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，概不對因本公告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。 （於開曼群島註冊成立的有限公司） （股份代號：1181） 截至二零二二年十二月三十一日止 年度的年度業績公告 唐宮（中國）控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附屬公司 （統稱「集團」或「本集團」）截至二零二二年十二月三十一日止年度（「本年度」）的綜合業 績，連同截至二零二一年十二月三十一日止年度的比較數字，並載述如下： 摘要 截至十二月三十一日 止年度 變動百分比 二零二二年 二零二一年 % 收益（人民幣千元） 941,964 1,361,296 (30.8%) 毛利（人民幣千元）(1) 573,492 846,829 (32.3%) 毛利率 60.9% 62.2% (1.3%) 本公司擁有人應佔年內（虧損）╱溢利 （人民幣千元） (150,934) 40,570 (472.0%) ...

Economic Impact - In the first half of 2022, the catering industry in China recorded a nationwide revenue of RMB 2,004 billion, down by 7.7% year-on-year[10]. - The GDP of Mainland China for the first half of 2022 was RMB 56.2 trillion, representing a year-on-year increase of 2.5%, with a significant slowdown to 0.4% growth in the second quarter[10]. - The overall economic environment was impacted by the Ukraine crisis, leading to rising oil prices and inflation, creating uncertainty[10]. - The pandemic's impact on the catering industry was highlighted by a shift from positive growth in Q1 to a double-digit decline in Q2[10]. Revenue and Financial Performance - The Group's overall revenue for the six months ended June 30, 2022, was RMB 444.4 million, a year-on-year decrease of 37.8% compared to RMB 714.5 million in the same period of 2021[16][18]. - Revenue for the six months ended June 30, 2022, was RMB 444,417, a decrease of 37.8% compared to RMB 714,453 in the same period of 2021[107]. - The loss attributable to owners of the Company for the period was approximately RMB 85.3 million, compared to a profit of approximately RMB 32.4 million in 2021[36]. - The loss before tax for the six months ended June 30, 2022, was RMB 84,387,000, compared to a profit of RMB 49,318,000 in 2021, indicating a significant downturn in financial performance[152]. - Total comprehensive loss for the period was RMB 85,173, compared to a comprehensive income of RMB 30,898 in the previous year[109]. Operational Challenges - The Shanghai region, a key business area for the Group, faced a complete lockdown for four months, severely impacting revenue[13]. - In Northern China, branches had to close for two months due to the 2022 Winter Olympics and faced additional restrictions from the pandemic in May[13]. - Guangdong experienced temporary closures and dine-in service suspensions, affecting customer flow and operations[13]. - The pandemic significantly impacted operations, particularly in regions like Shanghai and Beijing, leading to temporary closures and a shift to online and community marketing strategies[16][18]. Strategic Responses - The Group implemented proactive measures in Eastern China, including WeChat group marketing and community group purchases, to adapt to the pandemic restrictions[13]. - The Group launched special holiday products targeting key dates such as Labour Day and Mother's Day to boost sales during dine-in suspensions[13]. - The Group's proactive approach during the pandemic included setting up a special department for customer relationship management and emphasizing online marketing initiatives[17][19]. - The Group plans to accelerate business expansion in the South West region and enhance research in second-tier cities with potential[27]. Membership and Community Engagement - The Group's membership exceeded 780,000 since the launch of electronic membership in the second half of 2021, with continuous promotional activities driving member growth[17][19]. - The Group's community size reached 12,000 people, with ongoing growth driven by targeted social marketing strategies[22][24]. - The Group focused on upgrading membership benefits and launched various member-exclusive promotions to strengthen member loyalty[17][19]. Cost Management - Staff costs amounted to approximately RMB 204.9 million, representing a decrease of approximately RMB 21.3 million or approximately 9.4% from RMB 226.2 million for the same period in 2021[33]. - The Group's utility and consumables expenses amounted to approximately RMB28.0 million, a decrease of approximately 29.5% from RMB39.7 million in 2021[36]. - Other expenses decreased by approximately RMB1.4 million or approximately 2.5%, totaling RMB54.8 million compared to RMB56.2 million in 2021[36]. Shareholder Information - As of June 30, 2022, Ms. Weng Peihe held 32,450,000 shares, representing approximately 3.01% of the total shareholding[70]. - Mr. Yip Shu Ming held 247,644,000 shares, representing approximately 23.01% of the total shareholding[70]. - The total shareholding percentages indicate a significant concentration of ownership among a few substantial shareholders[79]. - The ownership structure shows a complex web of controlled corporations and trusts, indicating potential strategic alignment among major shareholders[81]. Share Award Scheme - The Company adopted the Share Award Scheme on April 1, 2021, which is valid for a term of 10 years[86]. - A total of 5,000,000 shares were awarded and vested to selected participants, representing approximately 0.465% of the issued share capital as of the report date[94]. - The Share Award Scheme aims to retain and attract suitable personnel for the Group's growth and development[87]. Cash Flow and Assets - Cash and cash equivalents decreased by RMB31.5 million from RMB403.0 million as of December 31, 2021, to RMB371.5 million as of June 30, 2022[36]. - The Group's total assets were RMB921.9 million as of June 30, 2022, down from RMB1,034.0 million as of December 31, 2021[38]. - The company reported a decrease in cash generated from operations, reporting a net cash outflow of RMB 19,293,000 for the six months ended June 30, 2022, compared to an inflow of RMB 129,445,000 in 2021[119]. Liabilities and Financial Ratios - The gearing ratio increased to 16.5% as of June 30, 2022, from 12.5% as of December 31, 2021[39]. - The current ratio was 1.2 as of June 30, 2022, compared to 1.3 as of December 31, 2021[40]. - Total liabilities increased slightly to RMB 590,194 as of June 30, 2022, compared to RMB 586,082 at the end of 2021[111].

