Ifelen's Helens International Holdings Company Limited 海 倫 司 國 際 控 股 有 限 公 司 (於開曼群島註冊成立的有限公司) O 股份代號 : 9869 中期報告 2023 目錄 釋義2 中期簡明綜合財務報表附註 34 公司資料6 財務摘要8 業務摘要9 管理層討論與分析 12 企業管治及其他資料 21 中期簡明綜合全面收益表 30 中期簡明綜合財務狀況表 31 中期簡明綜合權益變動表 32 中期簡明綜合現金流量表 33 釋義 | --- | --- | --- | |-----------------------------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | 「組織章程細則」或 「細則」 | 指 | 本公司於 2021 年 ...

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 709,992 thousand, a decrease of 19% compared to RMB 873,612 thousand for the same period in 2022[2]. - Profit before tax for the same period was RMB 132,549 thousand, compared to a loss of RMB 324,649 thousand in the previous year[2]. - Net profit attributable to owners for the six months ended June 30, 2023, was RMB 157,487 thousand, recovering from a loss of RMB 304,144 thousand in 2022[2]. - Adjusted net profit for the period was RMB 177,203 thousand, compared to a loss of RMB 99,936 thousand in the previous year[2]. - Total revenue decreased by 18.7% to RMB 710.0 million in the first half of 2023, down from RMB 873.6 million in the same period of 2022[14]. - Adjusted net profit for the first half of 2023 was RMB 177.2 million, with an adjusted net profit margin of 25.0%, compared to a net loss of RMB 99.9 million in the first half of 2022[14]. - The profit before tax improved from a loss of RMB 324.6 million for the six months ended June 30, 2022, to a profit of RMB 132.5 million for the six months ended June 30, 2023, with corresponding profit margins of (37.2)% and 18.7% respectively[32]. - The company reported a comprehensive income of RMB 175,561 thousand for the period, compared to a comprehensive loss of RMB 241,312 thousand in the same period last year[54]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 2,488,644 thousand, down from RMB 2,676,768 thousand as of December 31, 2022[4]. - Non-current assets as of June 30, 2023, were RMB 939,207 thousand, significantly down from RMB 1,286,524 thousand as of December 31, 2022[4]. - Total liabilities decreased to RMB 490,215 thousand from RMB 853,900 thousand, reflecting a significant reduction in lease liabilities[56]. - The total property, plant, and equipment decreased from RMB 693.3 million as of December 31, 2022, to RMB 515.6 million as of June 30, 2023, mainly due to the closure of several taverns[37]. - The right-of-use assets decreased from RMB 457.0 million as of December 31, 2022, to RMB 268.1 million as of June 30, 2023, due to strategic optimization and adjustments in taverns[39]. - Lease liabilities decreased from RMB 741.0 million as of December 31, 2022, to RMB 398.1 million as of June 30, 2023, due to strategic optimization and closure of several taverns[43]. Tavern Operations - The number of taverns decreased to 562 as of August 25, 2023, from 846 a year earlier, with a notable reduction in first and second-tier cities[5]. - Average daily revenue per tavern increased to RMB 8.2 thousand for the six months ended June 30, 2023, up 13.9% from RMB 7.2 thousand in the same period of 2022[9]. - New taverns opened in the first half of 2023 achieved an average daily revenue of RMB 8.2 thousand, a 30.2% increase from RMB 6.3 thousand for new taverns opened in 2022[9]. - Same-store sales for Helen's Tavern increased by 9.1% year-on-year, reaching RMB 379,379.56 thousand in the first half of 2023[12]. - The number of taverns decreased from 846 to 653, with 25 new openings and 139 closures in the first half of 2023[14]. Cost Management - The cost of raw materials and consumables decreased by 33.8% to RMB 196.6 million in the first half of 2023, down from RMB 297.1 million in the same period of 2022[20]. - Employee benefits and human resources expenses fell by 55.4% to RMB 169.5 million in the first half of 2023, down from RMB 380.0 million in the same period of 2022[21]. - Advertising and promotion expenses decreased by 74.7% from RMB 16.6 million for the six months ended June 30, 2022, to RMB 4.2 million for the six months ended June 30, 2023, mainly due to refined management of online promotions[27]. - Other expenses decreased by 26.9% from RMB 72.5 million for the six months ended June 30, 2022, to RMB 53.0 million for the six months ended June 30, 2023, primarily due to the reduction in the number of taverns[28]. Cash Flow and Financing - Cash and cash equivalents increased from RMB 1,298.6 million as of December 31, 2022, to RMB 1,449.9 million as of June 30, 2023, mainly due to net cash inflow from operating activities[42]. - Operating cash flow for the six months ended June 30, 2023, was RMB 217,576 thousand, compared to RMB 70,646 thousand for the same period in 2022, representing a significant increase of 208%[59]. - Net cash from operating activities increased to RMB 215,846 thousand from RMB 56,817 thousand year-on-year, indicating a growth of 280%[59]. - The net cash used in investing activities improved to RMB 10,175 thousand from a net cash outflow of RMB 219,005 thousand