Financial Performance - Revenue for the year ended December 31, 2024, was HK$3,291,954,000, representing a 2.5% increase from HK$3,211,993,000 in 2023[14] - Profit attributable to owners of the Company decreased by 33.1% to HK$62,749,000, down from HK$93,836,000 in 2023[14] - Earnings per share attributable to owners decreased by 33.1% to HK6.24, compared to HK9.33 in 2023[14] - The Group's revenue for FY2024 increased by 2.5% to approximately HK$3,292.0 million, compared to HK$3,212.0 million in FY2023[60] - Profit attributable to owners for FY2024 was HK$62.7 million, down from HK$93.8 million in FY2023; excluding certain losses, profit would be HK$114.8 million compared to HK$132.5 million in FY2023[60] - Other income and gains decreased to HK$17.1 million in FY2024 from HK$18.6 million in FY2023[65] Revenue Breakdown - Revenue from Hong Kong and Macau increased by 8.5% to HK$2,954,684,000, while revenue from Mainland China decreased by 31.0% to HK$337,270,000[14] - The revenue distribution by brand shows Tai Hing contributing 38.2% and Men Wah contributing 26.9%[25] - Revenue from the flagship brand "Tai Hing" increased by 4.3% year-on-year to HK$1,258.6 million, accounting for 38.2% of the Group's total revenue[85] - Revenue from the "Men Wah Bing Teng" brand slightly decreased by 0.7% year-on-year to HK$886.3 million, representing 26.9% of total revenue, primarily due to strategic store consolidations in Mainland China[88] - "TeaWood" revenue grew by 5.8% year-on-year to HK$365.7 million, accounting for 11.1% of total revenue, supported by shop renovations and new meal deals[89] Dividends - The final dividend per share proposed is HK2.50 cents, a decrease of 28.6% from HK3.50 cents in 2023, while a special dividend of HK7.50 cents is proposed, an increase of 114.3% from HK3.50 cents in 2023[15] - The Board proposed a final dividend of HK2.50 cents per share and a special dividend of HK7.50 cents per share, compared to HK3.50 cents per share for both in FY2023[64] Operational Efficiency - The Group's gross profit margin slightly increased to 73.9% from 73.8% in the previous year[14] - The Group maintained a gross profit margin of over 70% by optimizing the production plan and enhancing production efficiency[35] - The cost of materials consumed in FY2024 was HK$858.4 million, representing 26.1% of revenue, a slight decrease from 26.2% in FY2023[68] - Staff costs amounted to HK$1,188.8 million, an increase from HK$1,133.6 million in FY2023, with staff cost as a percentage of revenue rising to 36.1% from 35.3%[69][71] Strategic Initiatives - The Group launched new brands such as "On Kim Pot Rice" and "Bashi Ramen" to expand its brand portfolio[40] - The Group is exploring a light operating model with low investment and short payback period to accelerate restaurant expansion[48] - The Group aims to optimize its restaurant network in Mainland China to enhance operational efficiency[49] - The Group implemented a multi-brand strategy and restructured its operating model to adapt to market challenges[60] Market Expansion - The Group's branding campaigns have extended to markets outside the Greater Bay Area for the first time[41] - The Group is committed to expanding its presence in high-potential areas such as Kai Tak, Tsim Sha Tsui, and Central, with some brands achieving same-store growth[77][80] - The Group is focusing on expanding "Tai Hing" branches in Macau, enhancing its market presence in the region[186] Customer Engagement - The "Tai Hing App" has over 240,000 members, supporting management and marketing strategies[42] - The Group's digital transformation efforts are aimed at improving customer experience in food ordering and payment systems[180] Corporate Social Responsibility - The Group's corporate volunteer team collaborated with 21 social welfare organizations on 22 community projects in FY2024, demonstrating its commitment to social responsibility[100] - The Group received multiple awards for its outstanding performance in ESG, including the "2024 Sustainable Restaurant of the Year" and "Gold Award" for environmental excellence[100] Management and Governance - The Group's management team has extensive experience in various industries, contributing to its operational and strategic effectiveness[176][186] - The board includes members with diverse backgrounds in various industries, enhancing the company's governance and strategic direction[160] - The company has a strong focus on sustainability and compliance management as part of its strategic planning[151] Financial Position - The Group maintained a healthy financial position with cash and cash equivalents of HK$330.8 million as of December 31, 2024, compared to HK$328.1 million a year earlier[63] - The Group's total current assets were approximately HK$532.1 million, while total current liabilities were approximately HK$756.6 million, resulting in a current ratio of approximately 0.7 times[116] - The Group had no interest-bearing bank borrowings as of December 31, 2024, maintaining a debt-free status[117] Awards and Recognition - The group has received multiple awards for safety and food quality, including the highest honor from the Hong Kong 5S Association in 2017[148] - Mr. Chan was awarded "Professional Marketer of the Year" in 2020 and has held various leadership roles in industry associations[153]

