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].

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].

Financial Performance - For the six months ended June 30, 2023, the loss attributable to owners of the Company was RMB 2,272,000, compared to a loss of RMB 14,552,000 for the same period in 2022, representing a significant improvement [6]. - The loss for the period attributable to owners of the Company decreased by approximately 84.2% to about RMB 2.3 million, compared to RMB 14.6 million for the six months ended June 30, 2022 [166]. - Total comprehensive loss for the period was RMB 4,184,000, down from RMB 15,885,000 in the previous year, indicating a 73.7% improvement [158]. - The loss per share for the period was RMB 0.02, compared to RMB 0.21 for the same period in 2022, showing a significant improvement [156]. - Adjusted EBITDA for the period was approximately RMB 2.9 million, a significant improvement from an adjusted EBITDA loss of approximately RMB 7.2 million for the six months ended June 30, 2022, representing a growth of 140.3% [118]. - The Group's operating performance improved due to the lifting of COVID-19 pandemic control measures, contributing to increased customer flow [73]. Revenue and Costs - For the six months ended June 30, 2023, the Group's revenue increased by approximately 42.9% to approximately RMB 45.0 million from approximately RMB 31.5 million in the last corresponding period [73]. - Revenue for the six months ended June 30, 2023, was RMB 44,965,000, an increase of 42.5% compared to RMB 31,540,000 for the same period in 2022 [156]. - The cost of food, beverages, and other consumables increased by approximately 31.9% from approximately RMB 11.6 million to approximately RMB 15.3 million for the six months ended June 30, 2023 [76]. - Employee benefit and related expenses increased by approximately 20.6% to approximately RMB 18.7 million for the six months ended June 30, 2023, compared to approximately RMB 15.5 million in the last corresponding period [107]. - Other operating expenses decreased by approximately 29.6% to approximately RMB 3.8 million, down from RMB 5.4 million in the last corresponding period [137]. - Property rentals and related expenses decreased by approximately 43.5% to approximately RMB 3.5 million for the six months ended June 30, 2023, down from approximately RMB 6.2 million in the last corresponding period [135]. Assets and Liabilities - Non-current assets decreased to RMB 13,688,000 as of June 30, 2023, from RMB 16,828,000 at the end of 2022, reflecting a decline of 18.4% [160]. - Total assets amounted to RMB 42,421,000, a slight decrease of 3.4% from RMB 43,902,000 as of December 31, 2022 [160]. - The Group's net current liabilities were approximately RMB 195.4 million as of June 30, 2023, compared to RMB 189.5 million as of December 31, 2022 [165]. - The deficiency attributable to owners of the company was RMB 188,616,000 as of June 30, 2023, compared to RMB 185,477,000 at the end of 2022, indicating a slight increase of 1.2% [160]. - The gearing ratio remained stable at approximately 0.20 as of June 30, 2023, with total debts of approximately RMB 8.5 million against total assets of approximately RMB 42.4 million [174]. Share Capital and Options - A total of 1,402,192 share options were exercised during the period, with no new share options granted, exercised, cancelled, expired, or lapsed [77]. - The number of shares that may be issued in respect of options and awards granted under all schemes of the Company during the period was nil, with a weighted average number of shares in issue of 99,155,458 shares [83]. - The Group's share option scheme had no shares available for issue as of June 30, 2023 [77]. Operational Changes - The number of restaurants decreased to 11 during the period, down from 15 in the same period last year [142]. - The Group plans to diversify food options in hotpot restaurants to attract different customer segments, including introducing seafood to target high-end customers [120]. - New food ingredients will be added to hotpot dining to attract customers and enhance menu offerings [148]. - The company continues to focus on improving operational efficiency and reducing costs to enhance profitability in future periods [157]. Auditor and Compliance - HLB Hodgson Impey Cheng Limited resigned as the auditor on July 25, 2023, with RSM Hong Kong appointed as the new auditor effective July 26, 2023 [186]. - There were no connected transactions subject to reporting requirements for the six months ended June 30, 2023 [186]. Cash Flow and Financing - Cash and cash equivalents increased to RMB 4,447,000 as of June 30, 2023, from RMB 1,701,000 at the end of 2022, representing a growth of 161.5% [160]. - The company reported a reduction in finance expenses, netting RMB 466,000 for the period, down from RMB 13,661,000 in the previous year, a decrease of 96.6% [156]. - The company has not entered into any instruments to hedge against foreign currency risk but will monitor exchange rate fluctuations [195]. - The company continues to provide competitive remuneration packages and bonuses based on performance evaluations [190].

