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。 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 二 年 十 二 月 三 十 一 日 止 年 度 年 度 業 績 公 告 終期業績 利寶閣集團有限公司（「本公司」，連同其附屬公司，統稱為「本集團」）董事（「董 事」）會（「董事會」）欣然宣佈，本集團截至二零二二年十二月三十一日止年度（「本 年度」）經審核綜合業績，連同截至二零二一年十二月三十一日止上一財政年度 的比較數字載列如下。本年度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 • 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度，本 集 團 收 益 約 為135.6百 萬 港 ...

Financial Performance - The Group's revenue for the six months ended June 30, 2022, was approximately HK$74.9 million, representing a decrease of approximately 44.2% compared to the previous period[14]. - Loss attributable to owners of the Company amounted to approximately HK$26.0 million, an increase in loss by approximately HK$0.6 million compared to a loss of approximately HK$25.4 million for the previous period[17]. - Loss per share was approximately HK$2.60 cents[18]. - Revenue for the six months ended June 30, 2022, was HK$74,857,000, a decrease of 44.3% compared to HK$134,118,000 for the same period in 2021[19]. - Operating loss for the period was HK$19,131,000, slightly improved from a loss of HK$20,226,000 in the previous year[19]. - Loss attributable to owners of the Company was HK$25,982,000, compared to HK$25,396,000 in the same period last year, indicating a 2.3% increase in loss[19]. - The total comprehensive expense for the period was HK$25,387,000, compared to HK$26,135,000 in the previous year, showing a decrease of 2.9%[19]. - For the six months ended June 30, 2022, the Group recorded a consolidated net loss of approximately HK$25,387,000[35]. Assets and Liabilities - Total assets decreased to HK$164,822,000 as of June 30, 2022, down from HK$206,513,000 at the end of 2021, reflecting a decline of 20.2%[21]. - Non-current liabilities amounted to HK$83,489,000, a decrease from HK$102,999,000 at the end of 2021, representing a reduction of 18.9%[22]. - Total liabilities were HK$229,209,000, down from HK$245,513,000, indicating a decrease of 6.6%[22]. - As of June 30, 2022, the Group had net liabilities of approximately HK$64,387,000, with current liabilities exceeding current assets by approximately HK$90,144,000[35]. - Cash and cash equivalents decreased to HK$22,255,000 from HK$26,817,000, a decline of 17.0%[21]. Cash Flow and Financing - Net cash generated from operating activities for the six months ended June 30, 2022, was HK$6,832,000, a decrease from HK$15,676,000 in the same period of 2021[26]. - The Group's interest-bearing bank borrowings amounted to approximately HK$22,311,000 as of June 30, 2022, with HK$3,155,000 repayable within one year[37]. - The Group will actively negotiate with the bank for the renewal of its bank borrowings to secure necessary funds for working capital[37]. - The Group is actively negotiating with banks to secure additional funds to improve liquidity and meet future financial needs[41]. - A substantial shareholder has agreed to provide ongoing financial support to ensure the Group can meet its liabilities and continue operations without significant curtailment[44]. Revenue Breakdown - Revenue from external customers for the six months ended June 30, 2022, was HK$74,857,000, a decrease of approximately 44.3% compared to HK$134,118,000 for the same period in 2021[58]. - Revenue from Hong Kong customers was HK$18,021,000, down from HK$27,114,000 in the previous year, while revenue from Mainland China customers decreased from HK$107,004,000 to HK$56,836,000[58]. - Revenue from Chinese restaurant operations decreased to HK$71,939,000, down 36.2% from HK$112,707,000 in the previous year[60]. - Total revenue and other income for the six months ended June 30, 2022, was HK$77,078,000, a decline of 45.1% compared to HK$140,475,000 in 2021[60]. Cost Management - The Group has implemented measures to control expenses, including optimizing human resources and adjusting management remuneration[43]. - Employee benefits expense was approximately HK$26.5 million, representing a decrease of approximately 34.5% compared to the previous period[138]. - Other expenses amounted to approximately HK$18.2 million, a decrease of approximately 45.1% from approximately HK$33.2 million in the previous period[140]. Impairment and Provisions - The company reported an impairment loss on property, plant, and equipment of HK$1,999,000 for the period[19]. - Impairment loss on property, plant, and equipment was approximately HK$2.0 million, while impairment loss on right-of-use assets was approximately HK$0.5 million, both due to ongoing losses at the Thai (Mongkok) Restaurant[145]. - A provision of HK$7.6 million has been made for contingent liabilities related to a court action, up from HK$6.0 million as of December 31, 2021[166]. Future Outlook - The Group anticipates facing various challenges in the foreseeable future due to uncertainties in the Hong Kong and China economies and the ongoing pandemic[177]. - Management is optimistic that the pandemic will stabilize by the end of 2022, potentially improving consumer confidence and economic recovery[181]. - The Group's future success relies on its ability to adapt to changing market trends and customer preferences, which may require significant investment in research and development[177]. - 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[186]. Shareholder Information - As of June 30, 2022, Mr. Chan Chun Kit holds a 37.65% interest in the Company through a controlled corporation[195]. - The total number of shares issued by the Company is 1,000,000,000[195]. - Mr. Chan, together with Mrs. Chan and Bright Creator, controls approximately 39.52% of the entire issued share capital of the Company[198].

