to new bank borrowings[54]. Revenue Sources and Business Expansion - The company plans to diversify its revenue sources by expanding into food supply chain operations and restaurant consulting businesses in Hong Kong and China[14]. - The company aims to enhance customer loyalty and brand influence through improved restaurant atmosphere, service quality, and menu options[14]. - The company aims to continue enhancing restaurant quality and exploring organic growth and investment opportunities for sustainable long-term expansion[18]. - The company is launching a new line of private label products, including Chinese soup dumplings and Iberian ham, marking a significant milestone in innovation and quality[72]. Restaurant Operations - The company operates a total of 13 restaurants in Hong Kong, including 9 under its own brand and 4 under franchise or licensing arrangements[15]. - The company opened two new restaurants in Hong Kong during the year, with one located in Tsim Sha Tsui and the other in Shatin[20]. - Revenue from Shanghai-style restaurants increased by approximately 47.8% to about HKD 184.9 million, primarily due to the new restaurant opened in July 2023[26]. - Revenue from Japanese restaurants rose by approximately 62.8% to about HKD 117.7 million, mainly driven by the new restaurant opened in January 2023[28]. - Revenue from Thai restaurants decreased by approximately 22.7% to about HKD 52.8 million, attributed to the closure of two underperforming locations[29]. - Revenue from Vietnamese restaurants increased by approximately 47.8% to about HKD 64.0 million, benefiting from the lifting of social distancing measures[30]. - Revenue from Italian restaurants rose by approximately 23.1% to about HKD 51.7 million, also benefiting from the removal of social distancing measures[31]. Employee and Operational Expenses - Employee benefits expenses increased by approximately 25.8% to HKD 167.7 million in 2023, accounting for 35.5% of total revenue, down from 37.8% in 2022, reflecting the need to maintain adequate workforce levels[36]. - Cost of goods sold amounted to HKD 125.8 million for the year ended December 31, 2023, representing 26.7% of total revenue, compared to HKD 102.0 million and 29.1% in 2022, indicating a reduction in the percentage due to cost-cutting measures[35]. - Depreciation and amortization expenses rose to approximately HKD 85.6 million in 2023, representing 18.1% of total revenue, up from 17.3% in 2022, attributed to new restaurants and additional property, plant, and equipment[37]. - Rental expenses increased by approximately 92.2% to HKD 9.8 million in 2023, accounting for 2.1% of total revenue, compared to 1.4% in 2022, driven by increased revenue from restaurants[42]. Corporate Governance and Management - The company appointed Mr. Huang Yongde as Chief Financial Officer on June 5, 2023, who has over 8 years of experience in accounting, auditing, and business consulting[95]. - The company has a strong marketing and communications team led by Ms. Chen Xingming, who has over 20 years of industry experience[96]. - The company is focused on corporate governance and compliance, with Mr. Zeng Haoyan serving as the company secretary since June 5, 2023, bringing extensive experience in corporate finance and business law[98]. - The company has independent non-executive directors with diverse backgrounds, including Mr. Yan Kangzhuo and Mr. Xuan Tingzhang, who contribute to the audit and remuneration committees[90][94]. - The company emphasizes the importance of compliance with the Securities and Futures Ordinance, as highlighted by Mr. Xuan's qualifications and experience[90]. Shareholder and Stock Options - Major shareholder Real Hero Ventures Limited holds 274,350,000 shares, representing approximately 71.45% of the company's total shares[139]. - The group reported no final dividend for the year ending December 31, 2023, consistent with the previous year[111]. - The board has approved a share option scheme to incentivize selected participants for their contributions to the group[141]. - The stock option plan will be effective for a period determined by the board, not exceeding ten years from the grant date[142]. - No stock options have been granted under the stock option plan as of December 31, 2023[147]. Lease Agreements and Property Management - The company signed three lease agreements to renew existing restaurant locations, extending lease terms until 2026[21]. - The total cost for the lease agreement of Phase I of Lee Garden is approximately HKD 15.9 million[158]. - The lease term for Phase II of Lee Garden is from October 8, 2022, to January 31, 2029, totaling approximately 6 years and 4 months[158]. - The company plans to relocate its restaurants before the termination of the Phase I lease, ensuring no significant disruption to operations[162]. - The renewal of the lease agreements is expected to have a positive impact on the company's future development based on past performance[164]. Compliance and Legal Matters - The company has complied with all relevant laws and regulations without any major violations during the year[176]. - The audit committee reviewed the accounting principles and policies adopted by the group for the year ending December 31, 2023[181]. - The company has maintained a minimum public float of 25% of its total issued shares as required by the GEM listing rules[184]. - The company has appointed PwC as the auditor for the year ending December 31, 2023, with no changes in the auditor for the past three years[185].
1957 & CO.(08495) - 2023 - 年度财报