in the previous year[59]. - Financing activities resulted in a net cash outflow of RMB 113,758 thousand, an improvement from RMB 185,565 thousand in the same period of 2022[59]. Strategic Initiatives - The "Hi Beer Partner" initiative was launched in June 2023, aiming to enhance store experience and operational efficiency[9]. - The company plans to focus on market expansion and new product development to drive future growth[54]. - The company plans to continue using income generated from tavern operations for working capital, while potentially seeking additional funding through equity or debt financing in the future[46]. Shareholder Information - The proposed interim dividend is RMB 0.1162 per share, compared to no dividend in the same period of 2022[78]. - The record date for shareholders entitled to receive the proposed interim dividend is September 15, 2023, with share transfer documents due by September 20, 2023[108]. - The board proposed an interim dividend of RMB 0.1162 per share, totaling approximately RMB 147 million based on the current issued share capital of 1,266,901,524 shares[105].

Company Overview and Structure - Helens International Holdings Company Limited is a company registered in the Cayman Islands with stock code 9869[1] - The company's registered office is located at 3-212 Governors Square, 23 Lime Tree Bay Avenue, P.O. Box 30746, Seven Mile Beach, Grand Cayman, KY1-1203, Cayman Islands[7] - The company's headquarters and primary business location in China is at No. 792, Gaoxin Avenue, East Lake High-tech Development Zone, Wuhan, Hubei Province[8] - The company's Hong Kong principal place of business is located at 3/F, H8, Hau Fook Street, Tsim Sha Tsui, Kowloon, Hong Kong[7] - The company's shares are listed under the stock code 9869[9] - The company's website is www.helensbar.com[9] - The company's controlling shareholders include HHL International, Helens Hill (BVI), HLSH Holding, and Mr. Xu[3] - NEWCE Holding Limited was registered in the British Virgin Islands on May 15, 2019, and is a shareholder of the company, wholly owned by former Senior Vice President of Finance, Mr. Wang Zhenpeng[5] - WTSJ Holding Limited, registered in the British Virgin Islands on May 15, 2019, is a major shareholder of the company[6] - The company's shares were listed on the Main Board of the Hong Kong Stock Exchange on September 10, 2021[4] - The company's global offering refers to the Hong Kong public offering and international offering of its shares[3] - The company granted an over-allotment option to international underwriters, allowing the issuance of up to 20,197,500 additional shares, representing 15% of the global offering[5] - The company's minimum public float is 19.4478% post-global offering, increasing to 20.7320% if the over-allotment option is fully exercised[115] Financial Performance and Key Metrics - Revenue for 2022 was RMB 1,559.3 million, a decrease of 15.1% compared to RMB 1,835.6 million in 2021[13] - Adjusted net loss for 2022 was RMB 244.9 million, compared to an adjusted net profit of RMB 111.2 million in 2021[13] - Non-current assets decreased to RMB 1,286.5 million in 2022 from RMB 2,572.6 million in 2021[11] - Total assets decreased to RMB 2,676.8 million in 2022 from RMB 4,286.8 million in 2021[11] - Total equity attributable to owners of the company decreased to RMB 1,822.9 million in 2022 from RMB 2,876.7 million in 2021[11] - Total liabilities decreased to RMB 853.9 million in 2022 from RMB 1,410.0 million in 2021[11] - The company incurred bar optimization and adjustment losses of RMB 853.1 million in 2022 due to the impact of COVID-19[12] - The average daily sales per tavern in 2022 decreased by 23.9% to RMB 7.0 thousand compared to RMB 9.2 thousand in 2021, due to the impact of COVID-19[17] - Same-store sales in 2022 decreased by 34.2% to RMB 844.6 million compared to RMB 1,282.8 million in 2021, with same-store daily sales per tavern decreasing by 24.6% to RMB 9.4 thousand[19][20] - The gross profit margin for Helen's own-brand alcoholic beverages decreased to 75.6% in 2022 from 80.2% in 2021, while the gross profit margin for third-party brand alcoholic beverages increased to 50.1% from 48.8%[21] - Total revenue in 2022 decreased by 15.1% to RMB 1,559.3 million compared to RMB 1,835.6 million in 2021, primarily due to the impact of COVID-19[23] - Helen's own-brand products accounted for 76.5% of total revenue in 2022, with beer contributing 18.0%, beverage-based alcoholic drinks contributing 37.2%, and snacks contributing 21.3%[24] - Government subsidies and incentives increased to RMB 38.2 million in 2022 from RMB 14.0 million in 2021, mainly due to investment incentives for foreign enterprises and increased benefits from COVID-19 rent concessions[26] - Raw material and consumables costs decreased by 2.6% from RMB 576.8 million in 2021 to RMB 561.9 million in 2022, primarily due to a reduction in the number of taverns[27] - Employee benefits