Financial Performance - The group recorded a revenue growth of 2.5% to approximately HKD 3,292.0 million for the year ended December 31, 2024, compared to HKD 3,212.0 million in 2023[2]. - Shareholders' profit for the year was HKD 62.7 million, down from HKD 93.8 million in 2023, but the second half of the year saw a rebound with a profit of HKD 52.0 million, exceeding both the first half of 2024 and the second half of 2023[2]. - The group achieved a net profit of HKD 62.7 million for the year, with a basic earnings per share of HKD 0.0627, compared to HKD 0.0938 in 2023[4]. - The group reported a gross profit of HKD 2,433.5 million for the year, an increase from HKD 2,369.4 million in 2023[4]. - Total comprehensive income for the year was HKD 52.5 million, down from HKD 88.7 million in 2023[5]. - The total segment profit for the year was HKD 79,151, a decline of 32.4% compared to HKD 116,885 in 2023[22]. - The company reported a pre-tax profit of HKD 78,183, down from HKD 115,958 in the previous year, a decline of 32.6%[22]. - The basic earnings attributable to shareholders for the year ended December 31, 2024, were HKD 62,749,000, a decrease of 33.1% from HKD 93,836,000 in 2023[36]. Cash and Liquidity - The group maintained a strong cash position with cash and cash equivalents of HKD 330.8 million as of December 31, 2024, compared to HKD 328.1 million in 2023, and had no bank borrowings[3]. - Cash and cash equivalents increased slightly from HKD 328,147,000 in 2023 to HKD 330,758,000 in 2024, an increase of about 0.8%[6]. - The group has no bank borrowings, which supports its long-term development strategy[50]. - The total current assets and current liabilities as of December 31, 2024, were approximately HKD 532.1 million and HKD 756.6 million, respectively, resulting in a current ratio of approximately 0.7 times[78]. - The group's debt-to-asset ratio as of December 31, 2024, was 56.0%, slightly up from 55.9% as of December 31, 2023[79]. Dividends - The board proposed a final dividend of HKD 0.025 per share and a special dividend of HKD 0.075 per share, down from HKD 0.035 and HKD 0.035 respectively in 2023[3]. - The proposed final dividend per ordinary share for 2024 is HKD 2.50, down from HKD 3.50 in 2023, reflecting a decrease of 28.6%[34]. - The proposed special dividend per ordinary share for 2024 is HKD 7.50, significantly higher than HKD 3.50 in 2023[34]. - The board has proposed a final dividend of HKD 2.50 per share and a special dividend of HKD 7.50 per share for the year ending December 31, 2024, pending shareholder approval[74]. Assets and Liabilities - Non-current assets decreased from HKD 2,015,454,000 in 2023 to HKD 1,939,081,000 in 2024, a decline of approximately 3.8%[6]. - Current assets decreased from HKD 566,170,000 in 2023 to HKD 532,064,000 in 2024, a decline of about 6.0%[6]. - Total liabilities decreased from HKD 800,344,000 in 2023 to HKD 756,552,000 in 2024, a reduction of approximately 5.5%[6]. - Non-current liabilities decreased from HKD 796,728,000 in 2023 to HKD 778,974,000 in 2024, a decline of about 2.2%[7]. - Total equity decreased from HKD 984,552,000 in 2023 to HKD 935,619,000 in 2024, a reduction of approximately 5.0%[7]. - The company reported a total of HKD 1,714,593,000 in total assets less current liabilities for 2024, down from HKD 1,781,280,000 in 2023[6]. Operational Performance - The group actively integrated its store and restaurant network in response to market conditions, leading to a profit of HKD 114.8 million when excluding losses from property sales and impairments[2]. - The group continues to explore and adjust its business model and restaurant network layout to enhance operational resilience[49]. - The group is strategically consolidating its store network to enhance overall business resilience amid market challenges[59]. - The group continues to optimize its product mix and pricing strategy, launching various high-value dinner sets to increase customer traffic and revenue[61]. - The group successfully opened three new brands: "An Jin Rice," "Yi Qiao Ramen," and "Man Shan • Taipei," with positive market responses, particularly for "An Jin Rice" which features high-value Korean bibimbap[66]. Market and Segment Performance - Revenue from Hong Kong and Macau reached HKD 2,954,684, up 8.5% from HKD 2,723,043 in the previous year[22]. - Revenue from Mainland China decreased to HKD 337,270, down 30.9% from HKD 488,950 in 2023[22]. - The flagship brand "Tai Hing" generated revenue of HKD 1,258.6 million, a 4.3% increase from HKD 1,206.3 million, accounting for 38.2% of total revenue[61]. - Revenue from "Min Wah Ice Room" reached HKD 886.3 million, a slight decline of 0.7% from HKD 893.0 million, representing 26.9% of total revenue[62]. - "Cha Mu" reported revenue of HKD 365.7 million, up 5.8% from HKD 345.7 million, contributing 11.1% to total revenue[63]. Employee and Operational Costs - Employee costs increased to HKD 1,188.8 million, representing 36.1% of revenue, up from 35.3% in fiscal year 2023[54]. - The group's operating expenses for the review year were HKD 460.6 million, slightly down from HKD 463.2 million in the previous fiscal year, despite an increase in revenue[56]. - The cost of materials increased to HKD 858,423, up from HKD 842,637, an increase of 1.0%[30]. Sustainability and Future Plans - The group has integrated ESG values into its operations, receiving multiple awards for sustainability, including the "Hong Kong Enterprise Low Carbon Environmental Leader Award" and the "2024 Sustainable Restaurant of the Year Award" from the Hong Kong Smart Dining Association[68]. - The group plans to leverage new government policies to boost its restaurant and retail sectors, with a focus on traditional and innovative business strategies[69]. - The group aims to ensure business sustainability and long-term profitability to provide better returns to shareholders[73]. - The group plans to deepen its e-commerce efforts, including the launch of the "Neighbor Buy" electronic sales platform and collaborations with TV broadcasting companies to enhance brand influence[73]. Share Repurchase and Corporate Governance - The company repurchased 6,440,000 ordinary shares at a total cost of HKD 4,784,000, which will be subsequently canceled[44]. - Following the reporting period, the company repurchased 27,540,000 ordinary shares for a total consideration of HKD 25,120,320[88]. - The audit committee reviewed the accounting principles and practices adopted by the group, including the consolidated financial statements for the year ending December 31, 2024[89]. - The company has complied with the corporate governance code as of December 31, 2024[91].

