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。 WELIFE TECHNOLOGY LIMITED 維力生活科技有限公司 （股份代號：1703） （於開曼群島註冊成立的有限公司） （前稱Palace Banquet Holdings Limited首灃控股有限公司） 截 至2023年3月31日止年度之年度業績公告 財務摘要 • 截 至2023年3月31日 止 年 度，收 益 約 為304.4百 萬 港 元（2022年：約294.1百 萬 港 元），增 加 約3.5%。 • 截 至2023年3月31日 止 年 度，虧 損 約 為6.9百 萬 港 元，而 截 至2022年3月31 日止年度虧損約為32.0百 萬 港 元。 • 截 至2023年3月31日 止 年 度，每 股 基 本 虧 損 約 為0.6港 仙，而 截 至2022年3 月31日 止 年 度，每 股 基 本 虧 損 約 為2.8港 仙。 ...

Revenue Performance - Revenue for the six months ended 30 September 2022 was approximately HK$114.2 million, a decrease of approximately 26.8% from approximately HK$156.0 million for the same period in 2021[9]. - Revenue from Chinese restaurant operations for the six months ended September 30, 2022, was HK$114,246,000, compared to HK$156,011,000 in 2021, representing a decrease of approximately 26.8%[155]. - Other income increased by approximately 367.6% to approximately HK$15.9 million, primarily due to rent concessions of approximately HK$7.9 million and one-off government grants of approximately HK$4.9 million[19]. - The loss for the period was impacted by various income sources, totaling HK$15,915,000 for the six months ended September 30, 2022, compared to HK$3,449,000 in 2021[175]. Financial Loss and Expenses - Loss and total comprehensive expenses for the period were approximately HK$14.6 million, representing a decrease of approximately 21.9% compared to approximately HK$18.7 million for the six months ended 30 September 2021[9]. - The loss for the period decreased by approximately 21.9% from HK$18.7 million to HK$14.6 million, attributed to the combined effects of various factors discussed[31]. - For the six months ended September 30, 2022, the company reported a loss attributable to owners of HK$14,571,000, an improvement from a loss of HK$18,684,000 in the same period of 2021, representing a decrease in loss of approximately 22.5%[189]. - The company incurred a total comprehensive loss of HK$14,571,000 for the six months ended September 30, 2022, compared to a loss of HK$18,684,000 for the same period in 2021[133]. Cost Management - Cost of inventories consumed decreased by approximately 22.9% to approximately HK$30.7 million, in line with the decrease in revenue[24]. - The cost of inventories consumed as a percentage of revenue increased from approximately 25.5% to approximately 26.9%, attributed to rising food costs under inflation[24]. - Staff costs decreased by approximately 9.3% to approximately HK$48.8 million, mainly due to a reduction in headcount and fewer part-time employees[25]. - Total staff costs (excluding directors' remuneration) decreased to HK$44,785,000 in 2022 from HK$50,023,000 in 2021, reflecting a reduction of about 10.5%[181]. - Total other expenses for the six months ended September 30, 2022, were HK$15,337,000, a decrease from HK$16,976,000 in 2021, representing a reduction of approximately 9.7%[184]. Cash Flow and Liquidity - As of September 30, 2022, the Group's cash and cash equivalents were approximately HK$53.8 million, down from HK$80.2 million as of March 31, 2022[38]. - The company's cash and bank balances decreased significantly from HK$80,180,000 as of March 31, 2022, to HK$53,755,000 as of September 30, 2022, a decline of 33.0%[128]. - The company reported net current liabilities of HK$73,609,000 as of September 30, 2022, compared to HK$60,298,000 as of March 31, 2022, indicating a worsening liquidity position[130]. - Cash generated from operations for the six months ended September 30, 2022, was HK$23,360,000, down 29.0% from HK$32,865,000 in the same period of 2021[134]. Shareholder Information - The Group does not recommend the payment of any interim dividend for the period[9]. - The Company maintained a sufficient public float of at least 25% of the issued shares during the reporting period[63][66]. - The Group had no material acquisition or disposal of subsidiaries, associates, or joint ventures during the period[54]. - As of September 30, 2022, Mr. Tam Kar Wai holds a 51% interest in the company through Wonderful Cosmos Limited, which owns 586,500,000 shares[93]. Governance and Compliance - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the period[86][90]. - The Company has complied with all code provisions of the Corporate Governance Code during the period[77][81]. - The Board has adopted the Model Code for Securities Transactions by Directors, with all Directors confirming compliance[78][82]. Operational Impact - The fifth wave of COVID-19 pandemic and related government measures significantly impacted restaurant operations and customer numbers[11]. - The Group operated six Chinese full-service restaurants under the brand "Palace" and one restaurant under the brand "Royal Courtyard" as of 30 September 2022[13]. - The Group's operations are entirely located in Hong Kong, with all non-current assets also situated there[160].

