Financial Performance - For the six months ended June 30, 2020, the revenue was RMB 691.8 million, a decrease of 43.5% compared to RMB 1,223.8 million in the same period of 2019[11]. - Gross profit for the same period was RMB 488.6 million, down 45.4% from RMB 895.2 million year-on-year[11]. - The company reported a loss before tax of RMB 149.8 million, compared to a profit of RMB 119.8 million in the previous year[11]. - The loss attributable to shareholders was RMB 109.4 million, compared to a profit of RMB 86.6 million in 2019[11]. - The group recorded a loss attributable to shareholders of approximately RMB 109,393,000, with a basic loss per share of RMB 0.10, compared to a profit of approximately RMB 86,582,000 and a basic earnings per share of RMB 0.08 in the previous year[17]. - The company reported a loss before tax of approximately RMB 149,754,000 for the six months ended June 30, 2020, compared to a profit of RMB 119,809,000 for the same period in 2019[35]. - The net loss for the period was RMB 118,921,000, compared to a profit of RMB 92,748,000 in the same period of 2019[89]. - The total comprehensive loss for the period was RMB 109,653 thousand, compared to a total comprehensive income of RMB 94,565 thousand in the same period last year[59]. Operational Challenges - The company faced significant challenges due to the COVID-19 pandemic, with the overall restaurant industry in China experiencing a revenue decline of 32.8% during the same period[14]. - The company faced significant negative impacts on its operations due to the COVID-19 pandemic, leading to reduced revenues and impairments of assets[76]. - The overall operations of the company's restaurants have been gradually improving since the easing of lockdown measures in mid-March 2020[76]. - The company has benefited from various government support measures to mitigate the negative impacts of the pandemic[76]. Restaurant Network and Strategy - The number of restaurants operated by the company reached 734, covering over 169 cities and 31 provinces and municipalities in China[4]. - The group operated 734 restaurants as of June 30, 2020, a decrease of 36 from 770 restaurants in the same period of 2019[21]. - The group plans to adopt a prudent store opening strategy and focus on optimizing existing stores due to the uncertain global economic outlook[17]. - The company aims to become the leading fast-casual restaurant chain in China[6]. Revenue Sources - The main revenue source, the retail chain restaurant business, generated approximately RMB 637,697,000, accounting for about 92.2% of total revenue, down about 44.3% from RMB 1,144,605,000 in 2019[20]. - Restaurant operations revenue decreased to RMB 637,697,000 from RMB 1,144,605,000, a decline of approximately 44.4% year-over-year[85]. - Revenue from ramen and related products decreased to RMB 54,088,000 from RMB 79,264,000, a decline of approximately 31.7% year-over-year[85]. - Total revenue for the first half of 2020 was RMB 691,785,000, down from RMB 1,223,869,000 in the same period of 2019, representing a decrease of approximately 43.4%[89]. Cost Management - Employee costs for the six months ended June 30, 2020, were approximately RMB 213,202,000, a decrease of about 35.4% compared to RMB 330,252,000 for the same period in 2019[28]. - Other operating expenses for the six months ended June 30, 2020, were approximately RMB 170,571,000, a decrease of about 43.8% from RMB 303,706,000 in the same period of 2019[31]. - The cost of inventory consumed decreased to RMB 203,161,000 for the six months ended June 30, 2020, down from RMB 328,629,000 in 2019, indicating a reduction of approximately 38.2%[105]. - The total advertising and promotional expenses for the six months ended June 30, 2020, were RMB 4,432,000, significantly lower than RMB 17,102,000 in 2019, marking a decrease of about 74%[105]. Cash Flow and Liquidity - Cash inflow from operating activities for the six months ended June 30, 2020, was approximately RMB 54,435,000, despite a loss before tax of RMB 149,754,000[41]. - The company maintained a strong liquidity position with a bank balance of RMB 1,700,896,000 as of June 30, 2020, compared to RMB 1,705,399,000 as of December 31, 2019[38]. - Cash and cash equivalents as of June 30, 2020, were RMB 1,700,896 thousand, slightly down from RMB 1,705,399 thousand as of December 31, 2019[62]. - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 54,435,000, a decrease of 73% compared to RMB 202,170,000 in 2019[73]. Asset and Liability Management - Total assets as of June 30, 2020, were RMB 4,732,975 thousand, down from RMB 4,927,276 thousand as of December 31, 2019[62]. - Total liabilities as of June 30, 2020, were RMB 809,305 thousand, compared to RMB 817,193 thousand as of December 31, 2019[62]. - The company's net equity attributable to shareholders decreased to RMB 3,175,309,000 from RMB 3,329,074,000, representing a decline of 4.6%[64]. - The provision for expected credit losses for trade and other receivables increased to RMB 12,611,000 from RMB 3,471,000 as of December 31, 2019[134]. Shareholder Information - The company has issued 1,091,538,820 shares with a total capital of RMB 108,404,000 as of June 30, 2020[146]. - The company’s major shareholder, Favor Choice Group Limited, holds 480,123,041 shares, representing 43.99% of the total shares[188]. - The company has a total of 102,340,000 shares held by Invesco Management S.A., accounting for 9.38% of the total shares[188]. - The company’s stock options plan aims to reward contributions to the group’s development and business growth[191]. Fair Value and Financial Instruments - The fair value loss on investment properties for the six months ended June 30, 2020, was approximately RMB 8,499,000, compared to a fair value gain of RMB 2,509,000 in 2019[119]. - The company reported a fair value of RMB 66,191,000 for financial liabilities measured at fair value, an increase from RMB 62,776,000 as of December 31, 2019[159]. - The company reported a loss of RMB 14,205,000 from fair value changes in financial assets and a loss of RMB 3,415,000 from financial liabilities for the six months ended June 30, 2020[162]. Compliance and Governance - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period, except for a deviation regarding the roles of the Chairman and CEO[173]. - The company maintains transparency in its share option plans, providing detailed disclosures in its interim reports[199].
味千(中国)(00538) - 2020 - 中期财报