Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,285,575, a decrease of 14.6% compared to HKD 1,504,553 in the same period of 2023[1]. - Profit for the period was HKD 9,430, down 73.9% from HKD 36,117 in the previous year[1]. - Basic earnings per share for the period was HKD 0.40, a decrease of 88.0% from HKD 3.29 in the same period of 2023[1]. - The total comprehensive income for the period was HKD 1,185, significantly lower than HKD 22,251 in the same period of 2023[4]. - The pre-tax profit for the six months ended June 30, 2024, was HKD 4,022,000, compared to HKD 33,400,000 for the same period in 2023, representing a significant decrease[22]. - The total tax expense for the six months ended June 30, 2024, was HKD 2,959,000, slightly up from HKD 2,857,000 in 2023[19]. Revenue Breakdown - Revenue from restaurant and bakery operations was HKD 1,132,831, down 13.8% from HKD 1,314,907 in the previous year[15]. - Revenue from food sales and other items decreased to HKD 90,850, a decline of 18.5% from HKD 111,516 in the prior period[15]. - Revenue from livestock breeding operations was HKD 61,894, down 20.7% from HKD 78,130 in the previous year[15]. - Hong Kong business revenue was approximately HKD 838,100,000, down 6.1% from HKD 892,400,000 in 2023[29]. - Revenue from mainland China operations was approximately HKD 447,400,000, down 26.9% from HKD 612,200,000 in 2023[31]. Asset and Liability Changes - Total non-current assets as of June 30, 2024, were HKD 1,412,633, a decrease from HKD 1,538,932 as of December 31, 2023[5]. - Current assets decreased to HKD 563,485 from HKD 649,887 as of December 31, 2023[5]. - Total liabilities decreased to HKD 451,707 from HKD 576,658 as of December 31, 2023[5]. - The total equity attributable to the company's equity holders was HKD 1,198,740, down from HKD 1,233,034 as of December 31, 2023[7]. - Total assets decreased by 9.7% to approximately HKD 1,976,100,000 as of June 30, 2024, compared to HKD 2,188,800,000 on December 31, 2023[34]. - Total liabilities decreased to approximately HKD 54,900,000, down from HKD 85,700,000 on December 31, 2023, resulting in a debt ratio of 4.6% compared to 7.0% previously[35]. Operational Changes - The number of restaurants and bakeries decreased to 90 as of June 30, 2024, down 19.6% from 112 in the previous year[1]. - The group closed several underperforming outlets in mainland China, reducing the total number of restaurants from 41 to 30[31]. - The group launched over 30 new frozen and packaged food products during the period[32]. - Self-operated supermarket sales decreased by approximately 20%, but gross profit margin increased by about 3%[33]. - The group plans to implement promotional activities and introduce cost-effective products to attract more customers, including extending early morning tea promotions and offering discounted menu items during lunch and dinner[42]. Employee and Governance - As of June 30, 2024, the group had 4,231 employees and offers competitive compensation and internal training programs to retain talent[41]. - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, with the exception of the separation of the roles of Chairman and CEO, which is deemed appropriate by the board[45][46]. - The audit committee, established in June 2007, has reviewed the unaudited condensed consolidated interim financial statements for the six months ending June 30, 2024, and confirmed compliance with applicable accounting standards[49]. Future Outlook - The group aims to expand its restaurant network and improve logistics efficiency while maintaining strict cost control and healthy cash flow to ensure sustainable business growth[43]. - The group will actively explore overseas markets, including Malaysia, Thailand, Australia, and the UK, to increase sales and profitability[43]. - The group anticipates a challenging economic environment in Hong Kong and mainland China for the second half of 2024, prompting a cautious operational strategy[42].

