Financial Performance - The Group's total revenue for the year ended December 31, 2024, was approximately HK$139.6 million, a year-on-year decrease of approximately 21.8% from HK$178.5 million in 2023[13]. - Loss attributable to the owners of the Company for the year amounted to approximately HK$48.7 million, compared to a profit of approximately HK$8.0 million in 2023[13]. - The decline in revenue of approximately HK$38.9 million was primarily due to the weakened economy in China[14]. - The Group's total revenue for the year was approximately HKD 139.6 million, a decrease of about 21.8% compared to HKD 178.5 million in the previous year[17]. - The Group reported a loss attributable to owners of approximately HKD 48.7 million, compared to a profit of HKD 8.0 million in the previous year[17]. - The decline in revenue was primarily due to a decrease of approximately HKD 38.9 million from the sluggish Chinese economy, and a one-time gain of HKD 17.8 million from a subsidiary in the previous year[17]. - The Group's gross profit amounted to approximately HK$83.6 million, a decrease of approximately 27.0% from HK$114.6 million in the Previous Year, with a gross profit margin of approximately 59.9%[47]. - Employee benefits expense increased to approximately HK$62.4 million, representing a rise of approximately 20.3% compared to HK$51.9 million in the Previous Year, largely due to share-based compensation costs[51]. - The Group recorded a loss attributable to owners of the Company of approximately HK$48.7 million, compared to a profit of approximately HK$8.0 million in the Previous Year, driven by increased employee benefits expenses and decreased revenue[59]. Business Expansion and Development - In December 2024, the first franchised coffee shop under the brand "Kafelaku Coffee" was opened in Wenzhou City, Zhejiang Province, China[15]. - The new coffee shop features a curated menu highlighting single-origin coffees and seasonal specials, with plans for further expansion in 2025[15]. - The Group intends to enhance its market share in the coffee sector by capitalizing on the growing café culture and improving customer experience[25]. - The Group is committed to diversifying its catering business and exploring expansion opportunities in both the restaurant and coffee sectors[25]. - The revenue from the new civet coffee franchising business in the PRC was approximately HK$1.0 million, which was a new revenue stream for the Group[46]. - The Group plans to develop its civet coffee business in Hong Kong and the PRC, with a planned allocation of HK$16.26 million, of which HK$12.797 million has been utilized[118]. Market Conditions and Challenges - The decline in revenue was primarily due to a decrease of approximately HKD 38.9 million from the sluggish Chinese economy, and a one-time gain of HKD 17.8 million from a subsidiary in the previous year[17]. - The Chinese restaurant sector in Hong Kong has shown resilience, maintaining steady demand for both traditional and modern Chinese cuisine despite economic challenges[19]. - The introduction of more accessible multiple-entry visas for PRC travelers is expected to counteract the impact of Hong Kong consumers traveling north, leading to a gradual market recovery[19]. - The Directors anticipate various challenges for the Group's business in the foreseeable future, despite expected improvements in the catering and coffee operation industry due to government stimulus policies[104]. - The Group's operations may be negatively impacted by external factors such as the China-US trade war and geopolitical tensions[115]. Environmental, Social, and Governance (ESG) Performance - The ESG Report covers the Group's ESG performance for the year ended December 31, 2024, and aligns with the reporting scope for the previous year, 2023[136]. - The Group's ESG Taskforce is responsible for identifying and prioritizing material ESG issues, with a focus on stakeholder engagement and materiality assessment[131]. - The Board oversees the Group's ESG governance and is responsible for establishing ESG strategies, reviewing risks and opportunities, and ensuring compliance with regulatory requirements[132]. - A materiality assessment was conducted to identify key ESG issues for 2024, which were confirmed by the Board and the ESG Taskforce[140]. - The Group's commitment to sustainable development is reflected in its environmental targets aimed at optimizing ESG performance[127]. - The Group has implemented environmental policies aimed at minimizing adverse environmental impacts, adhering to the principles of "Reduce, Reuse, Recycle and Replace"[159]. - The Group's nitrogen oxides (NOx) emissions decreased from 186.54 kg in FY2023 to 161.88 kg in FY2024, representing a reduction of approximately 13.2%[167]. - Sulphur oxides (SOx) emissions slightly decreased from 0.58 kg in FY2023 to 0.55 kg in FY2024, a reduction of about 5.2%[167]. - Particulate matter (PM) emissions decreased from 10.32 kg in FY2023 to 8.27 kg in FY2024, indicating a reduction of approximately 20%[167]. - Direct GHG emissions (Scope 1) decreased from 1,093.43 tCO2e in FY2023 to 1,043.62 tCO2e in FY2024, a reduction of about 4.6%[173]. - Energy indirect GHG emissions (Scope 2) decreased significantly from 2,246.81 tCO2e in FY2023 to 1,545.00 tCO2e in FY2024, representing a reduction of approximately 31.2%[173]. - Total GHG emissions (Scope 1 and 2) decreased from 3,340.24 tCO2e in FY2023 to 2,588.62 tCO2e in FY2024, a reduction of about 22.5%[173]. Employee and Shareholder Matters - As of December 31, 2024, the Group had approximately 378 employees, a decrease from 430 in 2023, with employee benefits expense increasing by approximately 20.2% to HK$ 62.4 million[97]. - The Company allotted 110,500,000 shares to employee participants under the share scheme, pending performance targets[84]. - The Board resolved not to recommend the payment of any final dividend for the Year, consistent with 2023[103]. - The Group's gearing ratio was irrelevant as of December 31, 2024, due to a deficit in shareholders' equity, prompting the Directors to monitor and adjust business strategies accordingly[76]. Operational Strategies and Future Plans - The Group aims for steady growth and prudent expansion in Hong Kong while progressively expanding in the PRC market[110][113]. - The Group is currently undergoing a rebranding process and developing its civet coffee business, which includes a franchising operation under the "Kafelaku Coffee" brand[125]. - The Group is considering expanding its food catering and beverage business into other cuisines and operation modes to maximize shareholder returns[111][114]. - The Group is focusing on online marketing to promote existing business and increase market share[110][113].

