董事會會議通告 叙福樓集團有限公司(「本公司」)董事(「董事」)會(「董事會」)謹此宣佈, 本公司將於二零二五年八月二十八日(星期四)舉行董事會會議, 藉以(其中包括) 考慮及批准本公司及其附屬公司截至二零二五年六月三十日止六個月之中期 業績及其發佈, 並考慮派發中期股息(如有)。 承董事會命 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，概不會就本公告全部或任何部分內容而產 生或因倚賴該等內容而引致之任何損失承擔任何責任 。 LH GROUP LIMITED 叙福樓集團有限公司 （於開曼群島註冊成立的有限公司） (股份代號：1978) 主席 黃傑龍 教授，銅紫荊星章，太平紳士 香港，二零二五年八月十五日 於本公告日期，董事會由以下人士組成，執行董事為黃傑龍 教授，銅紫荊星章，太平紳士 及高秀芝女士；及獨立非執行董事為單日堅先生 銀紫荊星章，香港懲教事務卓越獎章，太平 紳士 、洪爲民 教授，太平紳士 及麥錦釗先生。 叙福樓集團有限公司 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 叙福樓集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01978 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 4,000,000,000 | HKD | | 0.1 | HKD | | 400,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 4,000,000,000 | HKD | | 0.1 | HKD | | 400,000,000 | 本月底法定/註 ...

Core Viewpoint - The sudden closure of the Hong Kong chain restaurant giant Jing Le Group reflects a broader trend of restaurant closures in the region, with over 20 chain brands shutting down in the past six months, including long-established establishments [3][4]. Group 1: Closure Trend - A wave of restaurant closures is sweeping through Hong Kong, with notable brands like "Sea Emperor Congee" and "Golden Milk Pudding" announcing their shutdowns due to deteriorating operating conditions and financial crises [4][5][6]. - International brands are also exiting the market, such as the Thai dessert brand After You Dessert Café and the Japanese ramen brand "Kintan," which closed their last locations in Hong Kong [8][10]. - The survival challenges are particularly acute for small and medium-sized restaurants, with many reporting rapid closures due to poor business conditions [11][12]. Group 2: Causes of Closure - High rental costs are a significant challenge for restaurant operators in Hong Kong, with many citing rent increases as a primary reason for their closures [14][15]. - Changes in consumer behavior, including a trend of Hong Kong residents shopping and dining in mainland China, have negatively impacted local restaurant revenues. For instance, the number of Hong Kong residents traveling to mainland China surged by over 50% compared to 2023 [18][19]. - The average spending of visitors to Hong Kong has decreased, with overall tourist spending dropping by 20% from the previous year, further squeezing the local dining market [19][20]. Group 3: Market Dynamics - The Hong Kong restaurant market is experiencing an oversupply, with the number of restaurants remaining stable compared to 2023 but exceeding pre-pandemic levels by 11% [22][26]. - This oversupply, combined with declining demand due to consumer spending shifts, has led to intensified competition and a wave of closures [27][28]. - Experts predict that up to 2,000 more restaurants may need to close to realign with the market conditions that existed before the pandemic, indicating a necessary market correction process [28].

Group 1 - The core viewpoint is that the recent closure of the Jing Le Group reflects a broader trend of restaurant closures in Hong Kong, with over 20 chain brands shutting down in the past six months, including long-established ones [1][2][3] - The closure of well-known brands such as "Hai Huang Congee Shop" and "Kam Cheong Steamed Milk" highlights the deteriorating business environment and financial crises faced by the industry [4][5] - The trend is not limited to local brands; international brands like "After You Dessert Café" and "Kintan" have also exited the Hong Kong market, indicating a widespread issue [9][10] Group 2 - High rental costs are identified as a significant challenge for restaurant operators in Hong Kong, with many citing increased rent as a reason for closure [16][18] - Changes in consumer behavior, including a shift towards spending in mainland China and a decline in spending by visitors to Hong Kong, have negatively impacted local restaurant revenues [20][21][30] - The number of restaurants in Hong Kong has not decreased despite the drop in demand, leading to an oversupply situation that exacerbates competition and contributes to the closure trend [33][34][45] Group 3 - The current oversupply in the restaurant market is attributed to a mismatch between supply and demand, with many new establishments opening during a period of increased local consumption that has since declined [36][43] - It is projected that up to 2,000 more restaurants may need to close to align with the pre-pandemic market conditions, indicating a necessary market correction [46][47] - The ongoing closures are viewed as a natural market adjustment process, where weaker businesses are eliminated, allowing for a potential rebalancing of the industry [47]