Financial Performance - The total revenue recorded for the year ended December 31, 2021, was RMB 1,361.3 million, representing a year-on-year increase of 23.2%[17] - The Group recorded total revenue of RMB1,361.3 million for the year ended December 31, 2021, representing an increase of 23.2% compared to RMB1,105.1 million in 2020[66] - The Group's profit attributable to owners for the year was approximately RMB40.6 million, significantly up from RMB4.4 million in 2020[99] - The Group's overall revenue increased by 23.2% to RMB1,361.3 million, while the gross profit margin rose to 62.2% from 61.8% in 2020[96] - Income tax expense for the Year was RMB27.6 million, up from RMB15.4 million in 2020[99] - The average spending per customer for Tang Palace was RMB199.7, contributing 79.5% to the Group's revenue[96] - The Group's income tax expense for the year was RMB27.6 million, compared to RMB15.4 million in the previous year[103] Market and Business Strategy - The company aims to seize opportunities in the recovering dining market by refining its operation system and employee training[16] - The company has been actively exploring new retail possibilities to enhance its market presence[16] - The Group plans to explore second-tier cities such as Chongqing, Nanjing, and Wuhan due to market saturation in major cities, focusing on brand symbiosis to create synergy in R&D costs and resource promotion[27] - The Group's marketing strategy includes leveraging public platforms to increase brand awareness and market share while actively developing private platforms[22] - The Group aims to enhance internal competitiveness through team building and system upgrades, preparing for development over the next 10 years[27] - The Group aims to expand its market presence through strategic partnerships and investments in related sectors[145] Membership and Customer Engagement - The number of electronic members reached over 700,000, contributing to a positive market outlook[18] - The electronic membership system was fully updated in September 2021, with over 700,000 members currently, indicating a strong market outlook[22] - The number of members in the upgraded digital membership system exceeded 700,000 as of December 31, 2021, representing an increase of over two times compared to the same period in 2020[78] - The Group's membership consumption percentage in each region has been gradually rising, indicating increased customer loyalty and engagement[78] - The takeaway business model was reconstructed to include a self-operated mini-program, enhancing customer loyalty and reducing platform commission costs[73] Product and Service Innovation - The company upgraded its electronic membership system in September 2021, allowing members to place orders directly to nearby branches[18] - The company has been innovating its brands to provide diverse dining experiences[16] - In 2021, the Group launched a green new diet menu in collaboration with Green Monday, promoting healthy, low-carbon, and environmentally friendly dishes[33] - The Group launched its own mini-program live streaming to promote seasonal products and meal packages, enhancing online marketing and customer interaction[69] - The introduction of a "green menu" featuring plant-based options aligns with increasing consumer focus on health and environmental protection[88] - The Group introduced personalized services for family celebrations and small banquets in response to reduced banquet consumption due to the Pandemic[69] Corporate Culture and Social Responsibility - The Group emphasizes a corporate culture that focuses on employee happiness and aims to create a global centennial brand of happiness[41] - The Group's commitment to social responsibility includes participation in charity events and collaborations with various charity groups to help those in need[38] - The Group's corporate mission is to bring humanistic care to customers, aligning with its values of safety, kindness, consideration, and contribution[41] - The Group aims to create a global centennial brand of happiness, emphasizing its commitment to partners, customers, and society[47] Operational Challenges and Adaptations - The company is preparing for its 30th anniversary while navigating the challenges of a normalized pandemic[15] - The pandemic has accelerated the growth of online retailing, positively impacting sales in the food and beverage market[62] - The Group's operations in Hong Kong were significantly impacted by the pandemic in the first half of 2021, but revenue increased in the second half due to government consumption vouchers[66] - The overall resilience of Chinese food and beverage enterprises has improved, despite the ongoing challenges posed by the pandemic[62] Leadership and Governance - Ms. Weng has been the CEO since March 2000 and was appointed chairman on July 1, 2020, contributing significantly to corporate operations and business development[126] - The Group's overall