Financial Performance - Revenue for the year ended March 31, 2022, was HK$294,120,000, representing a 31.3% increase from HK$224,081,000 in 2021[14] - Loss attributable to owners of the Company decreased to HK$32,013,000 in 2022 from HK$124,269,000 in 2021, a reduction of 74.2%[14] - Basic and diluted loss per share improved to HK(2.8) cents from HK(11.6) cents, reflecting a 75.9% decrease in loss per share[14] - The company reported a revenue less cost of inventories of HK$220,256,000, a 32.3% increase from HK$166,560,000 in 2021[14] - For the year ended 31 March 2022, the Group's revenue increased by approximately HK$70.0 million, or 31.2%, to approximately HK$294.1 million from approximately HK$224.1 million for the year ended 31 March 2021[27] - The Group's gross profit increased by approximately 32.2% from approximately HK$166.6 million for the year ended March 31, 2021, to approximately HK$220.2 million for the year ended March 31, 2022[36] - The gross profit margin increased from 74.3% for the year ended 31 March 2021 to 74.9% for the year ended 31 March 2022[36] - The loss for the year decreased by approximately HK$92.3 million, from HK$124.3 million to HK$32.0 million, primarily due to the factors discussed above[45][49] Cost Management - The cost of food and beverages increased by approximately 28.5%, from approximately HK$57.5 million for the year ended 31 March 2021 to approximately HK$73.9 million for the year ended 31 March 2022[35] - Staff costs increased by approximately 16.6%, from approximately HK$92.6 million for the year ended 31 March 2021 to approximately HK$108.0 million for the year ended 31 March 2022[37] - The Group's staff costs as a percentage of revenue decreased to 36.7% for the year ended 31 March 2022, down from 41.3% in the previous year[37] - Property rentals and related expenses decreased significantly by approximately 67.3%, from HK$49.9 million to HK$16.3 million, due to a reduction in the number of operational restaurants and rent concessions[41] - Employee costs rose by approximately 16.6% from HK$92.6 million in the previous year to approximately HK$108.0 million, while the percentage of employee costs to revenue decreased from 41.3% to 36.7%[40] Operational Changes - The number of restaurants operated by the Group decreased from 11 at the beginning of the year to 9 at the end of the year[31] - The temporary suspension of restaurants in the fourth quarter significantly affected performance due to tightened COVID-19 measures[27] - The Group operates seven Chinese full-service restaurants under the brand "Palace" and one restaurant under the brand "Royal Courtyard" as of 31 March 2022[32] - The Group plans to seek suitable locations for new restaurants to prepare for economic recovery and expand its footprint in the banquet industry[21] Financial Ratios - Gross profit margin increased to 74.9% in 2022, up from 74.3% in 2021[16] - Net loss margin improved to (10.9%) in 2022 compared to (55.5%) in 2021[16] - Current ratio decreased slightly to 0.7 times in 2022 from 0.8 times in 2021[16] - Quick ratio also decreased to 0.6 times in 2022 from 0.8 times in 2021[16] - Gearing ratio increased significantly to 236.8% in 2022 from 125.9% in 2021[16] - The Group's total borrowings decreased to approximately HK$44.4 million from HK$64.0 million, with a gearing ratio increase to approximately 236.8% from 125.9%[58][59] - The Group's debt-to-equity ratio increased to approximately 236.8% as of March 31, 2022, compared to 125.9% in 2021, primarily due to losses incurred during the year[64] Cash and Investments - As of March 31, 2022, the Group's cash and cash equivalents were approximately HK$100.2 million, down from HK$147.5 million in the previous year[54][56] - Capital expenditure for the year was approximately HK$4.4 million for acquiring property, plant, and equipment, down from HK$12.0 million in the previous year[54][56] - As of March 31, 2022, the Group did not hold any significant investments[78] - A