Financial Performance - Revenue for the year 2023 reached HKD 2,949,362,000, an increase of 22.8% compared to HKD 2,401,849,000 in 2022[5] - Profit attributable to equity holders was HKD 73,655,000, a significant improvement of 151.5% from a loss of HKD 143,138,000 in the previous year[5] - Gross profit margin increased to 11.0%, up from 0.4% in 2022, representing a growth of 2,650.0%[5] - Total revenue for the year ended December 31, 2023, was HKD 2,949,400,000, representing a year-on-year increase of 22.8% from HKD 2,401,800,000 in 2022[19] - Gross profit margin improved to 65.8% in 2023, up from 62.4% in 2022[19] - The company achieved a profit attributable to equity holders of HKD 73,700,000, a turnaround from a loss of HKD 143,100,000 in 2022[19] - The company reported a profit before tax of HKD 119,745,000, recovering from a loss of HKD 157,343,000 in 2022[164] - Net profit for the year was HKD 85,456,000, compared to a loss of HKD 137,019,000 in the prior year[164] - Basic and diluted earnings per share for the year were HKD 7.26, a turnaround from a loss of HKD 14.11 per share in 2022[164] - The total comprehensive income for the year was HKD 84,013,000, recovering from a loss of HKD 242,229,000 in the previous year[166] Cash Flow and Assets - Cash and cash equivalents rose to HKD 345,146,000, a 37.0% increase from HKD 251,854,000 in 2022[5] - Current assets increased to approximately HKD 649,900,000 from HKD 582,800,000 in 2022, with a current ratio of approximately 1.13 compared to 0.88 in 2022[32] - Operating cash flow increased to HKD 523,258,000 in 2023, up from HKD 254,558,000 in 2022, reflecting a growth of approximately 105%[174] - Cash and cash equivalents at the end of 2023 amounted to HKD 344,598,000, an increase from HKD 193,311,000 at the end of 2022[176] - The net cash flow from investing activities was a negative HKD 33,118,000 in 2023, an improvement from a negative HKD 87,073,000 in 2022[176] - The company reported a decrease in trade receivables by HKD 8,882,000 in 2023, compared to an increase of HKD 8,325,000 in 2022[174] Business Strategy and Market Outlook - The company is focusing on enhancing brand value through restaurant renovations and diversifying income sources with new brands[10] - The restaurant business in Hong Kong showed significant growth, particularly in daytime and banquet services[11] - The outlook for 2024 is challenging due to labor shortages and high ingredient prices, but the company remains optimistic about long-term growth potential[11] - The company is strategically controlling costs and adjusting its business model in response to market conditions[11] - The company plans to continue developing the "Zhong Cuisine" brand due to its strong performance[22] - The company plans to explore overseas markets for its frozen and packaged food segment, which has significant potential[30] - The group anticipates continued growth in its contract manufacturing business, driven by rising market demand, with revenue expected to increase in 2024[41] Corporate Governance and Compliance - The company has adopted the corporate governance code and complies with all applicable provisions, except for the separation of the roles of Chairman and CEO, which is deemed appropriate for the company's interests[57] - The company has a dedicated management team with extensive experience in financial management, accounting, and internal controls[53] - The company has a structured approach to risk assessment and internal controls to safeguard shareholder interests[57] - The board consists of ten members, including four executive directors, two non-executive directors, and four independent non-executive directors[62] - The company has complied with all applicable provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[65] Shareholder Information - The company proposed a final dividend of HKD 0.03 per share, totaling approximately HKD 30,430,000, subject to shareholder approval at the annual general meeting on June 6, 2024[104] - As of December 31, 2023, the company's distributable reserves amounted to HKD 840,087,000, which includes the proposed final dividend[118] - The top five customers accounted for less than 30% of total sales, while the top five suppliers represented approximately 16.3% of total purchases[120] Operational Adjustments - The company reduced the number of Tai Cheong Bakery outlets in Hong Kong from 8 to 6, reallocating resources to more profitable locations[26] - The company is not planning to open new outlets in Singapore due to a challenging economic environment but aims to expand the Tai Cheong brand through partnerships with international operators[26] - The company is actively engaging in R&D to meet diverse customer needs, expanding its product offerings to include Western-style products[25] Legal and Financial Matters - The total audit fees paid to Ernst & Young for the year ended December 31, 2023, amounted to HKD 3,655,000, an increase from HKD 3,544,000 in the previous year[88] - The company has complied with all relevant laws and regulations without any significant violations during the year[104] - The group incurred legal expenses of HKD 885,000 in 2023, an increase of 32.3% from HKD 669,000 in 2022[136] Employee and Training Initiatives - The group will invest more resources in employee training and implement reward programs to improve service quality[41] - The company invests resources in nurturing employees and aspiring individuals in the catering industry[60] Market Expansion and Subsidiaries - The company has maintained a 100% ownership in its major subsidiaries, focusing on investment holding and restaurant operations[179] - The company operates several restaurants in mainland China, including Guangzhou and Shenzhen, with registered capital values of HKD 7,000,000 to HKD 36,000,000[185] - The company has established a strong presence in the food and beverage sector, with a focus on restaurant operations and investment holdings across Hong Kong and mainland China[184]