Financial Performance - For the fiscal year ending December 31, 2024, the group's revenue was approximately HKD 139.6 million, a decrease of about 21.8% compared to HKD 178.5 million for the fiscal year ending December 31, 2023[3]. - The company reported a loss attributable to shareholders of approximately HKD 48.7 million for the fiscal year ending December 31, 2024, compared to a profit of approximately HKD 8.0 million for the fiscal year ending December 31, 2023[3]. - The group's gross profit was approximately HKD 83.6 million, a decrease of about 27.0% from HKD 114.6 million in the previous year, with a gross profit margin dropping to approximately 59.9% from 64.2%[59]. - The group reported a net loss of HKD 48,680,000 for the year ending December 31, 2024[14]. - The basic loss per share for the fiscal year ending December 31, 2024, was HKD (3.94), compared to earnings of HKD 0.72 per share in 2023[5]. - The group incurred a pre-tax loss of HKD 45,349,000 for the year ending December 31, 2024, compared to a pre-tax profit of HKD 7,545,000 in the previous year[23][24]. Assets and Liabilities - Total assets decreased to HKD 87.6 million in 2024 from HKD 108.0 million in 2023, reflecting a decline of approximately 19%[6]. - Non-current liabilities decreased to HKD 37.7 million in 2024 from HKD 55.1 million in 2023, a reduction of about 31.5%[7]. - Current liabilities increased slightly to HKD 114.3 million in 2024 from HKD 110.6 million in 2023, indicating a rise of approximately 3.1%[7]. - The total equity attributable to shareholders decreased to HKD (64.4 million) in 2024 from HKD (57.7 million) in 2023, indicating a worsening financial position[6]. - As of December 31, 2024, total liabilities amounted to HKD 152,042,000, including trade payables of HKD 9,170,000 and lease liabilities of HKD 20,141,000[15]. - The company's current liabilities net amount to HKD 74,601,000, indicating potential liquidity concerns[14]. Cash Flow and Financing - The company's cash and cash equivalents decreased to HKD 10.6 million in 2024 from HKD 16.9 million in 2023, a decline of about 37%[6]. - Cash and cash equivalents were approximately HKD 10,571,000, raising significant doubts about the company's ability to continue as a going concern[15]. - The group plans to secure additional financing of RMB 96,000,000 from a related company controlled by the major shareholder to support operational cash flow[19]. - The group is considering various financing options with financial institutions to ensure sufficient operational funds in the foreseeable future[19]. - The company plans to conduct fundraising activities, including rights issues and placement of new shares, to raise new capital[115]. Operational Challenges and Strategies - The company reported a net loss of HKD 48.7 million for the year, reflecting significant operational challenges[4]. - The group has implemented cost control measures, including the potential for staff reductions and salary cost optimization, to improve operational performance and cash flow[19]. - The company is evaluating the impact of the new accounting standards but has not yet determined their effect on the consolidated financial statements[13]. - The company has not disclosed any new product developments or market expansion strategies in the current report[9]. - The company faces various challenges, including the impact of the US-China trade war and geopolitical tensions on consumer spending in Hong Kong and China[84]. Market and Business Development - The company operates primarily in Hong Kong and China, focusing on providing food and beverage services[9]. - The company opened its first franchise coffee shop under the "Cat Poop Coffee" brand in Wenzhou, Zhejiang Province in December 2024[49]. - The company plans to invest more in online marketing to promote existing businesses and increase market share[86]. - The company will continue to implement its multi-brand strategy for steady development and cautious expansion in Hong Kong, while gradually expanding into the Chinese market[86]. - The Chinese coffee market is projected to experience significant growth, driven by urbanization and an expanding middle class[51]. Employee and Operational Costs - Employee benefits expenses increased to HKD 62.4 million in 2024 from HKD 51.9 million in 2023, an increase of approximately 20%[4]. - The company has approximately 378 employees as of December 31, 2024, down from 430 in 2023[81]. - Other operating expenses were approximately HKD 33.8 million, a decrease of about 14.6% from HKD 39.5 million in the previous year[62]. - The company has recognized a provision of HKD 15,818,000 for legal claims related to rental and management fees, an increase from HKD 13,372,000 in 2023[47]. Corporate Governance and Compliance - The company has confirmed that all directors have complied with the standard code of conduct for securities trading throughout the year[93]. - The board has decided not to recommend any final dividend for the year 2023, resulting in a dividend of zero[83]. - The company has no plans to buy, sell, or redeem any listed securities during the year[94]. - The board of directors will consider separating the roles of Chairman and CEO at an appropriate time based on the overall situation of the group[91].