corporate strategy development is overseen by Mr. Chen Zhi Xiong, who has been with the Group since May 2000 and became CEO in July 2020[144] - The Group's directors have extensive experience in the restaurant industry, contributing to its strategic direction and operational management[144][145] - The Group's independent non-executive directors bring diverse legal and financial expertise, contributing to governance and compliance[149][152] - The Company has complied with all corporate governance code provisions throughout the year, ensuring high standards of corporate governance practices[184] Financial Position and Assets - Cash and cash equivalents increased by RMB1.0 million from RMB402.0 million as at 31 December 2020 to RMB403.0 million as at 31 December 2021[100] - Net cash generated from operating activities was RMB177.3 million during the year, while net cash used in investing activities amounted to RMB17.4 million[101] - The Group's total assets as at 31 December 2021 were RMB1,034.0 million, down from RMB1,064.5 million as at 31 December 2020[108] - The Group's bank borrowings decreased to RMB52.2 million as at 31 December 2021 from RMB74.8 million as at 31 December 2020, resulting in a gearing ratio of 12.5%[108] - The current ratio as at 31 December 2021 was 1.3, unchanged from the previous year[108] Employee and Human Resources - As at 31 December 2021, the Group had around 3,800 employees, consistent with the previous year[112] - The Group aims to enhance employee satisfaction through four major systems: Caring, Connecting, Encouraging, and Growing[92] - The Group's human resources strategy and talent development are managed by Ms. Wang, who has been with the Group since 2008[171]

Financial Performance - For the period from January 1 to June 30, 2021, the Group recorded total revenue of RMB714.5 million, representing an increase of 74.0% compared to RMB410.5 million for the same period last year[12]. - The Group's overall revenue for the period from January 1 to June 30, 2021, reached RMB 714.5 million, a 74.0% increase compared to RMB 410.5 million in the same period last year[13]. - Revenue for the six months ended June 30, 2021, was RMB 714,453,000, representing a 74% increase from RMB 410,491,000 in 2020[109]. - Profit before tax for the period was RMB 49,318,000, compared to a loss of RMB 64,775,000 in the same period last year[109]. - The net profit for the period was RMB 32,516,000, a significant recovery from a loss of RMB 67,457,000 in 2020[111]. - Total comprehensive income for the period was RMB 30,898,000, recovering from a loss of RMB 68,685,000 in 2020[111]. - Other income for the period increased to RMB 17,512,000 from RMB 14,859,000 in 2020[109]. - The company reported finance costs of RMB 9,961,000, down from RMB 12,990,000 in 2020, indicating improved financial management[109]. - The total income tax expense for the period was RMB 16,802,000, compared to RMB 2,682,000 for the six months ended June 30, 2020, reflecting a substantial increase[172]. Profitability Metrics - The gross profit margin increased to 61.7% from 60.0% in 2020, reflecting stringent and refined target-oriented management[12]. - Basic and diluted earnings per share were RMB 3.01, compared to a loss of RMB 6.18 per share in the previous year[109]. - The profit attributable to owners of the Company for the Period was approximately RMB32.4 million, a significant recovery from a loss of approximately RMB66.5 million in 2020[29][33]. Revenue Sources and Growth - National catering revenue in the first half of 2021 was RMB2,171.2 billion, up by 48.6% year-on-year, indicating a recovery in consumer appetite[9]. - National online retail sales grew by 23.2% year-on-year in 2021, with a two-year average growth rate of 15.0% despite the Pandemic[12]. - The takeaway business grew by 80.2% compared to the previous year and doubled compared to the same period in 2019[15]. - The Group's commission income related to tea product sales was RMB 11,670,000, up from RMB 6,566,000 in 2020[156]. Operational Strategies - The Group focused on improving customer value perception and launched various themed activities to enhance customer satisfaction and repeat purchase rates[12]. - The Group maintained online exposure and promoted online marketing to adapt to changing consumption patterns accelerated by the Pandemic[12]. - The Group's strategies included cost reduction and maintaining customer interaction to navigate the challenges posed by the Pandemic[12]. - The Group is actively preparing for a membership system upgrade, which will enhance customer convenience and loyalty[15]. Market and Economic Context - China's GDP reached RMB53,216.7 billion in the first half of 2021, an increase of 12.7% year-on-year, with final consumption expenditure contributing 61.7% to economic growth[9]. - The catering industry benefited from the gradual revival of the consumption atmosphere, returning to pre-COVID revenue levels