life insurance policy deposit of approximately HK$15.9 million was pledged to secure the Group's bank borrowings as of March 31, 2022[72] Corporate Governance - The Company does not recommend the payment of a final dividend for the financial year ended 31 March 2022, consistent with the previous year[104] - The Group has complied with relevant laws and regulations, with no material breaches reported during the year under review[125] - The Group has established a restaurant licensing compliance committee to oversee licensing compliance matters and report to the Board at least four times a year[124] - The Directors will continuously evaluate the Group's business objectives and modify plans according to changing market conditions[103] Shareholder Information - On December 15, 2021, Wonderful Cosmos Limited and others acquired 685,000,000 shares, representing approximately 59.57% of the total issued share capital of the Company for HK$157,550,000[79] - The issued share capital of the Company as of March 31, 2022, was 1,150,000,000 ordinary shares of HK$0.01 each[139] - The Company has maintained appropriate insurance coverage for Directors against liabilities incurred while performing their duties[180] - The Company has no arrangements allowing any Director or chief executive to hold interests or short positions in shares or debentures of the Company or its associated corporations[190] Employee Relations - The Group maintained a good relationship with its employees, providing competitive remuneration and continuous training to retain and motivate them[156] - There were no material disputes between the Group and its employees, suppliers, or customers during the Reporting Year[157] - The Group had approximately 137 employees as of March 31, 2022, a decrease from 290 employees in 2021[68] Environmental, Social, and Governance (ESG) - The Group is committed to ensuring that all business activities are economically, socially, and environmentally sustainable[126] - The Group has identified various ESG areas and has taken measures to control environmental and social impacts during its operations[129] - The Group made total charitable contributions amounting to approximately HK$667,000 during the Reporting Year, consistent with the previous year[152] - The Group's profitability may be adversely affected if it cannot enter into new lease agreements or renew existing leases on commercially acceptable terms[110] - The Group's profitability significantly depends on its ability to manage procurement costs for food and beverages, which can fluctuate and be volatile[111]

Revenue and Profitability - Revenue for the six months ended September 30, 2021, was approximately HK$156.0 million, representing an increase of approximately 48.4% compared to approximately HK$105.1 million for the same period in 2020[11]. - Loss for the period was approximately HK$18.7 million, a significant decrease of approximately 67.4% from approximately HK$57.3 million in the same period last year[11]. - Loss per share was approximately HK1.6 cents, compared to approximately HK5.7 cents for the six months ended September 30, 2020[11]. - The total comprehensive expenses for the period were approximately HK$18.7 million, reflecting improved operational efficiency[11]. - The Group's banquet services saw an increase in demand due to the easing of restrictions, contributing to the overall revenue growth[14]. - Revenue from Chinese restaurant operations for the six months ended 30 September 2021 was HK$150,611,000, representing an increase of 43.3% compared to HK$105,090,000 in the same period of 2020[155]. - The company reported a loss attributable to owners of HK$18,684,000 for the six months ended September 30, 2021, compared to a loss of HK$57,295,000 in the same period of 2020, indicating a 67.4% improvement[185]. - Basic loss per share decreased to HK$1.62 for the six months ended September 30, 2021, down from HK$5.73 in 2020, reflecting a 71.7% reduction in loss