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 2,949,362,000, representing a year-on-year increase of 22.8% from HKD 2,401,849,000[3]. - The net profit attributable to shareholders was HKD 73,655,000, a significant turnaround from a loss of HKD 143,138,000 in the previous year, marking a 151.5% improvement[3]. - The basic earnings per share was HKD 7.26, compared to a loss of HKD 14.11 in the previous year, reflecting a 151.5% increase[3]. - EBITDA increased by 76.3% to HKD 321,000,000, compared to HKD 182,100,000 in the previous year[18]. - The gross profit margin improved to 65.8%, up from 62.4% in the previous year[10]. - The gross profit for 2023 was HKD 325,666,000, compared to HKD 10,470,000 in 2022, indicating a significant recovery[57]. - The net profit for the year was HKD 85,456,000, a turnaround from a loss of HKD 137,019,000 in 2022[57]. - The group reported a pre-tax profit of HKD 6,861,000 from bank interest income, down from HKD 7,998,000 in the previous year[67]. - The group’s total tax expense for the year was HKD 34,289,000, compared to a tax credit of HKD 20,324,000 in 2022[71]. Revenue Breakdown - Revenue contribution from the Hong Kong business was HKD 1,783,400,000, up 36.4% from HKD 1,307,600,000 in the previous year[18]. - Revenue from mainland China business reached HKD 1,165,900,000, an increase of 6.5% compared to HKD 1,094,200,000 in 2022[23]. - The operating segment of restaurants and bakeries generated revenue of HKD 2,616,895,000, up from HKD 2,011,308,000, reflecting a growth of 30.1%[67]. - Revenue from Hong Kong increased to HKD 1,783,447,000 in 2023, up 36.3% from HKD 1,307,605,000 in 2022[89]. - Revenue from Mainland China rose to HKD 1,165,915,000 in 2023, a 6.5% increase from HKD 1,094,244,000 in 2022[89]. Business Operations - The number of restaurants and bakeries as of December 31, 2023, was 99, down from 122, indicating an 18.9% decrease[3]. - The company plans to adjust its business model and strategies in response to challenges such as labor shortages and high ingredient prices in 2024[13]. - The company will not consider expanding its restaurant network in the near term due to economic uncertainties but may open smaller outlets in the future[30]. - The supermarket business, although underperforming, helps attract new customers and strengthen connections with existing ones[26]. - The company anticipates continued growth in its contract manufacturing business in 2024[29]. - The contract manufacturing business has seen growth, expanding its product range to include Western-style products[21]. Customer Engagement and Marketing - The company has launched various promotional activities to enhance sales, including value-for-money offerings[20]. - The company plans to enhance service quality and improve dining experiences through detailed customer analysis and targeted strategies[29]. - The "Chao Xi Hui" brand, launched in early 2023, successfully attracted over 100 couples for wedding events within its first year[36]. - The "YI Hao Yu Chuan" brand, launched in Q4 2023, has seen a steady increase in customer numbers, primarily aged between 25 to 40[36]. - The online frozen and packaged food segment is promoted through popular e-commerce platforms, with plans to explore overseas markets in the coming years[37]. - The company plans to leverage social media platforms to enhance brand awareness and expand business in mainland China[55]. Financial Position and Management - The total assets decreased by 3.7% to approximately HKD 2,188,800,000 as of December 31, 2023, compared to HKD 2,273,000,000 in 2022[52]. - The current ratio improved to approximately 1.13 in 2023 from 0.88 in 2022, indicating better liquidity management[52]. - The company aims to control costs and improve cash flow and operational efficiency amid rising labor and ingredient costs[46][52]. - Total non-current liabilities decreased to HKD 357,906,000 from HKD 368,795,000, a reduction of 2.4%[60]. - The net asset value increased to HKD 1,254,255,000 from HKD 1,243,122,000, representing a growth of 0.9%[61]. - Non-current assets decreased to HKD 1,348,632,000 in 2023 from HKD 1,485,382,000 in 2022, reflecting a decline of 9.2%[90]. Employee and Governance - The group’s employee benefit expenses rose to HKD 763,564,000 from HKD 674,932,000, marking an increase of 13.2%[68]. - The company aims to invest more resources in employee training and implement reward programs to enhance service quality[29]. - The company’s board consists of ten directors, including four executive directors and four independent non-executive directors[125]. - The company has established an audit committee to oversee financial reporting and internal control systems[108]. - The audit committee reviewed the annual performance for the year ending December 31, 2023, and confirmed compliance with applicable accounting standards[124]. Dividends and Shareholder Information - The proposed final dividend for 2023 is HKD 0.03 per share, consistent with the previous year[98]. - The company plans to propose a final dividend subject to approval at the upcoming annual general meeting[70]. - The company will hold its annual general meeting on May 30, 2024, to approve the proposed dividend[110].

Tao Heung Holdings Limited 稻香控股有限公司* (於開曼群島註冊成立之有限公司) 股份代號：573 NIS BOOK ANDRY 2010 BION DIEGO DIEGO DIEGO DIEGO DIVEN BOOK BOOK ON N DONE ROOM RED REE END EDIE ARE DOOD DOOD DOOD DOO WAR BOOK BOOK BOOK ARE DOOD DOOD BOOK BOOK BOO * 僅供識別 目錄 3 財務摘要 4 簡明綜合損益表 簡明綜合全面收益報表 8 簡明綜合現金流量報表 22 管理層討論與分析 | --- | --- | |-------------------------------|------------------------------------------------------------------------------------| | | | | 董事會 | 註冊辦事處 | | 執行董事 | Cricket Square, Hutchins Drive | | 鍾偉平先生 （主席及行政總裁） | P. ...