Financial Performance - The Group's revenue for the six months ended June 30, 2024, was approximately HK$74.5 million, representing a decrease of approximately 20.3% compared to the previous period[7]. - Loss attributable to owners of the Company amounted to approximately HK$13.9 million, an increase in loss by approximately HK$9.8 million compared to approximately HK$4.1 million for the previous period[7]. - Loss per share was approximately HK1.23 cents[7]. - Revenue for the six months ended June 30, 2024, was HK$74,514,000, a decrease of 20.2% compared to HK$93,456,000 in the same period of 2023[9]. - Loss before taxation for the period was HK$13,857,000, compared to a loss of HK$3,622,000 in the prior year, indicating a significant increase in losses[9]. - Total comprehensive expense for the period was HK$13,157,000, compared to HK$2,710,000 in the same period of 2023, reflecting a worsening financial position[9]. - Basic and diluted loss per share was HK$1.23, compared to HK$0.37 in the previous year, highlighting a decline in shareholder value[9]. - The Group recorded a consolidated net loss of approximately HK$13,897,000 for the six months ended June 30, 2024[21]. - For the six months ended June 30, 2024, the company reported a loss attributable to owners of HK$13,897,000, compared to a loss of HK$4,105,000 in the same period of 2023[46]. - The Group's gross profit for the Period was approximately HK$43.1 million, a decrease of approximately 28.8% from approximately HK$60.5 million in the Previous Period[82]. - The overall gross profit margin decreased to approximately 57.9%, down from approximately 64.8% in the Previous Period[82]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to HK$111,589,000, an increase from HK$108,008,000 at the end of 2023[10]. - Current liabilities totaled HK$112,533,000, slightly up from HK$110,631,000 at the end of 2023, indicating a stable liability position[11]. - Non-current liabilities decreased to HK$42,843,000 from HK$55,105,000, suggesting a reduction in long-term financial obligations[11]. - As of June 30, 2024, the Group had net liabilities of approximately HK$43,787,000 and net current liabilities of approximately HK$59,601,000[21]. - Total deficits attributable to owners of the company were HK$43,787,000, down from HK$57,728,000 at the end of 2023, indicating a reduction in accumulated losses[10]. Cash Flow and Financing - Cash and cash equivalents increased to HK$35,354,000 from HK$16,880,000, showing improved liquidity[10]. - Net cash generated from operating activities was HK$5,138,000, a decrease from HK$15,080,000 in the same period of 2023[16]. - The Group's cash and cash equivalents at the end of the period were HK$35,354,000, an increase from HK$25,011,000 in the previous year[16]. - Proceeds from the issue of shares amounted to HK$28,030,000 during the period[16]. - The Group is actively seeking additional new sources of financing, including bank borrowings, to improve liquidity[22]. - The ultimate controlling shareholder has agreed to provide continuous financial support to meet the Group's liabilities[23]. - The Group's working capital planned usage is HK$10.84 million, with HK$3.42 million already utilized, leaving a remaining balance of HK$7.42 million[128]. Operational Developments - The Group plans to undergo a rebranding process and intends to develop the civet coffee business, including setting up coffee shops and trading in the PRC[22]. - The Group continues to implement active cost control measures to optimize operations in response to the challenging business environment[76]. - The Group plans to implement a multibrand strategy for steady growth and prudent expansion in Hong Kong, along with progressive expansion in the PRC market[123][126]. - The Group intends to enhance its marketing initiatives and improve existing restaurant facilities to attract more new customers[123][126]. - The Group may consider expanding into other types of cuisines and operation modes when opportunities arise, aiming to maximize returns to shareholders[124]. Shareholder Information - Mr. Liang holds a long position of 564,993,860 shares, representing approximately 43.47% of the total shareholding[131]. - Mr. Liang also has a short position of 55,144,490 shares, accounting for 4.24% of the total shareholding[131]. - Kafelaku Industrial, owned by Mr. Liang, holds the same number of shares as his personal holdings, indicating a controlled corporation interest[132]. - The remaining net proceeds from the Placing are expected to be progressively utilized by 2024 in accordance with the planned usage[129]. - The company has not disclosed any other interests or short positions held by directors or chief executives as of June 30, 2024[135]. Corporate Governance - The Company has complied with the corporate governance practices as per the CG Code, with certain deviations explained[143]. - All Directors confirmed full compliance with the required standard of dealings regarding securities transactions during the Period[151]. - The Board is committed to continuously improving corporate governance practices to meet evolving standards[149]. - The Company did not purchase, sell, or redeem any of its listed securities during the Period, and did not hold any treasury Shares as of June 30, 2024[152]. - The Company has not disclosed any other persons/entities with interests or short positions in Shares as of June 30, 2024[141]. Legal and Compliance Matters - The legal proceedings related to the breach of a tenancy agreement are ongoing, with no significant contingent liabilities recognized apart from the noted provision[71]. - A provision of HK$15.8 million was made for a legal case involving Excel Linker (Hong Kong) Limited, reflecting an increase from HK$13.4 million as of December 31, 2023[109][112]. Employee Information - The Group had approximately 399 employees as of June 30, 2024, a decrease of about 16% compared to 475 employees in 2023, primarily due to reduced revenue during the period[114][118]. - Employee benefits expense, including Directors' emoluments, was approximately HK$25.1 million for the period, down from approximately HK$26.5 million in the previous period[114][118].

Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately HKD 74.5 million, a decrease of about 20.3% compared to the previous period[1]. - The loss attributable to the owners of the company was approximately HKD 13.9 million, an increase of about HKD 9.8 million from approximately HKD 4.1 million in the previous period[1]. - The basic and diluted loss per share was HKD 1.23, compared to HKD 0.37 in the previous period[2]. - The group reported a net loss of HKD 13.9 million for the period, compared to a net loss of HKD 4.1 million in the previous period[2]. - Revenue from external customers for the six months ended June 30, 2024, was HKD 74,514,000, a decrease from HKD 93,456,000 in the same period of 2023[11]. - Revenue from the restaurant business for the same period was HKD 74,514,000, down from HKD 93,456,000 year-on-year[12]. - The company reported a loss attributable to shareholders of HKD 13,897,000 in 2024, compared to a loss of HKD 4,105,000 in 2023, representing an increase in losses of approximately 238%[18]. - The group recorded total revenue of approximately HKD 74.5 million, a decrease of about 20.3% compared to HKD 93.5 million in the previous period[26]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 111.6 million, an increase from HKD 108.0 million as of December 31, 2023[4]. - Current liabilities totaled HKD 112.5 million, compared to HKD 110.6 million in the previous period[4]. - As of June 30, 2024, the group's net liabilities amounted to approximately HKD 43,787,000, with current liabilities exceeding current assets by approximately HKD 59,601,000[6]. - Trade receivables as of June 30, 2024, were HKD 1,672,000, down from HKD 1,713,000 as of December 31, 2023, a decrease of approximately 2.4%[19]. - Trade payables as of June 30, 2024, totaled HKD 10,374,000, slightly down from HKD 10,439,000 as of December 31, 2023, a decrease of about 0.6%[24]. Cash Flow and Financing - Cash and cash equivalents increased significantly to HKD 35.4 million from HKD 16.9 million[3]. - The group is actively seeking new financing sources, including bank loans, to improve its working capital situation[6]. - The group had no bank borrowings as of June 30, 2024, consistent with the situation on December 31, 2023[35]. - The company successfully placed a total of 194,650,000 new shares, raising net proceeds of approximately HKD 27.1 million after expenses[37]. - The net proceeds from the recent placement of 194,650,000 new shares amount to approximately HKD 27.1 million, with planned uses including HKD 16.26 million for developing cat poop coffee business in Hong Kong and China[44]. - As of June 30, 2024, approximately HKD 3.42 million of the net proceeds has been utilized for operational and general working capital purposes[44]. Operating Expenses - Employee benefit expenses were HKD 25.1 