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$1,612,488,000, representing a 2.8% increase from HK$1,568,193,000 in 2023[4] - Profit attributable to owners of the Company decreased to HK$10,719,000, down 76.4% from HK$45,326,000 in the previous year[4] - Basic earnings per share for the period was 1.07 HK cents, a decline of 76.3% compared to 4.51 HK cents in 2023[4] - The gross profit margin improved slightly to 73.7%, up from 73.5% in the previous year[4] - Profit before tax decreased significantly to HK$15,886,000, down 73.7% from HK$60,374,000 in the previous year[76] - Total comprehensive income for the period, net of tax, was HK$3,317,000, a significant decrease from HK$31,876,000 in 2023[77] - The total tax charge for the period was HK$5,166,000, down from HK$15,038,000 in 2023, indicating a reduction of about 65.6%[116] Revenue Breakdown - Revenue distribution by brand shows Tai Hing contributing 37.5% with 60 restaurants, while Men Wah contributed 27.2% with 69 restaurants[7] - The Hong Kong and Macau segment generated revenue of HK$1,430,721,000, a 9.0% increase from the previous year[4] - The Chinese Mainland segment reported revenue of HK$181,767,000, a decrease of 28.8% from HK$255,468,000 in 2023[4] - Total segment revenue for the six months ended June 30, 2024, was HK$1,664,225,000, an increase from HK$1,608,011,000 in the same period of 2023, representing a growth of 3.5%[97] - Revenue from restaurant operations was HK$1,570,345,000, up from HK$1,529,336,000, reflecting a growth of 2.7%[102] Cost and Expenses - The cost of materials consumed amounted to HK$424.3 million, representing 26.3% of revenue, a slight decrease from 26.5% in the first half of 2023[18] - Staff costs increased to HK$601.0 million from HK$544.8 million in 1H2023, with staff costs as a percentage of revenue rising to 37.3% from 34.7%[22] - Amortization of right-of-use assets and rental expenses reached HK$258.0 million, with lease-related expenses accounting for 16.0% of revenue, up from 15.5% in 1H2023[23] - Other operating expenses decreased to HK$219.2 million from HK$224.6 million in 1H2023, with the ratio of these expenses to revenue declining to 13.6% from 14.3%[26] Operational Challenges - The Group faced challenges from rising labor and rental costs, as well as a consumption downgrade in the Chinese Mainland, impacting profitability[14] - The economic recovery in Hong Kong has been weaker than expected, contributing to a restrained revenue growth environment[12] - The Group implemented stringent cost management measures and menu adjustments to enhance brand image and consolidate its restaurant network[13] Cash Flow and Liquidity - As of June 30, 2024, the Group had cash and cash equivalents of HK$268.0 million and no bank borrowings, down from HK$328.1 million at the end of 2023[16] - The Group's total current assets were approximately HK$506.8 million and total current liabilities were approximately HK$775.2 million, resulting in a current ratio of approximately 0.7 times[60] - The net current assets, after excluding current portion of lease liabilities and contract liabilities, were approximately HK$147.8 million as of June 30, 2024, compared to HK$212.4 million as of December 31, 2023[60] Business Strategy and Expansion - The Group plans to expand its business in new shopping areas such as Kai Tak Sports Park to strengthen its market position[53] - The Group is actively investing in digitalisation and innovative technology to enhance operational efficiency and reduce employee workload[52] - The Group's operational strategies included a centralized logistics model to improve supply chain efficiency and reduce costs[18] Shareholder Information - The interim dividend per share proposed is 2.50 HK cents, a decrease of 26.5% from 3.40 HK cents in 2023[4] - The Group's issued and fully paid share capital remained at 1,005,399,000 shares as of June 30, 2024, unchanged from previous periods[124] - The Group's mobile application "Tai Hing Group App" has accumulated approximately 210,000 members since its launch in mid-2023, driving steady business growth[45] Sustainability and ESG Initiatives - The Group received multiple ESG recognitions, including the "2024 Environmental Excellent Enterprise Awards" and "Super MD" status from the Employees Retraining Board[47] - The Group's commitment to sustainable development includes promoting a low-carbon lifestyle and engaging in community projects[48] Employee Information - The Group employed approximately 6,200 employees as of June 30, 2024, a decrease from approximately 6,300 employees as of December 31, 2023[65] - Total compensation paid to key management personnel for the six months ended 30 June 2024 was HK$10,923,000, compared to HK$10,268,000 for the same period in 2023, reflecting an increase of approximately 6.4%[133]

Financial Performance - For the six months ended June 30, 2024, the group's total revenue increased by 2.8% to approximately HKD 1,612.5 million, compared to HKD 1,568.2 million in the same period of 2023[1] - The profit attributable to shareholders for the same period was HKD 10.7 million, a significant decrease from HKD 45.3 million in the prior year[2] - Gross profit for the six months was HKD 1,188.2 million, compared to HKD 1,153.0 million in the previous year[2] - The group reported a decrease in pre-tax profit to HKD 15.9 million from HKD 60.4 million in the same period of 2023[2] - Total comprehensive income for the period was HKD 3.3 million, down from HKD 31.9 million in the previous year[3] - The interim dividend declared is HKD 0.025 per share, down from HKD 0.034 per share in the same period last year[1] - The group reported a pre-tax profit of HKD 10,719,000 for the six months ended June 30, 2024, down from HKD 45,326,000 in 2023[25] - Basic earnings per share for the period was HKD 0.0107, compared to HKD 0.0453 in the previous year[25] Cash and Assets - The group maintained a strong cash position with cash and cash equivalents of HKD 268.0 million as of June 30, 2024, with no bank borrowings[1] - Non-current assets as of June 30, 2024, totaled HKD 1,974.3 million, a decrease from HKD 2,015.5 million at the end of 2023[4] - The total assets of the group as of June 30, 2024, were HKD 2,481,081,000, a decrease from HKD 2,581,624,000 as of December 31, 2023[14] - The group's total liabilities as of June 30, 2024, were HKD 1,564,702,000, compared to HKD 1,597,072,000 as of December 31, 2023, indicating a reduction of approximately 2.0%[14] - The total net value of pledged properties, plants, and equipment as of June 30, 2024, was HKD 210.5 million, compared to HKD 218.1 million as of December 31, 2023[26] - The total current assets and current liabilities as of June 30, 2024, were approximately HKD 506.8 million and HKD 775.2 million, respectively, resulting in a current ratio of approximately 0.7 times[53] - As of June 30, 2024, the company's debt-to-asset ratio was 58.1%, up from 55.9% on December 31, 2023[54] Revenue Breakdown - The revenue from external customers in Hong Kong and Macau for the six months ending June 30, 2024, was HKD 1,430,721,000, up from HKD 1,312,725,000 in the previous year, reflecting a growth of about 9.0%[13] - The revenue from the mainland China segment for the same period was HKD 233,504,000, down from HKD 295,286,000, representing a decline of approximately 20.9%[13] - Restaurant operation revenue reached HKD 1,570,345,000, up from HKD 1,529,336,000, reflecting a growth of 2.7%[15] - Revenue from food sales increased to HKD 42,143,000, compared to HKD 38,857,000, marking a rise of 5.3%[15] - The flagship brand "Tai Hing" generated revenue of HKD 605.4 million, a year-on-year increase of 4.0%, accounting for 37.5% of total revenue[42] - Revenue from "Min Wah Ice Room" reached HKD 438.9 million, a year-on-year increase of 0.9%, representing 27.2% of total revenue[42] - "Cha Mu" achieved revenue of HKD 184.8 million, a year-on-year growth of 10.5%, contributing 11.5% to total revenue[43] Cost Management - Employee costs increased to HKD 601.0 million, with the employee cost to revenue ratio rising to 37.3% from 34.7% year-on-year[36] - Material costs were HKD 424.3 million, with the cost as a percentage of revenue decreasing to 26.3% from 26.5% year-on-year[35] - The group's other operating expenses were HKD 219.2 million, showing a decrease from HKD 224.6 million in the previous year, resulting in an overall expense ratio decline from 14.3% to 13.6%[38] - Rental-related expenses were HKD 258.0 million, with a rental expense to revenue ratio of 16.0%, reflecting the impact of rising rental costs in prime locations[37] - The group