and human services expenses increased by 72.5% from RMB 581.6 million in 2021 to RMB 1,003.5 million in 2022, driven by equity-settled share-based payments of RMB 503.2 million[28] - Depreciation of right-of-use assets increased by 43.5% from RMB 220.2 million in 2021 to RMB 315.9 million in 2022, due to the expansion of taverns from late 2021 to mid-2022[29] - Depreciation of property, plant, and equipment surged by 142.1% from RMB 82.6 million in 2021 to RMB 200.0 million in 2022, reflecting the rapid growth of taverns and new building acquisitions[30] - Short-term lease and related expenses rose by 80.8% from RMB 46.9 million in 2021 to RMB 84.8 million in 2022, driven by increased tavern rents and staff accommodation costs[31] - Utility expenses increased by 12.8% from RMB 57.7 million in 2021 to RMB 65.1 million in 2022, due to the rapid expansion of the tavern network[32] - Impairment losses on property, plant, and equipment, and right-of-use assets skyrocketed from RMB 11.0 million in 2021 to RMB 712.9 million in 2022, primarily due to COVID-19 impacts and tavern closures[36] - Other net losses amounted to RMB 83.2 million in 2022, including RMB 140.2 million in net losses from asset disposals and lease terminations, offset by RMB 61.1 million in net foreign exchange gains[37] - Pre-tax loss increased from RMB 176.9 million in 2021 to RMB 1,616.5 million in 2022, with pre-tax loss ratios of 9.6% and 103.7%, respectively[40] - Income tax shifted from an expense of RMB 53.2 million in 2021 to a credit of RMB 15.3 million in 2022, reflecting the pre-tax loss incurred in 2022[41] - Adjusted net loss for 2022 was RMB 244.9 million, compared to an adjusted net profit of RMB 111.2 million in 2021[43] - Property, plant, and equipment decreased from RMB 871.3 million in 2021 to RMB 693.3 million in 2022 due to optimization and adjustment measures[44] - Intangible assets remained stable at RMB 75,000 in 2022, compared to RMB 92,000 in 2021[46] - Right-of-use assets decreased significantly from RMB 1,348.3 million in 2021 to RMB 457.0 million in 2022 due to optimization and impairment losses[47] - Inventory decreased from RMB 61.5 million in 2021 to RMB 36.0 million in 2022, primarily due to reduced sales caused by pandemic-related operational suspensions[48] - Cash and cash equivalents decreased from RMB 1,626.7 million in 2021 to RMB 1,298.6 million in 2022, mainly due to capital expenditures for network expansion and daily operational costs[50] - Lease liabilities decreased from RMB 1,246.1 million in 2021 to RMB 741.0 million in 2022 due to the termination of lease contracts as part of network optimization[51] - Trade payables decreased from RMB 75.1 million in 2021 to RMB 62.7 million in 2022, reflecting reduced procurement due to fewer outlets[52] - Other payables and accrued expenses decreased from RMB 63.2 million in 2021 to RMB 37.8 million in 2022, primarily due to reduced procurement and operational expenses[53] - The company had no bank borrowings as of December 31, 2022[55] - Lease liabilities amounted to RMB 741.0 million as of December 31, 2022[55] - Total capital expenditures decreased from RMB 771.4 million in 2021 to RMB 607.7 million in 2022, primarily due to slower expansion and new bar openings[56] - The company had 1,637 in-house employees and 4,029 outsourced personnel as of December 31, 2022[60] - Total employee benefits and labor costs for the year ended December 31, 2022 were RMB 1,003.5 million[60] - The company faces foreign exchange risk due to its global offering proceeds denominated in HKD and USD-denominated bank deposits, but did not engage in any hedging activities during the reporting period[58] - No major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures were made during the year[59] - The company's business is significantly impacted by macroeconomic conditions in China and globally, with China's GDP growth slowing in recent years[62] - The company faces risks related to foodborne illnesses, epidemics, and other disease outbreaks, which could significantly impact operations and financial performance[63] - The COVID-19 pandemic has had a significant adverse impact on the company's financial position and operating results, and future recurrences could continue to negatively affect the business[63] - The company's business, financial condition, and operating performance are significantly influenced by China's economic, political, and legal developments, with all business assets and sales located in China[64] - The Chinese government has implemented stricter regulations on the alcohol industry, which may increase compliance costs and negatively impact profitability[64] - The company's ability to expand depends on overall economic conditions, capital market conditions, and the availability of credit, with stricter lending policies potentially hindering growth[64] - The company operates 749 bars, including 126 franchised bars, as of March 19, 2023, under