[Company Information](index=4&type=section&id=Company%20Information) [Board of Directors](index=4&type=section&id=Board%20of%20Directors) The Board of Directors experienced changes in executive and non-executive appointments, including a new chairman - Mr. Tang Hung Kong, Ms. Leung Li, and Mr. Wong Oi Chun ceased to be executive directors on **March 14, 2025**[4](index=4&type=chunk) - Mr. Chan Yuen Lung was appointed executive director and chairman on **May 20, 2025**[4](index=4&type=chunk) - Ms. Shen Tai Ju ceased to be a non-executive director on **June 12, 2025**[4](index=4&type=chunk) [Audit Committee](index=4&type=section&id=Audit%20Committee) The Audit Committee comprises three independent non-executive directors, with Mr. Tsang Ching Fung as chairman - Audit Committee members include Mr. Tsang Ching Fung (Chairman), Mr. Lo Shing Shan, and Mr. Chow Yick, all independent non-executive directors[4](index=4&type=chunk) [Remuneration Committee](index=4&type=section&id=Remuneration%20Committee) The Remuneration Committee consists of three members, chaired by Mr. Chow Yick - Remuneration Committee members include Mr. Chow Yick (Chairman), Mr. Lo Shing Shan, and Mr. Tsang Ching Fung[4](index=4&type=chunk) [Nomination Committee](index=4&type=section&id=Nomination%20Committee) The Nomination Committee chairman changed from Mr. Tang Hung Kong to Mr. Lo Shing Shan, with Mr. Chow Yick and Mr. Tsang Ching Fung added as members - Mr. Lo Shing Shan was appointed chairman of the Nomination Committee on **March 14, 2025**[4](index=4&type=chunk) - Mr. Tang Hung Kong ceased to be the former chairman of the Nomination Committee on **March 14, 2025**[4](index=4&type=chunk) [Compliance Officer](index=4&type=section&id=Compliance%20Officer) Mr. Tang Hung Kong ceased to be the Compliance Officer on March 14, 2025 - Mr. Tang Hung Kong ceased to be the Compliance Officer on **March 14, 2025**[4](index=4&type=chunk) [Authorized Representatives](index=4&type=section&id=Authorized%20Representatives) The Authorized Representative position saw multiple changes, including the cessation of Mr. Tang Hung Kong and Mr. Kwan Ka Man, the temporary appointment and cessation of Mr. Li Tao, and the appointments of Mr. Chan Yuen Lung and Mr. Ngai Tsz Hin - Mr. Tang Hung Kong ceased to be an Authorized Representative on **March 14, 2025**[4](index=4&type=chunk) - Mr. Chan Yuen Lung was appointed an Authorized Representative on **May 20, 2025**[4](index=4&type=chunk) - Mr. Ngai Tsz Hin was appointed an Authorized Representative on **July 15, 2025**[4](index=4&type=chunk) [Company Secretary](index=5&type=section&id=Company%20Secretary) The Company Secretary changed from Mr. Kwan Ka Man to Mr. Ngai Tsz Hin - Mr. Kwan Ka Man resigned as Company Secretary on **July 15, 2025**[5](index=5&type=chunk) - Mr. Ngai Tsz Hin was appointed Company Secretary on **July 15, 2025**[5](index=5&type=chunk) [Auditor](index=5&type=section&id=Auditor) The company's auditor is BDO Limited - The company's auditor is **BDO Limited**[6](index=6&type=chunk) [Registered Office](index=5&type=section&id=Registered%20Office) The company's registered office is located in the Cayman Islands - The registered office is located at Windward 3, Regatta Office Park, PO Box 1350, Grand Cayman KY1-1108, Cayman Islands[6](index=6&type=chunk) [Head Office and Principal Place of Business in Hong Kong](index=5&type=section&id=Head%20Office%20and%20Principal%20Place%20of%20Business%20in%20Hong%20Kong) The company's head office and principal place of business in Hong Kong are located at Central Plaza, Wan Chai, Hong Kong - The head office and principal place of business in Hong Kong are located at Unit 3902, 39/F, Central Plaza, 18 Harbour Road, Wan Chai, Hong Kong[6](index=6&type=chunk) [Principal Share Registrar and Transfer Office](index=5&type=section&id=Principal%20Share%20Registrar%20and%20Transfer%20Office) The company's principal share registrar and transfer office is located in the Cayman Islands - The principal share registrar and transfer office is **Ocorian Trust (Cayman) Limited**[6](index=6&type=chunk) [Hong Kong Share Registrar and Transfer Office](index=5&type=section&id=Hong%20Kong%20Share%20Registrar%20and%20Transfer%20Office) The company's Hong Kong share registrar and transfer office is Tricor Investor Services Limited - The Hong Kong share registrar and transfer office is **Tricor Investor Services Limited**[6](index=6&type=chunk) [Principal Bankers](index=5&type=section&id=Principal%20Bankers) The company's principal bankers include DBS Bank (Hong Kong) Limited and Hang Seng Bank Limited - The principal bankers are **DBS Bank (Hong Kong) Limited** and **Hang Seng Bank Limited**[6](index=6&type=chunk) [Company Website](index=5&type=section&id=Company%20Website) The company's official website is www.dragonkinggroup.com - The company website is **www.dragonkinggroup.com**[6](index=6&type=chunk) [Stock Code](index=5&type=section&id=Stock%20Code) The company's stock code is 8493 - The company's stock code is **8493**[6](index=6&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 9,428 | 43,161 | | Cost of inventories consumed | (2,500) | (12,086) | | Gross profit | 6,928 | 31,075 | | Other income and net gains | 3 | 26 | | Staff costs | (6,278) | (18,521) | | Depreciation of property, plant and equipment | (414) | (399) | | Rental and related expenses | (3,466) | (4,541) | | Other operating expenses | (7,550) | (8,027) | | Finance costs | (608) | (1,046) | | Loss before tax | (11,385) | (1,433) | | Income tax expense | – | – | | Loss and total comprehensive expense for the period attributable to owners of the Company | (11,385) | (1,433) | | Loss per share (HK cents) | (4.65) | (0.62) | [Unaudited Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Unaudited Condensed Consolidated Statement of Financial Position as at June 30, 2025 | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 25,084 | 25,501 | | Total non-current assets | 25,255 | 25,672 | | **Current assets** | | | | Inventories | 2,117 | 2,221 | | Trade receivables | 180 | 220 | | Prepayments, deposits and other receivables | 18,749 | 15,836 | | Cash and cash equivalents | 688 | 6,891 | | Total current assets | 22,010 | 25,444 | | **Current liabilities** | | | | Trade payables | 36,048 | 36,113 | | Other payables and accrued expenses | 41,895 | 37,770 | | Bank and other borrowings | 93,275 | 93,470 | | Amount due to a director | 2,767 | 3,814 | | Total current liabilities | 174,710 | 172,014 | | **Net current liabilities** | (152,700) | (146,570) | | **Total assets less current liabilities** | (127,445) | (120,898) | | **Net liabilities** | (127,445) | (120,898) | | **Total equity deficit** | (127,445) | (120,898) | - As at **June 30, 2025**, the Group's current liabilities exceeded current assets by approximately **HK$152.7 million**, with net liabilities of approximately **HK$127.4 million**, indicating significant uncertainty regarding going concern[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Unaudited Condensed Consolidated Statement of Changes in Equity for the Six Months Ended June 30, 2025 | Indicator | Share Capital (HK$ thousand) | Share Premium (HK$ thousand) | Other Reserves (HK$ thousand) | Capital Reserve (HK$ thousand) | Exchange Fluctuation Reserve (HK$ thousand) | Accumulated Losses (HK$ thousand) | Total Equity Deficit (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2024 (audited) | 20,736 | 90,912 | (43,224) | 42,703 | (143) | (213,363) | (102,379) | | Loss and total comprehensive expense for the period | – | – | – | – | – | (1,433) | (1,433) | | Placing of new shares (Note 14(a)) | 3,456 | 5,064 | – | – | – | – | 8,520 | | As at June 30, 2024 (unaudited) | 24,192 | 95,976 | (43,224) | 42,703 | (143) | (214,796) | (95,292) | | As at January 1, 2025 (audited) | 24,192 | 95,976 | (43,224) | 42,703 | (143) | (240,402) | (120,898) | | Loss and total comprehensive expense for the period | – | – | – | – | – | (11,385) | (11,385) | | Placing of new shares (Note 14(b)) | 4,838 | – | – | – | – | – | 4,838 | | As at June 30, 2025 (unaudited) | 29,030 | 95,976 | (43,224) | 42,703 | (143) | (251,787) | (127,445) | [Unaudited Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Unaudited Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (9,679) | 1,105 | | Net cash generated from investing activities | 2 | 1 | | Net cash generated from financing activities | 3,474 | 5,974 | | Net (decrease) / increase in cash and cash equivalents | (6,203) | 7,080 | | Cash and cash equivalents at beginning of period | 6,891 | 1,014 | | Cash and cash equivalents at end of period | 688 | 8,094 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=11&type=section&id=1.%20General%20Information) This section outlines the company's registration details, principal place of business, and primary business activities, which involve operating and managing restaurants - The Company was incorporated as a limited liability company in the Cayman Islands on **August 8, 2016**[12](index=12&type=chunk) - The Group is principally engaged in the operation and management of restaurants[13](index=13&type=chunk) [2. Basis of Presentation and Principal Accounting Policies](index=11&type=section&id=2.%20Basis%20of%20Presentation%20and%20Principal%20Accounting%20Policies) This section briefly describes the basis of preparation for these interim financial statements, adhering to Hong Kong Financial Reporting Standards and GEM Listing Rules, noting no significant impact from new standards, but highlighting material uncertainties regarding going concern - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and GEM Listing Rules, with accounting policies consistent with the 2024 annual report, and new and revised standards having no significant impact[14](index=14&type=chunk)[15](index=15&type=chunk) - As at **June 30, 2025**, the Group's current liabilities exceeded current assets by approximately **HK$152.7 million**, with net liabilities of approximately **HK$127.4 million**, and cash and cash equivalents of only approximately **HK$688,000**, indicating significant uncertainty regarding going concern[16](index=16&type=chunk) - Management is actively seeking financing arrangements, implementing cost-saving measures, and planning to accelerate the opening of smaller, multi-cuisine restaurants and explore other catering opportunities to improve liquidity and financial position[17](index=17&type=chunk) [3. Estimates](index=13&type=section&id=3.%20Estimates) The preparation of interim financial statements involves management's judgments, estimates, and assumptions, with sources of estimation uncertainty consistent with those used in the prior year's consolidated financial statements - The preparation of interim financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses[20](index=20&type=chunk) [4. Financial Risk Management and Financial Instruments](index=13&type=section&id=4.