Financial Performance - Revenue for the year ended December 31, 2023, increased to HKD 1,276.8 million, up 20.1% from HKD 1,063.2 million in 2022[7] - Profit attributable to shareholders rose to HKD 88.1 million, representing an increase of 13.4% compared to HKD 77.7 million in the previous year[7] - Basic and diluted earnings per share increased to HKD 11.01, up from HKD 9.71 in 2022[7] - Core profit before tax for the year ended December 31, 2023, was approximately HKD 116.2 million, representing a growth of about 141.2% from approximately HKD 48.2 million in the previous year[22] - Revenue from franchised brands rose by approximately 18.2% or about HKD 143.2 million to approximately HKD 928.1 million, accounting for about 72.7% of total revenue[28] - Revenue from owned brands increased by approximately 25.1% or about HKD 68.5 million to approximately HKD 341.4 million[28] - The total dividend proposed is HKD 21.31 per share, with a total payout ratio of approximately 194%[17] - The profit for the year increased by approximately 13.3% from HKD 77.7 million to HKD 88.1 million, attributed to the lifting of dining restrictions and social distancing measures[36] Operational Developments - The company opened five new stores during the year, including three under the franchise brand "The Matcha Tokyo," bringing the total to 57 stores[12] - The number of restaurants operated by the company increased from 53 to 57, contributing to the revenue growth[27] - The company plans to revamp some existing self-operated and franchise brands in the second half of 2024 to provide a fresh dining experience[12] - The company plans to launch a new restaurant under the franchise brand "挽肉と米" in Central, aiming to enhance its presence in the fast-casual dining sector[12] - The company is actively developing new brands and expanding its restaurant footprint, with plans to open a new franchise brand "挽肉と米" in Central in Q2 2024[54] - The company is introducing automation systems and artificial intelligence to alleviate staff workload and innovate restaurant operations[54] Market Challenges - The company anticipates a challenging market for the Hong Kong restaurant industry in 2024 due to weak consumer spending and a sluggish property market[14] - The management team is focused on improving operational efficiency and developing effective marketing strategies to respond to market challenges[14] - The company is facing challenges such as rising food costs and labor pressures, and is actively communicating with suppliers to find cost-effective sources[54] Cost Management - Food and beverage costs increased by approximately 16.9% or about HKD 56.5 million to approximately HKD 391.3 million, but the percentage of food and beverage costs to revenue decreased to about 30.6%[32] - Employee costs increased by approximately 28.1% from HKD 296.8 million to HKD 380.3 million due to expanded restaurant network and absence of government wage subsidies[34] - The depreciation, rent, and related expenses rose by approximately 12.8% from HKD 171.1 million to HKD 192.9 million, primarily due to an increase in the number of restaurants from 53 to 57[35] - The company is focused on reducing transaction costs as a principle in response to rising food costs[54] Corporate Governance - The company has complied with all corporate governance codes except for the separation of roles between the chairman and CEO[134] - The board consists of five members, including two executive directors and three independent non-executive directors[139] - The independent non-executive directors confirmed their independence and compliance with the relevant standards[140] - The company has established three board committees: the Nomination Committee, the Remuneration Committee, and the Audit Committee, to oversee specific aspects of the company's affairs[163] - The company has adopted a whistleblowing policy to promote compliance and ethical behavior within the group[160] Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and ensure transparency of company information[186] - The annual general meeting for shareholders is scheduled for June 6, 2024, with notices to be sent at least 21 days prior[186] - The company has adopted a shareholder communication policy to facilitate effective communication during shareholder meetings[187] - The company emphasizes the importance of shareholder communication through annual general meetings and allows proxy voting for those unable to attend[189] Sustainability and Social Responsibility - The company emphasizes sustainable development as a core principle in its business operations[16] - Charitable donations made by the company during the reporting year amounted to approximately HKD 128,000, an increase from HKD 79,000 in 2022[93] - The company is committed to improving menu offerings and introducing high-quality ingredients to enhance the value-for-money dining experience[54] Risk Management - The board of directors is responsible for establishing and reviewing the group's risk management and internal control systems to protect shareholder investments[195] - The company has adopted a three-tier risk management approach to identify, assess, mitigate, and respond to risks, with business units as the first line of defense[198] - The audit committee continuously reviews the effectiveness of the company's risk management and internal control systems and reports to the board[196]
叙福楼集团(01978) - 2023 - 年度财报