香港交易及結算所有限公司以及香港聯合交易所有限公司對本公告的內容概 不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不會就因本公 告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何 責任。 TAO HEUNG HOLDINGS LIMITED * 稻香控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：573） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 未 經 審 核 中 期 業 績 公 告 摘要 截至六月三十日止六個月 變動百分比 二零二三年 二零二二年 增加╱（減少） （千港元） （千港元） 收益 1,504,553 1,058,425 42.2% 期內溢利╱（虧損） 36,117 (98,283) 136.7% 母公司擁有人應佔 溢利╱（虧損） 33,400 (101,392) 132.9% 港仙 港仙 ...

Corporate Governance - The board consists of ten members, including four executive directors, two non-executive directors, and four independent non-executive directors, ensuring balanced discussions with independent viewpoints [16]. - The company is committed to high levels of corporate governance to protect shareholder interests and enhance corporate value through effective board practices and transparency [15]. - The company will review measurable targets related to gender, race, age, and tenure to ensure ongoing effectiveness in board member diversity policies [17]. - The company emphasizes the importance of continuous professional development for all directors, providing updates on legal and regulatory changes [18]. - The board of directors held a total of 4 meetings during the year, with all executive directors attending all meetings [31]. - The remuneration committee held one meeting during the year, reflecting the company's governance practices [28]. - The nomination committee reviewed and recommended the re-election of directors for the upcoming annual general meeting scheduled for June 1, 2023 [39]. - The company has received annual independence confirmation from its independent non-executive directors, affirming their independent status [146]. - The company has not identified any significant deficiencies in internal controls during the audit process [143]. - The company’s board of directors is responsible for preparing true and fair consolidated financial statements in accordance with applicable financial reporting standards [164]. Financial Performance - The company's revenue for the year 2022 was HKD 2,401,849,000, a decrease of 15.3% compared to HKD 2,836,098,000 in 2021 [170]. - The gross profit for 2022 was HKD 10,470,000, significantly down from HKD 223,019,000 in 2021, indicating a sharp decline in profitability [170]. - The net loss for the year was HKD 137,019,000, compared to a loss of HKD 19,074,000 in the previous year, reflecting a worsening financial position [172]. - The company reported a pre-tax loss of HKD 157,343,000, which is a substantial increase from the pre-tax loss of HKD 18,105,000 in 2021 [170]. - The total comprehensive loss for the year amounted to HKD 242,229,000, contrasting with a comprehensive income of HKD 23,736,000 in 2021 [172]. - The company's equity attributable to owners of the parent decreased to HKD 1,120,120,000 from HKD 1,426,991,000 in the previous year, indicating a decline in shareholder value [175]. - The basic and diluted loss per share for 2022 was HKD 14.11, compared to HKD 2.09 in 2021, highlighting a significant deterioration in earnings per share [170]. - The company experienced a foreign exchange loss of HKD 105,210,000 from overseas operations, compared to a gain of HKD 42,810,000 in 2021 [172]. - The company reported a significant increase in other income and gains, which rose to HKD 137,295,000 from HKD 65,850,000 in the previous year, indicating potential growth in ancillary revenue streams [170]. Risk Management - The company is committed to improving internal controls and risk management effectiveness [23]. - The company emphasizes the importance of a robust risk management and internal control system to achieve long-term sustainable growth [32]. Shareholder Information - The company proposed a final dividend of HKD 0.03 per share, totaling approximately HKD 30,430,000, subject to shareholder approval at the upcoming annual general meeting [58]. - The company has suspended shareholder registration from May 25, 2023, to June 1, 2023, to determine eligible shareholders for the annual general meeting [82]. - The company has at least 25% of its total issued share capital held by the public as of the report date [93]. - The company’s independent auditor, Ernst & Young, will be proposed for reappointment at the upcoming annual general meeting [94]. - The company’s management has assessed the recoverable amounts of underperforming restaurants and stores, leading to impairment evaluations [68]. - The company’s board of directors and management attended the annual general meeting to communicate with shareholders [73]. Operational Focus - The company aims to maintain its position as a leading Chinese restaurant group in Hong Kong by focusing on "three excellence" standards: quality products, quality service, and quality environment [6]. - The company plans to continue consolidating its business foundation and driving sales while controlling costs to create long-term value for shareholders [6]. - The company is focused on leveraging post-pandemic market recovery opportunities to enhance its business operations [6]. - The company has a diversified brand portfolio to meet the needs of different customer groups [6]. - The