the leadership of founder and CEO Xu Bingzhong[69] - The company's stock price and trading volume may experience significant fluctuations due to factors such as operating performance, customer churn, and market conditions[66] - The company is unaware of any significant post-reporting period events between December 31, 2022, and the latest practicable date[67] - The company's executive team includes Xu Bingzhong (CEO), Lei Xing (Support Center General Manager), Cai Wenjun (Operations Deputy Director), and Yu Zhen (CFO), each with extensive industry experience[69][70] - The Chinese government's economic, political, and social policies, including those related to the alcohol industry, may have a significant adverse impact on the company's business and financial performance[65] - Li Dong, an independent non-executive director, has over 22 years of management experience in public accounting, investment banking, and corporate finance, currently serving as CFO of TH International Limited (NASDAQ: THCH)[71] - Li Dong previously held CFO positions at Ximalaya, Inc., ONE Smart Education Group (NYSE: ONE), Pegasus Media Group Limited, and Ecovacs Robotics (SSE: 603486)[71] - Li Dong served as an investment banker at Bank of America Merrill Lynch and ICBC International Securities in Hong Kong from 2008 to 2015[71] - Wang Renrong, an independent non-executive director, has nearly 19 years of experience in the beer industry, previously serving as Chairman of Budweiser China and executive roles at Budweiser APAC (SEHK: 1876)[72] - Wang Renrong holds a PhD in Law from Fudan University and a Master's in Law from KU Leuven, Belgium[73] - Huang Xiangming, an independent non-executive director, has over 29 years of experience in finance, accounting, internal control, and corporate governance across Singapore, Mainland China, and Hong Kong[73] - Huang Xiangming has assisted multiple companies in overseas listings in the US and Hong Kong, and previously served as CFO of Meten Holding Group (NASDAQ: METX)[73] - Huang Xiangming holds a Bachelor's degree in Accounting from City University of Hong Kong and a Master's in E-commerce from Hong Kong Metropolitan University[74] - Huang Xiangming is a fellow member of the Association of Chartered Certified Accountants (ACCA) and the Hong Kong Institute of Certified Public Accountants (HKICPA)[74] - The company operates 749 self-owned taverns in China, covering 27 provincial administrative regions and 168 cities, including 126 franchised taverns as of March 19, 2023[76] - The company plans to expand its tavern network, focusing on broader lower-tier markets and transitioning from a linear chain model to a platform-based company[77] - The company aims to enhance customer experience, improve operational efficiency, and strengthen brand awareness by investing in digital platforms and brand building[77] - The company will optimize its product portfolio, upgrade decoration styles, and integrate supply chain and market resources to achieve differentiated and diversified operations[77] - The company reported a consolidated loss for the reporting period, with no dividends declared or paid during the period[78] - The company has established detailed internal rules for environmental protection and implemented measures for efficient resource utilization, waste reduction, and energy conservation[79] - The company's board of directors includes executive and independent non-executive directors, with changes in executive directors during the reporting period[80][81] - The company has received annual written confirmations from independent non-executive directors regarding their independence, confirming their independence throughout the reporting period[82] - Executive directors have service agreements with the company for an initial term of three years, while independent non-executive directors have appointment letters with similar terms and conditions[83] - The total number of issued shares as of December 31, 2022, is 1,266,901,524 shares[90] - Mr. Xu Bingzhong holds 861,000,000 shares, representing approximately 67.96% of the company's issued share capital[90][94] - Ms. Cai Wenjun holds 1,253,476 shares, representing approximately 0.10% of the company's issued share capital[90] - Ms. Lei Xing holds 16,054,976 shares, representing approximately 1.27% of the company's issued share capital[90] - Ms. Yu Zhen holds 1,166,667 shares, representing approximately 0.09% of the company's issued share capital[90] - HHL International holds 861,000,000 shares, with 1% owned by Helens Hill (BVI) and 99% owned by HLSH Holding[91] - Mr. Xu Bingzhong is deemed to have an interest in all shares registered under HHL International[91] - No significant transactions or contracts involving the company's directors or their connected entities were reported during the period[86] - No management contracts involving the company or its subsidiaries were reported during the period[87] - No directors or their