compared to 2019[9]. - The rapid recovery of the Group's dine-in business was driven by improved market sentiment and the positive impact of online sales[12]. Assets and Liabilities - The Group's total assets as of June 30, 2021, were RMB1,061.8 million, with net current assets of RMB193.4 million[32][35]. - Cash and cash equivalents increased by RMB73.5 million to RMB475.5 million as of June 30, 2021[30][34]. - The current ratio improved to 1.4 as of June 30, 2021, compared to 1.3 at the end of 2020, indicating sufficient working capital[38]. - Total non-current liabilities decreased to RMB 139,448, down 20.1% from RMB 174,488 as of December 31, 2020[113]. Shareholder Information - As of June 30, 2021, Ms. Weng Peihe held 29,950,000 shares, representing approximately 2.78% of the total shareholding[65]. - Mr. Yip Shu Ming held 247,364,000 shares, accounting for approximately 22.98% of the total shareholding[65]. - The total shareholding structure indicates significant concentration among a few major shareholders, with the top five holding over 70% of the shares[70]. Dividends and Share Schemes - An interim special dividend of HK2.50 cents per ordinary share was declared for the period, up from HK2.00 cents in 2020[96]. - The company declared an interim special dividend of HKD 2.50 per ordinary share for the period, an increase from HKD 2.00 in 2020[99]. - A new Share Award Scheme was adopted on April 1, 2021, to recognize contributions and retain suitable personnel for the Group's development[92]. Employee and Human Resources - The Group had over 3,800 employees as of June 30, 2021, emphasizing the importance of human resources for operational success[45]. - Staff costs rose to RMB 226,243,000, up from RMB 171,521,000 in the previous year, reflecting increased operational activities[109]. Compliance and Governance - The company complied with all corporate governance code provisions throughout the period[56]. - The company expressed gratitude to its management and staff for their dedication and hard work during the period[104].

Tang Palace HONG KONG 香 TANG PALACE 建 FOOD & BEVERAGE # GROUP # 唐宮(中國) 控股有限公司 TANG PALACE (CHINA) HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號 : 1181 ANNUAL REPORT 2020 | --- | --- | --- | |--------------|------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------| | | | | | 56 87 | Directors' Report Independent Auditor's R ...

Financial Performance - The Group's overall revenue for the period from January 1 to June 30, 2020, was RMB 410.5 million, representing a decrease of 45.9% compared to RMB 758.8 million in the same period last year[21]. - The loss attributable to the owners of the Company during the period was RMB 66.5 million, compared to a profit of RMB 51.2 million in 2019[21]. - The gross profit margin decreased to 60.0%, down from 63.1% in 2019[21]. - Profit before tax for the period was a loss of RMB 64,775,000, compared to a profit of RMB 78,726,000 in the prior year[136]. - The company reported a loss for the period of RMB 67,457,000 in 2020, compared to a profit of RMB 52,037,000 in 2019, indicating a significant decline in performance[140]. - Total comprehensive loss for the period was RMB 68,685,000, a decrease from a comprehensive income of RMB 49,586,000 in the previous year[140]. - The company reported a decrease in inventories of RMB 33,761,000, contrasting with an increase of RMB 167,659,000 in the same period last year[149]. - The company incurred staff costs of RMB 171,521,000, a decrease of 28.5% from RMB 239,872,000 in the previous year[136]. Impact of COVID-19 - The food and beverage industry recorded a revenue decline of 32.8% in the first half of 2020 due to the pandemic[18]. - The Group suspended dine-in operations in most stores from the end of January to mid-March 2020, leading to a significant decrease in customer traffic[21]. - National consumption expenditure per capita decreased by 9.3% in real terms during the first half of 2020, significantly impacting the food and beverage industry[18]. - The Group implemented high-level internal prevention measures, including measuring employee body temperature three times a day and disinfecting the store environment every hour[22]. - The Group adjusted and expanded its takeaway business in response to the pandemic challenges[22]. - The Group was recognized as a "guaranteed catering unit for pandemic prevention and control" in various cities, supporting those who resumed work early[22]. - The Group implemented strict safety measures, including zero-contact food production and takeaway packaging processes, which contributed to being recognized as a "guaranteed catering unit for pandemic prevention and control" by various regional governments[26]. Operational Adjustments - The Group focused on optimizing its manpower structure and implementing flexible shift arrangements to control labor costs effectively[27]. - The Group successfully negotiated rent concessions and