company maintained good relationships with suppliers, customers, and stakeholders, with no significant disputes reported during the year [57]. Audit and Compliance - The company’s financial statements for the year ending December 31, 2022, were prepared in accordance with relevant laws and listing rules, ensuring a true and fair view of the group's financial position [31]. - The external auditor, Ernst & Young, was paid a total of HKD 3,544,000 for audit and non-audit services during the year [46]. - The Group's financial statements were audited in accordance with Hong Kong auditing standards, ensuring a high level of assurance [127]. - The company reported compliance with applicable laws and regulations, with no significant violations during the year [79]. - The company has disclosed relevant impairment assessments in the financial statements notes 2.4, 3, 13, and 14 [100]. Asset Management - Total non-current assets decreased to HKD 1,690,186 thousand in 2022 from HKD 1,912,389 thousand in 2021, representing a decline of approximately 11.6% [199]. - Current assets decreased to HKD 582,792 thousand in 2022 from HKD 838,400 thousand in 2021, reflecting a decrease of about 30.5% [199]. - Cash and cash equivalents significantly dropped to HKD 251,854 thousand in 2022 from HKD 457,925 thousand in 2021, a decrease of approximately 45% [199]. - Total current liabilities decreased slightly to HKD 661,061 thousand in 2022 from HKD 732,280 thousand in 2021, a reduction of about 9.7% [199]. - The net current (liabilities)/assets position shifted to (HKD 78,269 thousand) in 2022 from HKD 106,120 thousand in 2021, indicating a negative change [199]. - Total assets less current liabilities decreased to HKD 1,611,917 thousand in 2022 from HKD 2,018,509 thousand in 2021, a decline of approximately 20.1% [199]. - Inventory decreased to HKD 126,358 thousand in 2022 from HKD 151,450 thousand in 2021, representing a decrease of about 16.6% [199]. - Trade receivables decreased to HKD 46,640 thousand in 2022 from HKD 57,437 thousand in 2021, a decline of approximately 18.9% [199]. - The company reported a decrease in lease liabilities to HKD 190,438 thousand in 2022 from HKD 200,870 thousand in 2021, a reduction of about 5.2% [199]. - Deferred tax assets increased to HKD 141,441 thousand in 2022 from HKD 123,166 thousand in 2021, an increase of approximately 14.8% [199]. Related Party Transactions - The company’s executive director, Mr. Zhong Zhenfeng, holds a 35.15% stake in Dongguan Tianyao Property Management Co., Ltd., which is considered a related party [91]. - The company has entered into a main lease agreement with Dongguan Tianyao for a two-year term from June 6, 2022, to June 5, 2024 [91]. - Legal fees paid to a related party amounted to HKD 669,000 in 2022, compared to HKD 674,000 in 2021 [114]. - Lease payments made to a related party totaled HKD 6,716,000 in 2022 [114]. Share Options - The company granted 20,130,000 stock options to eligible directors, senior management, and employees under the stock option plan, with no options exercised during the review year [62]. - The stock option plan expired on June 8, 2017, but options granted prior remain valid until fully exercised or expired [89]. - The total number of unexercised share options as of December 31, 2022, is 7,270,000 for one executive director and 7,970,000 for another [154]. - The company has a total of 400,000 unexercised share options for one executive director as of December 31, 2022 [154]. - No options were granted under the 2017 Share Option Scheme as of the report date [115].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 TAO HEUNG HOLDINGS LIMITED * 稻 香 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：573） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 業 績 公 佈 建 議 修 訂 公 司 組 織 章 程 大 綱 及 組 織 章 程 細 則 摘要 截至十二月三十一日止年度 增加╱ （減少） 二零二二年 二零二一年 百分比 （千港元） （千港元） 2,401,849 收益 2,836,098 (15.3) (137,019) 年內虧損 (19,074) 618.4 (143,138) 母公司擁有人應佔虧損 (21,232) 574.2 港仙 港仙 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 1,058,425, a decrease of 18.7% compared to HKD 1,301,377 in the same period last year[7] - The group reported a loss attributable to equity holders of the parent of HKD 101,392, compared to a loss of HKD 20,639 in the previous year, representing an increase of 391.3%[7] - Gross loss margin for the period was (4.1%), a significant decline from a gross profit margin of 18.7% in the previous year[7] - The total comprehensive loss for the period was HKD (140,294), compared to a comprehensive income of HKD 15,609 in the previous year[14] - The group experienced a pre-tax loss of HKD (115,243), compared to a pre-tax loss of HKD (18,292) in the previous year[11] - Basic and diluted loss per share was HKD (10.00), compared to HKD (2.03) in the previous year, reflecting a 392.6% increase in loss per share[7] - The company reported a pre-tax loss of HKD 115,243,000 for the six months ended June 30, 2022, compared to a loss of HKD 18,292,000 in the same period of 2021, indicating a significant decline in performance[21] Assets and Liabilities - Total assets amounted to HKD 2,618,192, a decrease of 4.8% from HKD 2,750,789 as of December 31, 2021[7] - Current assets decreased to HKD 