per share[185]. Operational Performance - The increase in revenue was primarily due to the relaxation of social distancing measures by the Hong Kong Government, which allowed for a higher number of guests for dining and banquet services[22]. - The Group operated 11 restaurants at the end of the period, unchanged from the beginning of the period, after closing 3 restaurants in the previous year[21]. - Staff costs increased by approximately 22.3%, from approximately HK$44.0 million for the six months ended 30 September 2020 to approximately HK$53.8 million for the Period[28]. - Property rentals and related expenses decreased by approximately 58.5%, from approximately HK$26.5 million for the six months ended 30 September 2020 to approximately HK$11.0 million for the Period[34]. - The Group had approximately 311 employees as at 30 September 2021, an increase from 280 employees as at 31 March 2021[55]. - The Group's cash and cash equivalents were approximately HK$150.6 million, an increase from HK$147.5 million as of 31 March 2021[43]. Financial Position - Total borrowings amounted to approximately HK$67.8 million as at 30 September 2021, compared to HK$64.0 million as of 31 March 2021[46]. - The Group's gearing ratio was approximately 211.2% as at 30 September 2021, up from 125.9% as of 31 March 2021[47]. - As of September 30, 2021, total assets less current liabilities amounted to HK$263,700,000, a decrease from HK$314,412,000 as of March 31, 2021, representing a decline of approximately 16.2%[127]. - Current liabilities increased to HK$224,047,000 from HK$221,598,000, indicating a slight rise of about 2.1%[128]. - The company's net assets were reported at HK$32,096,000, down from HK$50,780,000, indicating a decrease of approximately 36.8%[128]. - The Group's net current liabilities amounted to approximately HK$31,844,000 as of September 30, 2021[140]. Shareholder Information - As of September 30, 2021, Mr. Chan Shou Ming holds 662,500,000 shares, representing 57.61% of the company's total shareholding[96]. - Ms. Chen Xiao Ping owns 22,500,000 shares, accounting for 1.96% of the company's total shareholding[96]. - The entire issued shares of Agile Valley Limited are owned by Mr. Chan Shou Ming, who is deemed to be interested in all shares held by the company[103]. - The company has not engaged in any arrangements allowing directors or chief executives to hold interests in shares or debentures of the company[98]. - The Group maintained a sufficient public float of at least 25% of the issued shares during the period[66]. Dividends and Capital Management - The Group does not recommend the payment of any interim dividend for the period[11]. - The Board does not recommend payment of an interim dividend for the period[77]. - The net proceeds from the Listing amounted to approximately HK$92.73 million, with HK$36.8 million fully utilized for general capital to support operations[67]. - As of September 30, 2021, 76.1% of the net proceeds were allocated to opening restaurants, with HK$70.56 million planned for this purpose[75]. Other Financial Metrics - Other income decreased by approximately 88.1%, from approximately HK$29.3 million for the six months ended 30 September 2020 to approximately HK$3.5 million for the Period[25]. - Cost of inventories consumed increased by approximately 51.3%, from approximately HK$26.3 million for the six months ended 30 September 2020 to approximately HK$39.8 million for the Period, with the cost as a percentage of revenue remaining stable at 25.5%[27]. - Total finance costs decreased to HK$4,442,000 in 2021 from HK$7,703,000 in 2020, reflecting a reduction of 42.9%[163]. - The group did not receive any government subsidies for the six months ended 30 September 2021, compared to HK$22,919,000 in the same period of 2020[173]. - The company recorded no impairment loss on property, plant, and equipment for the six months ended September 30, 2021, compared to an impairment loss of HK$3,979,000 in 2020[188].