applied for COVID-19 subsidies to reduce operating costs during the pandemic[27]. - The Group designed special takeaway dishes to cater to customers' needs for convenient home dining, including family feasts and fresh seafood delivery[26]. - The Group organized extensive training for employees during the pandemic to enhance managerial and operational knowledge, preparing them for post-pandemic operations[32]. Shareholder Relations - Despite recording a loss during the period, the Group declared an interim special dividend to maintain a balance between shareholder relations and business practices[37]. - The company declared an interim special dividend of HK2.00 cents per ordinary share, down from HK3.40 cents in 2019[120]. Financial Position - Cash and cash equivalents decreased by RMB33.4 million to RMB349.1 million as of June 30, 2020[55]. - The Group maintained total assets of RMB1,037.6 million and net current assets of RMB82.7 million as of June 30, 2020[55]. - The Group's equity attributable to owners decreased to RMB 358,425,000 from RMB 423,893,000, reflecting a decline in retained earnings and reserves[144]. - The company reported cash and cash equivalents of RMB 349,090,000, down from RMB 382,454,000 at the end of 2019, highlighting a decrease in available cash[142]. Employee and Social Responsibility - The Group donated RMB 1 million to the Hubei Charity Federation for medical supplies during the pandemic, demonstrating its commitment to social responsibility[33]. - The Group's management emphasized the importance of employee health and safety, improving dormitory conditions and ensuring access to daily necessities during the pandemic[32]. - The Group had over 3,600 employees as of June 30, 2020, emphasizing the importance of qualified personnel for operations and expansion[64]. Market and Future Outlook - The Group's sensitivity to market demand and accurate marketing strategies are expected to create new business opportunities despite ongoing challenges[39][40]. - The Group is confident in strengthening its existing business while exploring unlimited opportunities in new economic and consumption patterns[39][40]. Corporate Governance - The Board confirmed compliance with all corporate governance code provisions throughout the period[75]. - The Company adopted a code for securities transactions by directors that meets or exceeds the Model Code standards[76].

Economic Challenges - The Group faced challenges in 2019 due to the Sino-US trade war and economic uncertainties in Europe, leading to slower growth in Mainland China and Hong Kong[16] - The outbreak of the novel coronavirus disease at the end of 2019 further impacted the retail and food and beverage industries[16] - The annual GDP growth for China in 2019 was 6.1%, marking the slowest pace of economic growth since the 1990s[58] Brand Promotion and Expansion - The Group focused on brand promotion, opening two self-owned brand restaurants in Mainland China, including one at an international airport[17] - The Group exported its self-developed brands through a joint venture, opening its first "Social Place" restaurant in Singapore[17] - The introduction of well-known Japanese restaurant brands to the Hong Kong market aimed to further expand the customer base[17] - The group achieved significant goals in 2019, focusing on brand promotion through store openings and sales strategies, including two new restaurants in mainland China[18] - The group opened its first restaurant "Tang Palace Little Gathering" in Singapore, expanding its brand presence internationally[18] - The Group opened one restaurant in Shanghai Pudong International Airport, marking its first expansion into an international airport[62] - The Group's development in Chengdu and Hangzhou remained satisfactory, with two local Chinese restaurants recording a double-digit increase in revenue[62] - The Group's strategy for expansion shifted to focus on casual dining, franchised, and joint venture restaurants with smaller investment sizes[62] Marketing Strategies - Marketing strategies were enhanced to expand brand awareness, including dine-in, takeout services, and electronic membership cards[17] - The average number of food delivery transactions per day increased by over 36% according to Meituan Delivery, indicating robust market demand[66] - Takeaway revenue increased by 18.8% compared to the same period in 2018, contributing to 7.0% of overall revenue, up from 5.9% in 2018[71][74] - Casual dining revenue was RMB247.3 million, reflecting a slight increase of 0.3% year-on-year despite challenges from social movements in Hong Kong[73][75] Financial Performance - The revenue for 2019 was RMB1,495.1 million, representing an increase of RMB3.0 million or 0.2% compared to the same period in 2018[62] - The Group's overall revenue for the year increased by 0.2% to RMB1,495.1 million, while the gross profit margin decreased by 0.4% to 62.7%[83][78] - Net profit attributable