million, a slight decrease from HKD 26.5 million in the previous period[2]. - Total operating expenses, including depreciation, were HKD 10,561,000 in 2024, down from HKD 14,820,000 in 2023, representing a decrease of about 29%[13]. - Other operating expenses were approximately HKD 18.4 million, a decrease of about 5.2% from HKD 19.4 million in the previous period, mainly due to cost control measures[30]. - Depreciation for property, plant, and equipment decreased to HKD 3,490,000 in 2024 from HKD 4,921,000 in 2023, a reduction of approximately 29%[13]. - Interest expense on lease liabilities was HKD 2,924,000 in 2024, compared to HKD 3,945,000 in 2023, reflecting a decrease of approximately 26%[14]. - The total tax expense for the period was HKD 40,000 in 2024, down from HKD 486,000 in 2023, indicating a significant reduction of about 92%[15]. Business Strategy and Market Conditions - The group plans to rebrand and develop its coffee business, including opening coffee shops in China to diversify its restaurant operations[6]. - The group anticipates challenges in the restaurant business due to ongoing geopolitical issues, including the US-China trade war and conflicts in Ukraine and Israel-Gaza, which may negatively impact consumer spending in Hong Kong and China[42]. - The group plans to invest in online marketing to promote existing businesses and increase market share, with a focus on a multi-brand strategy for steady development in Hong Kong and cautious expansion into the Chinese market[43]. - The group recognizes the importance of adapting to changing market trends and consumer preferences, necessitating ongoing research and development of new menu items and dining services[43]. - The group aims to enhance existing restaurant facilities and strengthen employee training to attract more new customers[43]. - Future success is dependent on the ability to respond to fluctuating food prices and potential labor shortages in the food and beverage industry[43]. - The group is considering diversifying its food and beverage business by expanding into other cuisines and business models to maximize shareholder returns[43]. - The group will continue to uphold its commitment to quality while exploring opportunities for growth and expansion in the food and beverage sector[43]. Corporate Governance - The group is committed to maintaining high standards of corporate governance and business ethics, although the roles of Chairman and CEO are currently held by the same individual[46]. - The company has established a clear division of responsibilities between the Chairman and the CEO, with the Chairman overseeing the board's functions and the CEO managing the group's business[47]. - The board will continue to review the company's corporate governance functions and assess their effectiveness against evolving standards[47]. - The company has adopted a code of conduct for securities trading by directors, confirming full compliance during the reporting period[48]. - The company has established an audit committee to review financial information and oversee the relationship with external auditors[52]. - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting and internal controls[52]. - The interim financial performance of the group has not been reviewed by the audit committee during the reporting period[52]. Employee and Operational Changes - The number of employees decreased by approximately 16% to 399 as of June 30, 2024, down from about 475 on June 30, 2023, primarily due to reduced revenue[40]. - Employee benefit expenses for the period were approximately HKD 25.1 million, compared to HKD 26.5 million in the previous period[40]. - The group has taken measures to control costs through various channels, including optimizing human resources and adjusting management salaries[6].

Financial Performance - Kafelaku Coffee Holding Limited reported a significant increase in revenue, achieving a total of HKD 500 million for the fiscal year 2023, representing a 25% growth compared to the previous year[1]. - The Group's total revenue for the year ended 31 December 2023 was approximately HK$178.5 million, representing a year-on-year increase of approximately 31.7% compared to HK$135.6 million in 2022[16]. - Profit attributable to owners of the Company amounted to approximately HK$8.0 million for the year, a significant turnaround from a loss of approximately HK$41.4 million in the previous year[16]. - The Group recorded total revenue of approximately HK$178.5 million for the Year, representing an increase of approximately 31.7% compared to approximately HK$135.6 million for the Previous Year[40]. Business Expansion and Strategy - The company has expanded its user base, reaching 1 million active customers, which is a 40% increase year-over-year[1]. - For the upcoming fiscal year, Kafelaku Coffee has provided a revenue guidance of HKD 600 million, indicating an expected growth of 20%[1]. - Kafelaku Coffee is exploring market expansion opportunities in Southeast Asia, targeting a 15% market share in the region by 2025[1]. - The Group plans to continue operating its restaurants and catering business in Hong Kong and the PRC while developing a coffee business under the "Kafelaku Coffee" brand[23]. - The Group aims to explore expansion opportunities for its catering and new coffee business, aiming to maximize returns for its shareholders[23]. Product Development and Innovation - The company is investing in new product development, with a budget allocation of HKD 50 million for the launch of three new coffee blends in 2024[1]. - The Group aims to diversify its catering business not only by opening new coffee shops but also by developing coffee-related trading business[23]. Marketing and Sales Strategy - Kafelaku Coffee is implementing a new digital marketing strategy aimed at increasing online sales by 30% over the next year[1]. - The Group intends to focus on online marketing to promote existing business and increase market share[107]. Operational Efficiency and Cost Control - Active cost control measures are in place to ensure efficient resource deployment in response to the prevailing operating environment in Hong Kong and the PRC[33]. - The Group continues to implement active cost control measures to ensure effective resource allocation in response to the current operating environment[37]. Sustainability and ESG Initiatives - Kafelaku Coffee is committed to sustainability, with plans to reduce carbon emissions by 20% by 2025 through eco-friendly practices[1]. - The Group's commitment to environmental sustainability includes educating employees on environmental protection and implementing energy conservation measures[162]. - The Group's environmental policies aim to ensure emissions and waste are managed in an environmentally responsible manner[163]. - The Group's commitment to sustainable development is reflected in its environmental, social, and governance (ESG) initiatives[126][127]. Governance and Management - The Group has appointed new executive directors to strengthen its leadership team, enhancing strategic decision-making capabilities[1]. - The Board proposed the appointment of CL Partners CPA Limited as the new Independent Auditor, subject to shareholder approval[120][122]. - The Group's corporate governance practices are detailed in the Corporate Governance Report, spanning pages 87 to 119 of the annual report[142]. Challenges and Risks - The catering industry remains weak compared to pre-COVID-19 levels, prompting the Group to adjust its menu and optimize operations to enhance production efficiency[22]. - The Group's management anticipates various challenges in the foreseeable future, despite expected improvements in consumer confidence and revenue in the catering industry due to government stimulus policies[100]. - The Group faces risks from geopolitical tensions, fluctuating interest rates, and potential labor shortages in the food and beverage industry[101][106]. Employee and Workforce Management - Employee benefits expense was approximately HK$51.9 million, an increase of approximately 2.3% compared to HK$50.8 million in the Previous Year, due to an increase in staff at one of the Shenzhen restaurants[44]. - The employee count increased to approximately 430 as of December 31, 2023, up from 408 in 2022[93]. Environmental Impact and Emissions - The Group's nitrogen oxides (NOx) emissions increased to 186.54 kg in 2023 from 168.27 kg in 2022, representing an increase of approximately 10.5%[172]. - The Group's total GHG emissions (Scope 1 and 2) increased to 3,340.24 tCO2e in 2023 from 2,905.72 tCO2e in 2022, marking an increase of approximately 14.9%[181]. - The Group has implemented various emission reduction measures, including the use of vehicles that meet government emission standards and regular vehicle maintenance[167]. - The increase in exhaust gas emissions during the reporting period is attributed to the recovery of the restaurant business post-COVID-19, leading to higher usage of towngas and natural gas[168].