has implemented strict cost management measures and adjusted menus to adapt to changing consumer behavior and economic conditions[32] - The group implemented resource redeployment and integration strategies in response to rising employee and rental costs, which posed challenges to profitability[33] Strategic Initiatives - The group aims to enhance its restaurant brand image and optimize its store network through the use of the "Tai Hing Group App" to improve operational resilience[32] - The group is actively responding to market changes in mainland China by optimizing its store network and focusing resources on high-potential locations[40] - The group has implemented promotional activities to boost consumer spending, including the "Hong Kong Food Journey" campaign[40] - The group continues to develop new products and enhance its offerings to meet diverse customer needs and improve market competitiveness[42] - The group plans to expand its business in new commercial areas such as Kai Tak Sports Park to strengthen its market leadership[48] - The group is actively participating in large-scale events to promote brand exposure and business growth[49] Employee and Governance - The company employed approximately 6,200 employees as of June 30, 2024, a decrease from approximately 6,300 employees on December 31, 2023[59] - The group emphasizes employee development and welfare, fostering a healthy work environment and receiving recognition for its commitment to employee rights[46] - The company has complied with the corporate governance code as of June 30, 2024[64] Digitalization and Innovation - The group has increased investment in digitalization and innovative technologies to optimize workflows and improve execution efficiency, thereby alleviating employee workload[48] - The group launched a comprehensive mobile application "太兴集团App," accumulating around 210,000 members since mid-2023, enhancing customer engagement and driving steady business growth[45] Market Conditions - Total restaurant revenue in Hong Kong for Q2 was estimated at HKD 26.9 billion, a year-on-year decline of 2.1%[40] - Average same-store sales growth in Hong Kong was approximately 2.4% during the review period[40] - The group has not reported any revenue from individual customers that exceeds 10% of the group's total revenue, indicating a diversified customer base[14]

Financial Performance - The Group's revenue has gradually rebounded to pre-pandemic levels, with profit before tax approaching 2019 levels, indicating a steady performance [10]. - The proposed total dividend for FY2023 will amount to HK10.40 cents per share, an increase from HK5.00 cents per share in 2022 [22]. - The Group's profit margin has been maintained at above 70% due to effective cost reduction strategies, including centralized procurement [10]. - The Group's other income and gains decreased to HK$18.6 million in FY2023, down from HK$67.0 million in FY2022, primarily due to reduced government grants related to COVID-19 [23]. - Staff costs for FY2023 were HK$1,133.6 million, an increase from HK$949.3 million in FY2022, but the staff cost to revenue ratio improved from 37.7% to 35.3% [27]. Revenue Growth - Revenue from the flagship brand "Tai Hing" increased by 14.5% year-on-year to HK$1,206.3 million, accounting for 37.6% of total revenue [45]. - Revenue from the "Men Wah Bing Teng" brand rose by 21.0% year-on-year to HK$893.0 million, representing 27.8% of total revenue [49]. - "Cha Mu" brand revenue grew by 26.7% year-on-year to HK$345.7 million, accounting for 10.8% of total revenue [51]. - Revenue from "Asam Chicken Rice" increased by 27.5% year-on-year to HK$247.0 million, contributing to the Group's growth [52]. - The Group's other brands also performed well, with "Jin Li" revenue reaching HK$116.2 million, a 35.0% increase, and "Kao De Zhu" revenue at HK$147.3 million, up 28.8% [54]. - Revenue from "TeaWood" rose by 26.7% year-on-year to HK$345.7 million, accounting for 10.8% of the Group's total revenue [65]. - "Men Wah Bing Teng" generated revenue of HK$893.0 million, a 21.0% increase from HK$738.3 million, representing 27.8% of total revenue [66]. - "Phở Lê" saw a revenue increase of 35.0% year-on-year to HK$116.2 million, while "Trusty Congee King" grew by 28.8% to HK$147.3 million [69]. - "Asam Chicken Rice" achieved revenue of HK$247.0 million, up 27.5% from HK$193.7 million, driven by new seafood dishes and regional promotions [70]. Operational Efficiency and Strategy - The Group launched its first integrated mobile app "Tai Hing Little Partner" in July 2023, which has over 180,000 members, aimed at enhancing customer engagement and understanding user behavior [13]. - The Group has implemented automation systems such as smart kitchens and self-service ordering to improve operational efficiency and reduce reliance on manpower [13]. - The Group aims to enhance its operational efficiency and consolidate its market position through continuous optimization of its operating model and restaurant network [56]. - The Group plans to enhance its multi-brand strategy, launching seasonal themed products and healthy food options to attract more customers [73]. - The Group's focus on digital transformation and automation aims to reduce costs and improve operational efficiency [59]. - The Group aims to optimize operational procedures through the introduction of trending technology to improve productivity and precision [97]. Market Expansion and Sustainability - The Group plans to focus on the Greater Bay Area market and leverage e-platforms for branding and product promotion to attract younger consumers [15]. - The Group plans to open new stores at airports, borders, and tourist spots to capitalize on the recovery of the tourism industry [56]. - The Group has ceased using styrofoam boxes and is phasing out non-degradable plastic bags, focusing on sustainability initiatives [36]. - The Group received multiple ESG awards, including the "Sustainable Vision Award" and "Renewable Energy Contribution Award," recognizing its sustainability efforts [56]. - The Group is actively expanding its "Tai Hing" branches in Macau, indicating a strategy for market expansion [192]. Financial Position and Assets - As of December 31, 2023, the Group maintained a healthy financial position with cash and cash equivalents of HK$328.1 million, an increase from HK$282.6 million in the previous year [42]. - The Group's total current assets and current liabilities were approximately HK$566.2 million and HK$800.3 million, respectively, resulting in a current ratio of approximately 0.7 times [87]. - The adjusted current net asset value as of December 31, 2023, was approximately HK$212.4 million, with an adjusted current ratio of about 1.6 times [87]. - The Group did not have any interest-bearing bank borrowings as of December 31, 2023, maintaining a debt-free status [88]. - The Group's cash and cash equivalents as of December 31, 2023, were approximately HK$328.1 million, reflecting a 16.1% increase from HK$282.6 million in 2022, primarily used for opening new restaurants and expanding food factories in Hong Kong and Mainland China [109]. - The Group's capital expenditure for the review year was HK$142.8 million, down from HK$152.3 million in FY2022, with outstanding capital commitments of HK$10.4 million as of December 31, 2023 [113]. - The Group's gearing ratio as of December 31, 2023, was 55.9%, a slight decrease from 56.8% in 2022, indicating a stable capital structure [140]. Management and Governance - The Group's management team has extensive experience in various industries, including finance, compliance, and strategic planning, ensuring robust governance [186]. - The Group's leadership includes individuals with significant experience in the financial services and catering industries, providing a strong foundation for strategic decision-making [181]. - Mr. Ho is responsible for operations and overall development of the Group's Chinese cuisine brands, enhancing operations management and implementing a comprehensive automation system for food production [192]. - Mr. Yiu has over 40 years of experience in the catering industry, responsible for overall management and development of food factories, including product development and food safety management [199]. - The Group has been focusing on enhancing food safety and occupational safety standards across its operations [192]. - The Group has implemented stringent quality control systems to monitor food safety and quality, enhancing customer trust [199]. - The management team is committed to continuous improvement in operational strategies to drive growth and efficiency [192].