750,348, down 10.5% from HKD 838,400 in the previous year[15] - Total liabilities increased to HKD 799,082, up 9.1% from HKD 732,280 as of December 31, 2021[15] - The company's net asset value decreased to HKD 1,375,487, a decline of 11.0% from HKD 1,546,211 in the previous year[16] - The total equity attributable to equity holders of the parent company was HKD 1,254,203, down from HKD 1,426,991, reflecting a decrease of 12.1%[16] - The company's total liabilities to total assets ratio increased, indicating a higher leverage position[15] Cash Flow and Investments - The net cash position was HKD 182,469, down 38.4% from HKD 296,258 in the previous year[7] - Operating cash flow for the period was HKD 94,086,000, down 50% from HKD 188,989,000 in the previous year, reflecting challenges in cash generation[21] - Cash and cash equivalents at the end of the period were HKD 351,413,000, down from HKD 485,963,000 at the end of the previous year, indicating a reduction in liquidity[23] - The net cash used in investing activities was HKD 47,832,000, an improvement from HKD 56,003,000 in the previous year, suggesting more efficient capital allocation[23] - The company raised new bank loans amounting to HKD 178,000,000, compared to HKD 87,000,000 in the previous year, indicating a strategy to enhance liquidity[23] Revenue Breakdown - Revenue from restaurant and bakery operations was HKD 879,378, down 23.9% from HKD 1,156,084 in the previous year[45] - Revenue from poultry farming operations increased to HKD 66,667, up 51.8% from HKD 43,886 in the previous year[45] - The revenue from the mainland China business for the six months ended June 30, 2022, was approximately HKD 552.8 million, a decrease of 16.8% compared to HKD 664.3 million in the same period last year[79] - The frozen and packaged food business generated revenue of approximately HKD 112.4 million, an increase of 10.8% from HKD 101.4 million in the previous year[82] Operational Challenges and Strategies - The company faced operational challenges due to COVID-19 restrictions, with 1,363 days of restaurant closures in Hong Kong and 1,049 days in mainland China[69] - The company has implemented strategies to control rental, labor, and other operational costs amid the challenging environment[69] - The group is focusing on improving internal efficiency due to rising food costs and logistics challenges, including menu adjustments and new value-added products[77] - The company continues to focus on its core business operations, including restaurant operations and food production, as part of its strategic direction[31] Future Outlook and Expansion Plans - The company is focusing on expanding its market presence and exploring new product development strategies[17] - Future outlook includes potential mergers and acquisitions to enhance growth opportunities[17] - The group plans to open two new restaurants in Hong Kong in the second half of the year, increasing the total to 46 restaurants[78] - The company has opened a new restaurant "鍾菜館" in Wan Chai, increasing the total number of this brand to five, with plans for further expansion[75] Shareholder Information and Corporate Governance - The company declared an interim dividend of HKD 0.03 per share for the six months ended June 30, 2022[72] - A mid-term dividend of HKD 0.03 per ordinary share has been declared for the financial year ending December 31, 2022[96] - The company has complied with all applicable provisions of the Corporate Governance Code, except for the separation of roles between the Chairman and the CEO[109] - The company has confirmed that all directors have complied with the standards set out in the code of conduct for securities transactions during the six months ending June 30, 2022[110] Employee and Community Engagement - The company applied for the "2022 Employment Support Scheme" and utilized all wage subsidies for employee salaries[70] - The group has trained over 380 students at its culinary training academy in Dongguan, promoting traditional Chinese cooking skills[81] Miscellaneous - The report acknowledges the hard work and dedication of the management team and all employees[114] - The company expresses gratitude to shareholders, business partners, banks, and auditors for their support during the period[114] - The report was released on August 23, 2022, in Hong Kong[115]

Financial Performance - Revenue for the year 2021 was HKD 2,836,098, representing an increase of 18.7% compared to HKD 2,388,477 in 2020[13] - The loss attributable to equity holders of the parent company improved to HKD (21,232) from HKD (57,956), a reduction of 63.4%[13] - Gross profit margin increased significantly to 7.9%, up 507.7% from 1.3% in the previous year[13] - Total revenue for the year was HKD 2,836,100,000, an increase of 18.7% compared to HKD 2,388,500,000 in the previous year[26] - Gross profit margin decreased to 64.4% from 65.4% year-on-year[26] - Loss attributable to equity holders narrowed significantly to HKD 21,200,000 from HKD 58,000,000 in the previous year[26] - Revenue from Hong Kong operations was HKD 1,492,900,000, up 18.0% from HKD 1,265,400,000 in the previous year[28] - EBITDA for Hong Kong operations slightly decreased by 5.3% to HKD 206,600,000 