Financial Performance - The turnover for the six months ended June 30, 2019, was HK$563.5 million, representing a 4.4% increase compared to HK$539.7 million in the same period of 2018[4]. - The gross operating profit decreased by 17.2% to HK$59.9 million from HK$72.3 million in the same period of 2018[4]. - The loss attributable to owners of the Company was HK$69.7 million, a significant increase of 366.0% compared to a loss of HK$14.9 million in the same period of 2018[4]. - The Net Ordinary Operating Loss for the period was HK$49.4 million, compared to HK$27.5 million for the same period of 2018, reflecting a 79.7% increase in losses[13]. - The total comprehensive loss for the period amounted to HK$69,509,000, compared to HK$18,609,000 in 2018, marking an increase of approximately 273.5%[191]. - Basic loss per share was HK$10.03, a substantial increase from HK$2.15 in the same period last year[191]. Revenue Breakdown - Turnover from the food and catering business generated approximately HK$525.0 million, an increase of 3.0% from HK$509.6 million in the same period of 2018[46]. - The total turnover for the Group's restaurant operations in Hong Kong reached approximately HK$114.1 million, representing a turnover increase of approximately 25.2% compared to the same period in 2018[18]. - The food souvenir business generated a total turnover of approximately HK$38.5 million, with a loss attributable to owners of the Company of approximately HK$8.1 million, an improvement from a turnover of approximately HK$30.0 million and a loss of approximately HK$9.0 million in the same period of 2018[22]. - The wholesale business of Japanese food and materials recorded a total turnover of approximately HK$23.8 million, marking a satisfactory increase of 21.4% compared to HK$19.6 million for the same period in 2018[21]. - The industrial catering business achieved a total turnover of approximately HK$21.4 million, reflecting a slight drop of approximately 3.1% compared to HK$22.1 million for the same period in 2018[20]. Asset and Liability Management - The total assets increased by 15.0% to HK$2,070.8 million from HK$1,800.4 million in the previous year[4]. - The gearing ratio rose to 122.4%, up from 74.8% in the previous year, indicating increased financial leverage[4]. - The net assets of the Group as of June 30, 2019, were approximately HK$905.0 million, reflecting a decrease of about 7.8% from HK$981.5 million as of December 31, 2018[117]. - The ratio of total assets to total liabilities was 1.77 as of June 30, 2019, down from 2.20 as of December 31, 2018[153]. - Current liabilities increased to HK$548,690,000 from HK$416,601,000, reflecting a rise of approximately 31.6%[196]. Operational Challenges - The Group recorded a drop of 3.0% in same-store performance for its restaurants and food court counters, and an 8.1% decrease for its food souvenir shops compared to the same period of 2018[13]. - The operating environment for the Group in the second half of 2019 is expected to be tough and competitive due to trade disputes and geopolitical events, prompting a cautious approach to opening new restaurants[33]. - Management anticipates a challenging operating environment in the second half of 2019 due to geopolitical uncertainties[35]. Strategic Initiatives - The Group plans to close down two Yeng Kee shops by the end of 2019 as part of its strategy to improve sales and reduce losses in the food souvenir business[22]. - Management plans to expand the sales network by increasing the number of stores and sales kiosks, enhancing online sales platforms, and seeking more distributors in mainland China and overseas[25]. - The Group has entered into a tenancy agreement for a period of 8 years with an Independent Third Party, which will generate rental income to enhance the revenue base[29]. Shareholder Information - Mr. Chan and his associates held 41.31% of the existing issued share capital of the Company as of June 30, 2019[160]. - The maximum number of shares that may be issued under the employee share option scheme was 55,390,242, representing approximately 8.0% of the issued shares of the Company[169]. - The Group did not enter into any share-based payment transactions during the six months ended June 30, 2019[169].
FUTURE BRIGHT(00703) - 2019 - 中期财报