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 1,056.0 million, a decrease of 17.3% compared to HKD 1,276.8 million in 2023[7]. - The company reported a loss attributable to shareholders of HKD 32.1 million, compared to a profit of HKD 88.1 million in the previous year[7]. - Basic and diluted loss per share was HKD 4.01, down from earnings of HKD 11.01 per share in 2023[7]. - The group's revenue for the year ended December 31, 2024, decreased by approximately 17.3% or about HKD 220.8 million to approximately HKD 1,056.0 million compared to the previous year[20]. - Core net profit for the year ended December 31, 2024, was approximately HKD 4.8 million, with a core net profit of approximately HKD 12.2 million for the second half of 2024, indicating a healthy financial status during the transition period[20]. - Revenue from franchised brands decreased by approximately 16.1% or about HKD 149.9 million to approximately HKD 778.2 million, accounting for about 73.7% of total revenue[24]. - Revenue from self-owned brands decreased by approximately 20.5% or about HKD 70.1 million to approximately HKD 271.3 million, representing 25.7% of total revenue[25]. - The group recorded a loss of approximately HKD 32.1 million for the year ending December 31, 2024, compared to a profit of approximately HKD 88.1 million for the year ending December 31, 2023, primarily due to a decrease in revenue attributed to a weak local dining industry[30]. - The group's cash and cash equivalents amounted to approximately HKD 144.8 million as of December 31, 2024, compared to approximately HKD 147.7 million in the previous year[31]. - The current ratio decreased to approximately 0.7 times as of December 31, 2024, down from approximately 1.1 times in the previous year, indicating a decline in liquidity[31]. Operational Developments - The company opened ten new stores and renovated one store within a month, setting a new record for store openings[12]. - The company launched new brands such as "挽肉と米" and "牛角J," which have been well-received, with the first store of "挽肉と米" being fully booked since its opening[11]. - The company has successfully transformed a previously unsuccessful restaurant concept into "和平飯店（京川滬）," which has seen strong business since its opening[12]. - The number of self-owned brand restaurants increased from 16 to 17, while franchised brand restaurants rose from 41 to 46, reflecting a strategic expansion in restaurant operations[23]. - The group has implemented strategic measures to expand revenue sources and reduce expenses, including negotiating lower rents and achieving more favorable terms with suppliers[15]. - A new customer relationship management system and mobile app were launched in 2024 to enhance customer service and engagement through data analysis[14]. - The management team aims to improve operational efficiency and marketing strategies to adapt to the changing market environment and enhance brand development[16]. Future Outlook - The company remains optimistic despite weak consumer spending and plans to enhance customer dining experiences through brand revitalization[13]. - The group anticipates challenges in the Hong Kong dining industry in 2025, but expects potential improvements in local consumption due to economic recovery and government initiatives[44]. - The management team plans to streamline internal processes and develop effective operational and promotional strategies to enhance operational efficiency and market responsiveness[44]. - The company has set a target to expand its market presence in Southeast Asia, aiming for a 30% increase in market share by 2025[48]. - New product launches are expected to contribute an additional $100 million in revenue over the next fiscal year[49]. - The company is investing $50 million in research and development for new technologies aimed at enhancing operational efficiency[50]. - A strategic acquisition is planned, which is projected to increase the company's annual revenue by 20%[51]. - The company has revised its earnings guidance for the next quarter, now expecting a range of $520 million to $540 million[46]. Sustainability and Corporate Governance - The company is focusing on sustainability initiatives, with a goal to reduce carbon emissions by 40% by 2030[48]. - The board has approved a new strategy to enhance supply chain management, which is expected to reduce costs by 15%[49]. - The company is committed to sustainable development and has implemented measures to control environmental and social impacts[60]. - The company has adopted a corporate governance code and has complied with most of its best practices, except for the separation of roles between the chairman and CEO[108]. - The board has formed three committees: the nomination committee, remuneration committee, and audit committee, with specific written terms of reference[134]. - The company has established a board diversity policy to enhance performance quality and support strategic goals, considering factors such as gender, age, cultural background, and professional experience[122]. - The company has a remuneration policy for directors that includes fixed salaries and variable components based on market competitiveness and company performance[120]. - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and transparency[157]. Employee and Stakeholder Engagement - The company faced challenges in employee recruitment and retention, which could impact operational performance[57]. - The company has established a mystery shopper program to evaluate restaurant cleanliness, service quality, and food quality[197]. - The group recognizes the importance of employee welfare, safety, and health as part of its sustainable development strategy[185]. - The company maintains a customer-oriented corporate culture and emphasizes the importance of good relationships with employees, suppliers, and customers to achieve its short-term and long-term goals[78]. - The company encourages reporting of any suspicious fraudulent activities or misconduct, ensuring confidentiality and protection for whistleblowers[131]. - The company has established a process for appointing new directors and re-electing retiring directors[140]. Risk Management - The board is responsible for overseeing the group's risk management related to sustainability, ensuring alignment with the group's sustainable development strategy[179]. - The company has adopted a three-tier risk management approach to identify, assess, mitigate, and respond to risks, ensuring effective operations[168]. - The audit committee reviews the effectiveness of the risk management and internal control systems at least annually, with the next review scheduled for the fiscal year ending December 31, 2024[166]. - The company has no internal audit function but has decided to have the board directly responsible for risk management and internal control[167]. - The company's financial performance is subject to risks including supply chain disruptions and fluctuations in ingredient costs[59].