to shareholders decreased by 20.7% to RMB91.3 million, with a net profit margin dropping from 7.8% to 6.2%[85] - Cash and cash equivalents decreased by RMB17.9 million to RMB382.5 million as of December 31, 2019[84] - The effective tax rate for the year was 32.8%, up from 30.3% in 2018, with net profit attributable to owners decreasing by 20.7% to RMB91.3 million[83] - The Group maintained a healthy financial condition and a capable management team, which is expected to help the business recover rapidly post-epidemic[28] Employee and Management Initiatives - The group initiated a "CEO Scholarship" to encourage employee learning during adversity and promoted online professional training courses[26] - The management expressed gratitude for the contributions of staff during 2019 and their dedication during the epidemic in 2020[28] - The group emphasized the importance of nurturing professional catering talents through various training programs to enhance team morale and management skills[20] - As of December 31, 2019, the Group had approximately 4,500 employees in Hong Kong and the PRC, with competitive remuneration and discretionary bonuses based on performance[104] Corporate Governance - The company has complied with all corporate governance code provisions throughout the year[139] - The Board is responsible for maximizing the financial performance and making decisions in the best interest of the company[140] - The company has a commitment to maintaining high standards of corporate governance practices to enhance corporate value and accountability[138] - The Company has established three board committees: audit committee, remuneration committee, and nomination committee, to oversee specific aspects of its affairs[191] - The Company has implemented effective internal control and risk management systems as part of its governance practices[199] Risk Management - The Company aims to manage risks effectively rather than eliminate them, providing reasonable assurance against material misstatement or loss[159] - The Risk and Control Committee facilitates the annual review of risk management and internal control systems, reporting any significant deficiencies to the Board[158] - The internal audit department is responsible for monitoring daily operations and ensuring compliance with Listing Rules and applicable laws[158] - The Company has established written procedures for handling and disseminating inside information, ensuring compliance with the Securities and Futures Ordinance[163] Leadership and Strategic Development - Ms. Weng has been the CEO of the Group since March 2000, overseeing business development and market expansion[116] - The Group's strategic development is led by Mr. Chan and Mr. Ku, both of whom have extensive experience in the restaurant business since the 1990s[114][115] - The Group's leadership is committed to continuous improvement and innovation in service delivery and customer experience[116] - The Group aims to expand its market presence and enhance operational efficiency through strategic initiatives[116]

Business Operations - As of June 30, 2019, the Group operated a total of 44 self-owned restaurants, 14 franchised restaurants, and 10 joint venture restaurants[13]. - The Group opened a total of 6 new stores in Chengdu and Hangzhou, targeting cities with strong consumption power[13]. - The Group's strategic site selection for new establishments focused on thematic and lifestyle malls to attract a wider customer base[13]. - The Group introduced a Japanese cuisine brand and opened a restaurant in Hong Kong, along with an additional "Social Place" in Taiwan during the period[21]. - The Group opened a new Chinese restaurant in Beijing and plans to open a restaurant at Shanghai Pudong International Airport in September 2019[47]. - A casual dining restaurant will be opened in Hong Kong in the second half of 2019, with improvements in the management system for further expansion[47]. - The Group is exploring overseas brands for potential inclusion in its business, including a joint venture Japanese restaurant opened in the first half of 2019[47]. - The Group's restaurant operations and food production activities remained the primary focus during the period[128]. Financial Performance - The Group's revenue for the period reached RMB 758.8 million, representing an increase of RMB 18.6 million or 2.5% compared to the same period in 2018[13]. - Revenue growth was primarily driven by the contribution from stores that have been operational for less than two years and the development of new stores[13]. - New and growing stores, including 5 Chinese restaurants, 3 casual dining restaurants, and 2 franchised restaurants, contributed RMB 121.9 million, accounting for 16.1% of the Group's revenue during the period[13]. - The Group's total revenue for the six months ended June 30, 2019, reached RMB 758.8 million, an increase of RMB 18.6 million or 2.5% compared to the same period