%20Financial%20Risk%20Management%20and%20Financial%20Instruments) The Group is exposed to interest rate, credit, and liquidity risks, but risk management policies have not significantly changed since year-end, and the carrying amounts of receivables and payables are considered reasonable estimates of fair values - The Group's activities expose it to various financial risks: interest rate risk, credit risk, and liquidity risk[21](index=21&type=chunk) - There have been no changes in risk management policies since year-end, nor any significant changes in policies and practices for liquidity and capital risk management[22](index=22&type=chunk)[23](index=23&type=chunk) - The carrying amounts of receivables and payables are considered reasonable estimates of their fair values[24](index=24&type=chunk) [5. Revenue](index=14&type=section&id=5.%20Revenue) During the period, the Group's revenue, totaling **HK$9,428 thousand**, was entirely derived from Chinese restaurant operations in Hong Kong, representing a significant decrease compared to the prior year Revenue Breakdown (For the Six Months Ended June 30) | Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue from Chinese restaurant operations | 9,428 | 43,161 | | Geographical market (Hong Kong) | 9,428 | 43,161 | | Timing of revenue recognition (at a point in time) | 9,428 | 43,161 | - Performance obligations are satisfied when catering services are provided to customers, with trade terms primarily involving cash and credit card payments, and credit periods typically ranging from a few days to **60 days**[26](index=26&type=chunk) [6. Other Income and Net Gains](index=14&type=section&id=6.%20Other%20Income%20and%20Net%20Gains) Other income and net gains significantly decreased to **HK$3 thousand** during the period, primarily due to a reduction in miscellaneous income Other Income and Net Gains (For the Six Months Ended June 30) | Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 2 | 1 | | Exchange gains | – | 1 | | Others | 1 | 24 | | **Total** | **3** | **26** | - Other income and net gains decreased by approximately **88.5%**, primarily due to a reduction in miscellaneous income during the period[28](index=28&type=chunk) [7. Loss for the Period](index=15&type=section&id=7.%20Loss%20for%20the%20Period) The loss for the period is stated after deducting auditor's remuneration and employee benefit expenses, with a significant reduction in employee benefit expenses compared to the prior period Loss for the Period Deductions (For the Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Auditor's remuneration | 440 | 440 | | Employee benefit expenses (excluding directors' and chief executive's emoluments) | | | | Wages and salaries | 5,515 | 17,157 | | Contributions to pension schemes | 212 | 764 | | **Total employee benefit expenses** | **5,727** | **17,921** | [8. Income Tax Expense](index=15&type=section&id=8.%20Income%20Tax%20Expense) No provision for Hong Kong profits tax was made for the current or prior period, as estimated taxable profits were fully offset by tax losses brought forward from previous years - No provision for Hong Kong profits tax was made as the Group's estimated taxable profits for the relevant periods were fully offset by unutilised tax losses brought forward from prior years[31](index=31&type=chunk) - Hong Kong profits tax is calculated under a two-tiered profits tax rate regime, but there was no current Hong Kong tax for the current or prior period[31](index=31&type=chunk)[32](index=32&type=chunk) [9. Dividends](index=16&type=section&id=9.%20Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended **June 30, 2025** (2024: nil)[33](index=33&type=chunk) [10. Loss Per Share](index=16&type=section&id=10.%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share was **4.65 HK cents**, a significant increase from **0.62 HK cents** in the prior period, primarily due to expanded losses and an increased weighted average number of ordinary shares Loss Per Share Calculation (For the Six Months Ended June 30) | Indicator | 2025 (HK$ thousand/thousand shares) | 2024 (HK$ thousand/thousand shares) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (11,385) | (1,433) | | Weighted average number of ordinary shares | 244,860 | 232,046 | - No potential ordinary shares were in issue for the six months ended **June 30, 2025** and **2024**, hence no diluted (loss) earnings per share is presented[34](index=34&type=chunk) [11. Property, Plant and Equipment](index=16&type=section&id=11.%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group did not purchase any property, plant, and equipment - For the six months ended **June 30, 2025**, the Group did not purchase any property, plant and equipment (2024: nil)[35](index=35&type=chunk) [12. Trade Receivables](index=17&type=section&id=12.%20Trade%20Receivables) As at June 30, 2025, total trade receivables amounted to **HK$180 thousand**, a decrease from **HK$220 thousand** as at December 31, 2024, with the majority being overdue by more than **180 days** Ageing Analysis of Trade Receivables (As at June 30) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 10 | 50 | | Over 180 days | 170 | 170 | | **Total** | **180** | **220** | - Certain customers are granted credit periods ranging from a few days to **60 days**[36](index=36&type=chunk) [13. Trade Payables](index=17&type=section&id=13.%20Trade%20Payables) As at June 30, 2025, total trade payables were **HK$36,048 thousand**, largely consistent with **HK$36,113 thousand** as at December 31, 2024, with the vast majority being overdue by more than **90 days** Ageing Analysis of Trade Payables (As at June 30) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 72 | 171 | | 31 to 60 days | 73 | 20 | | 61 to 90 days | 69 | 64 | | Over 90 days | 35,834 | 35,858 | | **Total** | **36,048** | **36,113** | [14. Share Capital](index=18&type=section&id=14.%20Share%20Capital) As at June 30, 2025, the company's share capital increased to **HK$29,030 thousand** due to a placing of new shares, with a total of **290,304,000 shares** in issue Share Capital Movement (As at June 30) | Item | Number of Shares | HK$ thousand | | :--- | :--- | :--- | | As at January 1, 2024 | 207,360,000 | 20,736 | | Placing of new shares on February 22, 2024 | 34,560,000 | 3,456 | | As at December 31, 2024 and January 1, 2025 | 241,920,000 | 24,192 | | Placing of new shares on June 20, 2025 | 48,384,000 | 4,838 | | **As at June 30, 2025** | **290,304,000** | **29,030** | - The placing of **48,384,000 new shares** was completed on **June 20, 2025**, generating net proceeds of approximately **HK$4.55 million** and increasing share capital by **HK$4,838,400**[38](index=38&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) [Business and Operations Review](index=19&type=section&id=Business%20and%20Operations%20Review) The Group primarily operates Cantonese restaurants, with one "Dragon Robe" brand restaurant in Hong Kong as at June 30, 2025, while two "Dragon King" brand restaurants closed in 2024 - The Group is a full-service Cantonese restaurant group operating Cantonese restaurants under its own brands[39](index=39&type=chunk) - During the period, the Group operated one full-service restaurant in Hong Kong, offering Cantonese cuisine under the "Dragon Robe" brand[40](index=40&type=chunk) - Due to lease expiry, the Group closed two other "Dragon King" brand restaurants in **April 2024** and **June 2024**, respectively[40](index=40&type=chunk) [Restaurant Operations](index=19&type=section&id=Restaurant%20Operations) - The Group is committed to providing customers with quality food, service, and a comfortable dining environment[40](index=40&type=chunk) - Currently operating one "Dragon Robe" brand Cantonese restaurant in Hong Kong, strategically located in a prime commercial area[40](index=40&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) The Group's financial performance significantly deteriorated during the period, with substantial declines in revenue, gross profit, and other income, leading to a widened loss attributable to owners of the Company, primarily due to restaurant closures and challenging market conditions - Total revenue for the period was approximately **HK$9.4 million**, a decrease of approximately **78.2%** from **HK$43.2 million** in the prior period, mainly due to the closure of two restaurants in the prior period[41](index=41&type=chunk) - Gross profit for the period was approximately **HK$7.0 million**, a decrease of approximately **77.5%** from **HK$31.1 million** in the prior period[44](index=44&type=chunk) - Loss attributable to owners of the Company was approximately **HK$11.4 million**, compared to a loss of approximately **HK$1.4 million** in the prior period, with the increased loss primarily due to reduced revenue[51](index=51&type=chunk) [Revenue](index=19&type=section&id=Revenue) - Total revenue for the period was approximately **HK$9.4 million**, a decrease of approximately **78.2%** from **HK$43.2 million** in the prior period, mainly due to the closure of two restaurants in the prior period[41](index=41&type=chunk) Revenue Details (For the Six Months Ended June 30) | Brand | 2025 (HK$ thousand) | Percentage of Total Revenue (%) | 2024 (HK$ thousand) | Percentage of Total Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Dragon King* | – | – | 27,930 | 64.7 | | Dragon Robe | 9,428 | 100.0 | 15,231 | 35.3 | | **Total Revenue** | **9,428** | **100.0** | **43,161** | **100.0** | - "Dragon Robe" brand revenue decreased by approximately **38.1%** from approximately **HK$15.2 million** in the prior period to approximately **HK$9.4 million** in the current period, primarily due to a challenging business environment and weak market sentiment[43](index=43&type=chunk) [Gross Profit and Gross Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Margin) - Gross profit for the period was approximately **HK$7.0 million**, a decrease of approximately **77.5%** from **HK$31.1 million** in the prior period[44](index=44&type=chunk) - The overall gross margin for the period slightly increased by **1.5%** compared to the prior period, mainly due to reduced customer spending[44](index=44&type=chunk) [Other Income and Net Gains](index=21&type=section&id=Other%20Income%20and%20Net%20Gains) - The Group's other income and net gains decreased by approximately **88.5%** from approximately **HK$26,000** in the prior period to approximately **HK$3,000** in the current period[46](index=46&type=chunk) - This decrease was primarily due to a reduction in miscellaneous income during the period[46](index=46&type=chunk) [Staff Costs](index=21&type=section&id=Staff%20Costs) - Staff