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue decreased to HKD 1,056.0 million from HKD 1,276.8 million in 2023, representing a decline of approximately 17.3%[3] - The company reported a loss attributable to shareholders of HKD 32.1 million for 2024, compared to a profit of HKD 88.1 million in 2023, indicating a significant downturn in profitability[5] - Basic and diluted loss per share for 2024 was HKD 4.01, a decrease from earnings of HKD 11.01 per share in 2023[5] - The group reported a pre-tax loss of HKD 38,450 for the year ended December 31, 2024, compared to a pre-tax profit of HKD 104,442 in 2023[20][21] - The group’s total segment profit for 2024 was HKD 29,708, compared to HKD 161,072 in 2023, a decrease of 81.6%[20][21] - The pre-tax loss for 2024 was HKD 32,062,000, compared to a profit of HKD 88,065,000 in 2023, indicating a significant downturn[32] Revenue Breakdown - Total revenue for the year ended December 31, 2024, was HKD 1,055,992, a decrease of 17.3% from HKD 1,276,771 in 2023[16] - Restaurant operations revenue decreased to HKD 1,049,503 in 2024 from HKD 1,269,483 in 2023, representing a decline of 17.3%[16] - The revenue from franchised brands decreased by approximately 16.1% or about HKD 149.9 million to approximately HKD 778.2 million, while the number of franchised restaurants increased from 41 to 46[49] - The revenue from owned brands decreased by approximately 20.5% or about HKD 70.1 million to approximately HKD 271.3 million[49] - The group’s external revenue from food sales and others was HKD 6,489 in 2024, down from HKD 7,288 in 2023, a decline of 10.9%[20] Assets and Liabilities - Total assets increased to HKD 786.0 million in 2024 from HKD 759.7 million in 2023, reflecting a growth of approximately 3.5%[6] - The company's current liabilities exceeded current assets by HKD 93.1 million as of December 31, 2024, highlighting liquidity challenges[10] - Non-current liabilities rose to HKD 233.9 million in 2024 from HKD 168.5 million in 2023, an increase of approximately 39%[7] - The total segment assets increased to HKD 581,911 in 2024 from HKD 470,022 in 2023, reflecting a growth of 23.7%[22] - Segment liabilities rose to HKD 473,828 in 2024 from HKD 375,555 in 2023, an increase of 26.2%[22] Cash Flow and Working Capital - Cash and cash equivalents stood at HKD 144.8 million in 2024, slightly down from HKD 147.7 million in 2023, with no external borrowings reported[10] - The company plans to enhance operational cash flow and maintain sufficient working capital to meet financial obligations over the next twelve months[10] - The current assets and current liabilities were approximately HKD 226.1 million and HKD 319.2 million, respectively, resulting in a current ratio of approximately 0.7 times as of December 31, 2024, down from 1.1 times in 2023[56] Operational Highlights - The company operates full-service restaurants primarily serving Asian cuisine, including Japanese and Cantonese dishes, in Hong Kong[8] - The group opened 10 new restaurants and renovated one restaurant within a month, setting a new record for the group[43] - The group operates 17 owned restaurants and 46 franchised restaurants as of December 31, 2024, compared to 16 owned and 41 franchised restaurants in the previous year[48] - The group has actively developed multiple brands, launching new self-operated brands and franchise brands to meet diverse customer needs[43] Cost Management - The food and beverage costs decreased by approximately 18.3% or about HKD 71.6 million to approximately HKD 319.7 million, with food and beverage costs accounting for about 30.3% of revenue[52] - Employee costs decreased by approximately 0.6% or about HKD 2.4 million to approximately HKD 377.9 million, with employee costs accounting for about 35.8% of revenue[53] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of corporate governance to protect shareholder interests[74] - The board consists of two executive directors and three independent non-executive directors, ensuring a high level of independence[74] - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated annual results for the year ending December 31, 2024, ensuring compliance with applicable accounting standards and regulations[77] Dividend Policy - The company has decided not to recommend a final dividend for the year ending December 31, 2024, compared to a final dividend of HKD 0.0406 per share in 2023[35] - The board has decided not to recommend a final dividend for the year ending December 31, 2024, compared to a dividend of HKD 0.0406 per share for 2023[71] Employee Information - The group had 1,619 employees as of December 31, 2024, down from 1,667 employees in 2023[65] Future Outlook - The group plans to streamline internal processes and develop new brands while launching innovative products to enhance operational efficiency and market responsiveness[69]

