Financial Performance - The Group's revenue increased by approximately 13.8% from approximately RMB 72.3 million in 2022 to approximately RMB 82.3 million in 2023[10]. - Loss for the year attributable to owners of the Company for 2023 was approximately RMB 14.4 million, a significant decrease from approximately RMB 62.3 million in 2022[10]. - Basic loss per share for 2023 was approximately RMB 14.3 cents, compared to approximately RMB 77.2 cents in 2022[10]. - The Group's adjusted EBITDA for the year ended 31 December 2023 was approximately RMB 7.3 million, representing an increment of 147.8% compared to an adjusted EBITDA loss of approximately RMB 15.3 million in 2022[60]. - Adjusted EBITDA for the year ended December 31, 2023, was approximately RMB 7.3 million, a significant increase of 147.8% compared to a loss of RMB 15.3 million in 2022[65]. Restaurant Operations - The number of restaurants decreased to 9 in 2023 from 12 in 2022, following the closure of 3 underperforming restaurants[11]. - The average number of customers per day for "Faigo" restaurants nationwide rose to 48 in 2023, up from 19 in 2022, indicating a significant recovery in customer traffic[31]. - The Group operates under the brands Faigo and Xiao Faigo Hotpot, targeting high-income and middle-income customers respectively[20]. - The Group expects seat turnover rates and average spending to gradually return to pre-pandemic levels as COVID-19 control measures have ended[61]. - The Group is targeting the high-end segment by expanding food offerings to include seafood, aiming to attract customers from higher income groups[62]. Revenue Growth - In 2023, the revenue for the "Xiao Faigo Hotpot" brand in Shanghai was RMB 24,590,000, an increase of 12% from RMB 21,964,000 in 2022[28]. - The nationwide revenue for the "Faigo" brand reached RMB 56,010,000 in 2023, up from RMB 45,148,000 in 2022, reflecting a growth of approximately 24%[29]. - The average daily revenue per restaurant for "Xiao Faigo Hotpot" in Shanghai increased to RMB 10,250 in 2023, compared to RMB 8,510 in 2022, marking a growth of 20%[28]. Cost Management - The costs of food and beverage and other materials consumables rose by approximately 14.5% from approximately RMB 24.2 million in 2022 to approximately RMB 27.8 million in 2023, reflecting the increased operational activity[45]. - Employee benefits and related expenses decreased by approximately 2.2% from approximately RMB 38.8 million in 2022 to approximately RMB 38.0 million in 2023, mainly due to the closure of several restaurants[41]. - Property rentals and related expenses decreased significantly by approximately 46.6% from approximately RMB 11.8 million in 2022 to approximately RMB 6.3 million in 2023, following the closure of underperforming restaurants[47]. Market Outlook - The management anticipates a steady recovery in the consumer market due to the relaxation of anti-pandemic measures, which is expected to boost domestic demand and consumption[32]. - The group expects customer seating rates and average spending to gradually return to pre-pandemic levels, alongside continued cost reduction and productivity strategies to maximize shareholder returns[66]. Leadership and Management - Mr. Hung has over 20 years of experience in the management of the food and catering industry in the PRC[117]. - Mr. So has over 20 years of experience in the catering industry and oversees the operations of all restaurants in the Group[125]. - Mr. Yuan has over 21 years of experience in auditing and accounting, overseeing overall financial management and reporting for the Group[127]. - The Group emphasizes quality and innovation in its operations under Mr. Hung's leadership[115]. Shareholder Information - Mr. Hung holds approximately 50.15% of the issued share capital of the Company, representing 52,842,462 Shares[120]. - Mr. So personally holds 948,233 shares, representing approximately 0.90% of the issued share capital of the Company[126]. - Mr. Yuan personally holds 751,360 shares, representing approximately 0.71% of the issued share capital of the Company[128]. Corporate Governance - The Company has received confirmations of independence from all independent non-executive Directors as per the independence guidelines under the Listing Rules[186]. - The nomination committee has recommended the re-election of executive directors Mr. So Kam Chuen and Mr. Cheung Ting Pong at the upcoming annual general meeting[191]. - The Company has no other interests or short positions in shares or debentures that need to be disclosed as of December 31, 2023[197].
龙辉国际控股(01007) - 2023 - 年度财报