costs for the period were approximately **HK$6.3 million**, a decrease of approximately **65.9%** from **HK$18.5 million** in the prior period[47](index=47&type=chunk) - This decrease was due to the closure of certain restaurants in **April** and **June 2024**[47](index=47&type=chunk) [Depreciation of Right-of-Use Assets](index=21&type=section&id=Depreciation%20of%20Right-of-Use%20Assets) - The Group's depreciation of right-of-use assets is charged on a straight-line basis over the lease term, which generally ranges from two to three years[48](index=48&type=chunk) [Rental and Related Expenses](index=21&type=section&id=Rental%20and%20Related%20Expenses) - The Group's rental and related expenses decreased by approximately **22.2%** from approximately **HK$4.5 million** in the prior period to approximately **HK$3.5 million** in the current period[49](index=49&type=chunk) - This decrease was primarily due to the reduced number of restaurants operated by the Group in the first half of **2025** compared to the first half of **2024**[49](index=49&type=chunk) [Other Operating Expenses](index=21&type=section&id=Other%20Operating%20Expenses) - The Group's other operating expenses decreased by approximately **5.0%** from approximately **HK$8.0 million** in the prior period to approximately **HK$7.6 million** in the current period[50](index=50&type=chunk) - This decrease was primarily due to the closure of certain restaurants in **April** and **June 2024**[50](index=50&type=chunk) [Loss Attributable to Owners of the Company](index=22&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) - Loss attributable to owners of the Company was approximately **HK$11.4 million**, compared to a loss of approximately **HK$1.4 million** in the prior period[51](index=51&type=chunk) - This increased loss was primarily due to reduced revenue resulting from the closure of two restaurants[51](index=51&type=chunk) [Outlook](index=22&type=section&id=Outlook) The Hong Kong catering industry faces multiple challenges, including changing consumption patterns, rising costs, and a weak local economy; the Group will comprehensively review operations, diversify its restaurant portfolio, explore new opportunities, and continue cost control and efficiency improvements to navigate uncertainties and enhance shareholder value - The Hong Kong catering industry faces multiple challenges, including changing customer consumption patterns, rising food and labor costs, weak consumer spending, and the rise of takeaway and delivery services[52](index=52&type=chunk) - The Group will conduct a comprehensive review and integration of its operations, seizing opportunities to diversify its existing restaurant portfolio and expand its presence in the catering market[52](index=52&type=chunk) - The Group will continue to implement cost control and enhance operational efficiency, closely monitor market dynamics, adopt flexible operating strategies, strive to provide quality dining experiences for customers, and focus on its core business to drive sustainable development and enhance shareholder value[52](index=52&type=chunk) [Capital Structure](index=22&type=section&id=Capital%20Structure) As at June 30, 2025, the company's issued share capital increased to **HK$29,030,400** due to a placing of new shares, with net proceeds of approximately **HK$4.55 million** to be used for general working capital, business development, and debt repayment - On **June 2, 2025**, the Group entered into a placing agreement, whereby the Group conditionally agreed to place up to **48,384,000 placing shares** on a best effort basis[54](index=54&type=chunk) - On **June 20, 2025**, a total of **48,384,000 placing shares** were successfully placed to Mr. Lee Cheong Sun at a placing price of **HK$0.10** per placing share, generating net proceeds of approximately **HK$4.55 million**[54](index=54&type=chunk) - The net proceeds are intended to be used for the Group's general working capital (approximately **37.4%**), business development (approximately **44.0%**), and repayment of the Company's outstanding liabilities (approximately **18.6%**)[54](index=54&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds its liquidity through operating cash and bank borrowings; as at June 30, 2025, bank and other borrowings were approximately **HK$93.3 million**, while cash and cash equivalents significantly decreased to approximately **HK$0.7 million** - The Group primarily funds its liquidity and capital requirements through cash generated from operations and bank and other borrowings[56](index=56&type=chunk) - As at **June 30, 2025**, the Group's bank and other borrowings were approximately **HK$93.3 million** (December 31, 2024: approximately **HK$93.5 million**)[56](index=56&type=chunk) - As at **June 30, 2025**, the Group's cash and cash equivalents were approximately **HK$0.7 million** (December 31, 2024: approximately **HK$6.9 million**)[56](index=56&type=chunk) [Gearing Ratio](index=24&type=section&id=Gearing%20Ratio) As at June 30, 2025, the Group's gearing ratio was approximately **376.0%**, largely consistent with **375.9%** as at December 31, 2024, indicating a high level of leverage - As at **June 30, 2025**, the Group's gearing ratio was approximately **376.0%** (December 31, 2024: approximately **375.9%**)[57](index=57&type=chunk) - The gearing ratio is calculated as net debt divided by capital and net debt[57](index=57&type=chunk) [Pledge of the Group's Assets](index=24&type=section&id=Pledge%20of%20the%20Group's%20Assets) As at June 30, 2025, the Group pledged buildings valued at approximately **HK$25.1 million** to secure certain bank facilities - As at **June 30, 2025**, the Group pledged buildings valued at approximately **HK$25.1 million** (December 31, 2024: approximately **HK$25.5 million**) to secure certain bank facilities granted to it[58](index=58&type=chunk) [Segment Information](index=24&type=section&id=Segment%20Information) The Group's segment information is disclosed in Note 5 to the unaudited condensed consolidated financial statements - The Group's segment information is disclosed in Note 5 to the unaudited condensed consolidated financial statements[59](index=59&type=chunk) [Material Investments Held, Material Acquisitions and Disposals of Subsidiaries and Affiliated Companies, and Plans for Material Investments or Capital Assets](index=24&type=section&id=Material%20Investments%20Held,%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Affiliated%20Companies,%20and%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Except as disclosed elsewhere in this interim report, the company held no material investments, made no material acquisitions or disposals of subsidiaries and affiliated companies, and had no other plans for material investments or capital assets during the period - During the period, the Company held no material investments, nor made any material acquisitions or disposals of subsidiaries and affiliated companies[60](index=60&type=chunk) - As at **June 30, 2025**, there were no other plans for material investments or capital assets[60](index=60&type=chunk) [Discloseable Transaction](index=25&type=section&id=Discloseable%20Transaction) The Company entered into a business introduction agreement with Garville Consultants Limited, paying a **HK$3 million** refundable earnest money to identify potential restaurant business sellers, and will pay a **5%** success fee upon successful acquisition, aiming to expand its business footprint and increase revenue - The Company entered into a business introduction agreement with Garville Consultants Limited, acting as an independent business intermediary to identify and introduce potential restaurant business sellers to the Group[61](index=61&type=chunk) - The Group paid a refundable amount of **HK$3,000,000** ("Refundable Deposit") upon signing the agreement, designated for obtaining due diligence information from potential restaurant sellers[61](index=61&type=chunk)[62](index=62&type=chunk) - Upon completion of any investment or acquisition involving a seller introduced by the introducer, the introducer will be entitled to a success fee equivalent to **5%** of the total investment or acquisition amount under the relevant transaction[61](index=61&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=Foreign%20Exchange%20Risk) The Group's majority of income and expenses are denominated in HKD and RMB; due to insignificant RMB exchange rate fluctuations, the Group has no material foreign exchange risk and has not used financial instruments for hedging - The majority of the Group's income and expenses are denominated in **HKD** and **RMB**[65](index=65&type=chunk) - Historical RMB exchange rate fluctuations during the period were not significant, thus no material risk is expected from RMB transactions and balances[65](index=65&type=chunk) - The Group has no material foreign exchange risk and did not use any financial instruments for hedging purposes during the period[66](index=66&type=chunk) [Treasury Policy](index=26&type=section&id=Treasury%20Policy) The Board will continue to adopt a prudent policy in managing cash balances and maintaining a strong and robust liquidity position to capitalize on future growth opportunities - The Directors will continue to adopt a prudent policy in managing the Group's cash balances and maintaining a strong and robust liquidity position to ensure the Group is prepared to capitalize on future growth opportunities[67](index=67&type=chunk) [Contingent Liabilities](index=26&type=section&id=Contingent%20Liabilities) As at June 30, 2025, the Group had no material contingent liabilities - As at **June 30, 2025**, the Group had no material contingent liabilities (December 31, 2024: nil)[68](index=68&type=chunk) [Commitments](index=26&type=section&id=Commitments) As at June 30, 2025, the Group had no commitments - As at **June 30, 2025**, the Group had no commitments (December 31, 2024: nil)[69](index=69&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the current period - The Board does not recommend the payment of any interim dividend for the current period (prior period: nil)[70](index=70&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As at June 30, 2025, the Group had **38 employees**, with total staff costs of approximately **HK$6.3 million**; the remuneration policy includes fixed salaries and variable bonuses, and a share option scheme to incentivize employees - As at **June 30, 2025**, the Group had approximately **38 employees** (June 30, 2024: **48 employees**)[71](index=71&type=chunk) - Total staff costs for the period (including directors' emoluments and mandatory provident fund contributions) were approximately **HK$6.3 million** (prior period: approximately **HK$18.5 