Financial Performance - The company reported total revenue of HKD 274,566,000 for the year ended December 31, 2021, compared to HKD 236,397,000 in 2020, representing an increase of approximately 16.1%[7] - The company incurred a net loss of HKD 100,158,000 for the year, which is a significant increase from the loss of HKD 40,776,000 in the previous year, indicating a rise in losses by approximately 145.5%[7] - Operating loss for the year was HKD 36,520,000, compared to an operating loss of HKD 30,159,000 in 2020, reflecting a deterioration in operational performance[7] - The group recorded a consolidated net loss of approximately HKD 99,054,000 for the year ended December 31, 2021[19] - The company reported a net loss attributable to shareholders of HKD 92,450,000 in 2021, compared to a loss of HKD 39,817,000 in 2020, indicating a worsening of 132.5%[46] - The group reported a loss attributable to owners of the company of approximately HKD 92.5 million, an increase of about HKD 52.6 million compared to a loss of HKD 39.8 million in 2020[71] Revenue Breakdown - Revenue from external customers for the year ended December 31, 2021, was HKD 274,566,000, compared to HKD 236,397,000 for the year ended December 31, 2020, representing an increase of approximately 16.1%[29] - Revenue from external customers in Hong Kong was HKD 76,944,000 for the year ended December 31, 2021, down from HKD 79,479,000 in 2020[29] - Revenue from external customers in Mainland China increased to HKD 197,622,000 in 2021 from HKD 156,918,000 in 2020, reflecting a growth of approximately 25.9%[29] - Revenue for the Chinese restaurant business increased to HKD 244,934,000 in 2021 from HKD 208,972,000 in 2020, representing a growth of 17.2%[30] - Revenue from Thai restaurant operations rose to HKD 10,210,000 in 2021, up from HKD 7,553,000 in 2020, marking an increase of 35.8%[30] - Revenue from ingredient sales surged to HKD 596,000 in 2021, compared to HKD 226,000 in 2020, reflecting a growth of 164.6%[30] Assets and Liabilities - The company's total assets decreased to HKD 206,513,000 from HKD 330,700,000 in the previous year, marking a decline of approximately 37.5%[10] - Non-current liabilities decreased from HKD 135,684,000 to HKD 107,111,000, a reduction of about 21.1%[14] - Current liabilities increased slightly from HKD 134,962,000 to HKD 138,402,000, indicating a rise of approximately 2.6%[14] - As of December 31, 2021, the group's net liabilities amounted to approximately HKD 39,000,000, with current liabilities exceeding current assets by approximately HKD 77,307,000[19] - The group had interest-bearing bank borrowings of approximately HKD 24,724,000, of which approximately HKD 3,957,000 is due within one year[20] Cash Flow and Financial Position - Cash and cash equivalents decreased to HKD 26,817,000 from HKD 28,949,000, a decline of about 7.4%[10] - The group secured bank financing of approximately HKD 33,830,000, with an unused amount of approximately HKD 7,128,000 as of December 31, 2021[20] - The group had approximately HKD 4.1 million in bank deposits pledged as collateral for general bank financing, compared to none in 2020[78] - Bank borrowings amounted to approximately HKD 23.6 million at an interest rate of 2.75% per annum[75] Employee and Operational Costs - Employee benefits expenses for the fiscal year ending December 31, 2021, were approximately HKD 78.2 million, an increase of about 18.3% from HKD 66.2 million in the previous year[65] - Other expenses amounted to approximately HKD 74.7 million, an increase of about HKD 13.2 million or 21.5% compared to HKD 61.5 million in 2020[67] - The group recorded an impairment loss of approximately HKD 28.7 million on intangible assets due to the closure of all food outlets[68] - The group had approximately 537 employees as of December 31, 2021, down from 683 in 2020[83] Corporate Governance and Compliance - The company adheres to high standards of corporate governance and has implemented the principles of the corporate governance code[99] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[109] - The company has adopted a code of conduct for securities trading by directors, confirming compliance as of December 31, 2021[103] - The board of directors will regularly review the company's corporate governance functions to continuously improve its effectiveness[101] Future Outlook and Strategy - The group anticipates facing various challenges in the foreseeable future due to economic uncertainties in Hong Kong and China, as well as the ongoing impact of the pandemic on the restaurant industry[87] - Management remains optimistic about the group's ability to create conditions for reopening borders in Hong Kong and mainland China in the second half of 2022[88] - The group plans to continue its multi-brand strategy for steady development in Hong Kong and cautious expansion into the Chinese market[90] - The group is closely monitoring market conditions and the pandemic's development to adjust its business strategy for improved future financial performance[92] Miscellaneous - The company has not reported any new product launches or technological advancements during the fiscal year[16] - There are no indications of market expansion or mergers and acquisitions in the current financial report[16] - The company did not recommend any final dividend for the year ended December 31, 2021, consistent with the previous year[44] - The annual general meeting is scheduled for June 24, 2022, with a suspension of share transfer registration from June 21 to June 24, 2022[107]

Financial Performance - The Group's total revenue for 2021 was approximately HK$274.6 million, representing a year-on-year increase of approximately 16.2% compared to HK$236.4 million in 2020[25]. - Loss attributable to the owner of the Company amounted to approximately HK$92.5 million in 2021, compared to a loss of approximately HK$39.8 million in 2020[25]. - For the year ended December 31, 2021, the Group recorded total revenue of approximately HK$274.6 million, representing an increase of approximately 16.2% compared to approximately HK$236.4 million for the year ended December 31, 2020[40]. - The Group's gross profit amounted to approximately HK$168.2 million for the year ended December 31, 2021, representing an increase of approximately 22.5% from approximately HK$137.3 million for the year ended December 31, 2020[43]. - Employee benefits expense for the year ended 31 December 2021 was approximately HK$78.2 million, an increase of approximately 18.3% compared to HK$66.2 million in 2020[45]. - Other expenses for the year ended 31 December 2021 amounted to approximately HK$74.7 million, representing an increase of approximately HK$13.2 million or 21.5% from HK$61.5 million in 2020[50]. - Depreciation for the year ended 31 December 2021 was approximately HK$39.3 million, down from HK$43.8 million in 2020[47]. - Finance costs