Financial Performance - For the first half of 2024, the Group's total system sales amounted to RMB1,715 million, representing a 10% increase compared to the same period in 2023[12]. - Group revenue for the first half of 2024 was RMB244 million, a decline of 20.1% compared to the corresponding period in 2023[12]. - Total system sales for the Group's owned and franchised restaurants were RMB325 million, reflecting an 11% decrease from the same period in 2023[12]. - Revenue of the Group decreased by 20.1% from RMB305.2 million for the six months ended 30 June 2023 to RMB244.0 million for the corresponding period of 2024[16]. - Revenue from restaurant operations decreased by 31.2% from RMB168.8 million for the six months ended 30 June 2023 to RMB116.2 million for the corresponding period of 2024[16]. - Revenue from delivery business decreased by 18.8% from RMB104.5 million for the six months ended 30 June 2023 to RMB84.9 million for the corresponding period of 2024[16]. - Other income for the period was RMB10,290,000, down from RMB12,716,000 in the previous year, a decline of approximately 19.00%[82]. - The Group recorded a loss of approximately RMB46.6 million for the six months ended 30 June 2024, compared to a loss of RMB5.7 million for the same period in 2023[21]. - Adjusted loss for the period was RMB26.7 million, compared to an adjusted profit of RMB12.7 million for the corresponding period of 2023[23]. - The total comprehensive loss amounted to RMB49,764,000, compared to a loss of RMB15,100,000 for the same period in 2023, representing an increase of 229.5%[83]. Operational Metrics - The number of stores under all brands reached 1,131, with a net increase of nearly 71 stores since December 31, 2023[12]. - The "Yujian Xiaomian" brand expanded to over 300 stores, maintaining sound profitability in its tenth year[13]. - "King of Clay Pot" has over 200 stores and is recognized as a leading brand in the claypot rice segment, primarily in East China[13]. - The number of self-operating stores decreased while that of franchise stores increased, contributing to the changes in revenue composition[18]. - The workforce decreased to approximately 1,618 employees as of June 30, 2024, from about 1,779 employees as of December 31, 2023[43]. Revenue Composition - Revenue from sale of food ingredients increased by 34.1% from RMB32.0 million for the six months ended 30 June 2023 to RMB42.9 million for the corresponding period of 2024[16]. - Franchise income increased to RMB7,703,000, up 46.8% from RMB5,249,000 in 2023[117]. - Total other expenses amounted to RMB22,464,000, a decrease of 9.5% from RMB24,820,000 in 2023[120]. - Daily maintenance expenses were RMB7,419,000, a slight decrease from RMB7,795,000 in 2023[120]. Expenses and Cost Management - Employee benefit expense decreased by 12.0% from RMB86.6 million for the six months ended 30 June 2023 to RMB76.2 million for the corresponding period of 2024, with the percentage of revenue increasing from 28.4% to 31.2%[20]. - Depreciation of right-of-use assets decreased by 15.1% from RMB35.8 million to RMB30.4 million, while the percentage of revenue increased from 11.7% to 12.5%[20]. - Depreciation and amortisation of other assets decreased by 19.8% from RMB11.1 million to RMB8.9 million, remaining stable at 3.6% of revenue[20]. - Property rentals and other related expenses decreased by 13.7% from RMB9.5 million to RMB8.2 million, with the percentage of revenue increasing from 3.1% to 3.4%[20]. - Other expenses decreased by 9.3% from RMB24.8 million to RMB22.5 million, while the percentage of revenue increased from 8.1% to 9.2%[20]. Financial Position - As of June 30, 2024, the Group recognized right-of-use assets amounting to RMB125.2 million, a decrease from RMB149.0 million as of December 31, 2023[26][31]. - Current assets decreased to RMB169.9 million as of June 30, 2024, from RMB201.6 million as of December 31, 2023, while current liabilities decreased to RMB284.3 million from RMB298.0 million[38]. - The current ratio was 0.60 as of June 30, 2024, compared to 0.68 as of December 31, 2023[38]. - The Group's outstanding bank borrowings increased to RMB12.6 million as of June 30, 2024, from RMB11.0 million as of December 31, 2023[38]. - The gearing ratio increased to 101% as of June 30, 2024, from 92% as of December 31, 2023[40]. - The Group had no capital expenditure contracted for as of June 30, 2024, and no significant investments during the six months ended June 30, 2024[39]. Shareholder Information - As of June 30, 2024, the company has a total of 1,578,664,000 shares issued[47]. - Mr. Zhao John Huan holds a long position in 1,183,998,000 shares and 517,522,440 underlying shares, representing approximately 107.78% interest in the company[46]. - The Board resolved not to declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[36]. - The total number of shares held by directors and chief executives indicates a concentrated ownership structure[46]. - The company continues to comply with the Securities and Futures Ordinance and the Listing Rules regarding the disclosure of interests[45]. Debt and Financing - Bank borrowings increased to RMB12.6 million as of June 30, 2024, from RMB11.0 million as of December 31, 2023[30][35]. - Convertible bonds and related interests totaled RMB618.6 million as of June 30, 2024, an increase of RMB24.2 million from RMB594.4 million as of December 31, 2023[36]. - The company’s total borrowings, including bank borrowings and convertible bonds, indicate a growing reliance on debt financing to support operations and growth[165][166]. - The company is actively managing its debt structure, as evidenced by the adjustments in interest rates and the classification of liabilities[164][166]. - Interest on convertible bonds amounted to RMB19,869,000, an increase from RMB18,360,000 in the same period of 2023[82]. Compliance and Governance - The Company complied with the Corporate Governance Code throughout the six months ended June 30, 2024[73]. - The Company adopted the Model Code for securities transactions by Directors and confirmed compliance by all Directors during the reporting period[74]. - The management discussion emphasizes the importance of transparency in shareholding and compliance with regulatory requirements[48]. - The Group's financial risk management information is not fully included in the condensed consolidated interim financial information and should be read in conjunction with the annual financial statements[99]. Future Outlook - The Group plans to enhance brand value and explore diverse investment models to create shareholder value despite intense competition in the catering sector[36]. - The Group has been exploring appropriate business development through acquisitions and/or expansion of existing business, with plans to evaluate financial position and resources for potential further fundraising[81]. - The Group's operational focus remains on chain restaurant management, with ongoing assessments of financial performance and liquidity[92].
百福控股(01488) - 2024 - 中期财报