million**)[71](index=71&type=chunk) - The Company's remuneration policy primarily comprises a fixed component (in the form of basic salary) and a variable component (including discretionary bonuses and other performance-based remuneration), and a share option scheme has been adopted to acknowledge and reward directors and employees who contribute to the Group's growth and development[71](index=71&type=chunk) [Competing Interests in Businesses](index=27&type=section&id=Competing%20Interests%20in%20Businesses) During the period, none of the Company's directors, controlling shareholders, substantial shareholders, or their close associates held any business or interest that competes with the Group's business - During the period, none of the Company's directors, controlling shareholders, substantial shareholders, or their respective close associates held any business or interest that competes or may compete with the Group's business[72](index=72&type=chunk) [Share Option Scheme](index=28&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on December 15, 2017, to incentivize directors, employees, and other stakeholders; the scheme is valid for ten years, with a maximum of **10%** of issued shares available for grant, and no more than **1%** to any single participant within any **12-month** period; no share options were granted, exercised, cancelled, or lapsed during the period - The Company conditionally adopted a share option scheme on **December 15, 2017**, pursuant to a written resolution passed by shareholders, aiming to incentivize and retain top talent[73](index=73&type=chunk) - The maximum number of shares that may be issued under the share option scheme is **10%** of all issued shares, and the total number of shares granted to any participant within any **12-month** period shall not exceed **1%** of the issued shares[74](index=74&type=chunk)[75](index=75&type=chunk) - The share option scheme will be valid for **10 years** from the adoption date; no share options were granted, exercised, cancelled, or lapsed during the period[76](index=76&type=chunk)[78](index=78&type=chunk) [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) On August 28, 2025, Dragon King International Group Limited, a wholly-owned subsidiary of the Company, entered into a non-legally binding memorandum of understanding with 1957 & Co. (Hospitality) Limited regarding the possible disposal of **70%** of the issued share capital of MANGO TREE (KOWLOON) LIMITED - On **August 28, 2025**, Dragon King International Group Limited, a direct wholly-owned subsidiary of the Company, entered into a non-legally binding memorandum of understanding with 1957 & Co. (Hospitality) Limited[79](index=79&type=chunk) - The memorandum of understanding concerns the possible disposal of **70%** of the issued share capital of MANGO TREE (KOWLOON) LIMITED[79](index=79&type=chunk) [Material Litigation](index=30&type=section&id=Material%20Litigation) The Group faces several material litigations, including Oriental E-Commerce Limited being ordered to pay **HK$2 million** for dishonored cheques, and wholly-owned subsidiary Fu Ju Limited being wound up for unpaid debts; another subsidiary, Yun Li Limited, reached a settlement with Strong Engineering Limited regarding renovation project payments - Oriental E-Commerce Limited (a wholly-owned subsidiary of the Company) was ordered to pay **HK$2,000,000** plus interest and legal costs to Chan Chun Kau & Co. Solicitors for dishonored cheques[80](index=80&type=chunk) - Wholly-owned subsidiary Fu Ju Limited was ordered to be wound up on **February 12, 2025**, for refusing to settle outstanding debts of approximately **HK$17,000**[81](index=81&type=chunk) - Yun Li Limited (a wholly-owned subsidiary of the Company) reached a settlement with Strong Engineering Limited regarding contract payments for certain renovation and refurbishment works at Dragon Robe[82](index=82&type=chunk)[83](index=83&type=chunk) [Other Information](index=32&type=section&id=Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares or Debentures of the Company](index=32&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20or%20Debentures%20of%20the%20Company) As at June 30, 2025, no directors or chief executive of the Company held any interests or short positions in the shares, underlying shares, or debentures of the Company or its associated corporations that are required to be disclosed to the Company and the Stock Exchange - As at **June 30, 2025**, no directors or chief executive of the Company held any interests or short positions in the shares, underlying shares, and debentures of the Company or its associated corporations that are required to be disclosed to the Company and the Stock Exchange[85](index=85&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company](index=32&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As at June 30, 2025, substantial shareholder Lee Cheong Sun held **48,384,000 ordinary shares** of the Company, representing approximately **16.67%** of the equity Substantial Shareholders' Long Positions in Ordinary Shares and Underlying Shares of the Company (As at June 30, 2025) | Name of Substantial Shareholder | Capacity/Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Shareholding (Note 1) | | :--- | :--- | :--- | :--- | | Lee Cheong Sun | Beneficial owner | 48,384,000 | 16.67% | - The approximate percentage of shareholding in this table is calculated based on the Company's **290,304,000 shares** in issue as at **June 30, 2025**[87](index=87&type=chunk) - Save as disclosed above, no other person or corporation held **5%** or more interest in the shares or underlying shares of the Company[87](index=87&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares](index=33&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities%20or%20Sale%20of%20Treasury%20Shares) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as at June 30, 2025, the Company held no treasury shares - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[88](index=88&type=chunk) - As at **June 30, 2025**, the Company held no treasury shares[89](index=89&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=Directors'%20Securities%20Transactions) All directors confirmed full compliance with the required standards of dealing set out in the GEM Listing Rules during the period, with no instances of non-compliance - All directors confirmed that, during the period, they fully complied with the required standards of dealing set out in Rules 5.48 to 5.67 of the GEM Listing Rules, and no instances of non-compliance occurred[90](index=90&type=chunk) [Corporate Governance Practices](index=34&type=section&id=Corporate%20Governance%20Practices) The Company deviated from corporate governance practices during the period, including the Nomination Committee lacking gender diversity, failure to purchase legal liability insurance for directors, and the absence of an established internal audit function - Following the cessation of former non-executive director Ms. Shen Tai Ju on **June 12, 2025**, the Board comprises directors of a single gender, deviating from Code Provision B.3.5 of the Corporate Governance Code[91](index=91&type=chunk) - The Company did not make appropriate insurance arrangements for potential legal actions against its directors during the period, deviating from Code Provision C.1.7 of the Corporate Governance Code[91](index=91&type=chunk) - The Group has not yet established its internal audit function, deviating from Code Provision D.2.2 of the Corporate Governance Code[92](index=92&type=chunk) [Use of Proceeds from Placing of New Shares Under General Mandate](index=35&type=section&id=Use%20of%20Proceeds%20from%20Placing%20of%20New%20Shares%20Under%20General%20Mandate) The placing of **48,384,000 shares** was completed on June 20, 2025, with net proceeds of approximately **HK$4.55 million** fully utilized for general working capital, business development, and repayment of outstanding liabilities - On **June 20, 2025**, the Company completed the placing of **48,384,000 shares** at a placing price of **HK$0.10** per share under the general mandate, with net proceeds of approximately **HK$4.55 million**[93](index=93&type=chunk) Use of Net Proceeds from Placing (For the Six Months Ended June 30, 2025) | Use of Net Proceeds | Net Proceeds (HK$ thousand) | Utilized Net Proceeds (HK$ thousand) | Unutilized Net Proceeds (HK$ thousand) | | :--- | :--- | :--- | :--- | | General working capital | 1,700 | 1,700 | – | | Business development | 2,000 | 2,000 | – | | Repayment of outstanding liabilities | 850 | 850 | – | | **Total** | **4,550** | **4,550** | **–** | - All shares issued under the placing were allotted to Mr. Lee Cheong Sun, an independent third party of the Company[95](index=95&type=chunk) [Changes in Directors](index=36&type=section&id=Changes%20in%20Directors) The Board experienced several changes during the period, including the removal of Mr. Tang Hung Kong, Ms. Leung Li, and Mr. Wong Oi Chun as executive directors due to prolonged absence from meetings, the resignation of Ms. Shen Tai Ju as a non-executive director, the appointment of Mr. Chan Yuen Lung as executive director and chairman, and adjustments to the roles of Mr. Li Tao and Mr. Lo Shing Shan - The executive directorships of Mr. Tang Hung Kong, Ms. Leung Li, and Mr. Wong Oi Chun were revoked, effective **March 14, 2025**, due to prolonged absence from Board meetings[97](index=97&type=chunk) - Mr. Chan Yuen Lung was appointed executive director and chairman of the Board on **May 20, 2025**[99](index=99&type=chunk) - Ms. Shen Tai Ju resigned as a non-executive director due to other business commitments, effective **June 12, 2025**[99](index=99&type=chunk) [Audit Committee](index=37&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, reviewed the Group's unaudited condensed consolidated financial statements for the period and deemed them compliant with applicable accounting standards, GEM Listing Rules, and adequately disclosed - The Audit Committee comprises three independent non-executive directors: Mr. Tsang Ching Fung (Chairman), Mr. Lo Shing Shan, and Mr. Chow Yick[102](index=102&type=chunk) - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the period and deemed them compliant with applicable accounting standards, GEM Listing Rules, and adequately disclosed[102](index=102&type=chunk)

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8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: 龍皇集團控股有限公司 呈交日期: 2025年9月4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) | 08493 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 500,000,000 | HKD | | 0.1 | HKD | | 50,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 500,000,000 | HKD | | 0.1 | HKD | | 50,000,000 | 本月底法定/註冊股本總額： HK ...