Revenue Performance - Revenue decreased by 20.9% to HK$522.6 million in the first half of 2024 compared to HK$660.5 million in the same period last year[19] - Franchised brand revenue decreased by 20.4% to HK$384.7 million, accounting for 73.6% of total revenue[19] - Owned brand revenue decreased by 21.8% to HK$136.0 million[19] - Revenue for the six months ended June 30, 2024, was HK$522.61 million, a decrease from HK$660.51 million in the same period in 2023[51] - Revenue from restaurant operations and ingredient sales decreased to HK$522.61 million in 2024 from HK$660.51 million in 2023, representing a decline of 20.9%[63] - Revenue from the company's own brands decreased to HK$136.01 million in 2024 from HK$173.99 million in 2023, a decline of 21.8%[67] - Revenue from franchised brands decreased to HK$384.65 million in 2024 from HK$483.37 million in 2023, a decline of 20.4%[67] Costs and Expenses - Food and beverage costs decreased by 19.4% to HK$162.3 million, representing 31.1% of revenue[21] - Employee costs decreased by 4.3% to HK$194.5 million, representing 37.2% of revenue[22] - Depreciation, rent, and related expenses for right-of-use assets decreased by 8.4% to HK$90.1 million[23] - Employee costs decreased to HK$194.463 million for the six months ended June 30, 2024, from HK$203.22 million in the same period in 2023[51] - Employee benefits expenses, including wages and salaries, amounted to HKD 172,627,000, with discretionary bonuses totaling HKD 11,136,000[76] - Total employee benefits and short-term compensation increased to 4,924 thousand HKD in 2024 from 4,806 thousand HKD in 2023[102] Financial Performance and Losses - The company reported a loss of HKD 26.5 million for the period, compared to a profit of HKD 47.6 million in the same period last year, primarily due to a 20.9% decrease in revenue and increased impairment provisions for property, plant, and equipment[24] - Net loss attributable to shareholders for the six months ended June 30, 2024, was HK$26.535 million, compared to a profit of HK$47.55 million in the same period in 2023[51] - The company recorded a loss before tax of HK$32.069 million for the six months ended June 30, 2024, compared to a profit of HK$56.207 million in the same period in 2023[51] - The company recorded a net loss of HK$26,535 thousand for the six months ended June 30, 2024[54] - The company reported a basic loss per share of HKD 3.32 cents, based on a loss attributable to shareholders of HKD 26,535,000 and 800,000,000 issued ordinary shares[78][79] Assets and Liabilities - As of June 30, 2024, the company's short-term bank deposits were HKD 56.4 million (down from HKD 105.1 million as of December 31, 2023), and cash and cash equivalents were HKD 137.9 million (down from HKD 147.7 million as of December 31, 2023)[25] - The company's current assets and current liabilities as of June 30, 2024, were HKD 264.4 million (down from HKD 325.2 million as of December 31, 2023) and HKD 320.0 million (up from HKD 293.7 million as of December 31, 2023), respectively, resulting in a current ratio of 0.8x (down from 1.1x as of December 31, 2023)[25] - Total assets as of June 30, 2024, were HK$691.63 million, down from HK$759.65 million as of December 31, 2023[52] - Property, plant, and equipment increased to HK$101.235 million as of June 30, 2024, from HK$96.753 million as of December 31, 2023[52] - Right-of-use assets decreased to HK$212.566 million as of June 30, 2024, from HK$239.197 million as of December 31, 2023[52] - Cash and cash equivalents stood at HK$137.878 million as of June 30, 2024, down from HK$147.657 million as of December 31, 2023[52] - Total equity decreased from HK$297,407 thousand to HK$238,392 thousand as of June 30, 2024, compared to December 31, 2023[53] - Current liabilities exceeded current assets by HK$55,639 thousand as of June 30, 2024[58] - The company's cash and cash equivalents, along with short-term bank deposits, totaled HK$194,273 thousand as of June 30, 2024[58] - Total segment assets decreased to HK$466.98 million in 2024 from HK$470.02 million in 2023[70] - Total segment liabilities increased to HK$391.75 million in 2024 from HK$375.56 million in 2023[70] - Right-of-use assets for restaurants decreased to HKD 206,519,000 as of June 30, 2024, from HKD 231,134,000 at the end of December 2023[85] - Lease liabilities as of June 30, 2024, totaled HKD 237,781,000, with current liabilities at HKD 127,407,000 and non-current liabilities at HKD 110,374,000[85] - Trade receivables from external customers decreased to HKD 6,344,000 as of June 30, 2024, from HKD 10,174,000 as of December 31, 2023[92] - Trade payables to external suppliers increased to HKD 55,653,000 as of June 30, 2024, from HKD 45,479,000 as of December 31, 2023[98] - Contract liabilities increased to HKD 39,390,000 as of June 30, 2024, from HKD 36,541,000 as of December 31, 2023[99] - The company's prepayments and deposits for rent and utilities increased to HKD 78,118,000 as of June 30, 2024, from HKD 74,865,000 as of December 31, 2023[94] - The company's total current liabilities increased to HKD 128,217,000 as of June 30, 2024, from HKD 126,585,000 as of December 