Financial Performance - The group's revenue increased by approximately 20.1% to HKD 3,212.0 million for the year ended December 31, 2023, compared to HKD 2,675.2 million in 2022[2]. - The group achieved a profit attributable to shareholders of HKD 93.8 million for the year, a turnaround from a loss of HKD 43.2 million in 2022[2]. - The basic earnings per share for the year was HKD 0.093, compared to a loss per share of HKD 0.043 in 2022[9]. - Gross profit for the year was HKD 2,369,356 thousand, up from HKD 1,942,349 thousand, reflecting a gross margin improvement[93]. - The total comprehensive income for the year ended December 31, 2023, was HKD 88,705,000, compared to a loss of HKD 66,815,000 in 2022, indicating a significant recovery[104]. - The company reported a pre-tax profit of HKD 115,958 for the year ended December 31, 2023, compared to a loss of HKD 43,460 in 2022[139]. Cash and Financial Position - As of December 31, 2023, the group had cash and cash equivalents of HKD 328.1 million and no bank borrowings[2]. - The group has no bank borrowings as of December 31, 2023, indicating a stable financial position[23]. - The group’s asset-liability ratio was 55.9% as of December 31, 2023, compared to 56.8% in the previous year[25]. - The total current assets and current liabilities were approximately HKD 566.2 million and HKD 800.3 million, respectively, resulting in a current ratio of about 0.7 times, consistent with the previous year[70]. - The adjusted net current assets as of December 31, 2023, were approximately HKD 212.4 million, with an adjusted current ratio of about 1.6 times, unchanged from 2022[70]. - The company’s total liabilities increased by approximately 2.5% from the previous year, reflecting ongoing investments and operational costs[139]. Dividends - The board proposed a final dividend of HKD 0.035 per share, up from HKD 0.025 per share in 2022, and a special dividend of HKD 0.035 per share, bringing the total proposed dividend to HKD 0.104 per share for the year[2]. - The company proposed an interim dividend of HKD 0.034 per share and a final dividend of HKD 0.035 per share for fiscal year 2023, compared to HKD 0.025 per share for both interim and final dividends in fiscal year 2022[160]. Operational Efficiency and Strategy - The group continues to optimize its restaurant network and enhance operational efficiency through digital technology[2]. - The group plans to enhance its digital transformation and automation efforts to reduce cost pressures and improve operational efficiency[65]. - The group aims to maintain its market position by optimizing its operational model and restaurant network in response to changing consumer habits[63]. - The group has implemented various employee training programs to enhance professional skills and service levels, contributing to improved overall work efficiency[37]. - The group aims to optimize its restaurant network in the Greater Bay Area, focusing on operational efficiency and capturing diverse market opportunities[40]. Revenue Sources and Growth - Revenue from restaurant operations reached HKD 3,148,252, up from HKD 2,598,962 in the previous year, indicating a growth of about 21%[141]. - Revenue from the Southeast Asian food brand "Hainan Chicken Rice" reached HKD 247.0 million, a year-on-year increase of 27.5% from HKD 193.7 million in fiscal year 2022[45]. - The flagship brand "Tai Hing" generated revenue of HKD 1,206.3 million, representing a year-on-year growth of 14.5% and accounting for 37.6% of total revenue[51]. - "Min Wah Ice Room" achieved revenue of HKD 893.0 million, a 21.0% increase year-on-year, contributing 27.8% to total revenue[52]. - "Cha Mu" reported revenue of HKD 345.7 million, marking a 26.7% year-on-year growth and representing 10.8% of total revenue[53]. Employee and Operational Costs - The total expenses for the year amounted to HKD 1,133.6 million, compared to HKD 949.3 million in 2022, reflecting a significant increase in employee benefits expenses[6]. - Employee costs rose to HKD 1,133,596 thousand from HKD 949,299 thousand, reflecting increased workforce expenses[93]. - The group's lease-related expenses for the fiscal year 2023 were HKD 487.3 million, compared to HKD 435.9 million in fiscal year 2022, with the lease-related expenses to revenue ratio decreasing from 16.9% to 15.2%[38]. Market and Customer Engagement - The group collaborated with the Hong Kong Tourism Board to stimulate customer spending through various dining vouchers and promotional offers[48]. - The group aims to launch multiple promotional themes and electronic coupons for its integrated mobile application "Tai Hing Little Helper" to increase customer engagement and reduce reliance on third-party delivery platforms[65]. - The group intends to strengthen its marketing efforts on popular social media platforms in mainland China to target consumer spending groups[66]. Sustainability and Awards - The group has received multiple ESG awards, including the "Sustainable Vision Award" and "Renewable Energy Contribution Award," recognizing its efforts in sustainable development[46]. Accounting and Reporting Standards - The group has applied the revised Hong Kong Financial Reporting Standards, which include significant changes to accounting policies and disclosures[124]. - The group has recognized deferred tax assets related to all deductible temporary differences arising from lease liabilities, provided sufficient taxable profits are available[121]. - The group has adopted a consistent accounting policy for the preparation of financial statements across its subsidiaries[122].