in 2018[14]. - The revenue from new and growth stores contributed RMB 121.9 million, accounting for 16.1% of the Group's total revenue during the period[14]. - The Group's takeaway revenue increased by 7.1% compared to the same period in 2018, maintaining a similar percentage of overall revenue[17]. - The profit attributable to owners of the Company decreased by 1.9% from RMB52.2 million to RMB51.2 million, resulting in a net profit margin decrease from 7.1% to 6.7%[30]. - Profit before tax for the period was RMB 78,726,000, slightly up from RMB 78,572,000 in 2018, reflecting a marginal increase of 0.2%[105]. - Profit for the period was RMB 52,037,000, a decrease of 2.1% compared to RMB 53,155,000 in the previous year[108]. - Basic and diluted earnings per share were 4.79 RMB cents, down from 4.90 RMB cents in 2018, indicating a decline of 2.2%[105]. - Total comprehensive income for the period was RMB 49,586,000, significantly up from RMB 32,574,000 in the same period of 2018, representing an increase of 52.2%[108]. Cost Management - The gross profit margin during the period was 63.1%, remaining stable compared to the previous year, due to effective cost control policies for food ingredients[22]. - Labor cost increase was significantly reduced to 5.4% for the six months ended June 30, 2019, down from 16.8% in 2018[22]. - The focus for 2019 includes optimizing food cost control and kitchen management as part of cost control strategies[47]. - The Group's management system upgrade is aimed at controlling labor costs and improving operational efficiency[47]. Market Trends - China's GDP increased by 6.3% year-on-year to RMB 45,093.3 billion in the first half of 2019, indicating a slowdown compared to 6.6% in the same period of 2018[9]. - Domestic food and beverage revenue increased by 9.4% year-on-year to RMB 2,127.9 billion, slightly down from 9.9% in the previous year[9]. - Online retail sales of physical commodities saw a year-on-year increase of 21.6%, with food products growing by 29.3%[9]. - The Group noted the need for policy adjustments in restaurant openings due to rapid market changes and competition in the food and beverage industry[13]. Shareholder Information - As of June 30, 2019, Mr. Yip Shu Ming held 246,750,000 shares, representing 22.97% of the issued share capital[65]. - Mr. Chan Man Wai held 361,634,000 shares, representing 33.84% of the issued share capital[65]. - Current Success Investments Limited, a beneficial owner, held 246,750,000 shares, representing 22.97%[74]. - Best Active Investments Limited, a beneficial owner, held 352,500,000 shares, representing 32.98%[74]. - Bright Mind Investments Limited held 105,850,000 shares, representing 9.93% of the issued share capital[74]. - Orchid Asia IV, L.P. held 82,705,000 shares, representing 7.74% of the issued share capital[74]. - The shareholding structure indicates that YM Investment Limited controls approximately 92.61% of Orchid Asia IV Investment, Limited[83]. Dividend and Share Award Plan - The Board declared an interim special dividend of HK3.40 cents per ordinary share for the period, consistent with the previous year[93]. - The maximum number of shares to be purchased by the Share Award Plan Trustee in any financial year shall not exceed 10% of the total number of shares in issue at the beginning of that financial year[89]. - The Share Award Plan shall be valid and effective for a term of 10 years commencing from the adoption date[93]. - The eligibility of participants and the number of shares to be awarded under the Share Award Plan are determined by the Board based on their contribution to the Group[89]. Financial Position - Cash and cash equivalents increased by RMB44.4 million to RMB444.8 million as of June 30, 2019[36]. - The Group's total assets reached RMB1,182.5 million, up from RMB893.1 million at the end of 2018[36]. - The gearing ratio was 18.4% as of June 30, 2019, compared to 15.8% at the end of 2018[36]. - Total current liabilities rose to RMB 530,614,000 as of June 30, 2019, compared to RMB 383,650,000 as of December 31, 2018, indicating increased financial obligations[111]. - Total equity decreased to RMB 430,816,000 as of June 30, 2019, from RMB 502,633,000 as of December 31, 2018, reflecting a decline in reserves[114]. - Total non-current assets increased to RMB 525,537,000 as of June 30, 2019, compared to RMB 236,790,000 as of December 31, 2018, reflecting a significant growth[111]. Accounting Standards - The Group adopted HKFRS 16, which requires lessees to account for all leases under a single on-balance sheet model, effective from January 1, 2019[142]. - The transition to HKFRS 16 did not have any financial impact on the Group as a lessor[146]. - The Group has multiple lease contracts for various properties, previously classified as finance or operating leases[150]. - The Group has elected to present right-of-use assets separately in the consolidated statement of financial position[155].