31, 2023[99] - The company's total non-current liabilities decreased to HKD 53,110,000 as of June 30, 2024, from HKD 50,242,000 as of December 31, 2023[94] - The company's total equity remained unchanged at HKD 80,000,000 as of June 30, 2024, compared to the same period last year[97] Dividends and Shareholder Information - The company declared an interim dividend of HK$0.0475 per share and a special dividend of HK$0.125 per share[16] - No interim dividend declared for the current period[37] - No interim dividend was recommended for the six months ended June 30, 2024[81] - Directors and key executives hold a combined 75% stake in the company through associated entities[45][46] - Mr. Wong Kit Lung holds a 29.03% stake in associated entity Sufood Holdings, while Ms. Ko Sau Chi holds a 10.01% stake[47] - Shareholders holding 75% of the company's shares include 叙福樓控股, 高爵權先生, 黃耀鏗先生, 廖祥先生, 廖志鴻先生, 劉廣坤先生, 合群, 林群英先生, and 陳惠珍女士[48][49] - 叙福樓控股, registered in the British Virgin Islands, holds 29.03% of the company's shares, with other key shareholders holding between 2.99% and 11.99%[49] Operational Highlights - The company operated 58 restaurants as of June 30, 2024, including 14 owned brands and 44 franchised brands[17] - The company opened its first "挽肉と米" restaurant in Hong Kong in May 2024, which has been highly successful with over 300 customers queuing on the opening day and online reservations consistently fully booked[35] - The company launched a new customer relationship management system and a new membership app in 2024 to better understand customer needs and enhance service quality[36] - The company has implemented strategic measures to expand revenue sources and reduce expenses, including negotiating lower rents with property owners and securing more favorable terms with suppliers[36] - The company expects the local consumption market to improve rapidly after potential US interest rate cuts, with factors such as the potential impact of the HKD exchange rate, improved consumer spending power, and lower market financing costs positively affecting local consumption[36] Corporate Governance and Compliance - The company maintained a minimum public float of 25% of issued shares as required by the Hong Kong Stock Exchange[38] - The company has adopted the Corporate Governance Code and complies with most of its provisions, except for the separation of Chairman and CEO roles, which are both held by Mr. Wong Kit Lung[39][40] - No purchase, sale, or redemption of listed securities by the company or its subsidiaries during the period[42] - The Audit Committee, composed of three independent non-executive directors, reviewed the unaudited interim financial results[43] - Changes in board composition: Mr. Mak Kam Chiu appointed as independent non-executive director and Audit Committee Chairman, while Ms. Hung Lo Shan resigned from these positions[44] Taxation and Financial Reporting - Hong Kong profits tax provision for the six months ended June 30, 2024, was calculated at a rate of 16.5%, with a subsidiary qualifying for a two-tier tax rate of 8.25% on the first HKD 2,000,000 of taxable profits[75] - Current income tax expense for the period was HKD 2,557,000, while deferred tax credit was HKD 8,091,000, resulting in a net tax credit of HKD 5,534,000[75] - The company adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on financial performance[61] Impairment and Depreciation - Impairment loss on property, plant, and equipment for the period was HKD 8,744,000, significantly higher than the HKD 653,000 recorded in the same period last year[84] - Depreciation of property, plant, and equipment for the period was HKD 15,310,000, a decrease from HKD 19,920,000 in the same period last year[76] - Depreciation of right-of-use assets increased slightly to HK$59.21 million in 2024 from HK$58.84 million in 2023[73] - The company recognized an impairment loss on right-of-use assets of HKD 10,066,000 for the period, compared to HKD 412,000 in the same period last year[90] Cash Flow and Financing - Cash and cash equivalents decreased by HK$48,922 thousand to HK$147,540 thousand as of June 30, 2024[56] - Operating cash flow from business activities was HK$156,974 thousand for the six months ended June 30, 2024[56] - Investment activities resulted in a net cash outflow of HK$79,331 thousand, primarily due to the purchase of property, plant, and equipment[56] - Financing activities resulted in a net cash outflow of HK$123,664 thousand, mainly due to dividend payments and lease principal repayments[56] - Total lease cash outflow for the period was approximately HKD 70,685,000, compared to HKD 76,842,000 in the same period last year[87] - Variable lease payments for certain properties are linked to restaurant sales, ranging from 6% to 15% of sales[89] Segment Performance - Segment loss for own brands was HK$14.22 million in 2024, compared to a segment profit of HK$14.90 million in 2023[67][69] - Segment profit for franchised brands decreased to HK$15.24 million in 2024 from HK$73.23 million in 2023, a decline of 79.2%[67][69] Other Financial Metrics - Other income and gains decreased by 12.6% to HK$2.2 million[20] - Financing income decreased to HK$3.85 million in 2024 from HK$6.66 million in 2023[74] - Financing costs increased to HK$5.85 million in 2024 from HK$4.61 million in 2023[74] - Capital commitments for lease renovations increased to 9,192 thousand HKD as of June 30, 2024, compared