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告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而 產生或因依賴該等內容而引致之任何損失承擔任何責任。 LONGHUI INTERNATIONAL HOLDINGS LIMITED 龍 輝 國 際 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1007） 截至2023年6月30日止六個月 中期業績公告 業績 龍輝國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及其附屬 公司（統稱為「本集團」）截至2023年6月30日止六個月之未經審核中期業績，連同上一期 間同期比較數字。 財務摘要 截至6月30日止六個月 2023年 2022年 變動 人民幣千元 人民幣千元 % （未經審核） （未經審核） 收益 44,965 31,540 42.6% 虧損淨額 (2,325) (14,681) –84.2% 除息、稅、折舊及撇銷前盈利╱（虧損） ...

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告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 LONGHUI INTERNATIONAL HOLDINGS LIMITED 龍 輝 國 際 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） 1007 （股份代號： ） 截至二零二二年十二月三十一日止年度 年報的補充資料 茲提述龍輝國際控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）於二零二 三年四月二十八日刊發的截至二零二二年十二月三十一日止年度（「該期間」）的年報 （「二零二二年年報」）。除另有界定外，本公告所用詞彙與二零二二年報所載者具有 相同涵義。 除二零二二年年報提供的資料外，董事會謹此向本公司股東及有意投資者提供以下 其他資料： (i) 本公司於二零二二年八月十五日完成配售股份的餘下未動用所得款項淨額0.62 百萬港元已於本公告日期根據所得款項的最初擬定用途用作本集團的一般營運 資金； (ii) 於該期間開始和結束時，根據購股權計劃的計劃授權可授予的購股權數目分別 為24股 ...

Financial Performance - The Group incurred a net loss of approximately RMB 62,690,000 for the year ended 31 December 2022, compared to a loss of RMB 34,138,000 in 2021, representing an increase in loss of 83.6%[36] - Total comprehensive loss attributable to the owners of the Company was RMB 68,096,000 in 2022, up from RMB 34,138,000 in 2021, indicating a significant deterioration in financial performance[49] - Basic and diluted loss per share for 2022 was 77.2 RMB cents, compared to 55.0 RMB cents in 2021, reflecting a 40.0% increase in loss per share[49] - The Group's loss from operating activities for the year ended 31 December 2022 was RMB 8,706,000, a decrease from RMB 22,231,000 in 2021[199] Financial Position - As of 31 December 2022, the Group's current liabilities exceeded its current assets by approximately RMB 189,500,000, raising material uncertainty regarding the Group's ability to continue as a going concern[36] - Total assets decreased from RMB 90,523,000 in 2021 to RMB 43,902,000 in 2022, a decline of approximately 51.6%[57] - Current liabilities increased from RMB 229,204,000 in 2021 to RMB 231,401,000 in 2022, representing a rise of about 1%[58] - The company reported a capital deficiency of RMB 187,499,000 in 2022, compared to RMB 138,681,000 in 2021, indicating an increase of approximately 35.2%[57] - The company reported a deficiency attributable to owners of the Company of RMB 185,477,000 in 2022, compared to RMB 137,044,000 in 2021, an increase of about 35.3%[57] Cash Flow and Liquidity - Cash and cash equivalents decreased from RMB 42,529,000 in 2021 to RMB 27,074,000 in 2022, a reduction of approximately 36.4%[57] - The Group's maximum exposure to credit risk is represented by the carrying amounts of cash and cash equivalents, trade receivables, deposits, and other receivables[160] - There were no significant credit risks associated with cash deposits at banks, as they are primarily held in state-owned and large listed banks[160] Revenue and Income - For the year ended December 31, 2022, revenue from the hotpot business was RMB 72,279,000, a decrease from RMB 162,883,000 in 2021[181] - The Group recognized government grants of RMB 255,000 in 2022, down from RMB 1,019,000 in 2021, with no unfulfilled conditions[183] - The Group's leasing income for 2022 was RMB 2,830,000, with no leasing income reported in 2021[183] Expenses and Cost Management - Employee benefit expenses totaled RMB 23,076,000 for labor outsourcing in 2022, compared to RMB 39,886,000 in 2021[184] - The Group's total employee wages and salaries for 2022 were RMB 9,168,000, slightly up from RMB 9,127,000 in 2021[184] - Promotion and marketing expenses were reduced to RMB 602,000 from RMB 1,269,000, indicating a decrease of approximately 52.6%[199] - Cleaning fees decreased to RMB 705,000 from RMB 1,633,000 in 2021, marking a reduction of approximately 56.9%[199] - Auditors' remuneration decreased to RMB 1,050,000 