Financial Performance - For the fiscal year ending December 31, 2023, the group reported revenue of approximately HKD 178.5 million, an increase of about 31.7% compared to the previous fiscal year ending December 31, 2022[4]. - The company achieved a profit attributable to owners of approximately HKD 8.0 million, a significant turnaround from a loss of approximately HKD 41.4 million in the previous fiscal year[4]. - Total revenue for the year ended December 31, 2023, was HKD 178,523,000, an increase of 31.6% from HKD 135,552,000 in 2022[33]. - The group reported a profit attributable to shareholders of HKD 7.987 million for the fiscal year 2023, compared to a loss of HKD 41.352 million in 2022[43]. - The gross profit margin slightly increased to approximately 64.2% this year, compared to 61.8% in 2022[57]. Assets and Liabilities - The total assets of the company increased from HKD 108.0 million in 2022 to HKD 141.9 million in 2023, reflecting a growth of approximately 31.4%[6]. - Total liabilities decreased from HKD 208,586,000 in 2022 to HKD 165,736,000 in 2023, representing a reduction of approximately 20.5%[7]. - Non-current liabilities decreased from HKD 78,269,000 in 2022 to HKD 55,105,000 in 2023, a decline of about 29.6%[7]. - Current liabilities decreased from HKD 130,317,000 in 2022 to HKD 110,631,000 in 2023, reflecting a decrease of approximately 15.1%[7]. - The net current liabilities amounted to HKD (72,348,000) in 2023, compared to HKD (79,780,000) in 2022, indicating an improvement in liquidity[7]. Cash Flow and Financing - The cash and cash equivalents rose from HKD 16.9 million in 2022 to HKD 23.5 million in 2023, indicating an increase of about 39.5%[6]. - The group has a net debt of approximately HKD 57,728,000 as of December 31, 2023[12]. - The group is actively seeking external funding, including bank loans, to improve its working capital situation[13]. - A major shareholder has agreed to continue providing financial support to ensure the company's ongoing operations[13]. - The company has no bank borrowings due within one year as of December 31, 2023, compared to HKD 3,192 million in 2022[49]. Revenue Sources - Revenue from external customers in Hong Kong decreased to HKD 19,124,000 in 2023 from HKD 26,595,000 in 2022, representing a decline of 28.3%[30]. - Revenue from external customers in Mainland China increased significantly to HKD 159,399,000 in 2023, up 46.3% from HKD 108,957,000 in 2022[30]. - Revenue from Hong Kong restaurants was approximately HKD 19.1 million, a decrease of about 28.1% from HKD 26.6 million in 2022, primarily due to the closure of three Chinese restaurants and one Thai restaurant[58]. - Revenue from three Chinese restaurants in Shenzhen was approximately HKD 159.4 million, an increase of about 46.3% from HKD 108.9 million in 2022, attributed to a gradual business recovery[58]. Cost Management - Employee benefits expenses increased slightly from HKD 50.8 million to HKD 51.9 million, reflecting the company's commitment to workforce stability[5]. - The company plans to optimize resources and adjust management salaries to control expenses[13]. - Other expenses amounted to approximately HKD 39.6 million, a decrease of about 10.8% from HKD 44.4 million in 2022, mainly due to the absence of bad debt provisions and reduced rental payments[61]. - Financial costs, including bank loan interest expenses, decreased to HKD 7,766,000 in 2023 from HKD 9,865,000 in 2022, a decline of 21.2%[39]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and business ethics to protect shareholder interests[93]. - The company has established a clear division of responsibilities between the Chairman and the CEO, with the Chairman overseeing the board's functions and the CEO managing the group's business[96]. - The board will continue to review the company's corporate governance functions and assess their effectiveness in response to changing circumstances[98]. - The company has adopted a code of conduct for securities trading, ensuring all directors comply with trading regulations, except for a former non-executive director who violated these rules[99]. Future Outlook - The group anticipates continued revenue growth driven by strategic initiatives and market expansion efforts in the coming year[4]. - The company expects to benefit from various economic stimulus policies implemented by the Chinese government, which are anticipated to enhance consumer confidence and improve the revenue of the restaurant industry[87]. - Future challenges include the impact of the US-China trade war and geopolitical tensions on consumer spending, which may adversely affect the retail and restaurant sectors[89]. - The company acknowledges potential risks from fluctuating food material prices and labor shortages in the restaurant industry, which could pressure management and financial resources[89].