close associates were reported to have interests in businesses competing with the company[88] - HHL International holds 861,000,000 shares, with 1% owned by Helens Hill (BVI) and 99% by HLSH Holding, both linked to Mr. Xu Bingzhong[95] - No significant contracts were entered into between the company and its controlling shareholders during the reporting period[96] - The company issued 3,100,389 shares to TLTQ Holding Limited, 9,999,611 shares to SHXM Holding Limited, and 13,700,000 shares to NLNQ Holding Limited under the pre-IPO restricted share unit plan[97] - The post-IPO restricted share unit plan was revised, increasing the maximum number of shares from 47,652,017 to 57,651,628, representing approximately 4.55% of the company's issued share capital[100] - The post-IPO restricted share unit plan has a duration of ten years, with approximately seven years and eleven months remaining as of the report date[103] - The board of directors has the authority to manage and interpret the post-IPO restricted share unit plan, with decisions being final and binding[104] - The company issued 47,652,017 shares to TSLZ Holding Limited under the post-IPO restricted share unit plan[100] - The number of awards available for grant decreased from 47,652,017 at the beginning of the reporting period to 4,661,257 at the end[100] - The post-IPO restricted share unit plan aims to incentivize employees and business associates to contribute to the company's success[99] - The plan allows for the inclusion of consultants and advisors as eligible participants, in addition to employees and directors[102] - The company's available distributable reserves as of December 31, 2022, amounted to approximately RMB 2,860 million[111] - The net proceeds from the global offering amounted to approximately HKD 2,980.1 million, with an unused balance of HKD 1,453.7 million as of the end of the reporting period[112] - 70% of the net proceeds (HKD 2,086.1 million) are allocated for opening new taverns and expansion plans, with HKD 1,074.6 million already utilized[113] - 10% of the net proceeds (HKD 298.0 million) are allocated for talent team building, with HKD 206.0 million already utilized[113] - 5% of the net proceeds (HKD 149.0 million) are allocated for infrastructure and technology R&D, with HKD 8.2 million already utilized[113] - 5% of the net proceeds (HKD 149.0 million) are allocated for brand awareness enhancement, with HKD 76.7 million already utilized[113] - 10% of the net proceeds (HKD 298.0 million) are allocated for working capital and general corporate purposes, with HKD 160.9 million already utilized[113] - No bank borrowings or significant debt as of December 31, 2022, with no secured, unsecured, mortgaged, or unsecured liabilities[116] - Revenue from the largest customer and top five customers each accounted for less than 1.0% of total revenue for the year ended December 31, 2022[117] - Top five suppliers accounted for

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Financial Performance - Revenue for the year ended December 31, 2022, was RMB 1,559,308 thousand, a decrease of 15% compared to RMB 1,835,616 thousand for the year ended December 31, 2021[2] - The adjusted net loss attributable to owners for the year ended December 31, 2022, was RMB (1,601,150) thousand, compared to an adjusted net profit of RMB 111,230 thousand for the year ended December 31, 2021[2] - In 2022, the company's revenue decreased by 15.1% to RMB 1,559.3 million from RMB 1,835.6 million in 2021, primarily due to the impact of recurring COVID-19 outbreaks[11] - Same-store sales declined by 34.2% in 2022, with same-store daily sales averaging RMB 2,931.2 thousand, down 24.6% from RMB 3,886.9 thousand in 2021[9] - The group reported a loss attributable to owners of the company of RMB 1,601.2 million for the year ended December 31, 2022, compared to a loss of RMB 230.0 million for the year ended December 31, 2021[51] - The company reported a net loss of RMB 1,601,150,000 for the year ended December 31, 2022, compared to a loss of RMB 230,000,000 for the previous year, indicating a significant increase in losses[32] - Adjusted net loss for the year was RMB 244,879,000, a decline from a profit of RMB 111,230,000 in 2021[32] - The group reported a basic and diluted loss per share of RMB 1.459 for the year ended December 31, 2022, compared to RMB 0.213 for the year ended December 31, 2021[51] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 2,676,768 thousand, down from RMB 4,286,766 thousand as of December 31, 2021, representing a decline of approximately 37%[3] - The total liabilities as of December 31, 2022, were RMB 853,900 thousand, down from RMB 1,410,046 thousand in 2021, representing a decrease of approximately 40%[3] - Non-current assets as of December 31, 2022, were RMB 1,286,524 thousand, significantly down from RMB 2,572,643 thousand in 2021, a decline of about 50%[3] - The total equity as of December 31, 2022, was RMB 