Financial Performance - For the six months ended June 30, 2023, total revenue reached HKD 1,608,011,000, a 29.5% increase from HKD 1,244,000,000 in the same period of 2022[10] - The group's profit before tax for the six months ended June 30, 2023, was HKD 60,374,000, compared to a loss of HKD 60,447,000 in the same period of 2022[10] - The company reported a profit attributable to shareholders of HKD 45.3 million for the first half of 2023, a turnaround from a loss of HKD 52.5 million in the same period of 2022[38] - Basic earnings per share for the first half of 2023 were HKD 4.51, compared to a loss per share of HKD 5.23 in the previous year[38] - The total comprehensive income for the period, after tax, was HKD 31.9 million, a significant recovery from a loss of HKD 66.4 million in the previous year[89] - The group reported a profit of HKD 45.3 million for the six months ended June 30, 2023, compared to a loss of HKD 53.4 million in the same period of 2022[89] Revenue Breakdown - Revenue from external customers in Hong Kong, Macau, and Taiwan was HKD 1,312,725,000, up from HKD 968,521,000 in the previous year, representing a 35.5% increase[10] - Revenue from the flagship brand "Tai Hing" reached 1,317 million HKD, contributing 37.1% to total revenue[47] - "Min Wah Ice Room" generated revenue of 417.1 million HKD, a year-on-year increase of 28.4%, accounting for 26.6% of total revenue[61] - Revenue for the six months ended June 30, 2023, was HKD 1,568,193,000, an increase of 28.7% compared to HKD 1,217,561,000 in the same period of 2022[119] - Revenue from the "Cha Mu" brand reached HKD 167,200,000, a year-on-year increase of 43.4% from HKD 116,600,000, contributing 10.7% to the total revenue[116] Cost and Expenses - The cost of materials was HKD 415.2 million, compared to HKD 337.8 million in the first half of 2022, with the cost-to-revenue ratio decreasing to 26.5% from 27.7%[72] - Employee costs for the first half of 2023 were HKD 544.8 million, a decrease in the cost-to-revenue ratio to 34.7% from 39.8% in the previous year[73] - The group’s operating costs for the period amounted to 236.5 million HKD, a decrease of 1.5% compared to 240.2 million HKD in the previous year[57] - Other income and gains decreased to 11.4 million HKD from 55.2 million HKD in the same period last year, primarily due to a significant reduction in government subsidies related to the COVID-19 pandemic[54] Assets and Liabilities - The total assets of the company as of the latest report were HKD 2,499.0 million, while total liabilities stood at HKD 1,537.1 million[29] - As of June 30, 2023, the total current assets and current liabilities of the group were approximately HKD 570.6 million and HKD 775.3 million, respectively, resulting in a current ratio of approximately 0.7 times[80] - The group's debt-to-equity ratio was 55.6% as of June 30, 2023, down from 56.8% as of December 31, 2022[81] - The net current assets, after excluding lease liabilities and contract liabilities, were approximately HKD 205.2 million as of June 30, 2023, compared to HKD 199.2 million as of December 31, 2022[80] Operational Highlights - The number of restaurants remained stable at 207, with 158 in Hong Kong and 48 in mainland China[29] - The group has expanded its restaurant network to 1,207 locations as of June 30, 2023, with a focus on optimizing internal processes and brand strategies[46] - The group is preparing for post-pandemic recovery by strengthening its brand strategy and optimizing its restaurant network[58] - The company plans to continue optimizing operational strategies and cost control measures to enhance business resilience[38] Market and Strategic Initiatives - The company plans to continue expanding its market presence in the Greater Bay Area, leveraging its integrated store network to capture post-pandemic opportunities[131] - The company continues to explore new themes and concepts for its stores, aiming to attract a younger customer base[116] - The group aims to enhance brand visibility in both Hong Kong and mainland China through strategic marketing initiatives, including collaborations with new generation artists[61] - The group is actively pursuing digital technology initiatives, launching a comprehensive mobile app "Little Partner" to enhance customer service and reduce reliance on third-party delivery platforms[66] Employee and Community Engagement - The group employed approximately 6,400 employees as of June 30, 2023, an increase from approximately 6,000 employees as of December 31, 2022[98] - The group has collaborated with eight social welfare organizations to support underprivileged communities during the review period[64]

Financial Performance - The group's revenue increased by approximately 28.8% to HKD 1,568.2 million for the first half of 2023, compared to HKD 1,217.6 million in the same period of 2022[7]. - The group achieved a profit attributable to shareholders of HKD 45.3 million, successfully turning around from a loss of HKD 52.5 million in the first half of 2022[7]. - The group reported a gross profit of HKD 1,152.999 million, up from HKD 879.793 million in the previous year[8]. - The group’s net loss before tax was HKD 15.038 million, significantly improved from a loss of HKD 60.447 million in the same period last year[8]. - For the six months ended June 30, 2023, the group reported a profit of HKD 45,336,000 compared to a loss of HKD 53,391,000 in the previous period[37]. - The group’s pre-tax profit for the first half of 2023 was HKD 60,374,000, a recovery from a loss of HKD 60,447,000 in the same period of 2022[48]. - Same-store sales growth was recorded at 24.2%, reflecting a recovery in dine-in business[134]. Revenue Sources - Revenue from restaurant operations and food sales amounted to HKD 1,529,336,000 and HKD 38,857,000 respectively, compared to HKD 1,178,281,000 and HKD 39,280,000 in the previous year[51]. - Revenue from the group's second-largest income source, "Min Wah Ice Room," reached HKD 417.1 million, representing a year-on-year growth of 28.4%[106]. - The flagship brand "Tai Hing" generated revenue of HKD 581.9 million, accounting for 37.1% of total revenue, with a year-on-year growth of 13.4%[137]. - "Cha Mu" achieved revenue of HKD 167.2 million, a 43.4% increase compared to HKD 116.6 million in the previous year, representing 10.7% of total revenue[138]. - The Southeast Asian cuisine brand "Hainan Chicken Rice" reported revenue of HKD 123.4 million, up 55.8% from HKD 79.2 million in the same period last year[139]. Costs and Expenses - The group’s cost of materials was HKD 415.194 million, compared to HKD 337.768 million in the same period last year[8]. - The group’s operating expenses related to the use of right-of-use assets and leases amounted to HKD 242.368 million, an increase from HKD 204.303 million in the previous year[8]. - Employee benefits expenses, including salaries and bonuses, amounted to HKD 510,101,000, with no comparative figure provided for the previous year[82]. - Employee costs for the first half of 2023 were HKD 544.8 million, compared to HKD 466.7 million in the same period last year, with the employee cost to revenue ratio decreasing to 34.7% from 39.8%[100]. - The company's material costs for the period were HKD 415.2 million, up from HKD 337.8 million in the same period last year, with the material cost to revenue ratio decreasing to 26.5% from 27.7%[99]. Cash and Assets - The group maintained a strong cash position with cash and cash equivalents of HKD 319.0 million as of June 30, 2023, with no bank borrowings[7]. - The group’s total non-current assets amounted to HKD 1,928.428 million as of June 30, 2023, down from HKD 1,960.953 million at the end of 2022[11]. - The total assets of the group as of June 30, 2023, were HKD 2,499,001,000, slightly down from HKD 2,512,657,000 in 2022[48]. - The net assets of the group as of June 30, 2023, were HKD 961,907,000, compared to HKD 955,166,000 as of December 31, 2022[41]. - As of June 30, 2023, the company's cash and cash equivalents amounted to HKD 319.0 million, an increase from HKD 282.6 million as of December 31, 2022[97]. Liabilities and Equity - The group’s total current liabilities were HKD 775.287 million, slightly up from HKD 774.720 million in the previous year[11]. - Non-current liabilities as of June 30, 2023, amounted to HKD 721,073,000, with total non-current liabilities at HKD 761,807,000[41]. - The group’s total equity as of June 30, 2023, was HKD 961,907,000, reflecting a slight increase from HKD 955,166,000 in the previous year[41]. - The company's debt-to-asset ratio was 55.6%, a decrease from 56.8% on December 31, 2022[159]. Dividends - The group declared an interim dividend of HKD 0.034 per share, up from HKD 0.025 per share in the first half of 2022[7]. - The board has declared an interim dividend of HKD 3.40 per share for the six months ended June 30, 2023, up from HKD 2.50 per share for the same period last year[145]. Market and Operational Strategies - The group has implemented automation in restaurant operations, including self-service ordering systems and automated kitchen equipment, to enhance efficiency and reduce employee pressure[73]. - The group aims to strictly control accounts receivable, with overdue balances regularly reviewed by senior management[64]. - The macro environment remains challenging due to rising global material and energy prices, impacting food costs and operational expenses in the restaurant industry[70]. - The group plans to continue expanding its market presence in the Greater Bay Area, leveraging its integrated store network to capture post-pandemic opportunities[103]. - The group has launched its first comprehensive mobile application, "Little Partner," in July 2023, which integrates multiple functions to enhance customer service and reduce reliance on third-party delivery platforms[112]. Sustainability and Social Responsibility - The group is committed to sustainability, having implemented energy-saving measures and received recognition for its efforts in environmental protection[109]. - The group has not recognized any government subsidies related to COVID-19 for the reporting periods, indicating no unmet conditions or other unforeseen events[78]. Employee and Human Resources - The group employed approximately 6,400 employees as of June 30, 2023, an increase from about 6,000 employees at the end of December 2022[152]. - The group has optimized human resource deployment to enhance team efficiency and avoid resource wastage through precise sales forecasting and staffing plans[73].