from HKD 218,100,000[28] - EBITDA increased by 9.7% to HKD 209,200,000, compared to HKD 190,700,000 in the previous year[33] - The group achieved a profit attributable to equity holders of HKD 21,000,000, recovering from a loss of HKD 12,800,000 in the previous year[33] - Total comprehensive income for the year was HKD 23,736 thousand, compared to HKD 7,137 thousand in 2020, showing a positive turnaround[170] - The net loss for the year was HKD 19,074 thousand, a reduction of 65.6% from a net loss of HKD 55,383 thousand in 2020[169] - The company reported a pre-tax loss of HKD 18,105 thousand, down from HKD 72,417 thousand in the previous year, reflecting improved operational efficiency[169] Assets and Liabilities - The total assets decreased by 6.6% to HKD 2,750,789 from HKD 2,943,918 in 2020[13] - Non-current assets totaled HKD 1,912,389 thousand, a decrease from HKD 1,992,202 thousand in 2020, primarily due to changes in property and equipment[172] - Current assets decreased to HKD 838,400 thousand from HKD 951,716 thousand in the previous year, largely due to a reduction in inventory[172] - Current liabilities were HKD 732,280 thousand, down from HKD 797,261 thousand in 2020, indicating improved liquidity management[172] - The company's equity attributable to owners of the parent was HKD 1,528,626 thousand, a slight decrease from HKD 1,572,237 thousand in the previous year[173] - The total liabilities decreased, contributing to a stronger balance sheet position compared to the previous year[175] Cash Flow and Investments - Operating cash flow for the year ended December 31, 2021, increased to HKD 441,538,000, up from HKD 253,682,000 in 2020, representing a growth of approximately 74.2%[177] - The net cash flow from operating activities was significantly bolstered by a reduction in inventory, which decreased by HKD 15,222,000[177] - The company reported a decrease in trade receivables by HKD 30,387,000, indicating improved cash collection efficiency[177] - The net cash flow used in investing activities for the year ended December 31, 2021, was HKD (109,099,000), a decrease of 36.4% compared to HKD (171,503,000) in 2020[178] - New bank loans raised amounted to HKD 229,000,000, down 44.1% from HKD 410,430,000 in the previous year[178] - The total cash and cash equivalents at the end of the year were HKD 393,148,000, a decrease of 21.5% from HKD 500,441,000 at the beginning of the year[178] Business Strategy and Expansion - The company plans to open more high-end restaurants under the new brand "鍾菜館" in 2022 due to positive market response[16] - The company recorded healthy growth in its contract manufacturing business, providing processed and semi-processed foods for local convenience stores and fast-food brands[16] - The mainland China division experienced stable business growth, aided by effective use of social media and new distribution channels[17] - The company is focusing on diversifying its product offerings, including frozen and packaged foods, to mitigate the impact of dine-in restrictions[18] - The company plans to continue expanding its high-end brand "Zhong Cuisine" due to positive customer response[29] - The company has strengthened partnerships with delivery service providers like Deliveroo and Foodpanda to enhance its takeaway business[29] - The company aims to enhance its capital structure and explore potential mergers and acquisitions to drive future growth[175] - The company plans to focus on market expansion and new product development in the upcoming fiscal year[175] Corporate Governance - The company has adhered to all applicable provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange, except for a deviation regarding the separation of roles between the Chairman and the CEO[57] - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a balanced composition for independent discussions[58] - The company has renewed service contracts for all non-executive and independent non-executive directors for a term of one to three years, effective from June 29, 2022[59] - The company has a commitment to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[57] - The company has a strong focus on risk assessment procedures and internal controls to ensure accountability and transparency[57] - The company’s independent non-executive directors have confirmed their independence in accordance with the guidelines set forth by the listing rules[59] - The company has established a clear written terms of reference for each committee to define their roles, powers, and functions[68] Social Responsibility and Community Engagement - The company made charitable donations totaling HKD 1,146,000 during the year[120] - The company emphasizes the health and well-being of employees and customers, remaining vigilant and pragmatic in response to the operating environment[44] - The company emphasizes the importance of maintaining good relationships with suppliers and customers to achieve its immediate and long-term goals[104] Audit and Compliance - The independent auditor's report confirmed that the financial statements present a true and fair view of the group's financial position as of December 31, 2021[147] - The audit procedures included comparing budgeted