Business Operations - The Group operates a total of 67 self-owned and joint venture restaurants across 10 cities in the Greater China region[21] - The casual dining business has expanded to 12 restaurants, with ongoing standardization of products and operations to prepare for rapid growth and overseas expansion[28] - The group has established 8 joint venture restaurants, enhancing market diversification and aligning with the multi-brand strategy to provide varied dining experiences[31] - The Group operated 59 restaurants and 8 joint venture restaurants as of December 31, 2018[97] - The Group opened two new restaurant outlets in 2018 that recorded profits within three months of operation[71] - The Group's first Chinese restaurant in Chengdu recorded a turnover increase of 4.9% after over two years of operation[71] - The Group is preparing to open new restaurants in Mainland China and Hong Kong in 2019, focusing on casual dining management standardization[119] Market Trends and Opportunities - The food and beverage market in Mainland China is rapidly changing, with e-consumption becoming a leading mode of consumption, presenting both challenges and opportunities[22] - The demand for food and beverage takeaways has been identified as a business opportunity, leading to organized teams at each outlet to boost sales volume[22] - The strong demand for food delivery services has been identified as a significant business opportunity, with dedicated teams established to boost sales across all locations[24] - The Group aims to expand into the family food market to improve brand exposure and penetration through e-commerce platforms[22] - The Group aims to leverage e-commerce platforms to increase brand exposure and penetration in the market[24] - The transaction amount for food and beverage takeaway services reached RMB 282.8 billion in 2018, representing a year-on-year increase of over 65%[74] - Online retail sales of physical commodities, particularly food products, increased by 33.8%, highlighting competitive dynamics in the online catering market[68] Financial Performance - The Group's revenue for the year ended December 31, 2018, reached RMB 1,492.1 million, representing a 10.0% increase compared to the previous year[71] - Same store revenue recorded a slight increase, supported by the contribution from stores opened in 2017, which generated RMB 240.4 million, accounting for 16.1% of total revenue[71] - The takeaway revenue increased by over 50% compared to the same period in 2017, with its proportion in overall revenue rising from 4.0% in 2017 to 5.9% in 2018[74] - The self-developed casual dining brands generated an overall turnover of RMB 246.4 million, marking a 39.9% increase year-on-year[77] - The Group's overall revenue increased by 10.0% to RMB 1,492.1 million for the year[100] - Gross profit margin decreased by 1.3% due to continuous downward adjustment of value-added tax rates in Mainland China and fluctuations in purchase costs[100] - Staff costs as a percentage of revenue rose to 29.5% from 27.6% in the previous year, primarily due to minimum wage increases across various provinces[100] - The profit attributable to owners of the Company decreased by 12.3% from RMB 131.3 million to RMB 115.2 million[100] - The net profit margin improved from 7.2% in the first half of 2018 to 8.5% in the second half, resulting in an overall margin of 7.8% for the year[100] Management and Governance - The Group's commitment to sustainable development is reflected in its insightful strategies and artisan spirit[18] - The company is committed to meticulous management and continuous improvement of effectiveness and efficiency[30] - The management team is committed to enhancing shareholder value through strategic initiatives and effective management practices[146] - The company emphasizes the importance of corporate governance and compliance with regulatory standards in its operations[146] - The Group's executive directors have rich experience in the restaurant business, with backgrounds in managing various restaurant operations[134][138] - The Board is responsible for maximizing the financial performance of the Group and making decisions in the best interest of the Company[168] - The company has a strong governance structure with independent directors overseeing key committees, including audit and remuneration[146] - The Board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a diverse composition[174] Employee and Training Initiatives - Training programs focusing on management and traditional Chinese values have been emphasized to enhance employee contributions and brand reputation[33] - As of December 31, 2018, the Group had approximately 4,500 employees, with competitive remuneration and various employee benefits[123] Future Plans and Innovations - In 2019, the Group plans to enhance retail business efforts and explore takeaway food options to increase brand penetration and optimize takeaway sales operations[119] - The Group aims to introduce artificial intelligence applications in the second half of 2019 to achieve data-oriented management and reduce labor costs[119] Financial Position and Assets - The Group's cash and cash equivalents decreased by RMB 29.4 million to RMB 400.4 million as of December 31, 2018[103] - Net cash generated from operating activities was RMB 186.9 million, while net cash used in investing activities amounted to RMB 86.2 million[104] - The Group's total assets were RMB 893.1 million as of December 31, 2018, compared to RMB 889.7 million in the previous year, while net current assets increased to RMB 272.6 million from RMB 266.5 million[106] - The Group's bank borrowings amounted to RMB 79.2 million as of December 31, 2018, up from RMB 70.6 million in 2017, resulting in a gearing ratio of 15.8% compared to 13.2% in the previous year[106] - The current ratio as of December 31, 2018, was 1.7, slightly down from 1.8 in 2017, indicating sufficient working capital for operations and expansion[110] Risk Management and Internal Controls - The Company has a risk management and internal control system in place to mitigate material misstatements or losses[191] - The internal audit department and Risk and Control Committee facilitate the annual review of risk management and internal control systems[195] - The Company ensures compliance with the Listing Rules and applicable laws in various business locations[195] - The Company has implemented written procedures for handling and disseminating inside information as required by the Securities and Futures Ordinance[194]