1,822,868 thousand, a decrease of 37% from RMB 2,876,720 thousand in the previous year[3] - The company’s right-of-use assets decreased from RMB 1,348,300,000 to RMB 457,000,000, primarily due to terminations and impairment losses[36] - Non-current liabilities, specifically lease liabilities, decreased to RMB 565.2 million as of December 31, 2022, from RMB 1,060.6 million as of December 31, 2021[54] Restaurant Operations - The average daily sales per restaurant in first-tier cities for the year ended December 31, 2022, was RMB 7.6 thousand, down from RMB 10.9 thousand in 2021, reflecting a decline of 30%[7] - The average daily sales per restaurant for newly opened restaurants in the second half of 2022 was RMB 7.8 thousand, a 34.5% increase compared to RMB 5.8 thousand in the first half of 2022[8] - The total number of restaurants decreased from 782 in 2021 to 767 in 2022, indicating a reduction of approximately 2%[5] - The company opened 179 new restaurants and closed 194 in 2022, resulting in a total of 767 restaurants as of December 31, 2022, and 749 restaurants as of March 19, 2023[11] Expenses and Costs - Employee benefits and human resources expenses increased by 72.5% from RMB 581.6 million for the year ended December 31, 2021, to RMB 1,003.5 million for the year ended December 31, 2022, primarily due to equity-settled share-based payments of RMB 503.2 million[17] - Depreciation of right-of-use assets rose by 43.5% from RMB 220.2 million for the year ended December 31, 2021, to RMB 315.9 million for the year ended December 31, 2022, mainly due to an increase in the number of taverns[18] - Depreciation of property, plant, and equipment surged by 142.1% from RMB 82.6 million for the year ended December 31, 2021, to RMB 200.0 million for the year ended December 31, 2022, driven by rapid growth in the number of taverns[19] - Short-term lease and related expenses increased by 80.8% from RMB 46.9 million for the year ended December 31, 2021, to RMB 84.8 million for the year ended December 31, 2022, due to the rapid expansion of the tavern network[20] - Other expenses rose by 5.0% from RMB 98.9 million for the year ended December 31, 2021, to RMB 103.8 million for the year ended December 31, 2022, primarily due to a slight increase in maintenance and miscellaneous expenses[24] Impairment and Losses - Impairment losses on property, plant, and equipment and right-of-use assets increased significantly from RMB 11.0 million for the year ended December 31, 2021, to RMB 712.9 million for the year ended December 31, 2022, largely due to the ongoing impact of COVID-19[25] - The company recognized impairment losses on certain properties and equipment due to the ongoing impact of COVID-19, which included temporary closures and reduced customer spending[77] - Impairment losses recognized for certain taverns amounted to approximately RMB 433,449,000 for property and equipment and RMB 279,456,000 for right-of-use assets for the year ended December 31, 2022, compared to RMB 6,351,000 and RMB 4,634,000 in 2021, respectively[78] Government Support and Subsidies - Government subsidies increased from RMB 14.0 million in 2021 to RMB 38.2 million in 2022, mainly due to investment incentives and COVID-19 rent relief[15] - The group recognized a total of approximately RMB 11,711,000 in COVID-19 related rent concessions for the year ended December 31, 2022, compared to RMB 484,000 in 2021[57] Future Plans and Strategies - The company plans to continue expanding its restaurant network while enhancing digital platforms and brand building to improve operational efficiency and customer experience[11] - The company strategically explored a new franchising model in 2022 to enhance operational flexibility and market share, particularly in lower-tier markets[14] - The company aims to transform from a linear chain model to a platform-based company, focusing on user needs and enhancing customer consumption experiences[11] - The company plans to enhance its brand awareness through further investments in technology development[87] Capital and Financing - The company raised approximately HKD 2,980.1 million from its initial public offering on September 10, 2021, with a remaining unutilized net proceeds of approximately HKD 1,453.7 million as of the reporting period[86] - The planned use of the unutilized net proceeds includes 70% (HKD 2,086.1 million) for opening new bars over the next three years, with HKD 1,074.6 million already utilized by December 31, 2022[87] - The company intends to allocate 10% (HKD 298.0 million) for strengthening talent development in its bars, with HKD 206.0 million utilized by December 31, 2022[87] - The company has not been involved in any significant litigation or arbitration during the reporting period[86] - The company has no plans for significant additional external debt financing in the near future[44] Governance and Compliance - The audit committee reviewed the audited consolidated financial statements for the year ending December 31, 2022, and found them compliant with applicable accounting standards[88] - The board will continue to review the effectiveness of the corporate governance structure, particularly the roles of the chairman and CEO[85] - The company has not identified any significant post-reporting period events from December 31, 2022, to the announcement date[90]