revenues and gross margins with historical performance and industry data to assess the reasonableness of management's estimates[151] - The company has complied with relevant laws and regulations without any significant violations during the year[104] - The company’s internal audit department operates independently and reports directly to the audit committee[93]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 1,301,377,000, an increase of 13.4% compared to HKD 1,147,438,000 for the same period in 2020[9] - The gross profit margin improved to 5.7% from a loss margin of 1.6% in the previous year, indicating a significant recovery in profitability[9] - The net loss attributable to shareholders for the period was HKD 20,639,000, a reduction of 79.6% from HKD 101,245,000 in the prior year[9] - The total comprehensive income for the period was HKD 15,609,000, a turnaround from a loss of HKD 123,806,000 in the previous year[17] - For the six months ended June 30, 2021, the company reported a loss attributable to equity holders of the parent of HKD 20,639,000, compared to a loss of HKD 101,245,000 for the same period in 2020, indicating a significant improvement[70] - Total revenue for the group reached HKD 1,301,400,000, an increase of 13.4% year-on-year[87] - Loss attributable to equity holders of the parent decreased significantly by 79.6% to HKD 20,600,000[87] Assets and Liabilities - The total assets as of June 30, 2021, were HKD 2,921,030,000, slightly down by 0.8% from HKD 2,943,918,000 at the end of 2020[9] - Non-current assets totaled HKD 2,014,873 thousand as of June 30, 2021, compared to HKD 1,992,202 thousand as of December 31, 2020, reflecting an increase of 1.4%[19] - Current assets decreased to HKD 906,157 thousand from HKD 951,716 thousand, a decline of 4.8%[19] - Total liabilities increased to HKD 1,343,425 thousand as of June 30, 2021, compared to HKD 1,349,079 thousand as of December 31, 2020, indicating a slight decrease of 0.4%[23] - The net asset value stood at HKD 1,577,605 thousand, down from HKD 1,594,839 thousand, representing a decrease of 1.1%[23] - The company’s total equity decreased by 1.1% from HKD 1,594,839 thousand to HKD 1,577,605 thousand[23] Cash Flow and Investments - Cash and cash equivalents amounted to HKD 549,553,000, a decrease of 2.1% from HKD 561,243,000 at the end of 2020[9] - The company reported a decrease in rental income related to COVID-19, amounting to HKD 8,664,000, which was recognized as variable lease payments[43] - The net cash flow from operating activities reached HKD 188,989, up from HKD 68,233, indicating a strong operational performance[30] - The net cash used in investing activities was HKD 56,003, a decrease from HKD 81,809, suggesting improved cash management[34] - The company invested HKD 45,393 in property, plant, and equipment, down from HKD 56,182, indicating a strategic reduction in capital expenditures[34] Revenue Breakdown - Revenue from Hong Kong was HKD 637,099,000, down 9.4% from HKD 703,856,000 in 2020, while revenue from Mainland China increased by 49.7% to HKD 664,278,000 from HKD 443,582,000[46] - Revenue from Hong Kong operations was HKD 637,100,000, a decline of 9.5% compared to the previous year[89] - Revenue from mainland China operations surged by 49.8% to HKD 664,300,000, with a profit attributable to equity holders of HKD 28,900,000[95] Operational Highlights - The company’s management highlighted a significant recovery in the mainland China business, which returned to profitability with a notable increase in revenue[86] - The group operated 43 restaurants in Hong Kong as of June 30, 2021, down from 49 the previous year, with plans to open more locations[93] - The group plans to open five new restaurants in major cities in mainland China in the second half of 2021[95] - The group has established strategic partnerships with multiple delivery platforms to enhance sales channels[90] Dividends and Shareholder Information - The company proposed an interim dividend of HKD 0.03 per share, representing a 100% increase compared to no dividend in the previous year[9] - The group declared an interim dividend of HKD 3.00 per share, totaling approximately HKD 30,490,000, compared to no interim dividend for the same period in 2020[9] - As of June 30, 2021, Billion Era International Limited holds 419,306,689 shares, representing 41.26% of the issued share capital[121] Management and Governance - The company has complied with all applicable provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[132] - The company’s management compensation increased to HKD 4,009,000 for the six months ended June 30, 2021, compared to HKD 2,837,000 for the same period in 2020[82] Future Outlook - The management remains cautiously optimistic about the second half of 2021, supported by improved consumer sentiment and the introduction of a HKD 5,000 electronic consumption voucher for residents[109] - The group will implement promotional activities related to its 30th anniversary, including dishes priced at RMB 30 and RMB 3 in its mainland restaurants[109] - The group is aware of the importance of a robust restaurant network and will continue to expand its business presence in Hong Kong and mainland China[109]