to 1,942 thousand HKD as of December 31, 2023[100] - The company's property holdings remained unchanged as of June 30, 2024[103] - The company holds investment properties in Kowloon and New Territories, including residential units and workshop spaces[104]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 522.6 million, a decrease of 20.9% compared to HKD 660.5 million in the same period of 2023[1] - The company reported a loss attributable to shareholders of HKD 26.5 million, compared to a profit of HKD 47.6 million in the previous year[2] - Basic and diluted loss per share was HKD 3.32, down from earnings of HKD 5.94 per share in the prior year[2] - The company incurred a total comprehensive loss of HKD 26.5 million for the period, compared to a total comprehensive income of HKD 47.6 million in the previous year[5] - The group recorded a loss of HKD 26,535,000 for the six months ended June 30, 2024[10] - The company reported a net loss attributable to shareholders of HKD 26,535,000 for the six months ended June 30, 2024, compared to a profit of HKD 47,550,000 in the same period of 2023[22] - The company recorded a loss of HKD 26.5 million for the period, compared to a profit of approximately HKD 47.6 million in the same period last year[41] Assets and Liabilities - Total assets decreased to HKD 691.6 million as of June 30, 2024, from HKD 759.7 million as of December 31, 2023[3] - Current liabilities decreased to HKD 133.2 million from HKD 168.5 million, indicating improved short-term financial health[4] - The company’s total equity attributable to shareholders decreased to HKD 238.4 million from HKD 297.4 million[4] - The company's cash and cash equivalents were HKD 137.9 million, down from HKD 147.7 million at the end of 2023[3] - The total segment assets as of June 30, 2024, amounted to HKD 466,982,000, while total segment liabilities were HKD 391,751,000[13] - As of June 30, 2024, the company's current assets and current liabilities were approximately HKD 264.4 million and HKD 320.0 million, respectively, resulting in a current ratio of about 0.8[43] Revenue Breakdown - Restaurant operations generated revenue of HKD 520,666,000, down 20.8% from HKD 657,367,000 in the previous year[10] - The revenue from owned brands decreased by approximately 21.8% to about HKD 136.0 million, down from approximately HKD 174.0 million in the previous year[35] - The number of franchised restaurants increased from 39 to 44, while the revenue from franchised brands decreased by approximately 20.4% to about HKD 384.7 million[35] Costs and Expenses - The company's food and beverage costs decreased by approximately 19.4% to about HKD 162.3 million, representing 31.1% of total revenue[38] - Employee costs decreased by approximately 4.3% to about HKD 194.5 million, but as a percentage of revenue, it increased to 37.2% due to declining revenue[39] - Interest income from bank deposits decreased to HKD 3,591,000 in 2024 from HKD 6,662,000 in 2023[17] - The company recorded total financing costs of HKD (5,852,000) for the six months ended June 30, 2024, compared to HKD (4,608,000) in 2023[17] - The company's other income and gains decreased by approximately 12.6% to about HKD 2.2 million from approximately HKD 2.5 million in the previous year[37] Strategic Initiatives - The company plans to focus on expanding its market presence and enhancing operational efficiency in the upcoming periods[6] - Management is aware of the significant transformation in the local consumer market and aims to leverage this for future profit growth, supported by a strong cash position[50] - The group is actively developing new brands and has remodeled existing brands to enhance customer dining experiences, with new locations opened in June and July 2024[51] - A new customer relationship management system and membership app were launched in 2024 to better understand customer needs and enhance service[51] - The group has implemented strategic measures to expand revenue sources and reduce expenses, including negotiating lower rents and better supplier terms[51] Corporate Governance - The audit committee has been established, consisting of three independent non-executive directors, to assist the board in monitoring financial reporting and internal controls[57] - The board expresses gratitude to the management team and all employees for their continuous support and contributions to the group's prospects[59] Dividends and Shareholder Returns - The board decided not to declare an interim dividend for the period[52] - The company declared a final dividend of HKD 0.0406 per share, totaling HKD 32,480,000, for the year ended December 31, 2023[24] Employment and Workforce - The group employed 1,742 employees as of June 30, 2024, an increase from 1,667 employees as of December 31, 2023[46]