for the year ended 31 December 2021 were approximately HK$10.9 million, a decrease from HK$12.9 million in 2020[52]. - Cash and cash equivalents as of 31 December 2021 were approximately HK$26.8 million, a decrease of approximately HK$2.1 million from HK$28.9 million as of 31 December 2020[54]. - As of 31 December 2021, cash and cash equivalents and restricted bank deposits totaled approximately HK$30.9 million, with HK$10.2 million in Hong Kong dollars and HK$20.7 million in Renminbi[54]. Economic Outlook - The economic environment remains challenging in the short term due to the ongoing impact of COVID-19 on the catering and retail industries[28]. - Management is optimistic about a gradual recovery of the Hong Kong economy in the second half of 2022, which may improve consumer confidence[29]. - The reopening of borders between Hong Kong and China is expected to accelerate the recovery of economic activities to pre-pandemic levels[29]. - The gradual reopening of the Hong Kong and China economies is expected to accelerate the recovery of economic activities[31]. - The Group anticipates facing various challenges in the foreseeable future due to uncertainties in the Hong Kong and China economies and the ongoing impact of the Pandemic, which has severely affected the catering industry since January 2020[69]. - The management is optimistic that the Pandemic will stabilize in the second half of 2022, which may create conditions for reopening the borders between Hong Kong and China[74]. - The Group expects the Hong Kong economy to gradually recover in the second half of 2022, potentially improving consumer confidence levels[75]. Business Operations - The Group operates four full-service restaurants in Hong Kong and three in Shenzhen, with a focus on mid-to-high end spending customers[36]. - The Group's restaurants are strategically located in prime areas, targeting quality food and services at reasonable prices[36]. - The Group's business is expected to recover quickly once external uncertainties are eliminated, with full operation of restaurants anticipated to resume[30]. - The expansion plan of the Group has been delayed due to the impact of the pandemic[38]. - The Group closed four food counters in Shenzhen and Shanghai during 2021 due to unsatisfactory performance, and all twenty food counters under the "Sun Kau Kee" brand in Shanghai were also closed[98]. - There was no significant investment, acquisition, or disposal of subsidiaries during the year ended December 31, 2021[60]. Employee Management - The Group had approximately 537 employees as of December 31, 2021, a decrease from 683 in 2020, with employee benefits expense increasing by approximately 18.3% to HK$78.2 million[62]. - The overall employee turnover rate during the reporting period is 73%, primarily due to the closure of Chinese restaurants[191]. - The turnover rate by gender shows 76% for males in Hong Kong and 65% for females in the People's Republic of China[191]. - The turnover rate by age group indicates 100% for employees under 30 years old, 55% for those aged 31-50, and 34% for employees over 50 years old[191]. - The Group provides a remuneration package that includes various types of leave and compensatory leave for public holiday work[193]. - Employees in Hong Kong participate in the Mandatory Provident Fund scheme, while those in the PRC are covered by "five social insurance and one housing fund"[194]. - The Group has established policies for working hours, limiting full-day shifts to a maximum of 10 hours and half-day shifts to 5 hours[195]. - The Group is committed to creating an inclusive workplace culture, ensuring equal opportunities and zero tolerance for discrimination[199]. Environmental, Social, and Governance (ESG) Initiatives - The Board is responsible for overseeing the Group's ESG governance, focusing on environmental, climate, and social aspects[98]. - The Group aims to maintain high standards of business practices related to environmental protection, social responsibility, and corporate governance[98]. - The Group has established an ESG taskforce responsible for collecting relevant information on ESG aspects and reporting to the Board[100]. - The ESG Report covers the Group's performance in environmental and social areas across its headquarters and eight restaurant operations in Hong Kong and the PRC[100]. - The Group conducts stakeholder engagement through interviews and surveys to understand and address concerns related to ESG issues[104]. - Major stakeholders include investors, customers, suppliers, employees, government bodies, and NGOs, with specific communication channels established for each[107][109]. - The Group aims to improve ESG performance by collaborating with stakeholders to create greater societal value[109]. - A materiality assessment is conducted to identify relevant ESG issues and their importance to the business and stakeholders[113]. - The Group's management and ESG taskforce are involved in the preparation of the ESG Report, ensuring comprehensive input from various departments[113]. Environmental Impact and Sustainability - The Group's exhaust gas emissions for 2021 included 1,905.33 kg of Nitrogen Oxides (NOx), 8.90 kg of Sulphur Oxides (SOx), and 15.36 kg of Particulate Matter (PM), showing slight increases compared to 2020[134]. - The major sources of the Group's GHG emissions are direct emissions from towngas cooking and diesel and petrol consumed by vehicles (Scope 1), and indirect emissions from towngas cooking and purchased electricity (Scope 2)[135]. - The Group has not identified any material non-compliance with environmental laws and regulations during the reporting period, ensuring adherence to relevant legislation[124]. - The Group has implemented various emission reduction measures, including encouraging public transportation for business commuting and reducing business trips through electronic communication[131]. - The Group's commitment to environmental sustainability includes energy conservation, waste reduction, and compliance with environmental laws and regulations[123]. - The Group's policies aim to minimize adverse environmental impacts through the principles of "Reduce, Reuse, Recycle and Replace"[122]. - The overall exhaust gas emissions slightly increased during the reporting period due to the relaxation of social distancing measures[133]. - The Group's environmental policies are designed to ensure emissions and waste are managed in an environmentally responsible manner[122]. - The Group's restaurants are equipped with exhaust emission systems and air pollution control equipment to manage emissions effectively[129]. - The Group actively adopts measures for environmental protection, energy conservation, and water-saving to reduce GHG emissions[136]. - The Group's total GHG emissions increased to 31,150.97 tCO2 in 2021 from 30,283.98 tCO2 in 2020, representing a rise of