Financial Performance - Helens International Holdings reported a revenue of HKD 1.2 billion for the first half of 2022, representing a year-on-year increase of 15%[10]. - The company achieved a net profit of HKD 300 million, which is a 20% increase compared to the same period last year[10]. - The company reported a loss attributable to owners of RMB 304,144 thousand for the six months ended June 30, 2022, compared to a loss of RMB 24,836 thousand in the prior year, indicating a significant increase in losses[103]. - Adjusted net loss for the period was RMB 99,936 thousand, a decrease from a profit of RMB 80,631 thousand in the same period of 2021, reflecting a substantial decline in financial performance[15]. - The company reported a gross profit margin of approximately 66.0% for the first half of 2022, compared to 68.0% in the same period of 2021[103]. - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB 56,817 thousand, down from RMB 106,302 thousand in the same period of 2021, indicating a decline of approximately 46.4%[107]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[10]. - Helens International is investing HKD 100 million in new product development, focusing on innovative beverage offerings[10]. - The company plans to continue expanding its tavern network and optimizing operations to improve financial performance in the future[17]. - The company plans to allocate 70% of the net proceeds, amounting to HKD 2,086.1 million, for opening new taverns over the next three years[102]. - The company has allocated 5% of the net proceeds, or HKD 149.0 million, to strengthen its operational capabilities and continue investing in technology research and development[102]. Operational Metrics - User data indicated a growth in active users to 1.5 million, up 25% from the previous year[10]. - The number of taverns in China reached 821 as of August 21, 2022, covering 26 provincial-level administrative regions and 167 cities, an increase from 471 taverns as of June 30, 2021[17][18]. - Average daily sales per tavern in first-tier cities decreased to RMB 7.3 for the six months ended June 30, 2022, down from RMB 9.9 in the same period of 2021, indicating a decline of approximately 26.3%[19]. - Same-store sales decreased by 32.6% year-on-year, with average daily sales per store dropping by 26.8%[21]. Cost and Expenses - Employee benefits and human resources expenses increased by 22.2% to RMB 380.0 million, primarily due to the expansion of the restaurant network[31]. - The cost of raw materials and consumables rose by 9.4% to RMB 297.1 million, outpacing revenue growth due to increased marketing activities[30]. - Depreciation of right-of-use assets surged by 92.4% to RMB 157.4 million, attributed to the increase in the number of restaurants[32]. - Financial expenses increased by 41.6% from RMB 26.2 million for the six months ended June 30, 2021, to RMB 37.1 million for the six months ended June 30, 2022, due to increased lease liabilities from the growing number of taverns[44]. Assets and Liabilities - As of June 30, 2022, total assets amounted to RMB 4,040,651 thousand, down from RMB 4,286,766 thousand as of December 31, 2021, showing a decrease of approximately 5.7%[16]. - The total liabilities as of June 30, 2022, were RMB 1,302,190 thousand, down from RMB 1,410,046 thousand as of December 31, 2021, indicating a reduction of approximately 7.7%[16]. - The total equity as of June 30, 2022, was RMB 2,738,461 thousand, a decrease from RMB 2,876,720 thousand as of December 31, 2021, reflecting a decline of about 4.8%[16]. Corporate Governance and Compliance - The audit committee reviewed the unaudited interim financial results for the six months ended June 30, 2022, and found them compliant with relevant accounting standards[98]. - The company adopted the corporate governance code and confirmed compliance with all applicable code provisions during the reporting period, except for the separation of roles between the chairman and CEO[95]. - The company did not recommend any interim dividend for the six months ended June 30, 2022[99]. Share Capital and Financing - As of June 30, 2022, the total issued share capital was approximately 1,266,901,524 shares[72]. - The company raised approximately HKD 2,980.1 million from its IPO, with a remaining unutilized net proceeds balance of approximately HKD 1,560.1 million as of the reporting period[101]. - The company has adopted a prudent capital management policy and has sufficient backup bank financing to meet operational and future development funding needs[62].