Financial Performance - Revenue for the year ended December 31, 2023, increased to HKD 1,276.8 million, up 20.1% from HKD 1,063.2 million in 2022[7] - Profit attributable to shareholders rose to HKD 88.1 million, representing an increase of 13.4% compared to HKD 77.7 million in the previous year[7] - Basic and diluted earnings per share increased to HKD 11.01, up from HKD 9.71 in 2022[7] - Core profit before tax for the year ended December 31, 2023, was approximately HKD 116.2 million, representing a growth of about 141.2% from approximately HKD 48.2 million in the previous year[22] - Revenue from franchised brands rose by approximately 18.2% or about HKD 143.2 million to approximately HKD 928.1 million, accounting for about 72.7% of total revenue[28] - Revenue from owned brands increased by approximately 25.1% or about HKD 68.5 million to approximately HKD 341.4 million[28] - The total dividend proposed is HKD 21.31 per share, with a total payout ratio of approximately 194%[17] - The profit for the year increased by approximately 13.3% from HKD 77.7 million to HKD 88.1 million, attributed to the lifting of dining restrictions and social distancing measures[36] Operational Developments - The company opened five new stores during the year, including three under the franchise brand "The Matcha Tokyo," bringing the total to 57 stores[12] - The number of restaurants operated by the company increased from 53 to 57, contributing to the revenue growth[27] - The company plans to revamp some existing self-operated and franchise brands in the second half of 2024 to provide a fresh dining experience[12] - The company plans to launch a new restaurant under the franchise brand "挽肉と米" in Central, aiming to enhance its presence in the fast-casual dining sector[12] - The company is actively developing new brands and expanding its restaurant footprint, with plans to open a new franchise brand "挽肉と米" in Central in Q2 2024[54] - The company is introducing automation systems and artificial intelligence to alleviate staff workload and innovate restaurant operations[54] Market Challenges - The company anticipates a challenging market for the Hong Kong restaurant industry in 2024 due to weak consumer spending and a sluggish property market[14] - The management team is focused on improving operational efficiency and developing effective marketing strategies to respond to market challenges[14] - The company is facing challenges such as rising food costs and labor pressures, and is actively communicating with suppliers to find cost-effective sources[54] Cost Management - Food and beverage costs increased by approximately 16.9% or about HKD 56.5 million to approximately HKD 391.3 million, but the percentage of food and beverage costs to revenue decreased to about 30.6%[32] - Employee costs increased by approximately 28.1% from HKD 296.8 million to HKD 380.3 million due to expanded restaurant network and absence of government wage subsidies[34] - The depreciation, rent, and related expenses rose by approximately 12.8% from HKD 171.1 million to HKD 192.9 million, primarily due to an increase in the number of restaurants from 53 to 57[35] - The company is focused on reducing transaction costs as a principle in response to rising food costs[54] Corporate Governance - The company has complied with all corporate governance codes except for the separation of roles between the chairman and CEO[134] - The board consists of five members, including two executive directors and three independent non-executive directors[139] - The independent non-executive directors confirmed their independence and compliance with the relevant standards[140] - The company has established three board committees: the Nomination Committee, the Remuneration Committee, and the Audit Committee, to oversee specific aspects of the company's affairs[163] - The company has adopted a whistleblowing policy to promote compliance and ethical behavior within the group[160] Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and ensure transparency of company information[186] - The annual general meeting for shareholders is scheduled for June 6, 2024, with notices to be sent at least 21 days prior[186] - The company has adopted a shareholder communication policy to facilitate effective communication during shareholder meetings[187] - The company emphasizes the importance of shareholder communication through annual general meetings and allows proxy voting for those unable to attend[189] Sustainability and Social Responsibility - The company emphasizes sustainable development as a core principle in its business operations[16] - Charitable donations made by the company during the reporting year amounted to approximately HKD 128,000, an increase from HKD 79,000 in 2022[93] - The company is committed to improving menu offerings and introducing high-quality ingredients to enhance the value-for-money dining experience[54] Risk Management - The board of directors is responsible for establishing and reviewing the group's risk management and internal control systems to protect shareholder investments[195] - The company has adopted a three-tier risk management approach to identify, assess, mitigate, and respond to risks, with business units as the first line of defense[198] - The audit committee continuously reviews the effectiveness of the company's risk management and internal control systems and reports to the board[196]