approximately 2.87%[139]. - Direct GHG emissions (Scope 1) rose to 23,170.59 tCO2 in 2021, up from 21,986.63 tCO2 in 2020, indicating an increase of about 5.38%[139]. - Indirect GHG emissions (Scope 2) decreased to 7,980.38 tCO2 in 2021 from 8,297.35 tCO2 in 2020, showing a reduction of approximately 3.82%[139]. - The Group aims for a 5% reduction in total GHG emissions intensity over three years compared to the reporting period, targeting optimal indoor temperature management and timely shutdown of unused equipment[141]. - The Group has set a target to achieve a 10% reduction in total non-hazardous waste intensity by 2031 from a base year of 2021[151]. - Food waste is identified as a major non-hazardous waste type, with the Group implementing stringent policies for its management and disposal[150]. - The Group has appointed qualified third parties for the collection and handling of food waste, ensuring proper disposal and recycling of waste oil into biodiesel[150]. - The Group maintains high standards in waste reduction and educates employees on sustainable development practices[144]. - The Group's waste management practices comply with relevant environmental protection laws and regulations[144]. - Total non-hazardous waste increased from 2.45 tonnes in 2020 to 3.46 tonnes in 2021, representing a 41.2% increase[152]. - Total energy consumption rose by approximately 5.4%, from 119,188.69 MWh in 2020 to 125,638.08 MWh in 2021[162]. - Total water consumption increased from 142,985.00 m³ in 2020 to 150,099.00 m³ in 2021, marking a rise of 5.5%[168]. - Water consumption intensity decreased from 0.60 m³ per thousand revenue in 2020 to 0.55 m³ in 2021[168]. - The Group aims to reduce total energy consumption intensity over the next three years by prioritizing energy-saving equipment purchases[162]. - The Group consumed approximately 1.02 tonnes of plastic packaging materials during the reporting period, equating to 0.004 kg per thousand revenue[171]. - Direct energy consumption from diesel decreased significantly from 19.15 MWh in 2020 to 0.66 MWh in 2021[160]. - Unleaded petrol consumption also decreased from 253.07 MWh in 2020 to 130.00 MWh in 2021[160]. - The Group's total energy consumption intensity improved from 0.50 MWh per thousand revenue in 2020 to 0.46 MWh in 2021[160]. - The Group has set a conservative target to reduce water consumption intensity by 3% per square meter over the next five years[167].

Financial Performance - The Group's revenue for the six months ended June 30, 2021, amounted to approximately HK$134.1 million, representing an increase of approximately 46.6% compared to the corresponding period in 2020[11]. - Loss attributable to owners of the Company was approximately HK$25.4 million, an increase in loss of approximately HK$1.8 million compared to a loss of approximately HK$23.6 million for the same period in 2020[12]. - Basic loss per share was approximately HK2.54 cents, compared to HK2.36 cents for the same period in 2020[15]. - The Group's operating loss for the period was approximately HK$20.2 million, compared to HK$16.4 million for the same period in 2020[15]. - Total comprehensive expense for the period attributable to owners of the Company was approximately HK$24.6 million, compared to HK$24.9 million for the same period in 2020[15]. - Other income for the period was approximately HK$6.4 million, compared to HK$6.8 million for the same period in 2020[15]. - The Group's loss before income tax was approximately HK$26.3 million, compared to HK$23.6 million for the same period in 2020[15]. - Total revenue and other income for the six months ended June 30, 2021, was HK$140,475,000, an increase from HK$98,276,000 in 2020, representing a growth of approximately 42.8%[61]. - The Group's gross profit for the six months ended June 30, 2021, amounted to approximately HK$76.9 million, an increase of approximately 34.2% from approximately HK$57.3 million in 2020[147]. - The overall gross profit margin decreased from approximately 62.7% in 2020 to approximately 57.4% in 2021, attributed to increased concessions to attract customers and general food cost inflation[147]. Revenue Breakdown - For the six months ended June 30, 2021, revenue from external customers was HK$134,118,000, a significant increase from HK$91,477,000 in the same period of 2020, representing a growth of approximately 46.5%[56]. - Revenue from external customers in Hong Kong decreased to HK$27,114,000 in 2021 from HK$43,198,000 in 2020, reflecting a decline of about 37.2%[56]. - Revenue from external customers in Mainland China surged to HK$107,004,000 in 2021, up from HK$48,279,000 in 2020, indicating an increase of approximately 121.5%[56]. - The revenue from the seven Chinese restaurants in Hong Kong and Shenzhen was approximately HK$112.7 million, up from approximately HK$84.0 million in 2020, while the Thai (Mongkok) Restaurant's revenue decreased to approximately HK$4.1 million from approximately HK$5.1 million[143][144]. - Revenue from cooperation with Freshippo increased significantly to approximately HK$15.0 million from approximately HK$2.4 million in the previous year[143][144]. Expenses and Costs - Employee benefits expense for the period was approximately HK$40.4 million, an increase from HK$27.8 million in the same period in 2020[15]. - Other expenses amounted to approximately HK$33.2 million, an increase of approximately HK$10.8 million or 48.4% compared to approximately HK$22.4 million in 2020[152]. - The cost of materials consumed was approximately HK$57.2 million, compared to HK$34.1 million for the same period in 2020[15]. - Interest expense on bank borrowings and lease liabilities totaled HK$6,026,000 for the six months ended June 30, 2021, down from HK$6,803,000 in 2020, a decrease of approximately 11.4%[71]. Assets and Liabilities - Total assets decreased from HK$330,700,000 as of December 31, 2020, to HK$287,006,000 as of June 30, 2021, representing a decline of approximately 13.2%[17]. - Total liabilities decreased from HK$270,646,000 as of December 31, 2020, to HK$253,087,000 as of June 30, 2021, indicating a reduction of approximately 6.5%[18]. - Cash and cash equivalents at the end of the period were HK$19,322,000, down from HK$36,744,000 at the end of June 30, 2020, showing a decrease of about 47.4%[21]. - The company reported a net decrease in cash and cash equivalents of HK$9,753,000 for the six months ended June 30, 2021, compared to a decrease of HK$33,958,000 in the same period of 2020, indicating an improvement in cash flow management[21]. - Equity attributable to owners of the company decreased from HK$60,054,000 as of December 31, 2020, to HK$33,919,000 as of June 30, 2021, a decline of approximately 43.5%[17]. - The Group reported a net current liabilities of HK$59,327,000 as of June 30, 2021, compared to HK$49,420,000 as of December 31, 2020, indicating a worsening of liquidity