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].

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].