Financial Performance - For the year ended 31 March 2021, the revenue decreased by 65.6% to HK$224,081,000 compared to HK$650,801,000 in 2020[13]. - The loss attributable to owners of the Company increased by 10.6% to HK$124,269,000 from HK$112,371,000 in the previous year[13]. - The gross profit margin decreased to 74.3% from 76.6% in 2020[15]. - The net loss margin worsened to (55.5%) compared to (17.3%) in the previous year[15]. - The Group's gross profit decreased by approximately 66.6% from approximately HK$498.8 million for the year ended 31 March 2020 to approximately HK$166.6 million for the year ended 31 March 2021[48]. - The loss for the year increased by approximately HK$11.9 million, from HK$112.4 million for the year ended 31 March 2020 to HK$124.3 million for the year ended 31 March 2021[60]. Operational Challenges - During the year, the Group temporarily closed its restaurants to mitigate losses due to the COVID-19 pandemic[20]. - The Group faced significant operational challenges due to government-imposed restrictions on dining and gatherings[20]. - The management has taken decisive actions to close underperforming restaurants during the epidemic[23]. - The Group's management remains cautious in implementing its expansion plan due to the ongoing uncertainties related to COVID-19[38]. Restaurant Operations - The number of restaurants operated by the Group decreased from 18 at the beginning of the year to 11 at the end of the year, with 1 new restaurant opened and 8 closed during the reporting period[37][41]. - A new restaurant named "Sea Moon Cuisine" was opened in November 2020 to diversify revenue streams[24]. - The geographical advantage of the new restaurant location is expected to enhance revenue after customs clearance resumes between Mainland China, Hong Kong, and Macau[24]. - The Group plans to continue conducting feasibility studies to identify suitable locations for new restaurant openings in preparation for economic recovery[29][31]. Financial Ratios and Borrowings - The gearing ratio significantly increased to 125.9% from 32.4% in 2020[15]. - As at 31 March 2021, the Group's total borrowings amounted to approximately HK$64.0 million, up from HK$44.8 million in 2020[69]. - The current ratio as of March 31, 2021, was approximately 0.9 times, up from 0.8 times in 2020[73]. - The debt-to-equity ratio rose significantly to approximately 125.9% as of March 31, 2021, from 32.4% in 2020, primarily due to losses incurred during the year[74]. Cost Management - The cost of food and beverages decreased by approximately 62.2%, from approximately HK$152.0 million for the year ended March 31, 2020, to approximately HK$57.5 million for the year ended March 31, 2021[43]. - The cost of food and beverages as a percentage of revenue increased from 23.4% for the year ended March 31, 2020, to approximately 25.7% for the year ended March 31, 2021[43]. - Staff costs decreased by approximately 60.1%, from approximately HK$232.2 million for the year ended March 31, 2020, to approximately HK$92.6 million for the year ended March 31, 2021[49]. - The percentage of staff costs to revenue increased to approximately 41.3% for the year ended 31 March 2021, up from 35.7% in 2020[49]. - Property rentals and related expenses decreased by approximately 25.3%, from approximately HK$66.8 million for the year ended March 31, 2020, to approximately HK$49.9 million for the year ended March 31, 2021[50]. Shareholder Information - The Board does not recommend a final dividend for the financial year ended March 31, 2021, due to challenging business conditions and low-season cash flow requirements[106]. - As of March 31, 2021, the issued share capital of the Company was 1,150,000,000 ordinary shares at HK$0.01 each[144]. - The Company's reserves available for distribution as of March 31, 2021 totaled approximately HK$38,649,000, down from HK$83,687,000 in 2020[155]. - The Company did not purchase, redeem, or sell any of its listed securities during the year[148]. Corporate Governance and Compliance - The Group has established a restaurant licensing compliance committee to oversee compliance with necessary licenses and permits for operations[126]. - The Group is committed to ESG policies, ensuring compliance with applicable laws and focusing on sustainability and corporate social responsibility initiatives[128]. - The Company has taken measures to indemnify Directors against actions incurred in the execution of their duties[179]. Employee Relations - The Group maintained a good relationship with its employees, providing competitive remuneration and continuous training[161]. - There were no material disputes between the Group and its employees, suppliers, or customers during the Reporting Year[162].