position[18]. Operational Insights - The Group operates a single operating segment focused on restaurant operations, with no external customer contributing more than 10% of total revenue[54]. - The Group's financial performance is assessed based on profit after income tax, with all business activities consolidated into one operating segment[52]. - The Group's resources are integrated, and no discrete operating segment financial information is available for separate reporting[53]. - The Group ceased operations of a Cantonese dim sum tea house in Luohu District in June 2021 to avoid further losses and reallocate working capital[135][136]. - As of June 30, 2021, the Group operated four full-service restaurants in Hong Kong and three in Shenzhen, along with eighteen food counters in Shanghai[135][139]. Future Outlook and Strategies - The Group anticipates facing various challenges in the foreseeable future due to uncertainties in the Hong Kong and Mainland China economies[174]. - The Group's future success relies on its ability to adapt to changing market trends and customer preferences, which may require significant costs for research and development[175]. - The Group has established a strategic cooperation with Freshippo to accelerate the development of the light meal takeaway market in Mainland China[180]. - The Group plans to introduce new products with pure Hong Kong flavors and develop new dishes to enhance competitiveness[183]. - The Group will continue to seek rent remission and streamline operating costs in Hong Kong to enhance efficiency[184]. Shareholding Structure - As of June 30, 2021, Mr. Chan Chun Kit holds a significant interest of 37.65% in the company through a controlled corporation[195]. - The Company has disclosed its substantial shareholders' interests as of June 30, 2021, in accordance with regulatory requirements[198]. - Bright Creator holds approximately 37.65% of the entire issued share capital of the Company, equating to 376,531,400 shares[199]. - Mr. Chan, together with Ms. Liu Siu Kuen, controls approximately 39.52% of the entire issued share capital of the Company[196].

Financial Performance - The Group reported consolidated results for the year ended December 31, 2020, with comparative figures for 2019 presented for consideration[11]. - The financial summary indicates significant changes in revenue and profit margins compared to the previous year, highlighting the Group's performance[3]. - The Group's total revenue for the year ended December 31, 2020, was approximately HK$236.4 million, a year-on-year decrease of approximately 33.0% from HK$352.9 million in 2019[13]. - Loss attributable to owners of the Company amounted to approximately HK$39.8 million in 2020, compared to a profit of approximately HK$59.3 million in 2019[13]. - The gross profit amounted to approximately HK$137.3 million for the year ended December 31, 2020, representing a decrease of approximately 39.3% from approximately HK$226.2 million in 2019, with the gross profit margin declining from approximately 64.1% to approximately 58.1%[40]. - The Group expects financial performance in 2021 to improve compared to 2020, as operations are anticipated to resume fully[19]. - The Group's cash flow statement reflects a healthy liquidity position, supporting ongoing investments and operational needs[3]. - The Group's cash and cash equivalents as of 31 December 2020 were approximately HK$28.9 million, a decrease of approximately HK$42.3 million from HK$71.2 million as of 31 December 2019[59]. - The Group recorded a gain on early termination of lease, net of approximately HK$21.1 million for the Sheung Wan Restaurant and the Beijing House Restaurant[53]. - Other income increased by approximately HK$19.9 million, mainly due to government subsidies related to COVID-19[53]. Business Operations - The Group operated five full-service restaurants in Hong Kong and three in Shenzhen, along with twenty-five food counters in Shenzhen and Shanghai[25]. - The Group ceased operations of the Sheung Wan Restaurant and the Beijing House Restaurant in February 2020 due to unsatisfactory customer visits and unfavorable market conditions[25]. - The Group opened three new food counters at Freshippo stores during the year, contributing approximately HK$19.6 million in revenue[36]. - The Group has entered into cooperation agreements with Shenzhen and Shanghai Freshippo to expand its presence in the food delivery market, with plans to open more counters in 2021[30]. - The Group aims to leverage Freshippo's brand awareness to attract younger customers and penetrate the takeaway and food delivery market effectively[33]. - The Group's strategy focuses on evolving as a leading player in offering quality roast meat and Cantonese delicacies in China[30]. - The Group aims to become a reputable multi-brand restaurant group in Hong Kong and the PRC, targeting mid-to-high end customers for future non-Chinese cuisine restaurants[77]. - The Group's restaurant operations in Hong Kong were affected by COVID-19, leading to shortened hours and limited customer capacity due to government regulations[83]. Strategic Initiatives - Future outlook suggests a focus on market expansion and potential acquisitions to enhance competitive positioning[3]. - New product development initiatives are underway, aiming to innovate and meet evolving customer demands[3]. - The Group's strategic initiatives include exploring new technologies to improve operational efficiency and customer experience[3]. - The Group is focusing on diversifying its business model by incorporating an asset-light O2O integrated light meal catering approach[17]. - The Group will continue to implement its business strategies, including expansion in Hong Kong and the PRC, enhancing brand image, and improving restaurant facilities[77]. - The Group will adjust its business strategies based on market trends and customer demand to improve financial performance going forward[85]. Environmental, Social, and Governance (ESG) Practices - The Group is committed to enhancing its environmental, social, and governance (ESG) practices as part of its long-term strategy[3]. - The ESG Report covers the Group's performance in environmental and social areas across its headquarters and twelve restaurant operations in Hong Kong and the PRC[114]. - The Group aims to minimize environmental impacts through policies focused on emission mitigation and waste management principles of "Reduce, Reuse, Recycle and Replace"[141]. - The Group is committed to promoting energy conservation and waste reduction across the lifecycle of its services[142]. - A materiality assessment was conducted to identify relevant ESG issues and their importance to the business and stakeholders[134]. - The Group's major ESG issues include food quality and safety, corporate social responsibility, and health and safety management[136]. - The Group's total GHG emissions