from RMB 1,200,000 in the previous year, reflecting a decline of about 12.5%[199] Asset Management - Non-current assets decreased from RMB 47,994,000 in 2021 to RMB 16,828,000 in 2022, a decline of approximately 64.9%[57] - The carrying amount of replaced parts in property, plant, and equipment is derecognized, while repairs and maintenance costs are charged to comprehensive income during the financial period incurred[115] - The Group's assets' residual values and useful lives are reviewed and adjusted if appropriate at the end of each reporting period[115] Credit Risk Management - The Group recognizes lifetime expected credit losses (ECL) for trade receivables, ensuring a proactive approach to credit risk management[124] - ECL on significant debtors is assessed individually, while other instruments are measured at 12-month ECL unless there is a significant increase in credit risk[124] - The Group's credit quality assessment indicates that existing counterparties have not defaulted in the past[160] - The Group has implemented monitoring procedures to recover overdue debts and reviews the recoverability of receivables at the end of each reporting period[160] Compliance and Governance - The Audit Committee reviewed the Group's consolidated financial statements and confirmed compliance with relevant accounting standards and regulations[28] - There were no material breaches of applicable laws and regulations by the Group during 2022 that significantly impacted its business operations[15] - The Company maintained a public float of at least 25% of its issued share capital, in compliance with listing rules[31] Environmental and Social Responsibility - The Group has established an environmental policy aimed at reducing greenhouse gas emissions and food waste in its operations[20] Capital Management - The company is actively considering raising new capital through fundraising activities, including rights issues and placing new shares[67] - The company is negotiating with landlords for rent concessions as part of its ongoing efforts to manage financial challenges[67]

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告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而 產生或因依賴該等內容而引致之任何損失承擔任何責任。 LONGHUI INTERNATIONAL HOLDINGS LIMITED 龍 輝 國 際 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1007） 截至二零二二年十二月三十一日止年度之全年業績公告 業績 龍輝國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及其附屬 公司（統稱為「本集團」）截至二零二二年十二月三十一日止年度之經審核年度業績，連同 上一年度同期比較數字概述。 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 31,540,000, a decrease of 63.4% compared to RMB 86,047,000 for the same period in 2021[8] - Loss for the period was RMB 14,681,000, slightly improved from a loss of RMB 15,664,000 in the same period of 2021[10] - Total comprehensive loss for the period was RMB 15,885,000, compared to RMB 15,461,000 in the previous year[10] - The company reported a significant increase in trade payables, which rose to RMB 25,833,000 from RMB 29,551,000 in the previous period[14] - The Group reported a consolidated net loss of approximately RMB 14,681,000 for the six months ended 30 June 2022[30] - The Group reported an operating loss of RMB 12,688 for the six months ended June 30, 2022, compared to an operating loss of RMB 5,178 for the same period in 2021, indicating a worsening of performance[48] - The Group's loss before income tax for the six months ended June 30, 2022, was RMB 14,682, compared to a loss of RMB 5,774 for the same period in 2021, indicating a significant increase in losses[48] - Loss for the period attributable to owners of the Company decreased by approximately 5.8% to approximately RMB 14.6 million for the six months ended 30 June 2022 from approximately RMB 15.5 million in the last corresponding period[170] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 74,035,000, down from RMB 90,523,000 as of December 31, 2021, representing a decrease of 18.2%[12] - Cash and cash equivalents decreased to RMB 1,945,000 from RMB 2,196,000, a decline of 11.4%[12] - The equity attributable to owners