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 1,276.8 million, an increase of 20.1% from HKD 1,063.2 million in 2022[4] - Profit attributable to shareholders for the year was HKD 88.1 million, up 13.5% from HKD 77.7 million in the previous year[4] - Basic and diluted earnings per share increased to HKD 11.01, compared to HKD 9.71 in 2022, reflecting a growth of 13.4%[4] - The company reported a pre-tax profit of HKD 104.4 million, compared to HKD 84.4 million in 2022, reflecting a growth of 23.7%[4] - The company reported a net profit attributable to shareholders of HKD 88,065,000 for 2023, up from HKD 77,705,000 in 2022, resulting in a basic earnings per share of 11.01 HK cents[52] - Core profit before tax for the year ended December 31, 2023, was approximately HKD 116.2 million, representing a growth of about 141.2% from approximately HKD 48.2 million for the year ended December 31, 2022[108] - The profit for the year ended December 31, 2023, increased by approximately 13.3% or about HKD 10.4 million to approximately HKD 88.1 million compared to HKD 77.7 million for the year ended December 31, 2022[118] Assets and Liabilities - The total equity attributable to shareholders decreased to HKD 297.4 million from HKD 409.5 million in 2022, a decline of 27.3%[8] - Total assets as of December 31, 2023, were HKD 759.7 million, down from HKD 846.6 million in 2022, representing a decrease of 10.3%[10] - Non-current liabilities increased to HKD 168.5 million from HKD 149.0 million in 2022, an increase of 13.5%[12] - The company's total liabilities were reported at HKD 372,681,000, with a breakdown of segment liabilities including trade payables and lease liabilities[41] - Total liabilities for the company were HKD 462,244,000 as of December 31, 2023, compared to HKD 437,090,000 in the previous year[61] - As of December 31, 2023, the group's current assets and current liabilities were approximately HKD 325.2 million and HKD 293.7 million, respectively, resulting in a current ratio of about 1.1 times, down from 1.5 times in 2022[150] Costs and Expenses - Food and beverage costs rose to HKD 391.3 million, up 16.8% from HKD 334.8 million in the previous year[4] - Employee costs increased significantly to HKD 380.3 million, a rise of 28.1% from HKD 296.8 million in 2022[4] - The company's food and beverage costs rose by approximately 16.9% or about HKD 56.5 million to approximately HKD 391.3 million for the year ended December 31, 2023[115] - Depreciation of right-of-use assets and related rental expenses increased by approximately 12.8% or about HKD 21.9 million to approximately HKD 192.9 million for the year ended December 31, 2023, due to an increase in the number of restaurants from 53 to 57[116] Dividends - The company proposed a final dividend of HKD 4.06 per share, with a total payout ratio of approximately 194% including interim and special dividends[17] - The company plans to distribute a final dividend of HKD 0.0406 per share, totaling HKD 32,480,000, subject to shareholder approval[70] - The total dividend payout for the year, including an interim dividend of HKD 0.0475 and a special dividend of HKD 0.125, amounts to HKD 0.2131 per share, representing a total payout ratio of approximately 194%[135] - The proposed final dividend is subject to approval at the annual general meeting and, if approved, will be paid on June 27, 2024[175] Operational Highlights - The segment profit for the restaurant operations was HKD 30,625,000, compared to HKD 8,136,000 in the previous year, reflecting a significant improvement[39] - Revenue from self-owned brands increased by approximately HKD 68.5 million or 25.1% to HKD 341.4 million for the year ended December 31, 2023, compared to HKD 273.0 million in the previous year[87] - Revenue from franchised brands increased by approximately HKD 143.2 million or about 18.2% to approximately HKD 928.1 million for the year ended December 31, 2023, driven by an increase in the number of franchised restaurants from 37 to 41[112] - The company operated 16 self-owned restaurants and 41 franchised restaurants, catering to a diverse customer base[84] - The number of restaurants operated increased from 53 to 57 during the year ended December 31, 2023[142] - The company plans to launch a new franchise brand restaurant in Central in Q2 2024, expanding its presence in the fast-casual dining sector[132] Strategic Focus - The management is focused on strategic resource allocation based on performance evaluations of different business segments[35] - The company plans to continue expanding its restaurant operations and enhancing its product offerings in the coming year[33] - The management team aims to enhance operational efficiency and market responsiveness through improved internal processes and effective operational strategies[157] - The group plans to focus on brand revitalization, launching new brands through various collaboration models, and expanding its store network while introducing innovative products[157] - The company is actively communicating with suppliers to mitigate rising food costs and is introducing automation and AI systems to alleviate labor pressures in restaurants[173] Market Outlook - The group anticipates a more challenging market for the Hong Kong restaurant industry in 2024 due to weak consumer demand and a sluggish local property and stock market[157] - The company has shown strong adaptability in response to market changes despite challenges in the business environment, particularly in the restaurant sector[82] Compliance and Governance - The audit committee, along with the management, reviewed the consolidated annual results for the year ending December 31, 2023, and confirmed compliance with applicable accounting standards and regulations[181] - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[124] - The company and its subsidiaries did not purchase, sell, or redeem any of the company's listed securities during the year ending December 31, 2023[180] - The company has no significant contingent liabilities as of December 31, 2023[129]