decreased by approximately 52% from about 63,732.50 tCO2e in 2019 to approximately 30,283.98 tCO2e in 2020, primarily due to limited restaurant operations in Hong Kong for anti-infection measures[156]. - The Group has implemented various emission reduction measures, including encouraging public transportation and reducing business trips through electronic communication[149]. - The Group has established an energy management system to regularly review energy objectives and enhance overall energy performance[173]. Human Resources - The Group emphasizes the importance of human resources as a valuable asset and focuses on successful recruitment, training, and retention of talent[197]. - A robust, transparent, and fair recruitment process is adopted, based on merit selection against job criteria[199]. - Employment decisions are made based on assessment results, work experience, and overall ability of candidates[199]. - The Group provides transfer and internal promotion opportunities for employees with outstanding work performance[200]. - There were no significant violations of employment-related laws and regulations during the reporting period[197]. Future Challenges and Outlook - The economic outlook remains challenging, but the Group is optimistic about recovery once external uncertainties are resolved[19]. - The company anticipates facing various challenges in the foreseeable future due to uncertainties in the Hong Kong and China economies and the impact of COVID-19 on the catering industry[73]. - Future success relies heavily on the company's ability to adapt menu items and dining services based on changing market trends and customer preferences, which may require significant costs for research and development[73]. - The Group's management remains optimistic about enhancing shareholder value in the medium to long run based on their experience in the Chinese restaurant business[75].

Financial Performance - The group's revenue for the six months ended June 30, 2020, was approximately HKD 91.5 million, a decrease of about 48.8% compared to the same period in 2019[11]. - The loss attributable to the company's owners was approximately HKD 23.6 million, an increase of about HKD 14.2 million from a loss of HKD 9.4 million in the same period of 2019[11]. - The basic loss per share was approximately HKD 0.236, compared to HKD 0.117 in the same period of 2019[12]. - The total comprehensive loss for the six months ended June 30, 2020, was HKD (24,911,000), compared to a loss of HKD (9,546,000) in the same period of 2019, indicating a significant increase in losses[22]. - The company reported a net loss attributable to owners of HKD (23,642,000) for the six months ended June 30, 2020, compared to a loss of HKD (9,447,000) in the prior year, reflecting an increase in losses of about 150.5%[22]. - The company recorded a loss attributable to owners of approximately HKD 23.6 million for the six months ended June 30, 2020, compared to a loss of HKD 9.4 million in 2019, an increase in loss of about HKD 14.2 million[120]. Assets and Liabilities - Total assets as of June 30, 2020, amounted to HKD 319.7 million, down from HKD 374.7 million as of December 31, 2019[17]. - Non-current assets decreased to HKD 246.5 million from HKD 256.5 million as of December 31, 2019[17]. - Current assets decreased to HKD 73.1 million from HKD 118.2 million as of December 31, 2019[17]. - The total equity attributable to the company's owners was HKD 67.9 million, down from HKD 92.8 million as of December 31, 2019[17]. - As of June 30, 2020, total liabilities decreased to HKD 251,778,000 from HKD 281,873,000 as of December 31, 2019, representing a reduction of approximately 10.7%[19]. - Non-current liabilities, including lease liabilities, decreased from HKD 141,598,000 to HKD 123,542,000, a decline of about 12.8%[19]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2020, was HKD 11,832,000, down from HKD 18,200,000 in the same period of 2019, reflecting a decrease of approximately 35.5%[28]. - Cash used in investing activities increased significantly to HKD (21,513,000) compared to HKD (1,873,000) in the prior year, indicating a substantial rise in investment outflows[29]. - Cash used in financing activities was HKD (24,277,000), a decrease from HKD (30,671,000) in the previous year, showing a reduction of about 20.9%[30]. - The cash and cash equivalents at the end of the period decreased to HKD 36,744,000 from HKD 45,811,000, a decline of approximately 19.8%[34]. - Cash and bank balances as of June 30, 2020, were approximately HKD 36.7 million, a decrease of about 34.4% from HKD 71.2 million as of December 31, 2019[123]. Revenue Breakdown - Revenue from Chinese restaurants decreased to HKD 48,279 thousand in the six months ended June 30, 2020, down 41.2% from HKD 82,203 thousand in the same period of 2019[58]. - Total revenue and other income for the six months ended June 30, 2020, was HKD 98,276 thousand, a decline of 45.1% compared to HKD 179,172 thousand in the same period of 2019[61]. - The revenue from the Chinese restaurant business was HKD 86,381 thousand, down 51.1% from HKD 176,493 thousand in the previous year[61]. Expenses and Cost Management - Employee benefits expenses were approximately HKD 27.8 million, a reduction of about 41.6% from HKD 47.6 million in 2019, maintaining a stable percentage of revenue[114]. - Other expenses amounted to approximately HKD 22.4 million, a decrease of about 51.0% from HKD 45.6 million in 2019, primarily due to cost control measures[118]. - Depreciation expenses for property, plant, and equipment increased to HKD 8,393 thousand in the six months ended June 30, 2020, compared to HKD 5,858 thousand in the previous year[66]. Strategic Initiatives - The company has established a strategic partnership with Alibaba's Hema Fresh to accelerate the expansion into the large meal delivery market in mainland China[137]. - The company plans to enhance product offerings by developing new dishes and considering retail options such as specialty soups and takeaway meals[138]. - The company is actively seeking rent reductions and operational cost efficiencies in the Hong Kong market to improve profitability[138]. - The company is exploring market expansion strategies and potential mergers and acquisitions to enhance growth[161]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the group's unaudited interim financial results for the six months ended June 30, 2020[175]. - The company has complied with all applicable code provisions of the corporate governance code, except for the separation of the roles of chairman and CEO[166]. - The company has established an audit committee to review financial information and oversee the relationship with external auditors[174]. - The company confirmed that all directors complied with the code of conduct for securities transactions during the six months ended June 30, 2020[168].