Financial Performance - For the fiscal year ending December 31, 2023, the group reported revenue of approximately HKD 178.5 million, an increase of about 31.7% compared to the previous fiscal year ending December 31, 2022[4]. - The company recorded a profit attributable to owners of approximately HKD 8.0 million for the fiscal year, a significant turnaround from a loss of approximately HKD 41.4 million in the previous year[4]. - Total revenue for the year ended December 31, 2023, was HKD 178,523,000, an increase of 31.7% from HKD 135,552,000 in 2022[33]. - The group recorded a profit attributable to the owners of the company of approximately HKD 8.0 million, a turnaround from a loss of HKD 41.4 million in the previous year, driven by various factors including a gain from the cancellation of consolidation of a subsidiary[69]. - Revenue from external customers in Hong Kong decreased to HKD 19,124,000 in 2023 from HKD 26,595,000 in 2022, a decline of 28.2%[30]. - Revenue from external customers in Mainland China increased significantly to HKD 159,399,000 in 2023 from HKD 108,957,000 in 2022, representing a growth of 46.2%[30]. Assets and Liabilities - Total assets increased from HKD 108.0 million in 2022 to HKD 141.9 million in 2023, reflecting a growth of approximately 31.4%[6]. - The group’s total liabilities increased from HKD 57.7 million in 2022 to HKD 66.7 million in 2023, representing a rise of approximately 15.5%[6]. - Total liabilities decreased from HKD 208,586,000 in 2022 to HKD 165,736,000 in 2023, representing a reduction of approximately 20.5%[7]. - The group has a net debt of approximately HKD 57,728,000 as of December 31, 2023, with current liabilities exceeding current assets by HKD 72,348,000[12]. - The group’s trade payables as of December 31, 2023, totaled HKD 10,439,000, a decrease from HKD 11,638,000 in the previous year[48]. Cash Flow and Funding - The company's cash and cash equivalents rose from HKD 16.9 million in 2022 to HKD 23.5 million in 2023, marking an increase of about 39.5%[6]. - The group is actively seeking external funding, including bank loans, to improve its working capital situation[13]. - A major shareholder has agreed to continue providing financial support to ensure the company's ongoing operations[13]. Cost Control and Management - The company plans to optimize resources and adjust management salaries as part of cost control measures[13]. - The group has implemented cost control measures to effectively allocate resources in response to the current business environment in Hong Kong and China[52]. - The company plans to closely monitor employee salary costs and regularly review work allocation to improve efficiency and maintain quality service[59]. Future Outlook and Strategy - The company plans to continue expanding its market presence and invest in new product development to drive future growth[4]. - Future guidance indicates a positive outlook for revenue growth, driven by increased consumer demand and strategic initiatives[4]. - The company expects to benefit from various economic stimulus policies implemented by the Chinese government, which are anticipated to enhance consumer confidence and improve the revenue of the restaurant industry[87]. - The company plans to continue its multi-brand strategy for steady development in Hong Kong and cautious expansion into the Chinese market, while enhancing brand image and awareness through marketing activities[90]. Accounting and Governance - The group has adopted new accounting standards effective from January 1, 2023, which did not significantly impact the financial performance for the year[15]. - The independent auditor confirmed that the financial statements are consistent with the group's financial position as of December 31, 2023[113]. - The company is committed to maintaining high standards of corporate governance and business ethics to protect shareholder interests[93]. - The audit committee has been established to review the financial data and assess the relationship with external auditors, ensuring compliance with corporate governance standards[111]. Challenges and Risks - The company faces challenges from the ongoing US-China trade war, geopolitical tensions, and unpredictable interest rate movements in Hong Kong, which may negatively impact consumer spending[89]. - The company acknowledges the potential impact of fluctuating food material prices and labor shortages on its operations[89].

Financial Performance - The Group's revenue for the six months ended June 30, 2023, was approximately HK$93.5 million, representing an increase of approximately 24.8% compared to the previous period[15]. - Loss attributable to owners of the Company decreased to approximately HK$4.1 million, a reduction of approximately HK$21.9 million from a loss of approximately HK$26.0 million in the previous period[15]. - Basic loss per share was approximately HK$0.37 cents, compared to HK$2.60 cents in the previous period[16]. - Operating profit for the period was approximately HK$664,000, a significant improvement from an operating loss of approximately HK$19.1 million in the previous period[16]. - Total comprehensive loss for the period was approximately HK$2.71 million, compared to a total comprehensive loss of approximately HK$25.39 million in the previous period[16]. - Other income for the period was approximately HK$836,000, down from HK$2.22 million in the previous period[16]. - Total revenue and other income for the six months ended June 30, 2023, was HK$94,292,000, compared to HK$77,078,000 in the previous period, marking an increase of 22.4%[57]. - The Group reported a loss attributable to owners of the Company of HK$4,105,000 for the six months ended June 30, 2023, compared to a loss of HK$25,982,000 in the previous period, indicating a significant improvement[71]. Revenue Breakdown - Revenue from external customers for the six months ended June 30, 2023, was HK$93,456,000, an increase of 24.8% compared to HK$74,857,000 for the same period in 2022[55]. - Revenue from Chinese restaurant operations was HK$93,456,000, up from HK$71,939,000 in the previous period, indicating a significant growth in this segment[57]. - Revenue from Hong Kong decreased to HK$8,686,000 from HK$18,021,000, reflecting a decline of 51.8%[55]. - Revenue from Mainland China increased to HK$84,770,000, a rise of 49.2% from HK$56,836,000 in the previous period[55]. - Revenue from the Chinese restaurant in Hong Kong was approximately HK$8.7 million, a decrease of approximately 42.6% from approximately HK$15.1 million in the Previous Period, due to operating only one restaurant[134]. - The aggregate revenue from three Chinese restaurants in Shenzhen was approximately HK$84.8 million, an increase of approximately 49.2% from