Financial Performance - Revenue for the six months ended 30 September 2020 was approximately HK$105.1 million, a decrease of approximately 68.4% compared to HK$332.2 million for the same period in 2019[12]. - Loss for the period was approximately HK$57.3 million, representing an increase of approximately 34.9% from HK$42.5 million in the same period of 2019[12]. - Loss per share was approximately HK5.7 cents, an increase of approximately 34.8% from HK4.3 cents in the previous year[12]. - The Group's revenue decreased by approximately 68.4% from approximately HK$332.2 million for the six months ended 30 September 2019 to approximately HK$105.1 million for the six months ended 30 September 2020[34]. - Revenue from banquet services significantly decreased by approximately 90.4% compared to the six months ended 30 September 2019[34]. - Loss before tax for the period was HK$57,199,000, compared to a loss of HK$45,880,000 in the same period last year, indicating a deterioration of 24.0%[149]. - Loss attributable to owners of the Company was HK$57,295,000, up from HK$42,470,000, reflecting a 34.9% increase in losses[149]. - Basic and diluted loss per share increased to HK$5.73 from HK$4.25, representing a rise of 34.9%[149]. - The Group incurred a net loss of approximately HK$57,295,000 for the six months ended 30 September 2020[166]. - The company reported a total loss for the period, reflecting the impact of the pandemic on its operations[197]. Revenue Sources and Business Operations - The Group's revenue is derived from catering services and sales of goods, net of discounts, indicating a focus on service-based income[182]. - The catering industry in Hong Kong, particularly the Chinese restaurant sector, experienced a significant decline, with receipts decreasing by approximately 46.6% in value in the third quarter of 2020 compared to the same quarter in 2019[15]. - The average spending per customer of comparable restaurants decreased from HK$99 to HK$77[38]. - The guest count of comparable restaurant sales decreased from 2,510,000 to 1,128,000[38]. - The seat turnover rate of comparable restaurants decreased from 2.0 to 1.4[38]. - The Group's operations are entirely located in Hong Kong, with no individual external customer contributing over 10% of total revenue for the six months ended September 30, 2020[184]. Cost Management - The Group's cost of food and beverages decreased by approximately 67.4%, from approximately HK$80.7 million for the six months ended 30 September 2019 to approximately HK$26.3 million for the six months ended 30 September 2020, with the cost as a percentage of revenue remaining stable at 25.0%[45]. - The Group's staff costs decreased by approximately 65.4%, from approximately HK$127.1 million for the six months ended 30 September 2019 to approximately HK$44.0 million for the six months ended 30 September 2020, with staff costs as a percentage of revenue increasing to 41.9%[46]. - Property rentals and related expenses decreased by approximately 22.7%, from approximately HK$34.3 million for the six months ended 30 September 2019 to approximately HK$26.5 million for the six months ended 30 September 2020[50]. Strategic Initiatives - The company plans to negotiate with landlords for rent reductions and adjust operating hours to control costs amid ongoing COVID-19 challenges[18]. - The company will explore business opportunities beyond Hong Kong, including in mainland China, due to uncertainties in the local market[19]. - The Group plans to continue considering new restaurant openings after conducting feasibility analyses, while being cautious due to the ongoing COVID-19 pandemic[30]. - The company aims to develop dining and banquet services in prime locations with comparable rent[18]. Financial Position and Capital Management - As of 30 September 2020, the Group's cash and cash equivalents were approximately HK$103.2 million, down from HK$139.0 million as of 31 March 2020[59]. - The Group's total borrowings amounted to approximately HK$36.2 million as at 30 September 2020, down from HK$44.8 million as of 31 March 2020[62]. - The Group's gearing ratio increased to approximately 44.7% as at 30 September 2020, compared to 32.4% as at 31 March 2020[63]. - The net proceeds from the placing amounted to approximately HK$36.5 million, which will be used for general working capital and to improve the cash position of the group[81]. - Cash and cash equivalents at the end of the period were HK$103,152,000, down from HK$133,778,000 at the end of the same period