of the Company was RMB (151,219,000) as of June 30, 2022, compared to RMB (137,044,000) at the end of 2021[12] - As of June 30, 2022, total liabilities amounted to RMB 227,020,000, a slight decrease from RMB 229,204,000 as of December 31, 2021[14] - Current liabilities totaled RMB 213,906,000, compared to RMB 210,753,000 at the end of 2021, indicating a marginal increase[14] - The net current liabilities as of June 30, 2022, were RMB (181,103,000), compared to RMB (168,224,000) at the end of 2021, reflecting an increase in net liabilities[14] - The Group had net current liabilities of approximately RMB 181,103,000 as of June 30, 2022[30] Cash Flow - The company reported a net cash generated from operating activities of RMB 9,894,000 for the six months ended June 30, 2022, compared to a cash outflow of RMB 6,112,000 for the same period in 2021[20] - Cash and cash equivalents at the end of the period were RMB 1,945,000, down from RMB 5,137,000 at the end of June 2021[20] - The company’s financing activities resulted in a net cash outflow of RMB (9,047,000) for the six months ended June 30, 2022, compared to an inflow of RMB 9,456,000 in the same period of 2021[20] Cost Management - Employee benefit and related expenses were RMB (11,618,000), down from RMB (31,530,000) in the previous year, indicating a reduction of 63.2%[8] - Property rentals and related expenses decreased to RMB (15,533,000) from RMB (34,273,000), a reduction of 54.7%[8] - Professional service expenses significantly decreased to RMB 872,000 in 2022 from RMB 4,597,000 in 2021, indicating cost-cutting measures[72] - Cleaning fees incurred were RMB 391,000 in 2022, down from RMB 570,000 in 2021, reflecting a reduction in operational costs[72] - The Group's food and beverage and other materials consumables costs decreased by approximately 63.2% to approximately RMB 11.6 million for the six months ended June 30, 2022, from approximately RMB 31.5 million in the last corresponding period[158] - Employee benefit and related expenses decreased by approximately 54.8% to approximately RMB 15.5 million for the six months ended June 30, 2022, from approximately RMB 34.3 million in the last corresponding period[160] - Labour outsourcing expenses decreased by approximately 58.1% to approximately RMB 10.6 million for the six months ended June 30, 2022, from approximately RMB 25.3 million in the last corresponding period[160] Share Capital and Financing - The company’s share capital as of June 30, 2022, was RMB 1,689,000, reflecting a slight change from previous periods due to share consolidation[113] - The company completed a rights issue on February 22, 2021, issuing 318,680,121 shares at a subscription price of HK$0.142 per share, raising gross proceeds of HK$45,253,000[117] - The company underwent a share consolidation on January 14, 2021, consolidating every twenty shares of HK$0.00002 into one share of HK$0.0004[117] - The company increased its authorized share capital from HK$380,000 to HK$2,000,000 by creating an additional 405,000,000 new consolidated shares effective June 30, 2022[117] - The bank borrowings carry a fixed annual interest rate of 4.70% and are due for repayment by April 16, 2022[128] - The company reported unsecured and guaranteed bank borrowings of RMB 1,200,000 as of June 30, 2022, down from RMB 4,800,000 as of December 31, 2021[126] Operational Strategy - Management is implementing cost control measures and plans to slow down the opening of new restaurants or close underperforming ones[30] - The Group plans to open more restaurants but will slow down the planned expansion due to uncertainty over the impact of COVID-19[171] - The operation of a new branded restaurant "混" was suspended due to the COVID-19 pandemic, but is expected to return to normal as the economy recovers[172] - The Group will target high-end customer segments by introducing more diversified food materials, including seafood, to attract higher spending[176] - New food ingredients will be added to hotpot dining to enhance customer appeal and diversify offerings[177] - The delivery food service is growing rapidly in the PRC, and the Group will strengthen its competitiveness in this segment[178] Dividend Policy - The company did not recommend any dividend for the six months ended June 30, 2022, consistent with the previous year[80] - No interim dividend is recommended for the six months ended 30 June 2022[179]

