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].