in 2019[158]. - The Group's cash used in financing activities amounted to HK$44,350,000 for the six months ended 30 September 2020, compared to HK$67,136,000 in 2019[158]. Employee and Shareholder Information - As at 30 September 2020, the Group had approximately 371 employees, an increase from 279 employees as at 31 March 2020[71]. - The board does not recommend payment of an interim dividend for the six months ended September 30, 2020[92]. - The company maintained a sufficient public float of at least 25% of the issued shares for the six months ended September 30, 2020[83]. - As of September 30, 2020, Mr. Chan Shou Ming holds 662,500,000 shares, representing 66.25% of the company's total shareholding[114]. - Ms. Chen Xiao Ping owns 22,500,000 shares, accounting for 2.25% of the company's total shareholding[114]. - Ms. Qian Chunlin has an interest in 15,000,000 shares, which is 1.50% of the company's total shareholding[114]. Share Option Scheme - The share option scheme was adopted on January 25, 2019, to motivate eligible participants and reward past contributions[125]. - As of September 30, 2020, no share options have been granted under the Scheme, and there are no outstanding share options[139]. - The total number of shares available for issue under the Scheme is 100,000,000 shares, representing 8.70% of the Company's issued share capital[139]. - The maximum number of shares that can be granted under the Scheme is limited to 10% of the issued share capital as of the Listing Date, subject to shareholder approval[130]. - The maximum number of shares issuable under the share options to each eligible person within any 12-month period is limited to 1% of the shares of the Company in issue at any time[131]. Government Support and Subsidies - The company recognized a government subsidy of HK$22,919,000 under the Anti-Epidemic Fund, which was not present in the previous year[199]. - Other income increased significantly by approximately 578.7% from approximately HK$4.3 million to approximately HK$29.3 million, primarily due to one-off government grants of approximately HK$22.9 million received during the period[40].

Financial Performance - Revenue for the six months ended 30 September 2019 was approximately HK$332.2 million, a decrease of approximately 0.3% compared to HK$333.0 million for the same period in 2018[10]. - Loss for the period was approximately HK$42.5 million, an increase of approximately 49.3% from HK$28.5 million in the same period last year[11]. - Loss per share was approximately HK4.3 cents, an increase of approximately 12.1% from HK3.8 cents in the previous year[11]. - The Group's revenue decrease in this period marked the first decline in four years[15]. - Comparable restaurant sales decreased by approximately 9.2% from approximately HK$291.6 million in 1H2018 to approximately HK$264.9 million in 1H2019[30]. - Loss before tax increased to HK$45,880,000 for the six months ended September 30, 2019, compared to a loss of HK$30,683,000 in the same period of 2018, representing a 49.3% increase[142]. - Total comprehensive loss attributable to owners of the Company was HK$42,470,000 for the six months ended September 30, 2019, compared to HK$28,452,000 in 2018, indicating a 49.2% increase[142]. - Basic and diluted loss per share for the period was HK$4.25, compared to HK$3.79 in 2018, reflecting a 12.15% increase in loss per share[142]. Operational Changes - The Group operated 19 full-service restaurants under two brand names during the reporting period[19]. - Two restaurants ceased operations in May and June 2019 due to lease expirations, while two new restaurants were opened in July and September 2019[19]. - The number of restaurants operated as of September 30, 2019, remained at 19, with two new restaurants opened during the period[25]. - Eight restaurants underwent renovation in 1H2019 to maintain competitiveness[28]. - The Group plans to review the pace of opening new restaurants due to recent unstable market conditions[24]. - The management is closely monitoring the economic and business environment to maintain its position in Hong Kong's banquet market[18]. Cost and Expenses - Staff costs increased by approximately 6.1%, from approximately HK$119.8 million in 1H2018 to approximately HK$127.1 million in 1H2019, driven by the raise in statutory minimum wage[38]. - The cost of food and beverages decreased by approximately 5.1% to approximately HK$80.7 million in 1H2019, with the cost as a percentage of revenue at approximately 24.3%[36]. - Employee costs