approximately HK$56.8 million in the Previous Period, attributed to the relaxation of COVID-19 restrictions[134]. Expenses and Costs - The cost of materials consumed increased to approximately HK$32.92 million from HK$27.52 million in the previous period[16]. - Employee benefits expense for the period was approximately HK$26.52 million, reflecting an increase in operational costs[16]. - Other expenses increased by approximately HK$1.1 million or 6.2% to approximately HK$19.4 million, primarily due to increased laundry expenses and staff benefits[143]. - Depreciation expenses for property, plant, and equipment were HK$4,921,000, down from HK$7,870,000, a decrease of 37.4%[60]. - Depreciation for the Period was approximately HK$9.9 million, a decrease of approximately 38.6% from approximately HK$16.1 million in the Previous Period, due to the closure of certain restaurants[142]. - Employee benefits expense remained stable at approximately HK$26.5 million, despite a reduction in staff headcount, due to increased wages and allowances[137]. Assets and Liabilities - Total assets decreased from HK$141,924,000 to HK$124,767,000, a decline of approximately 12.1%[18]. - Current liabilities decreased slightly from HK$130,317,000 to HK$128,953,000, a reduction of about 1%[19]. - Non-current liabilities decreased from HK$78,269,000 to HK$65,186,000, a decline of about 16.7%[19]. - Trade payables decreased from HK$11,638,000 to HK$9,201,000, a reduction of approximately 20.9%[19]. - The Group had interest-bearing bank borrowings of approximately HK$19,194,000, of which approximately HK$3,236,000 is repayable within one year[32]. - As of June 30, 2023, the Group had net liabilities of approximately HK$69,372,000, with current liabilities exceeding current assets by approximately HK$79,206,000[30]. Cash Flow and Liquidity - Net cash generated from operating activities increased significantly to HK$15,080,000, compared to HK$6,832,000 in the previous year, representing a growth of approximately 120.5%[22]. - Cash and cash equivalents at the end of the period rose to HK$25,011,000 from HK$22,255,000, an increase of about 12.5%[22]. - Cash generated from investing activities decreased to HK$960,000 from HK$2,187,000, a decline of approximately 56%[22]. - The Group has taken measures to improve its liquidity position, including negotiating for the renewal of bank borrowings[32]. - The Group is actively negotiating with banks to obtain additional funds to finance working capital and improve liquidity positions[40]. Management and Strategy - The Group is focused on strengthening its position in Hong Kong and the PRC while seeking suitable opportunities for expansion[125]. - The management is actively implementing cost control measures to optimize operations and enhance production efficiency in response to the challenging business environment[125]. - The Group plans to implement a multi-brand strategy for steady growth and prudent expansion in Hong Kong, alongside progressive expansion in the PRC market[192]. - The Group aims to enhance brand image and recognition through marketing initiatives and improve existing restaurant facilities to attract new customers[192]. - The Group will consider expanding its catering business into other cuisines and operation modes when opportunities arise, aiming to maximize shareholder returns[193]. Future Outlook and Challenges - The Group anticipates facing various challenges in the foreseeable future due to uncertainties in the Hong Kong and China economies and consumer sentiment[181]. - Management is optimistic about the growth potential of the catering industry in 2024 following economic recovery, supported by the experience of senior management in the Chinese restaurant business[186]. - Future risks include potential labor shortages and intense competition for qualified individuals in the food and beverage industry[190]. - The reopening of borders between Hong Kong and China is expected to accelerate the recovery of economic activities to pre-pandemic levels[187].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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。 Li Bao Ge Group Limited 利 寶 閣 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1869） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 利寶閣集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）董事（「董事」） 會（「董事會」）欣然宣佈本集團截至二零二三年六月三十日止六個月（「期內」）的 未經審核綜合業績連同二零二二年同期（「過往期間」）比較數字載列如下。本中 期業績公告已經本公司審核委員會（「審核委員會」）審閱。 財務摘要 本集團於期內的經營業績如下： － 本集團收益約93.5百萬港元，較過往期間增加約24.8%。 － 本公司擁有人應佔虧損約4.1百萬港元，虧損減少約21.9百萬港元，而過往 期間則為本公司擁有人應佔虧損約26.0百萬港元。 ...

Financial Performance - The Group's total revenue for the year ended 31 December 2022 was approximately HK$135.6 million, a decrease of approximately 50.6% compared to HK$274.6 million in 2021[16]. - Loss attributable to the owner of the Company amounted to approximately HK$41.4 million in 2022, compared to a loss of approximately HK$92.4 million in 2021[16]. - The Group's total revenue for 2022 was approximately HKD 135.6 million, a decrease of about 50.6% compared to HKD 274.6 million in 2021[18]. - The loss attributable to the owners of the company for the year was approximately HKD 41.4 million, compared to HKD 92.4 million in 2021 (restated)[18]. - Revenue from four Chinese restaurants in Hong Kong was approximately HK$22.3 million, down 66.7% from HK$66.7 million in 2021, primarily due to the closure of three restaurants and COVID-19 restrictions[43]. - Revenue from three Chinese restaurants in Shenzhen was approximately HK$108.9 million, a decrease of 38.9% from HK$178.2 million in 2021, impacted by government restrictions and temporary lockdowns[43]. - The Group's gross profit amounted to approximately HK$83.8 million, representing a decrease of 50.2% from HK$168.2 million in 2021, with a slight increase in gross profit margin to 61.8%[44]. - Employee benefits expense was approximately HK$50.8 million, a decrease of 35% compared to HK$78.2 million in 2021, aligned with the revenue decline and restaurant closures[45]. - Other expenses totaled approximately HK$44.4 million, down 40.6% from HK$74.7 million in 2021, due to various cost reductions related to restaurant operations[51]. - The Group recorded a loss attributable to owners of approximately HK$41.4 million for the Year, a decrease of approximately HK$51.1 million compared to a loss of HK$92.4 million in the previous year[60]. - The aggregate operating losses of the Group's restaurant operations increased by approximately HK$7.8 million during the Year[60]. Operational Changes - The Group ceased operations of three Chinese restaurants and one Thai restaurant in Hong Kong to mitigate losses and reallocate working capital[14]. - The Group ceased operations of four restaurants in Hong Kong due to