Financial Performance - The company reported a revenue of HKD 1.2 billion for the year ended December 31, 2021, representing a year-on-year increase of 15%[9]. - Total revenue for 2021 reached RMB 1,835,616 thousand, a significant increase of 124.7% compared to RMB 817,945 thousand in 2020[27]. - Operating profit for 2021 was RMB 304,699 thousand, up 100.0% from RMB 152,186 thousand in the previous year[28]. - The company reported a net loss attributable to shareholders of RMB (230,000) thousand for 2021, compared to a profit of RMB 70,072 thousand in 2020[28]. - Adjusted net profit for 2021 was RMB 100,245 thousand, an increase of 32.4% from RMB 75,752 thousand in 2020[29]. - The gross profit margin improved to 45%, up from 42% in the previous year, reflecting better cost management[9]. - Same-store sales for 228 locations increased by 32.7% in 2021, reaching RMB 939.3 million compared to RMB 707.6 million in 2020[41][42]. - The average daily sales per same-store increased by 8.2% to RMB 2,701.0 in 2021 from RMB 2,496.2 in 2020[41]. Market Expansion and Strategy - The company provided a positive outlook for 2022, projecting a revenue growth of 10-15% based on market expansion strategies[9]. - Market expansion plans include entering two new regions in Asia, targeting a 25% increase in market share by the end of 2023[9]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of up to HKD 300 million allocated for potential deals[9]. - The company plans to continue expanding its tavern network and enhance data utilization while optimizing product offerings and improving customer experience[33]. - The company aims to expand its market presence and enhance its operational efficiency through strategic management mechanisms[109]. Investment and R&D - The company is investing HKD 50 million in R&D for new technologies aimed at enhancing product quality and sustainability[9]. - New product launches are expected to contribute an additional HKD 200 million in revenue in 2022, focusing on innovative beverage offerings[9]. - The company announced the acquisition of office property for RMB 223,260,185, completed on February 23, 2022, indicating ongoing investment in its operational infrastructure[107]. Operational Challenges - The company faced challenges due to COVID-19 but maintained strong performance through market position and consumer reputation[34]. - The company aims to strengthen refined management and cost control to mitigate the impact of COVID-19 on operations and financial status[34]. - The company is exposed to risks associated with the COVID-19 pandemic, which has already caused significant disruptions to the economy and may continue to impact future operations[99]. Governance and Management - The board of directors consists of seven members, including four executive directors and three independent non-executive directors[128]. - The independent non-executive directors have confirmed their independence in accordance with listing rules, and the company believes they have maintained their independence throughout the reporting period[130]. - The company has established a remuneration committee to determine the remuneration policy for directors and senior management based on their experience, qualifications, and roles[133]. - The management team includes executives with backgrounds in software development and information technology, enhancing the company's operational capabilities[111]. Employee and Shareholder Information - The company granted 6,725,619 restricted share units to employees as part of its post-IPO plan, reflecting its commitment to employee incentives and retention[107]. - The total number of issued shares as of December 31, 2021, is 1,266,901,524[145]. - As of December 31, 2021, major shareholder Xu Bingzhong holds 861,000,000 shares, representing approximately 67.96% of the company's issued share capital[145]. Financial Position and Liabilities - Total assets reached RMB 4,286,766 thousand in 2021, compared to RMB 859,942 thousand in 2020, marking a growth of 397.5%[30]. - Total liabilities amounted to RMB 1,410,046 thousand in 2021, compared to RMB 699,704 thousand in 2020, representing an increase of 101.0%[30]. - Cash and cash equivalents increased significantly from RMB 24.3 million in 2020 to RMB 1,626.7 million in 2021, primarily due to funds raised from a global offering[82]. Compliance and Regulatory Environment - The company has established compliance policies to ensure adherence to applicable laws and regulations, with no significant non-compliance issues reported during the period[179]. - The company acknowledges the potential for future regulatory changes in China that could impact its business operations and financial performance[102]. - Recent government regulations in China have imposed stricter quality control standards on the restaurant industry, potentially increasing operational costs and affecting profitability[101].