Financial Performance - The Group's revenue decreased by approximately 11.7% from approximately RMB184.4 million in 2020 to approximately RMB162.9 million in 2021[11]. - Loss for the year attributable to owners of the Company for 2021 was approximately RMB34.0 million, compared to approximately RMB69.1 million in 2020[11]. - Basic loss per share for 2021 was approximately RMB5.50 cents, down from approximately RMB20.9 cents in 2020[11]. - The decrease in loss was mainly due to the closure of underperforming restaurants, leading to a significant reduction in food and beverage costs, employee benefits, and property rentals[11]. - The Group's revenue for the year ended December 31, 2021, was RMB 83,290,000, an increase from RMB 77,807,000 in 2020, representing a growth of approximately 6.4%[34]. - Adjusted EBITDA for 2021 was approximately RMB22.0 million, representing an increment of 186.9% compared to approximately RMB7.7 million in 2020[55]. Operational Changes - The number of restaurants nationwide decreased from 24 in 2020 to 12 in 2021, a reduction of 50% as part of resource reallocation[24]. - The Group closed 12 underperforming restaurants to better reallocate resources[43]. - The average daily revenue per restaurant in Shanghai increased to RMB 55,781 in 2021 from RMB 52,884 in 2020, reflecting a growth of about 3.4%[34]. - The average number of customers per day per restaurant nationwide rose to 109 in 2021, compared to 89 in 2020, indicating a growth of approximately 22.5%[24]. - The Group's Shanghai restaurants served an average of 111 customers per day in 2021, up from 92 in 2020, representing an increase of approximately 20.7%[24]. - The seat turnover rate per day per restaurant nationwide was 1.1 in 2021, compared to 0.9 in 2020, indicating an increase of about 22.2%[24]. Cost Management - The costs of food and beverage and other materials consumables decreased by approximately 30.9% from approximately RMB84.5 million in 2020 to approximately RMB58.4 million in 2021[50]. - Employee benefit and related expenses decreased by approximately 12.2% from approximately RMB66.2 million in 2020 to approximately RMB58.1 million in 2021[50]. - Labour outsourcing expenses decreased by approximately 16.4% from approximately RMB47.7 million in 2020 to approximately RMB39.9 million in 2021[50]. - The Group's property rentals and related expenses decreased by approximately 30.8% from approximately RMB19.5 million in 2020 to approximately RMB13.5 million in 2021[52]. - Depreciation, amortisation, impairment and written-off of property, plant and equipment decreased by approximately 26.4% from approximately RMB70.1 million in 2020 to approximately RMB51.6 million in 2021[52]. - Other operating expenses decreased by approximately 5.8% from approximately RMB17.1 million in 2020 to approximately RMB16.1 million in 2021[52]. Future Outlook - The Group expects the COVID-19 pandemic to continue impacting the catering industry in the following months[11]. - Management will focus on operating restaurants effectively and exploring solutions to maintain brand value[11]. - The Group aims to develop into the brand with the highest market capitalization in the Asia-Pacific catering industry[45]. - The Group plans to open more restaurants but will slow down expansion due to COVID-19 uncertainties[57]. - A new hotpot restaurant brand named "HUN" was opened in Shanghai in early 2022, targeting better operating performance[58]. - The Group aims to attract high-end customers by introducing diversified food materials, including seafood, in its hotpot offerings[59]. Governance and Management - The Board is committed to