Board Composition and Governance - The board diversity policy includes various standards such as gender, age, cultural background, and professional experience[2] - During the reporting period, the board consisted of 4 members with core experience in restaurant operations and management, 1 in retail market and site selection, and 1 in financial services[5] - The board emphasizes effective communication with shareholders to enhance investor relations and understanding of the company's performance and strategy[25] - The board has approved a dividend payout of HKD 0.50 per share, reflecting a commitment to returning value to shareholders[103] - The board of directors has maintained a 100% attendance rate for all meetings held during the year[132] Financial Performance - The company's revenue for the year 2022 was HKD 2,675,166, a decrease of 15.7% compared to HKD 3,173,027 in 2021[71] - Gross profit for 2022 was HKD 1,942,349, down 15.4% from HKD 2,294,748 in the previous year[71] - The company reported a loss before tax of HKD 43,460, compared to a profit of HKD 128,304 in 2021[71] - The net loss for the year was HKD 43,074, a significant decline from a profit of HKD 95,355 in 2021[71] - Basic and diluted loss per share for 2022 was HKD 4.30, compared to earnings of HKD 9.94 in 2021[71] - The company's total reserves decreased to HKD 943,880,000 in 2022 from HKD 1,083,498,000 in 2021[75] - The group recorded revenue of approximately HKD 2,675.2 million for the fiscal year ending December 31, 2022, down from HKD 3,173.0 million in the previous fiscal year, representing a decrease of 15.7%[170] - Gross profit for the fiscal year was HKD 1,942.3 million, with a gross margin of 72.6%, slightly up from 72.3% in the previous year[170] - The group reported a loss attributable to shareholders of HKD 43.2 million, compared to a profit of HKD 99.7 million in the previous fiscal year[170] Cash Flow and Investments - The net cash outflow from investing activities was HKD 218,065,000, compared to HKD 133,917,000 in the previous year[61] - The net cash outflow from financing activities was HKD 505,651,000, down from HKD 653,049,000 in the prior year[61] - The group’s cash and cash equivalents decreased by HKD 207,124,000, compared to a decrease of HKD 98,062,000 in the previous year[61] - As of December 31, 2022, the group had cash and cash equivalents of HKD 240,590,000, down from HKD 452,607,000 at the beginning of the year[61] - The group received interest income of HKD 2,282,000, an increase from HKD 2,110,000 in the previous year[61] - The group incurred capital expenditures of HKD 145,390,000 for property, plant, and equipment, compared to HKD 125,086,000 in the previous year[61] - The group paid dividends amounting to HKD 74,813,000, down from HKD 89,410,000 in the previous year[61] - Cash and cash equivalents as of December 31, 2022, were HKD 282.6 million, down from HKD 452.6 million the previous year, with no bank borrowings[197] Risk Management and Internal Controls - The company has established a risk management and internal control system to mitigate significant misstatements or losses[34] - The board, supported by the audit committee, reviewed the effectiveness of the risk management and internal control systems for the year ending December 31, 2022[35] Shareholder Engagement and Meetings - The annual general meeting for shareholders is scheduled for June 1, 2023, with a notice to be sent at least 21 days prior[38] - The company encourages all shareholders to attend the annual general meeting and allows for proxy representation if unable to attend[38] Market Strategy and Growth - The company continues to focus on restaurant operations across various locations in mainland China[81][82] - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion for the fiscal year, representing a 15% year-over-year growth[93] - User data showed an increase in active users, reaching 5 million, which is a 20% increase compared to the previous year[95] - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[96] - New product launches are expected to contribute an additional HKD 300 million in revenue, with a focus on innovative technology solutions[97] - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[98] - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and is expected to close by Q3 2024[99] - The company has invested HKD 150 million in R&D for new technologies, aiming to improve product offerings and customer experience[100] - Cost management strategies have been implemented, resulting in a 5% reduction in operational expenses[101] - The company plans to enhance its digital marketing efforts, allocating an additional HKD 50 million to increase brand visibility and customer engagement[102] Operational Efficiency and Innovations - The group has maintained consistent accounting policies across its subsidiaries, which are consolidated from the date control is obtained[87] - The group has not sold any items generated from property, plant, and equipment before they were available for use, thus the amendments to HKAS 16 have no impact on the group's financial position or performance[108] - The group has applied the amendments to HKFRS 9 prospectively from January 1, 2022, but there were no modifications or exchanges of financial liabilities during the year, resulting in no impact on the group's financial position or performance[109] - The group has accelerated the adoption of digital tools and automation technologies to enhance operational efficiency and reduce labor pressure[180] - The company will officially launch its first comprehensive mobile application this year, aiming to meet consumer needs through multiple channels and cross-marketing strategies[184] Brand Development and Customer Experience - The company launched several new mid-to-high-end dining brands, including "Tommy Yummy" and "Bird World One," to attract new customers[140] - The company enhanced its takeaway services and marketing efforts, leveraging social media and partnerships with delivery platforms to mitigate the impact of pandemic restrictions on dine-in services[140] - The company plans to focus on the synergy between its various brands to innovate products and expand consumer bases[141] - The management has successfully restructured existing restaurant brands, enriching menu options and improving customer flow during different time periods[160] - The company aims to introduce new elements to existing brands, including new dishes and seasonal offerings, to enhance business replicability and consumer experience[141] - The company has actively optimized its restaurant network and management processes to achieve cost reduction and efficiency improvement[158] - The company has developed signature dishes suitable for both Hong Kong and mainland markets, enhancing brand uniqueness[160] - The company has redesigned restaurant decor, such as the new image store for "Cha Mu," to elevate brand image[160] Donations and Community Engagement - The group made charitable and other donations amounting to approximately HKD 360,000 during the year[130] Shareholder Structure - The major shareholder, Junfa, holds 538,449,500 shares, representing approximately 53.56% of the issued ordinary shares[117] - The exercise price for the pre-IPO share options is set at HKD 0.45 per share[123] - The group has a total of 1,863,000 pre-IPO share options, with 1,803,000 options unexercised as of December 31, 2022[123] - The group encourages eligible participants to enhance performance and efficiency for the benefit of the group[124]