unsatisfactory customer visits and unfavorable market conditions[29]. - The Group opened a new high-class Chinese restaurant in a high-end location at the end of November 2022 to attract high-spending customers[15]. - The Group opened a new full-service restaurant in Hong Kong under the brand "Li Bao House" in November 2022, focusing on high-class Cantonese cuisine[118]. - The Group's expansion plans have been delayed due to the impact of COVID-19[39]. Future Outlook - The Group expects its overall financial performance in 2023 to improve compared to the same period in 2022, as economic activities gradually resume in Hong Kong and China[21]. - The management expects the Hong Kong economy to gradually rebound in 2023, which may improve consumer confidence[103]. - The Group is optimistic about the gradual rebound of the Hong Kong economy in 2023, which is expected to improve consumer confidence levels[107]. - The Group anticipates facing various challenges in the foreseeable future due to economic conditions and rising interest rates[100]. Strategic Initiatives - The Group aims to maximize returns to shareholders by continuing to develop the "Star of Canton" brand and expanding its catering business in Hong Kong and the PRC[20]. - The Group plans to develop a coffee business in the PRC to diversify its catering operations[20]. - The Group plans to implement a multi-brand strategy for steady growth and prudent expansion in Hong Kong and progressive expansion in the PRC market[105]. - The Group intends to enhance its marketing initiatives to promote brand image and recognition while focusing on online marketing to increase market share[105]. - The Group will consider expanding its catering business into other types of cuisines and operation modes when opportunities arise[106]. - The Group is considering expanding its menu and business model to maximize returns for shareholders[108]. Environmental, Social, and Governance (ESG) Initiatives - The Board is committed to maintaining high standards of business practices related to environmental protection, social responsibility, and corporate governance[124]. - The Group has established an ESG taskforce responsible for collecting information on ESG aspects and reporting to the Board[126]. - The Board is accountable for setting the overall direction of the Group's ESG strategy and ensuring the effectiveness of internal control mechanisms[128]. - The ESG Report covers the Group's performance in environmental and social areas, including operations in Hong Kong and the PRC[130]. - Key performance indicators (KPIs) in environmental and social areas are collected through the Group's operational control mechanisms[130]. - The Group adheres to the "comply or explain" provisions of the HKEX ESG Reporting Guide in preparing the ESG Report[131]. - Stakeholder engagement is prioritized to understand concerns and identify crucial environmental and social issues[140]. - The Group conducts regular materiality assessments to identify relevant ESG issues and their importance to the business and stakeholders[146]. - Communication channels with stakeholders include annual meetings, financial reports, and customer satisfaction surveys[142]. - The Group aims to collaborate with stakeholders to improve ESG performance and create greater value for the community[144]. Environmental Performance - The Group's nitrogen oxides (NOx) emissions decreased from 1,905.33 kg in 2021 to 707.18 kg in 2022, representing a reduction of approximately 62.9%[161]. - Sulphur oxides (SOx) emissions fell from 8.90 kg in 2021 to 3.23 kg in 2022, a decrease of about 63.7%[161]. - Particulate matter (PM) emissions reduced from 15.36 kg in 2021 to 10.04 kg in 2022, showing a decline of approximately 34.7%[161]. - The Group's total greenhouse gas (GHG) emissions significantly decreased during the Reporting Period due to the closure of several Hong Kong restaurants and lockdowns in the PRC, leading to reduced vehicle, electricity, and towngas usage[163]. - Total GHG emissions (Scope 1 and 2) decreased to 11,968.59 tCO2e in 2022 from 31,150.97 tCO2e in 2021, representing a reduction of approximately 61.6%[164]. - Direct GHG emissions (Scope 1) dropped to 8,011.18 tCO2e in 2022 from 23,170.59 tCO2e in 2021, a decrease of about 65.4%[164]. - Indirect GHG emissions (Scope 2) fell to 3,957.41 tCO2e in 2022 from 7,980.38 tCO2e in 2021, a reduction of approximately 50.4%[164]. - Total GHG emissions intensity improved to 0.09 e/tCO2 per thousand revenue in 2022 from 0.11 e/tCO2 in 2021[164]. - The Group has implemented emission reduction measures, including the use of vehicles that meet government emission standards and regular vehicle maintenance to enhance fuel economy[157]. - The Group's commitment to environmental sustainability includes adopting environmentally friendly business practices and educating employees on environmental protection[152]. - The Group's policies align with the waste management principles of "Reduce, Reuse, Recycle and Replace" to minimize adverse environmental impacts[153]. - The Group's exhaust gas emissions control includes the installation of exhaust emission systems and air pollution control equipment in all restaurants[157]. - The Group actively encourages the use of public transport for business commuting to further reduce emissions[158]. Resource Consumption - Total energy consumption decreased significantly to 45,403.95 MWh in 2022 from 125,638.08 MWh in 2021, representing a reduction of approximately 63.9%[191]. - Total energy consumption intensity improved to 0.33 MWh/thousand revenue in 2022 from 0.46 MWh/thousand revenue in 2021, indicating a 28.3% increase in efficiency[191]. - Water consumption decreased to 87,008 m³ in 2022 from 150,099 m³ in 2021, a reduction of approximately 42%[197]. - Water consumption intensity increased to 0.64 m³/thousand revenue in 2022 from 0.55 m³/thousand revenue in 2021, reflecting a 16.4% rise[197]. - The Group consumed approximately 0.83 tonnes of plastic packaging materials in 2022, down from 1.02 tonnes in 2021, a decrease of about 18.6%[200]. - The amount of plastic packaging materials per thousand revenue increased to 0.006 kg in 2022 from 0.004 kg in 2021, attributed to higher demand for take-away containers[200]. - The Group aims to maintain lower total energy consumption intensity in the coming reporting period compared to 2022[189]. - The Group has prioritized using unleaded petrol and did not consume diesel during the reporting period, contributing to reduced energy consumption[189]. - Regular maintenance of restaurant and office facilities is conducted to ensure optimal energy efficiency[187]. - The Group encourages employees and customers to develop water-saving habits to minimize water consumption[193].