Group 1 - Long Emperor Group (08493) announced the appointment of Ms. Deng Baoyi as an executive director and a member of the nomination committee, effective from September 1, 2025 [1]

Group 1 - The company reported a revenue of HKD 9.428 million for the six months ending June 30, 2025, representing a year-on-year decrease of 78.16% [1] - The loss attributable to shareholders expanded to HKD 11.385 million, marking a year-on-year increase of 694.49% [1] - The loss per share was reported at HKD 0.0465 [1]

Group 1 - The core point of the article is the appointment of Ms. Deng Baoyi as an executive director and member of the nomination committee of Longhuang Group, effective from September 1, 2025 [1]

（股份代號：8493） （於開曼群島註冊成立的有限公司） 董事名單與其角色和職能 自 二 零 二 五 年 九 月 一 日 起，龍 皇 集 團 控 股 有 限 公 司 董 事（「董 事」）會（「董事會」） 成 員 包 含 下 列 董 事： Dragon King Group Holdings Limited 龍皇集團控股有限公司 董 事 會 設 有 三 個 委 員 會。各 個 董 事 會 委 員 會 的 成 員 如 下： | | 董事會委員會 | 審 核 | 薪 酬 | 提 名 | | --- | --- | --- | --- | --- | | 董 事 | | 委員會 | 委員會 | 委員會 | | 陳元龍先生 | | – | – | – | | 李濤先生 | | – | – | – | | 鄧寶誼女士 | | – | – | 成 員 | | 勞承山先生 | | 成 員 | 成 員 | 主 席 | | 周翊先生 | | 成 員 | 主 席 | 成 員 | | 曾程楓先生 | | 主 席 | 成 員 | 成 員 | 香 港，二 零 二 五 年 八 月 二 十 九 日 執行董事 陳元龍先生 （主 席） 李濤先生 ...

– 1 – 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的內容概不 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 就 因 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 的 任 何 損 失 承 擔 任 何 責 任。 Dragon King Group Holdings Limited 龍皇集團控股有限公司 （股份代號：8493） （於開曼群島註冊成立的有限公司） 委任執行董事及 提名董事會成員 委任執行董事 龍 皇 集 團 控 股 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」）董 事（「董 事」） 會（「董事會」）欣 然 宣 佈，鄧 寶 誼 女 士（「鄧女士」）已 獲 委 任 為 執 行 董 事，自 二 零 二 五 年 九 月 一 日 起 生 效。鄧 女 士 之 履 歷 詳 情 載 列 如 下： 鄧 女 士，41歲，於 人 力 資 源 及 企 業 管 理 方 面 擁 有 逾10年 工 作 經 驗。彼 於 一 家 於 聯 交 所 主 板 上 市 公 司 的 附 ...

Company Information [Board of Directors and Committees](index=5&type=section&id=Board%20of%20Directors%20and%20Committees) The company's Board of Directors and various committee members underwent several changes during the period, including appointments and cessations of executive and non-executive directors, and a change in the Nomination Committee chairman - Mr. Tang Hung Kong, Ms. Leung Lai, and Mr. Wong Oi Chun's executive directorships were revoked effective March 14, 2025, due to continuous absence from board meetings for six months[101](index=101&type=chunk) - Mr. Chan Yuen Lung was appointed Executive Director and Chairman of the Board on May 20, 2025[103](index=103&type=chunk) - Ms. Shen Tai Ju resigned as Non-executive Director on June 12, 2025, due to other business commitments[103](index=103&type=chunk) - Mr. Li Tao was appointed Authorized Representative from March 14, 2025, to May 20, 2025, and was later succeeded by Mr. Chan Yuen Lung[102](index=102&type=chunk)[8](index=8&type=chunk) [Company Basic Information](index=5&type=section&id=Company%20Basic%20Information) The company updated its basic information, including company secretary, auditor, registered office, and principal place of business in Hong Kong, along with share registrar and principal bankers - Mr. Ni Zi Xuan was appointed Company Secretary on July 15, 2025, replacing Mr. Kwan Ka Man who resigned[9](index=9&type=chunk) - The company's auditor is BDO Limited, registered office is in the Cayman Islands, and principal place of business in Hong Kong is at Central Plaza, Wan Chai[10](index=10&type=chunk) - The company's stock code is 8493, and principal bankers include DBS Bank (Hong Kong) Limited and Hang Seng Bank Limited[10](index=10&type=chunk) Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Profit or Loss Overview](index=7&type=section&id=Profit%20or%20Loss%20Overview) For the six months ended June 30, 2025, the Group's revenue significantly decreased by 78.2% to HK$9.4 million, leading to a substantial expansion of loss for the period to HK$11.4 million and an increase in basic and diluted loss per share to HK4.65 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 9,428 | 43,161 | -78.2% | | Cost of inventories consumed | (2,500) | (12,086) | -79.3% | | Gross profit | 6,928 | 31,075 | -77.7% | | Other income and gains, net | 3 | 26 | -88.5% | | Staff costs | (6,278) | (18,521) | -66.1% | | Depreciation of property, plant and equipment | (414) | (399) | 3.8% | | Rental and related expenses | (3,466) | (4,541) | -23.7% | | Other operating expenses | (7,550) | (8,027) | -6.0% | | Finance costs | (608) | (1,046) | -41.9% | | Loss before tax | (11,385) | (1,433) | 694.5% | | Income tax expense | – | – | 0.0% | | Loss and total comprehensive expense attributable to owners of the Company for the period | (11,385) | (1,433) | 694.5% | | Loss per share – basic and diluted (HK cents) | (4.65) | (0.62) | 650.0% | - The significant decrease in revenue was primarily due to the closure of two restaurants in the previous period[45](index=45&type=chunk) - The increase in loss for the period was mainly due to reduced revenue[55](index=55&type=chunk) Unaudited Condensed Consolidated Statement of Financial Position [Assets Overview](index=8&type=section&id=Assets%20Overview) As of June 30, 2025, the Group's total non-current assets slightly decreased, while total current assets significantly declined due to a substantial reduction in cash and cash equivalents Assets Overview (As of June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Property, plant and equipment | 25,084 | 25,501 | -1.6% | | Deferred tax assets | 121 | 121 | 0.0% | | Total non-current assets | 25,255 | 25,672 | -1.6% | | **Current assets** | | | | | Inventories | 2,117 | 2,221 | -4.7% | | Trade receivables | 180 | 220 | -18.2% | | Prepayments, deposits and other receivables | 18,749 | 15,836 | 18.4% | | Cash and cash equivalents | 688 | 6,891 | -90.0% | | Total current assets | 22,010 | 25,444 | -13.5% | - Cash and cash equivalents significantly decreased by **90.0%** from approximately **HK$6.9 million** as of December 31, 2024, to approximately **HK$0.7 million** as of June 30, 2025[12](index=12&type=chunk) [Liabilities and Equity Overview](index=8&type=section&id=Liabilities%20and%20Equity%20Overview) The Group's total current liabilities slightly increased, leading to an expanded net current liabilities and a further increase in total equity deficiency to HK$127.4 million, indicating continued financial pressure Liabilities and Equity Overview (As of June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | **Current liabilities** | | | | | Trade payables | 36,048 | 36,113 | -0.2% | | Other payables and accrued charges | 41,895 | 37,770 | 10.9% | | Bank and other borrowings | 93,275 | 93,470 | -0.2% | | Amount due to a director | 2,767 | 3,814 | -27.4% | | Total current liabilities | 174,710 | 172,014 | 1.6% | | Net current liabilities | (152,700) | (146,570) | 4.2% | | Total assets less current liabilities | (127,445) | (120,898) | 5.4% | | Net liabilities | (127,445) | (120,898) | 5.4% | | **Capital and reserves** | | | | | Share capital | 29,030 | 24,192 | 20.0% | | Reserves | (156,475) | (145,090) | 7.9% | | Total equity deficiency | (127,445) | (120,898) | 5.4% | - The Group's current liabilities exceeded current assets by approximately **HK$152.7 million**, with net liabilities of approximately **HK$127.4 million**, indicating uncertainty about going concern[20](index=20&type=chunk) - Total bank and other borrowings were approximately **HK$93.3 million**, of which approximately **HK$79.96 million** is repayable within one year, while cash and cash equivalents were only approximately **HK$0.7 million**[20](index=20&type=chunk) Unaudited Condensed Consolidated Statement of Changes in Equity [Equity Movement Analysis](index=10&type=section&id=Equity%20Movement%20Analysis) The Group's total equity deficiency expanded from HK$102.4 million as of January 1, 2024, to HK$127.4 million as of June 30, 2025, primarily impacted by loss for the period and new share placements Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Share capital | 29,030 | 24,192 | | Share premium | 95,976 | 95,976 | | Other reserves | (43,224) | (43,224) | | Capital reserve | 42,703 | 42,703 | | Exchange fluctuation reserve | (143) | (143) | | Accumulated losses | (251,787) | (214,796) | | Total equity deficiency | (127,445) | (95,292) | - In the first half of 2025, the company increased its share capital by **HK$4,838 thousand** through a new share placement, but a loss for the period of **HK$11,385 thousand** led to a further expansion of accumulated losses[14](index=14&type=chunk) - In the first half of 2024, new share placement brought in **HK$8,520 thousand**, but a loss for the period was **HK$1,433 thousand**[14](index=14&type=chunk) Unaudited Condensed Consolidated Statement of Cash Flows [Cash Flow Overview](index=11&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, the Group recorded a net cash outflow from operating activities of HK$9.7 million and a net cash inflow from financing activities of HK$3.5 million, resulting in a net decrease in cash and cash equivalents of HK$6.2 million Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (9,679) | 1,105 | | Net cash generated from investing activities | 2 | 1 | | Net cash generated from financing activities | 3,474 | 5,974 | | Net (decrease) / increase in cash and cash equivalents | (6,203) | 7,080 | | Cash and cash equivalents at beginning of period | 6,891 | 1,014 | | Cash and cash equivalents at end of period | 688 | 8,094 | - Cash flow from operating activities turned from a net inflow of **HK$1.1 million** in the same period of 2024 to a net outflow of **HK$9.7 million** in the same period of 2025, reflecting a deterioration in operating conditions[15](index=15&type=chunk) - Net cash inflow from financing activities primarily came from new share placement of **HK$4.8 million**, but was partially offset by repayment of bank borrowings and payment of lease liabilities[15](index=15&type=chunk) Notes to the Unaudited Condensed Consolidated Financial Statements [General Information](index=12&type=section&id=General%20Information) The company is an investment holding company primarily engaged in operating and managing restaurants, registered in the Cayman Islands with its principal place of business in Hong Kong - The company was incorporated in the Cayman Islands on August 8, 2016, with its principal place of business at Unit 3902, 39/F, Central Plaza, 18 Harbour Road, Wan Chai, Hong Kong[16](index=16&type=chunk) - The Group is principally engaged in the operation and management of Chinese