Financial Performance - The group's revenue decreased by approximately 15.7% to HKD 2,675.2 million for the year ended December 31, 2022, compared to HKD 3,173.0 million in 2021[43]. - Gross profit for 2022 was HKD 1,942,349, down 15.4% from HKD 2,294,748 in the previous year[44]. - The net loss for the year was HKD 43,074, compared to a profit of HKD 95,355 in 2021, representing a significant decline[44]. - Basic and diluted earnings per share for 2022 were both HKD (4.30), compared to HKD 9.94 in 2021[44]. - The group reported a basic loss per share of HKD 0.043, compared to a profit of HKD 0.099 in 2021[100]. - The company reported a loss attributable to shareholders of HKD 43.2 million, down from a profit of HKD 99.7 million in the previous year, with a basic loss per share of HKD 0.043[157]. - The group reported a year-on-year increase of 9.2% in restaurant revenue for January and February 2023, indicating a positive trend in consumer spending[19]. Dividend Policy - The group maintained a stable dividend policy, proposing a final dividend of HKD 2.50 per share, totaling HKD 5.00 for the fiscal year 2022[12]. - The board remains confident in the business recovery and has proposed a final dividend of HKD 0.025 per share, down from HKD 0.0495 per share in 2021[43]. - The total proposed dividend for the year ended December 31, 2022, will be HKD 0.05 per share, compared to HKD 0.0745 per share in 2021[43]. Operational Efficiency - The group aims to optimize its operational efficiency by integrating its store network and maximizing the benefits of each brand and outlet[19]. - The group implemented effective cost control measures and optimized internal management to enhance operational efficiency during challenging market conditions[158]. - The group has implemented various cost control measures and internal resource integration to prepare for post-pandemic recovery opportunities[181]. - The group plans to launch its first integrated mobile application, which will provide services such as electronic gift vouchers and takeaway orders, aimed at increasing sales channels and customer loyalty[182]. - The group has applied the revised accounting standards prospectively from January 1, 2022, with no significant impact on its financial situation[84]. Revenue Sources - The "Min Wah Ice Room" brand generated revenue of HKD 719.8 million in the fiscal year 2022, accounting for 26.9% of total group revenue, up from 24.0% in the previous year[22]. - The flagship brand "Tai Hing" recorded revenue of HKD 1,053.2 million in the fiscal year 2022, representing 39.4% of total group revenue, down from 46.1% in the previous year[23]. - The group's revenue for the Southeast Asian food brand "Hainan Chicken Rice" increased significantly by 33.4% to HKD 193.7 million (FY2021: HKD 145.2 million), accounting for 7.2% of the group's total revenue (FY2021: 4.6%) [139]. - Revenue from food sales increased to HKD 76,204 in 2022, up from HKD 67,282 in 2021, marking an increase of 13.6%[113]. Market Presence and Expansion - The group plans to increase its presence at Hong Kong International Airport to provide more diverse dining options for travelers as tourism gradually recovers[25]. - The group plans to open 5 new "Hainan Chicken Rice" outlets in Hong Kong and 1 in mainland China to further drive growth [139]. - The group has launched several new dining brands, including "Tommy Yummy" and "Bird World," to expand its revenue sources and target different customer segments [140]. - The group is closely monitoring the post-pandemic recovery in mainland China, focusing on the Greater Bay Area to strengthen its market leadership[25]. Financial Position - As of December 31, 2022, the company maintained a healthy financial position with cash and cash equivalents of HKD 282.6 million and no bank borrowings[43]. - The group had no bank borrowings as of December 31, 2022, maintaining a stable financial position[130]. - The group has pledged assets with a total book value of approximately HKD 229.6 million as of December 31, 2022, to secure bank financing [148]. - The group’s asset-liability ratio as of December 31, 2022, was 56.8%, up from 51.4% in 2021 [146]. Employee Management - Employee costs decreased to HKD (949,299) from HKD (1,081,700), a reduction of approximately 12.2%[44]. - The group employed approximately 6,000 employees as of December 31, 2022, down from about 6,700 employees in the previous year[175]. - Employee benefits expenses, including salaries and bonuses, totaled HKD 949,299, down from HKD 1,081,700 in 2021, reflecting a reduction of 12.2%[116]. Asset Management - The group's non-current assets totaled HKD 1,960,953,000, a slight decrease from HKD 2,002,975,000 in the previous year[73]. - Total assets as of December 31, 2022, amounted to HKD 2,512,657,000, down from HKD 2,738,787,000 in 2021[89]. - The group reported trade receivables aging analysis, with total receivables of HKD 99,138,000, down from HKD 106,376,000 in the previous year[125]. Cost Management - The cost of materials for the year was HKD 732,817, a decrease of 16.6% from HKD 878,279 in 2021[116]. - Other operating expenses for the fiscal year amounted to HKD 453.5 million, a 2.2% increase from HKD 443.9 million in the previous year, primarily due to increased delivery service fees and rising operational costs[161]. - The financing cost for lease liabilities was HKD 29,444,000 in 2022, a decrease from HKD 33,255,000 in 2021[94]. Economic Environment - The group reported a 1.0% decline in private consumption expenditure in Hong Kong for 2022, but a 1.9% year-on-year increase in Q4, indicating economic recovery [doc id='137']. - The group anticipates a recovery in the Hong Kong restaurant market, with a notable increase in business turnover observed in December 2022[181].