Financial Performance - Total revenue for the year was approximately HKD 352.9 million, a decrease of about 2.1% compared to HKD 360.5 million in 2018[9] - The company recorded a loss of approximately HKD 59.3 million for the year, compared to a profit of HKD 2.3 million in 2018[9] - The overall gross profit was approximately HKD 226.2 million, down about 6.0% from HKD 240.6 million in the previous year, with a gross profit margin declining from approximately 66.7% to 64.1%[25] - Employee benefits expenses increased by approximately 10.2% to about HKD 95.0 million, primarily due to the increase in staff numbers at new restaurants opened in 2019[26] - The group recorded a loss attributable to owners of the company of approximately HKD 59.3 million for the year ended December 31, 2019, compared to a profit of HKD 2.3 million in 2018, representing a decrease of approximately HKD 61.6 million[32] - The group’s cash and cash equivalents as of December 31, 2019, were approximately HKD 71.2 million, an increase of about HKD 10.8 million from approximately HKD 60.4 million as of December 31, 2018[33] - The group’s bank borrowings as of December 31, 2019, amounted to approximately HKD 7.4 million, secured by approximately HKD 11.0 million of pledged bank deposits[36] - The group completed a rights issue on December 17, 2019, raising approximately HKD 47.6 million in total funds and approximately HKD 45.8 million in net proceeds[38] - The group anticipates facing various challenges in the foreseeable future due to economic uncertainties in Hong Kong and China, as well as the impact of the pandemic on the restaurant industry[45] Business Expansion and Partnerships - The company has entered into a partnership with Alibaba's Hema to explore the O2O dining market, opening its first Hema store in Shenzhen in Q4 2019[10] - The company plans to acquire 70% of the shares in Yao Liang (Shanghai) Food Co., Ltd. for RMB 22.4 million, which operates over 30 stores in Shanghai Hema[13] - The acquisition is expected to be completed in Q2 2020 and aims to strengthen the company's presence in the Shanghai dining market[13] - The group plans to establish at least ten stores in partnership with Alibaba's Hema Fresh by December 15, 2020, to penetrate the growing food delivery market in China[20] - The group signed agreements with Alibaba's Hema to establish at least ten stores in relevant areas, aiming to enter the rapidly growing food delivery market in China[49] - The company aims to diversify its revenue sources and establish a more robust income base through its expansion into first and second-tier cities in China[13] Impact of COVID-19 - The company acknowledges the severe impact of the COVID-19 pandemic on the restaurant retail industry[11] - Due to the pandemic, the group expects significant financial performance decline in the first half of 2020 compared to the same period in 2019, as operating hours and seating capacity were reduced[51] - The company terminated operations of two restaurants in February 2020 due to the impact of the pandemic[70] Environmental, Social, and Governance (ESG) Practices - The company emphasizes sustainable development and high standards in environmental, social, and governance practices[72] - The group has established effective management policies and internal controls regarding environmental, social, and governance (ESG) matters, ensuring compliance with relevant reporting guidelines[82] - The group aims to enhance its performance in environmental, social, and governance aspects through collaboration with stakeholders[81] - The group has adopted waste management principles focused on reduction, reuse, recycling, and substitution to minimize environmental impact[85] - The company is committed to creating a sustainable business by promoting energy conservation and reducing waste throughout its service lifecycle[85] - The total greenhouse gas emissions increased by approximately 55% from about 41,157.97 tons of CO2 equivalent in 2018 to approximately 63,732.50 tons in 2019, primarily due to restaurant expansions in Hong Kong and China[93] - The company has implemented various measures to reduce waste, including promoting double-sided printing and using recycled paper[102] - The company has established energy management policies to enhance energy efficiency and reduce unnecessary energy consumption[105] Corporate Governance - The company has a strong governance structure with multiple committees, including audit, nomination, remuneration, and legal compliance committees, to enhance oversight and accountability[177] - The independent non-executive directors are responsible for providing independent judgment on the company's strategy and performance, ensuring compliance with legal and regulatory requirements[174] - The company is committed to maintaining high standards of corporate governance and compliance with regulatory requirements to protect shareholder interests[181] - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, ensuring a strong independent element[190] - The company has adhered to all applicable corporate governance code provisions, with the exception of a few deviations, which are explained in the report[186] Employee Management and Training - The company has established transparent recruitment and promotion processes to optimize internal human resource allocation[116] - Employee compensation is based on skills, qualifications, and market conditions, with additional benefits such as free meals and accommodation for staff in China[117] - The company promotes a culture of diversity and equal opportunity, ensuring no discrimination based on various personal characteristics[120] - Employee training programs cover various aspects of restaurant operations, including food preparation, hygiene, and customer service[126] - The group has implemented policies to ensure a safe and healthy work environment, complying with local occupational health and safety regulations[121] Food Safety and Quality Control - The group emphasizes food safety and quality control, implementing a system that covers food preparation and dining environment hygiene[134] - The company emphasizes the importance of food safety through stringent storage procedures and a warehouse management system, which includes separate storage of ingredients and labeling to prevent expiration[135] - All suppliers must hold valid licenses and comply with food labeling and hygiene regulations[130] - Regular reviews of suppliers are conducted to ensure compliance with quality standards and to maintain product safety[130]