restaurants[17](index=17&type=chunk) [Basis of Presentation and Principal Accounting Policies](index=12&type=section&id=Basis%20of%20Presentation%20and%20Principal%20Accounting%20Policies) These financial statements are prepared on a going concern basis, despite the Group facing challenges with current liabilities exceeding current assets. Management has proposed several measures to address liquidity pressure, including active negotiation for bank loan renewals, considering equity fundraising, and implementing cost-saving initiatives - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately **HK$152.7 million**, with net liabilities of approximately **HK$127.4 million**, and interest-bearing bank and other borrowings totaling approximately **HK$93.3 million**, while cash and cash equivalents were only approximately **HK$0.7 million**[20](index=20&type=chunk) - Management plans to actively negotiate with banks for loan renewals, consider issuing new shares/convertible bonds or other equity fundraising activities, and implement cost-saving measures to improve liquidity and financial position[21](index=21&type=chunk) - The Group will focus on its restaurant operations, accelerate the opening of smaller restaurants offering diverse cuisines, and explore different catering services and peripheral business opportunities to expand revenue streams[21](index=21&type=chunk) [Estimates](index=14&type=section&id=Estimates) The significant management judgments and sources of estimation uncertainty used in preparing the interim financial statements are consistent with those in the previous year's consolidated financial statements, with no material changes - The significant management judgments and key sources of estimation uncertainty in applying the Group's accounting policies for the preparation of the interim condensed consolidated financial statements are the same as those applied in the consolidated financial statements for the year ended December 31, 2024[24](index=24&type=chunk) [Financial Risk Management and Financial Instruments](index=14&type=section&id=Financial%20Risk%20Management%20and%20Financial%20Instruments) The Group is exposed to interest rate risk, credit risk, and liquidity risk, but there have been no significant changes in risk management policies and liquidity management practices since the year-end - The Group's activities expose it to interest rate risk, credit risk, and liquidity risk[25](index=25&type=chunk) - There have been no significant changes in the risk management policies and practices for liquidity and funding risk since the year-end[26](index=26&type=chunk)[27](index=27&type=chunk) [Revenue](index=15&type=section&id=Revenue) The Group's revenue is entirely derived from the operation of Chinese restaurants in Hong Kong and is recognized when catering services are provided Revenue Breakdown (For the six months ended June 30) | Category | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue from operation of Chinese restaurants | 9,428 | 43,161 | | Revenue from Hong Kong market | 9,428 | 43,161 | | Revenue recognition timing (at a point in time) | 9,428 | 43,161 | - Performance obligations are satisfied when catering services are provided to customers, with trade terms primarily involving cash and credit card payments, and credit periods typically ranging from a few days to 60 days[30](index=30&type=chunk) [Other Income and Gains, Net](index=15&type=section&id=Other%20Income%20and%20Gains,%20Net) Other income and gains, net, significantly decreased by 88.5% to HK$3 thousand during the period, primarily due to a reduction in miscellaneous income Other Income and Gains, Net (For the six months ended June 30) | Category | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Bank interest income | 2 | 1 | | Exchange gain | – | 1 | | Others | 1 | 24 | | **Total** | **3** | **26** | - Other income and gains, net, decreased by approximately **HK$23 thousand** or approximately **88.5%**, mainly due to a decrease in miscellaneous income during the period[50](index=50&type=chunk) [Loss for the Period](index=16&type=section&id=Loss%20for%20the%20Period) Loss for the period is stated after deducting auditor's remuneration and employee benefit expenses, with employee benefit expenses significantly reduced due to restaurant closures Loss for the Period Deductions (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Auditor's remuneration | 440 | 440 | | Employee benefit expenses (excluding directors' and chief executive's emoluments) | | | | Wages and salaries | 5,515 | 17,157 | | Retirement benefit scheme contributions | 212 | 764 | | **Total** | **5,727** | **17,921** | - Staff costs decreased by approximately **65.9%** from approximately **HK$18.5 million** in the previous period to approximately **HK$6.3 million** in the current period, mainly due to the closure of certain restaurants in April and June 2024[51](index=51&type=chunk) [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense) The Group incurred no income tax expense in the current and prior periods, primarily because estimated assessable profits were fully offset by unutilized tax losses carried forward from previous years - No provision for Hong Kong Profits Tax was made as the Group's estimated assessable profits for the relevant periods were fully offset by unutilized tax losses brought forward from prior years[35](index=35&type=chunk) - Hong Kong Profits Tax is calculated under a two-tiered profits tax rate regime, with the first **HK$2,000,000** of profits taxed at **8.25%** and the remainder at **16.5%**[35](index=35&type=chunk) [Dividends](index=17&type=section&id=Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[37](index=37&type=chunk) [Loss Per Share](index=17&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the company was HK4.65 cents, a significant increase from the same period last year Loss Per Share Calculation (For the six months ended June 30) | Indicator | 2025 (HK$'000/thousand shares) | 2024 (HK$'000/thousand shares) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (11,385) | (1,433) | | Weighted average number of ordinary shares | 244,860 | 232,046 | | Basic and diluted loss per share (HK cents) | (4.65) | (0.62) | - Diluted (loss) earnings per share were not presented for the six months ended June 30, 2025 and 2024, as there were no potential ordinary shares in issue[38](index=38&type=chunk) [Property, Plant and Equipment](index=17&type=section&id=Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group made no purchases of property, plant and equipment - For the six months ended June 30, 2025, the Group made no purchases of property, plant and equipment (2024: nil)[39](index=39&type=chunk) [Trade Receivables](index=18&type=section&id=Trade%20Receivables) As of June 30, 2025, total trade receivables amounted to HK$180 thousand, with the majority aged over 180 days Trade Receivables Ageing Analysis (As of June 30) | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 10 | 50 | | Over 180 days | 170 | 170 | | **Total** | **180** | **220** | - Certain customers are granted credit periods ranging from a few days to 60 days[40](index=40&type=chunk) [Trade Payables](index=18&type=section&id=Trade%20Payables) As of June 30, 2025, total trade payables amounted to HK$36,048 thousand, with the vast majority aged over 90 days Trade Payables Ageing Analysis (As of June 30) | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 72 | 171 | | 31 to 60 days | 73 | 20 | | 61 to 90 days | 69 | 64 | | Over 90 days | 35,834 | 35,858 | | **Total** | **36,048** | **36,113** | [Share Capital](index=19&type=section&id=Share%20Capital) The company's share capital increased due to a new share placement in June 2025, issuing 48,384,000 placing shares with net proceeds of approximately HK$4.55 million Share Capital Movement (As of June 30) | Share Capital Movement | Number of Shares (shares) | Amount (HK$'000) | | :--- | :--- | :--- | | January 1, 2024 | 207,360,000 | 20,736 | | Placing of new shares on February 22, 2024 | 34,560,000 | 3,456 | | December 31, 2024 and January 1, 2025 | 241,920,000 | 24,192 | | Placing of new shares on June 20, 2025 | 48,384,000 | 4,838 | | June 30, 2025 | 290,304,000 | 29,030 | - On June 2, 2025, the company entered into a placing agreement with a placing agent to place up to **48,384,000** placing shares at **HK$0.10** per share to independent investors, with net proceeds of approximately **HK$4.55 million**[42](index=42&type=chunk) Management Discussion and Analysis [Business and Operations Review](index=20&type=section&id=Business%20and%20Operations%20Review) The Group is a Cantonese restaurant group, operating one "Lung Po" brand restaurant in Hong Kong for the six months ended June 30, 2025, and having closed two "Lung King" brand restaurants in the prior period - The Group is a full-service Cantonese restaurant group operating under its own brands[43](index=43&type=chunk) - During the period, the Group operated one "Lung Po" brand restaurant in Hong Kong[44](index=44&type=chunk) - Due to lease expiry, the Group closed two other "Lung King" brand restaurants in April and June 2024, respectively[44](index=44&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) The Group's financial performance significantly deteriorated, with revenue sharply declining by 78.2%, gross profit decreasing by 77.5%, and loss for the period expanding by nearly 7 times, primarily due to restaurant closures and a weak market [Revenue](index=20&type=section&id=Revenue) Total revenue for the period was approximately HK$9.4 million, a 78.2% decrease from HK$43.2 million in the prior period, mainly due to the closure of two restaurants in the prior period Revenue Details (For the six months ended June 30) | Brand | 2025 (HK$'000) | % of Total Revenue | 2024 (HK$'000) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Lung King* | – | – | 27,930 | 64.7 | | Lung Po | 9,428 | 100.0 | 15,231 | 35.3 | | **Total Revenue** | **9,428** | **100.0** | **43,161** | **100.0** | - Revenue from the "Lung Po" brand decreased by approximately **38.1%** to **HK$9.4 million**, mainly due to a challenging business environment and weak market sentiment[47](index=47&type=chunk) [Gross Profit and Gross Margin](index=21&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit for the period was HK$7.0 million, a 77.5% decrease from the prior period, but the overall gross margin slightly increased by 1.5%, mainly due to reduced customer spending - Gross profit decreased by approximately **HK$24.1 million** or approximately **77.5%**[48](index=48&type=chunk) - The overall gross margin slightly increased by **1.5%** compared to the prior period, mainly due to less customer spending during the period[48](index=48&type=chunk) [Other Income and Gains, Net](index=22&type=section&id=Other%20Income%20and%20Gains,%20Net) Other income and gains, net, significantly decreased by 88.5% to HK$3 thousand during the period, primarily due to a reduction in miscellaneous income - Other income and gains, net, decreased by approximately **HK$23 thousand** or approximately **88.5%** from approximately **HK$26 thousand** in the prior period to approximately **HK$3 thousand** in the current period[50](index=50&type=chunk) [Staff Costs](index=22&type=section&id=Staff%20Costs) Staff costs amounted to HK$6.3 million, a 65.9% decrease from the prior period, primarily due to the closure of certain restaurants in April and June 2024 - Staff costs decreased by approximately **HK$12.2 million** or approximately **65.9%**[51](index=51&type=chunk) [Rental and Related Expenses](index=22&type=section&id=Rental%20and%20Related%20Expenses) Rental and related expenses decreased by 22.2% to HK$3.5 million, mainly due to a reduction in the number of restaurants operated by the Group - Rental and related expenses decreased by approximately **HK$1.0 million** or approximately **22.2%**[53](index=53&type=chunk) [Other Operating Expenses](index=22&type=section&id=Other%20Operating%20Expenses) Other operating expenses decreased by 5.0% to HK$7.6 million, primarily due to the closure of certain restaurants - Other operating expenses decreased by approximately **HK$0.4 million** or approximately **5.0%**[54](index=54&type=chunk) [Loss Attributable to Owners of the Company](index=23&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company) Loss attributable to owners of the company was HK$11.4 million, a significant increase from HK$1.4 million in the prior period, mainly due to reduced revenue - Loss attributable to owners of the company increased by approximately **HK$10.0 million**, mainly due to reduced revenue resulting from the closure of two restaurants[55](index=55&type=chunk) [Prospects](index=23&type=section&id=Prospects) The Hong Kong catering industry faces multiple challenges, including changing consumption patterns, rising costs, and weak market sentiment. The Group will comprehensively review operations, diversify its restaurant portfolio, maintain cost control, and enhance operational efficiency to address challenges and promote sustainable development - The Hong Kong catering industry faces multiple challenges, including changing customer consumption patterns, rising food and labor costs, weak consumer sentiment, and the rise of takeaway and delivery services[56](index=56&type=chunk) - The Group will conduct a comprehensive review and integration of its operations, seize opportunities to diversify its existing restaurant portfolio, and expand its presence in the catering market[56](index=56&type=chunk) - The Group will continue to implement cost control and enhance operational efficiency, closely monitor market dynamics, adopt flexible operating strategies, and focus on its core business to strengthen its competitive advantages[56](index=56&type=chunk) [Capital Structure](index=23&type=section&id=Capital%20Structure) The company completed a placing of 48,384,000 new shares in June 2025, with net proceeds of approximately HK$4.55 million, primarily used for general working capital, business development, and repayment of outstanding liabilities - On June 20, 2025, the company successfully placed **48,384,000** placing shares to Mr. Lee Cheong Sun at a placing price of **HK$0.10** per share[58](index=58&type=chunk) - The net proceeds from the placing were approximately **HK$4.55 million**, of which approximately **37.4%** was used for general working capital, approximately **44.0%** for business development, and approximately **18.6%** for repayment of outstanding liabilities[58](index=58&type=chunk) - As of June 30, 2025, the company's issued share capital was **HK$29,030,400** (i.e., **290,304,000** shares)[59](index=59&type=chunk) [Liquidity and Financial Resources](index=24&type=section&id=Liquidity%20and%20Financial%20Resources) The Group is primarily funded by cash generated from operations and bank borrowings, but as of June 30, 2025, cash and cash equivalents significantly decreased to HK$0.7 million, while bank and other borrowings remained at approximately HK$93.3 million - As of June 30, 2025, the Group's bank and other borrowings were approximately **HK$93.3 million** (December 31, 2024: approximately **HK$93.5 million**)[60](index=60&type=chunk) - As of June 30, 2025, the Group's cash and cash equivalents were approximately **HK$0.7 million** (December 31, 2024: approximately **HK$6.9 million**), a significant decrease[60](index=60&type=chunk) [Gearing Ratio](index=25&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was approximately 376.0%, largely consistent with December 31, 2024, indicating a high leverage level - As of June 30, 2025, the Group's gearing ratio was approximately **376.0%** (December 31, 2024: approximately **375.9%**)[61](index=61&type=chunk) - The gearing ratio is calculated as net debt divided by capital and net debt, where net debt is total liabilities (excluding tax payables) less cash and cash equivalents[61](index=61&type=chunk) [Pledge of the Group's Assets](index=25&type=section&id=Pledge%20of%20the%20Group's%20Assets) As of June 30, 2025, the Group pledged buildings valued at approximately HK$25.1 million to secure certain bank facilities - As of June 30, 2025, the Group pledged buildings with a value of approximately **HK$25.1 million** (December 31, 2024: approximately **HK$25.5 million**) to secure certain bank facilities granted to it[62](index=62&type=chunk) [Discloseable Transaction](index=26&type=section&id=Discloseable%20Transaction) The company entered into a business introduction agreement with Garville Consultants Limited, paying a refundable amount of HK$3 million to identify potential restaurant business sellers, and will pay a 5% success fee upon successful acquisition, aiming to expand its business footprint - The company entered into a business introduction agreement with Garville Consultants Limited to identify and introduce potential sellers of restaurant businesses[65](index=65&type=chunk) - The Group has paid a refundable amount of **HK$3 million** to obtain due diligence information and will pay a success fee of **5%** of the total transaction amount upon successful acquisition[65](index=65&type=chunk)[66](index=66&type=chunk) - The Group is actively seeking to acquire quality restaurant businesses offering Asian Pacific cuisines to expand its business footprint and increase overall revenue[67](index=67&type=chunk) [Foreign Exchange Risk](index=27&type=section&id=Foreign%20Exchange%20Risk) The Group's majority of income and expenses are denominated in HKD and RMB, with no significant foreign exchange risk expected from RMB transactions and balances, and no hedging activities undertaken - The majority of the Group's income and expenses are denominated in Hong Kong Dollars and Renminbi, with no significant risk expected from Renminbi transactions and balances[69](index=69&type=chunk) - The Group does not have any significant foreign exchange risk and did not use any financial instruments for hedging purposes during the period[70](index=70&type=chunk) [Treasury Policy](index=27&type=section&id=Treasury%20Policy) The Board will continue to adopt a prudent policy in managing cash balances to maintain a strong and sound liquidity position, seizing future growth opportunities - The Directors will continue to adopt a prudent policy in managing the Group's cash balances and maintaining a strong and sound liquidity position to ensure the Group is ready to seize future growth opportunities[71](index=71&type=chunk) [Contingent Liabilities and Commitments](index=27&type=section&id=Contingent%20Liabilities%20and%20Commitments) As of June 30, 2025, the Group had no significant contingent liabilities or commitments - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[72](index=72&type=chunk) - As of June 30, 2025, the Group had no commitments (December 31, 2024: nil)[73](index=73&type=chunk) [Employees and Remuneration Policy](index=28&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 38 employees, with total staff costs of approximately HK$6.3 million. The remuneration policy combines fixed and variable components, offering training and a share option scheme to incentivize staff - As of June 30, 2025, the Group had approximately **38** employees (June 30, 2024: **48** employees) based in Hong Kong[75](index=75&type=chunk) - Total staff costs (including directors' emoluments and mandatory provident fund contributions) for the period were approximately **HK$6.3 million** (prior period: approximately **HK$18.5 million**)[75](index=75&type=chunk) - The remuneration policy primarily comprises a fixed component (basic salary) and a variable component (discretionary bonus and other performance-based remuneration), and a share option scheme has been adopted to acknowledge and reward contributions[75](index=75&type=chunk) [Share Option Scheme](index=29&type=section&id=Share%20Option%20Scheme) The company has a share option scheme, valid for ten years, aimed at incentivizing and retaining talent. As of the period, the total number of share options available for grant under the scheme was 14,400,000, but no options were granted, exercised, cancelled, or lapsed during the period - The share option scheme was adopted on December 15, 2017, with a ten-year validity, aiming to grant share options to directors, employees, and other stakeholders as incentives or rewards[77](index=77&type=chunk)[80](index=80&type=chunk) - The subscription price for share options is the highest of the closing price on the grant date, the average closing price for the preceding five business days, or the nominal value of the shares[77](index=77&type=chunk) - As of January 1, 2025, and June 30, 2025, the total number of share options available for grant under the scheme was **14,400,000**, but no share options were granted, exercised, cancelled, or lapsed during the period[80](index=80&type=chunk)[82](index=82&type=chunk) [Events After the Reporting Period](index=31&type=section&id=Events%20After%20the%20Reporting%20Period) On August 28, 