increased by approximately 6.1% from HK$119.8 million in 1H2018 to HK$127.1 million in 1H2019, accounting for about 38.3% of revenue[39]. - Property rentals and related expenses decreased significantly from approximately HK$92.2 million in 1H2018 to approximately HK$34.3 million in 1H2019 due to the adoption of HKFRS 16[41]. - Depreciation of property, plant, and equipment rose from approximately HK$11.8 million in 1H2018 to approximately HK$15.9 million in 1H2019, attributed to the amortization of initial setup costs for new restaurants[42]. - Finance costs increased from approximately HK$3.1 million in 1H2018 to approximately HK$11.1 million in 1H2019, primarily due to the recognition of interest on lease liabilities under HKFRS 16[47]. Liquidity and Financial Position - As of September 30, 2019, the Group's cash and cash equivalents were approximately HK$193.8 million, down from HK$242.6 million as of March 31, 2019[58]. - The current ratio decreased to approximately 0.8 times as of September 30, 2019, from approximately 1.8 times as of March 31, 2019, mainly due to the adoption of HKFRS 16[61]. - Total borrowings amounted to approximately HK$51.8 million as of September 30, 2019, down from approximately HK$57.3 million as of March 31, 2019[62]. - The gearing ratio was approximately 24.9% as of September 30, 2019, compared to 22.9% as of March 31, 2019, indicating a stable capital structure[63]. - The Group's current ratio as of September 30, 2019, was 1.4 times, indicating a stable liquidity position[65]. - The debt-to-equity ratio as of September 30, 2019, was approximately 24.9%, up from 22.9% as of March 31, 2019, reflecting a reasonable and stable capital structure[65]. - The total cash and cash equivalents at the end of the period were HK$133,778,000, down from HK$89,684,000 at the end of the previous year, indicating a decrease in liquidity[155]. - The Group's financial statements have been prepared on a going concern basis, indicating confidence in future operations despite current liabilities[166]. Accounting Standards and Policies - The adoption of HKFRS 16 resulted in significant changes to the Group's accounting policies, particularly in lease accounting, requiring the recognition of right-of-use assets and lease liabilities for all leases[179]. - The Group has applied HKFRS 16 retrospectively, adjusting the opening balance of equity as of April 1, 2019, without restating comparatives for the 2018 reporting period[182]. - The Group recognized lease liabilities for leases previously classified as operating leases under HKAS 17, measured at the present value of remaining lease payments[186]. - The new accounting policies introduced by HKFRS 16 are expected to impact the Group's financial performance and positions, although the specific effects are not detailed in the current report[179]. - The Group's accounting policies remain consistent with those followed in the preparation of the annual consolidated financial statements for the year ended March 31, 2019, except for the changes due to the adoption of new standards[172]. Shareholder Information - The Board does not recommend the payment of any dividend for the six months ended 30 September 2019[11]. - The Board does not recommend payment of a dividend for 1H2019, compared to HK$14 million in 1H2018[91]. - As of September 30, 2019, Mr. Chan Shou Ming holds 662,500,000 shares, representing 66.25% of the company's total shareholding[110]. - Ms. Chen Xiao Ping holds 22,500,000 shares, representing 2.25% of the company's total shareholding[110]. - Ms. Qian Chunlin holds 15,000,000 shares, representing 1.50% of the company's total shareholding[110]. - Agile Valley Limited, owned by Mr. Chan Shou Ming, is the beneficial owner of 662,500,000 shares, accounting for 66.25% of the company[118]. - The company did not purchase, sell, or redeem any of its listed securities in the first half of 2019[104]. - The interests of directors and chief executives in the company's shares are recorded in compliance with the Securities and Futures Ordinance[108].

(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 : 1703 2019 Annual Report 年 報 Annual Report 2019 年報 Contents 目錄 Corporate Information 2 公司資料 Financial Highlight 4 財務摘要 Chairman Statement 5 主席的話 Management Discussion and Analysis 8 管理層討論及分析 Report of the Directors 19 董事會報告 Corporate Governance Report 33 企業管治報告 Environmental, Social and Governance Report 45 環境、社會及管治報告 Directors and Senior Management 72 董事及高級管理層 Independent Auditor's Report 78 獨立核數師報告 Consolidated S ...