Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,285,575, a decrease of 14.6% compared to HKD 1,504,553 in the same period of 2023[1]. - Profit for the period was HKD 9,430, down 73.9% from HKD 36,117 in the previous year[1]. - Basic earnings per share for the period was HKD 0.40, a decrease of 88.0% from HKD 3.29 in the same period of 2023[1]. - The total comprehensive income for the period was HKD 1,185, significantly lower than HKD 22,251 in the same period of 2023[4]. - The pre-tax profit for the six months ended June 30, 2024, was HKD 4,022,000, compared to HKD 33,400,000 for the same period in 2023, representing a significant decrease[22]. - The total tax expense for the six months ended June 30, 2024, was HKD 2,959,000, slightly up from HKD 2,857,000 in 2023[19]. Revenue Breakdown - Revenue from restaurant and bakery operations was HKD 1,132,831, down 13.8% from HKD 1,314,907 in the previous year[15]. - Revenue from food sales and other items decreased to HKD 90,850, a decline of 18.5% from HKD 111,516 in the prior period[15]. - Revenue from livestock breeding operations was HKD 61,894, down 20.7% from HKD 78,130 in the previous year[15]. - Hong Kong business revenue was approximately HKD 838,100,000, down 6.1% from HKD 892,400,000 in 2023[29]. - Revenue from mainland China operations was approximately HKD 447,400,000, down 26.9% from HKD 612,200,000 in 2023[31]. Asset and Liability Changes - Total non-current assets as of June 30, 2024, were HKD 1,412,633, a decrease from HKD 1,538,932 as of December 31, 2023[5]. - Current assets decreased to HKD 563,485 from HKD 649,887 as of December 31, 2023[5]. - Total liabilities decreased to HKD 451,707 from HKD 576,658 as of December 31, 2023[5]. - The total equity attributable to the company's equity holders was HKD 1,198,740, down from HKD 1,233,034 as of December 31, 2023[7]. - Total assets decreased by 9.7% to approximately HKD 1,976,100,000 as of June 30, 2024, compared to HKD 2,188,800,000 on December 31, 2023[34]. - Total liabilities decreased to approximately HKD 54,900,000, down from HKD 85,700,000 on December 31, 2023, resulting in a debt ratio of 4.6% compared to 7.0% previously[35]. Operational Changes - The number of restaurants and bakeries decreased to 90 as of June 30, 2024, down 19.6% from 112 in the previous year[1]. - The group closed several underperforming outlets in mainland China, reducing the total number of restaurants from 41 to 30[31]. - The group launched over 30 new frozen and packaged food products during the period[32]. - Self-operated supermarket sales decreased by approximately 20%, but gross profit margin increased by about 3%[33]. - The group plans to implement promotional activities and introduce cost-effective products to attract more customers, including extending early morning tea promotions and offering discounted menu items during lunch and dinner[42]. Employee and Governance - As of June 30, 2024, the group had 4,231 employees and offers competitive compensation and internal training programs to retain talent[41]. - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, with the exception of the separation of the roles of Chairman and CEO, which is deemed appropriate by the board[45][46]. - The audit committee, established in June 2007, has reviewed the unaudited condensed consolidated interim financial statements for the six months ending June 30, 2024, and confirmed compliance with applicable accounting standards[49]. Future Outlook - The group aims to expand its restaurant network and improve logistics efficiency while maintaining strict cost control and healthy cash flow to ensure sustainable business growth[43]. - The group will actively explore overseas markets, including Malaysia, Thailand, Australia, and the UK, to increase sales and profitability[43]. - The group anticipates a challenging economic environment in Hong Kong and mainland China for the second half of 2024, prompting a cautious operational strategy[42].
稻香控股(00573) - 2024 - 中期业绩