supervising management and maintaining effective internal controls to safeguard shareholders' investments[11]. - The Group aims to continuously strengthen corporate governance to establish a solid foundation for future growth[11]. - The Group's financial performance is supported by a robust governance structure, including independent non-executive directors overseeing key committees[134]. - The Group's management continues to focus on quality and innovation in operations since the current chairman took over business development[115]. - The Group's employee remuneration policies are competitive and based on performance appraisals, with annual reviews[109]. Shareholder Information - The Company completed a Rights Issue on February 22, 2021, issuing 318,680,121 ordinary shares at HK$0.142 per share, raising net proceeds of approximately HK$43.25 million[69]. - As of December 31, 2021, the total net proceeds from the Rights Issue were fully utilized, with amounts allocated for repayment of existing indebtedness and general working capital[72]. - The repayment of existing indebtedness from independent third parties utilized approximately HK$25.88 million of the net proceeds[72]. - The repayment of bank loans accounted for approximately HK$3.75 million of the net proceeds[72]. - The Group's gearing ratio as of December 31, 2021, was approximately 0.09, up from approximately 0.04 in 2020, with total debts of approximately RMB8.0 million against total assets of approximately RMB90.5 million[66]. Market Position - The Group's brand Faigo was recognized as one of the top 10 hotpot brands in 2016 by the China Hotel Association, enhancing its market position[19]. - Xiao Faigo Hotpot was awarded "China's Top 100 Hotpot Enterprises in 2017" by the China Cuisine Association, reflecting its growing reputation in the industry[19]. - The Group's restaurant network has expanded to major cities including Shanghai, Beijing, Shenzhen, Nanjing, and Hangzhou since its inception in 2004[18]. - The Group's revenue from the top five largest customers accounted for less than 30% of total revenue for the year ended December 31, 2021[148]. - Purchases from the Group's top five largest suppliers accounted for approximately 47.13% of total purchases, with the largest supplier accounting for approximately 24.71%[149].

Revenue Performance - Revenue for the six months ended June 30, 2021, was RMB 86,047,000, representing an increase of 11.2% compared to RMB 77,318,000 in the same period of 2020[8]. - The Group's revenue increased by approximately 11.3% to approximately RMB 86.0 million for the six months ended June 30, 2021, compared to approximately RMB 77.3 million in the last corresponding period[153]. - The Group's total revenue from external customers in the PRC was RMB 86,047,000 for the six months ended June 30, 2021, which accounted for the majority of its revenue[42]. Loss and Financial Performance - Loss for the period was RMB 15,664,000, a decrease in loss of 70.3% compared to RMB 52,774,000 in the same period of 2020[10]. - Total comprehensive loss for the period was RMB 15,461,000, compared to RMB 52,421,000 in the same period of 2020, indicating a significant reduction in overall losses[10]. - The Group reported a consolidated net loss of approximately RMB 15,664,000 for the six months ended 30 June 2021[29]. - The loss from operating activities for the six months ended June 30, 2021, was RMB 15,541,000, a decrease from RMB 52,465,000 in the same period of 2020, representing a reduction of approximately 70.4%[67]. - Loss for the period attributable to owners of the Company decreased by approximately 70.5% to approximately RMB 15.5 million for the six months ended June 30, 2021, from approximately RMB 52.5 million in the last corresponding period[165]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 144,382,000, down from RMB 161,471,000 as of December 31, 2020[12]. - As of June 30, 2021, total liabilities amounted to RMB 271,874,000, a decrease of 12.4% from RMB 310,545,000 as of December 31, 2020[14]. - Current liabilities decreased to RMB 237,777,000 from RMB 258,242,000, reflecting a reduction of 7.9%[14]. - The company’s total equity as of June 30, 2021, was RMB 144,382,000, down from RMB 161,471,000 as of December 31, 2020, a decrease of 10.6%[14]. - The company’s net current liabilities improved to RMB (179,798,000) from RMB (204,315,000), showing a positive trend[14]. Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 37,972,000 from RMB 34,395,000 as of December 31, 2020, reflecting improved liquidity[12]. - Cash and cash equivalents at the end of the period increased to RMB 5,137,000 from RMB 1,723,000, representing a growth of 197.5%[19]. - Net cash used in operating activities was RMB 6,112,000 for the six months ended June 30, 2021, compared to a net cash generated of RMB 19,930,000 in the same period of 2020[19]. Cost Control Measures - Employee benefit and related expenses decreased to RMB 31,530,000 from RMB 34,697,000, indicating cost control measures[8]. - Management is implementing various cost control measures to improve operating results and cash flows, including slowing down the opening of new restaurants[29]. - The costs of food and beverage and other materials consumables decreased by approximately 9.2% to approximately RMB 31.5 million for the six months ended June 30, 2021, from approximately RMB 34.7 million in the last corresponding period[154]. - Employee benefit and related expenses decreased by approximately 3.4% to approximately RMB 34.3 million for the six months ended June 30, 2021, from approximately RMB 35.5 million in the last corresponding period[156]. - Property rentals and related expenses decreased by approximately 35.3% to approximately RMB 7.7 million for the six months ended June 30, 2021, from approximately RMB 11.9 million in the last corresponding period[162]. Share Capital and Financing - The company completed a rights issue on February 22, 2021, issuing 318,680,121 shares at a subscription price of HK$0.142 per share, raising gross proceeds of HK$45,253,000[108]. - The company’s share capital was adjusted following a share consolidation on January 14, 2021, where every twenty shares of HK$0.00002 were consolidated into one share of HK$0.0004[108]. - The intended use of the net proceeds includes repayment of existing indebtedness of approximately HK$25.88 million and general working capital of approximately HK$13.62 million[173]. - The conversion price of the Convertible Bonds was adjusted following the share consolidation effective January 14, 2021[182]. - The conversion price of the Convertible Bonds was adjusted from HK$2.05 to HK$1.75, increasing the number of shares to be issued upon conversion from 2,153,628 to 2,522,821 shares[188]. Employee and Operational Metrics - As of June 30, 2021, the number of employees decreased to 641 from 754 as of December 31, 2020[195][199]. - Employee remuneration is reviewed annually based on performance appraisals, with competitive packages offered to eligible staff[195][199]. - The Group's employee benefits and related expenses for the six months ended June 30, 2021, totaled RMB 34,273,000, a slight decrease from RMB 35,454,000 in the same period of 2020, reflecting a reduction of approximately 3.3%[54]. Regulatory and Compliance - The financial statements were approved for issue by the board of directors on August 24, 2021, ensuring compliance with regulatory standards[23]. - The statutory reserve requires a transfer of 10% of profit after taxation until it reaches 50% of the registered capital, which is a regulatory requirement for subsidiaries in the PRC[21]. - The financial statements are presented in Renminbi (RMB), with all values rounded to the nearest thousand (RMB'000)[29]. Related Party Transactions - The Group's related party transactions included purchases of goods, with no recorded transactions for the six months ended 30 June 2021[135]. - The Group's related parties include entities controlled by the controlling shareholder, Mr. Hung, and his elder sister[126].