2025, Dragon International Group Limited, a direct wholly-owned subsidiary of the company, entered into a non-legally binding memorandum of understanding with 1957 & Co. (Hospitality) Limited regarding the possible disposal of 70% of the issued share capital of MANGO TREE (KOWLOON) LIMITED - On August 28, 2025, Dragon International Group Limited, a direct wholly-owned subsidiary of the company, entered into a non-legally binding memorandum of understanding with 1957 & Co. (Hospitality) Limited regarding the possible disposal of **70%** of the issued share capital of MANGO TREE (KOWLOON) LIMITED[83](index=83&type=chunk) [Material Litigation](index=31&type=section&id=Material%20Litigation) The Group faces several material litigations, including a judgment to pay HK$2 million for dishonored checks, a winding-up order for a subsidiary due to unpaid debts, and a settlement reached in a dispute over renovation project contract payments - Oriental E-Commerce Limited, a wholly-owned subsidiary, was ordered to pay **HK$2 million** plus interest and legal costs to Chan Chun Kau & Co. for dishonored checks[84](index=84&type=chunk) - Fu Ju Limited, a wholly-owned subsidiary, was ordered to be wound up on February 12, 2025, for refusing to settle a debt of approximately **HK$17 thousand**[85](index=85&type=chunk) - Yun Li Limited, a wholly-owned subsidiary, reached a settlement with Well-Built Engineering Limited regarding a dispute over renovation project contract payments by the end of April 2023[86](index=86&type=chunk)[87](index=87&type=chunk) Other Information [Directors' and Chief Executive's Interests](index=33&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, no directors or chief executive of the company held any disclosable interests or short positions in the shares, underlying shares, or debentures of the company or its associated corporations - As of June 30, 2025, no directors or chief executive of the company had any interests or short positions in the shares, underlying shares, and debentures of the company or any of its associated corporations that were required to be notified to the company and the Stock Exchange under Part XV of the Securities and Futures Ordinance[89](index=89&type=chunk) [Substantial Shareholders' and Other Persons' Interests](index=33&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests) As of June 30, 2025, Mr. Lee Cheong Sun was a substantial shareholder of the company, holding 48,384,000 shares, representing approximately 16.67% of the equity Substantial Shareholders' Shareholding (As of June 30) | Name of Substantial Shareholder | Capacity/Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Lee Cheong Sun | Beneficial owner | 48,384,000 | 16.67% | - The approximate percentage of shareholding in this table is calculated based on the company's issued share capital of **290,304,000** shares as of June 30, 2025[91](index=91&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=34&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, nor did it hold any treasury shares - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[92](index=92&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[93](index=93&type=chunk) [Directors' Securities Transactions](index=34&type=section&id=Directors'%20Securities%20Transactions) All directors confirmed full compliance with the required standards of dealing as set out in the GEM Listing Rules during the period, with no instances of non-compliance - All Directors confirmed that they had fully complied with the required standards of dealing and that there were no instances of non-compliance during the period[94](index=94&type=chunk) [Corporate Governance Practices](index=35&type=section&id=Corporate%20Governance%20Practices) The company complied with the Corporate Governance Code during the period, but there were several deviations, including insufficient gender diversity on the Board, no director's legal liability insurance, no established internal audit function, and the Audit Committee chairman's absence from the AGM - The company's Board of Directors consists of directors of a single gender, deviating from the Corporate Governance Code's requirement for the Nomination Committee to appoint at least one director of a different gender[95](index=95&type=chunk) - The company did not arrange for directors' legal liability insurance during the period, as the Board believed the risk of significant legal claims was minimal[95](index=95&type=chunk) - The Group has not yet established its internal audit function, and the Audit Committee and the Board will continue to review the need for an internal audit function annually[96](index=96&type=chunk) - Mr. Tsang Ching Fung, the chairman of the Audit Committee, was unable to attend the company's Annual General Meeting due to other work commitments[96](index=96&type=chunk) [Use of Proceeds from Placing of New Shares](index=36&type=section&id=Use%20of%20Proceeds%20from%20Placing%20of%20New%20Shares) The company completed a placing of 48,384,000 shares in June 2025, and the net proceeds of approximately HK$4.55 million have been fully utilized as planned for general working capital, business development, and repayment of outstanding liabilities Use of Net Proceeds from Placing of New Shares (As of June 30) | Use of Net Proceeds | Net Proceeds (HK$'000) | Net Proceeds Utilized (HK$'000) | Net Proceeds Unutilized (HK$'000) | | :--- | :--- | :--- | :--- | | General working capital | 1,700 | 1,700 | – | | Business development | 2,000 | 2,000 | – | | Repayment of outstanding liabilities | 850 | 850 | – | | **Total** | **4,550** | **4,550** | **–** | - All shares issued under the placing were allotted to Mr. Lee Cheong Sun, an independent third party of the company[99](index=99&type=chunk) [Changes in Directors](index=37&type=section&id=Changes%20in%20Directors) Several changes occurred in the Board of Directors during the period, including the revocation of three executive directors' positions due to absence from meetings, Ms. Shen's resignation as a non-executive director, and Mr. Chan Yuen Lung's appointment as executive director and chairman of the Board - Mr. Tang Hung Kong, Ms. Leung Lai, and Mr. Wong Oi Chun's executive directorships were revoked effective March 14, 2025, due to continuous absence from board meetings for six months[101](index=101&type=chunk) - Ms. Shen Tai Ju resigned as Non-executive Director on June 12, 2025, due to other business commitments[103](index=103&type=chunk) - Mr. Chan Yuen Lung was appointed Executive Director and Chairman of the Board on May 20, 2025, and was re-elected at the Annual General Meeting[103](index=103&type=chunk) - Mr. Lo Shing Shan was appointed Chairman of the Nomination Committee, and Mr. Li Tao and Mr. Chan Yuen Lung were successively appointed Authorized Representatives[102](index=102&type=chunk)[103](index=103&type=chunk) [Audit Committee](index=38&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing financial information, internal control, and risk management systems. The committee has reviewed the unaudited condensed consolidated financial statements for the period and found them to comply with applicable accounting standards and disclosure requirements - The Audit Committee comprises three independent non-executive directors: Mr. Tsang Ching Fung (Chairman), Mr. Lo Shing Shan, and Mr. Chow Yick[106](index=106&type=chunk) - The Audit Committee reviews financial information and reporting processes, internal control procedures and risk management systems, audit plans, and relationships with external auditors[106](index=106&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the period and is of the opinion that they comply with applicable accounting standards, the GEM Listing Rules, and that adequate disclosures have been made[106](index=106&type=chunk)

Core Viewpoint - Long Emperor Group (08493) has announced a non-binding memorandum of understanding regarding the potential acquisition of 70% of the issued share capital of MANGO TREE (KOWLOON) LIMITED, a Thai restaurant operating in Hong Kong [1] Group 1: Acquisition Details - The target company is a limited company registered in Hong Kong, currently operating a Thai restaurant under the Mango Tree brand [1] - The potential seller is also a limited company registered in Hong Kong, which is a wholly-owned subsidiary of 1957&Co. (Hospitality) Limited, listed on the GEM of the Hong Kong Stock Exchange (08495) [1] - The board believes that the target restaurant presents a potential opportunity due to its strategic location, established customer base, and reputable brand, which could enhance the group's culinary offerings by introducing new Thai cuisine alongside its existing Cantonese offerings [1] Group 2: Strategic Implications - If the acquisition proceeds, it is expected to allow the group to cater to a broader customer preference and strengthen its resilience through diversified revenue sources [1] - The board has noted that the earnest money payment as per the memorandum will ensure exclusivity and facilitate due diligence and negotiations with the potential seller [1] - This arrangement reflects the group's intention to explore the potential acquisition in a structured manner, with the earnest money to be applied towards the potential acquisition cost if a formal agreement is subsequently reached [1]

Group 1 - The company, Long Emperor Group, has entered a non-binding memorandum of understanding regarding the potential acquisition of 70% of the issued share capital of MANGO TREE (KOWLOON) LIMITED, a Thai restaurant operating in Hong Kong [1] - The target company is a wholly-owned subsidiary of a potential seller, which is indirectly wholly owned by 1957 & Co. (Hospitality) Limited, listed on the GEM of the Hong Kong Stock Exchange [1] - The board believes that the target restaurant presents a potential opportunity due to its strategic location, established customer base, and reputable brand, which could enhance the company's offerings by introducing new Thai cuisine alongside its existing Cantonese dishes [1] Group 2 - The board noted that the payment of a good faith deposit as per the memorandum would ensure exclusivity and facilitate due diligence and negotiations with the potential seller [2] - This arrangement indicates the company's intention to explore the potential acquisition in a structured manner, with the good faith deposit to be applied towards the acquisition cost if a formal agreement is subsequently established [2]