Financial Performance - The group's revenue for the six months ended June 30, 2019, was approximately HKD 178.8 million, a slight decrease of about 2.4% compared to HKD 183.3 million in the same period of 2018[6]. - The loss attributable to the company's owners was approximately HKD 9.4 million, a decrease of about HKD 15.1 million from a profit of HKD 5.7 million in the same period of 2018[6]. - Basic loss per share was approximately HKD 1.18, compared to earnings of HKD 0.71 per share in the same period of 2018[9]. - Total revenue and other income for the six months ended June 30, 2019, was HKD 179,172,000, down from HKD 184,640,000 in 2018, representing a decrease of 3.8%[107]. - The group reported a loss before tax of HKD 24,788 million for the six months ended June 30, 2019, compared to a profit of HKD 8,735 million in 2018[85]. - The group recorded a loss attributable to owners of approximately HKD 9.4 million for the six months ended June 30, 2019, compared to a profit of HKD 5.7 million in the same period of 2018, reflecting a decrease of about HKD 15.1 million[157]. Assets and Liabilities - Total assets as of June 30, 2019, amounted to HKD 303.5 million, an increase from HKD 181.3 million as of December 31, 2018[12]. - Non-current assets were HKD 210.3 million, significantly higher than HKD 79.6 million at the end of 2018[11]. - Current assets decreased to HKD 93.1 million from HKD 101.7 million at the end of 2018[12]. - Total liabilities increased to HKD 206.3 million from HKD 58.0 million at the end of 2018[12]. - The company's equity attributable to owners decreased to HKD 97.1 million from HKD 123.3 million at the end of 2018[12]. - The group's current liabilities exceeded its current assets by approximately HKD 10,545,000 as of June 30, 2019, raising concerns about liquidity[24]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 18,200,000, compared to HKD 9,170,000 for the same period in 2018, representing a 98.5% increase[19]. - The cash and cash equivalents at the end of the period decreased to HKD 45,811,000 from HKD 62,225,000, indicating a decline of 26.4%[18]. - The net cash used in financing activities was HKD 30,671,000, which is a significant increase from HKD 14,043,000 in the previous year[19]. - The cash flow from operating activities for the six months ended June 30, 2019, was HKD 18,200 million, compared to HKD 9,170 million in 2018[88]. Expenses - Employee benefits expenses increased to HKD 47.6 million from HKD 41.7 million in the same period of 2018[9]. - Depreciation expenses rose significantly to HKD 27.4 million from HKD 8.7 million in the same period of 2018[9]. - Other expenses decreased to approximately HKD 45.6 million, a reduction of about 29.7% from HKD 65.0 million in the previous year, mainly due to the adoption of new accounting standards[154]. - Interest expenses on bank loans for the six months ended June 30, 2019, were HKD 239,000, compared to HKD 237,000 for the same period in 2018[110]. Accounting Standards - The group has adopted the revised Hong Kong Financial Reporting Standard No. 16, which has resulted in changes to accounting policies but did not significantly impact prior periods[20]. - The company adopted HKFRS 16 Leases starting from January 1, 2019, which introduces a single accounting model for lessees, requiring recognition of right-of-use assets and lease liabilities for all leases, except for short-term leases and low-value asset leases[38]. - The cumulative impact of the initial application of HKFRS 16 resulted in adjustments to the opening balances of right-of-use assets and lease liabilities as of January 1, 2019, without restating comparative information[38]. - The company applies HKFRS 15 to allocate contract consideration to lease and non-lease components starting from January 1, 2019[56]. Revenue Breakdown - Revenue from external customers in Hong Kong was HKD 96,589,000, an increase of 6.5% compared to HKD 90,668,000 in 2018[105]. - Revenue from external customers in Mainland China was HKD 82,203,000, a decrease of 11.2% from HKD 92,594,000 in 2018[105]. - For the six months ended June 30, 2019, the revenue from restaurant operations was HKD 178,792,000, a decrease of 1.2% from HKD 181,857,000 in the same period of 2018[107]. - The revenue from the six Chinese restaurants in Hong Kong was approximately HKD 95.9 million, including revenue from the newly opened Kwun Tong restaurant in December 2018, compared to HKD 89.3 million from five restaurants in 2018[148]. Future Outlook - The group anticipates challenges in the foreseeable future due to economic uncertainties in Hong Kong and China, impacting business operations[171]. - The group expects financial performance to improve in the latter half of 2019 despite operational losses from newly opened restaurants[174]. - The group aims to expand its multi-brand restaurant strategy in Hong Kong and gradually enter the Chinese market while enhancing brand recognition[175]. Shareholder Information - The major shareholders collectively control 63.65% of the company's total share capital[185]. - Mr. Chen holds 479,200,000 shares, representing 59.90% of the company's equity[183]. - The company has a significant shareholder structure, with Mr. Tan holding 479,200,000 shares, representing 59.90% of the equity[193]. - The company has a minority shareholder, Cheng Kai Limited, which holds 53,530,000 shares, accounting for 6.69% of the equity[193]. Corporate Governance - The company has adhered to the corporate governance code as per the listing rules, with some deviations noted[199]. - The roles of the Chairman and CEO are not separated, with Mr. Chen holding both positions since 1998[200]. - The Board believes that having the same person in both roles ensures consistent internal leadership and effective strategic planning[200].