Financial Performance - The Group recorded a turnover of HK$200.2 million for the six months ended 30 June 2020, representing a decrease of 64.5% compared to HK$563.5 million in the same period of 2019[5]. - Gross margin fell to HK$138.3 million, down 64.9% from HK$394.5 million year-on-year[5]. - The loss attributable to owners of the Company was HK$110.3 million, an increase of 58.3% from HK$69.7 million in the previous year[5]. - Net Ordinary Operating Loss for the Period was HK$104.1 million, compared to HK$49.4 million for the same period in 2019, marking an increase of 110.7%[13]. - The Group reported a loss attributable to owners of the Company of approximately HK$110.3 million, compared to a loss of HK$69.7 million for the same period in 2019, reflecting a significant deterioration in financial performance[18]. - The gross margin ratio was approximately 69.1%, with a negative EBITDA of about HK$21.7 million, down from a gross margin of 70.0% and positive EBITDA of HK$64.3 million in the same period of 2019[18]. - The Group's EBITDA after depreciation of right-of-use assets was negative HK$71.5 million, compared to a negative EBITDA of HK$14.8 million in the same period of 2019[86]. - The loss attributable to owners of the Company for the first quarter was HK$63.8 million, a significant increase of 262.5% from HK$17.6 million in the first quarter of 2019[95]. - The second quarter loss attributable to owners was HK$46.5 million, a decrease of 10.7% from HK$52.1 million in the second quarter of 2019[95]. - The Group reported a net loss attributable to owners of approximately HK$110.3 million for the Period, an increase of 58.2% compared to HK$69.7 million in the same period of 2019[89]. Revenue and Turnover - The Group's turnover for the period was approximately HK$200.2 million, representing a decrease of 64.5% compared to HK$563.5 million in the same period of 2019[44]. - The turnover from the food and catering business was approximately HK$180.9 million, a decrease of 65.5% from HK$525.0 million in 2019[48]. - The food souvenir business generated approximately HK$9.8 million, down 74.5% from HK$38.5 million in the previous year[48]. - The Group's restaurants and food souvenir shops experienced an overall drop of 68.9% in same store performance compared to the same period in 2019[44]. - The Group's property investment business recorded a turnover of HK$9.5 million during the period, with no turnover contribution in the same period of 2019[48]. - Total turnover for the first quarter of 2020 was HK$132.2 million, a decrease of 55.3% compared to HK$295.6 million in the first quarter of 2019[52]. - For the second quarter of 2020, total turnover was HK$68.0 million, a 74.6% decrease from HK$267.9 million in Q2 2019[55]. - For the first half of 2020, total turnover was HK$200.2 million, a decrease of 64.5% compared to HK$563.5 million in 2019[75]. Losses and Expenses - The gross operating loss for the period was about HK$58.8 million, compared to a gross operating profit of HK$59.9 million in 2019, resulting in a gross operating loss ratio of 29.4%[82]. - The food and catering business reported a loss of HK$98.7 million for the six months ended June 30, 2020, representing a significant increase of 221.5% from HK$30.7 million in 2019[103]. - The gross operating loss for the food souvenir business was HK$8.2 million, with a gross operating loss margin of -83.7%[144]. - Direct operating expenses for the food and catering business were HK$182.3 million, a decrease of 38.9% from HK$298.5 million in the previous year[129]. - Direct operating expenses for the food souvenir business decreased by 59.0% to HK$14.8 million from HK$36.1 million in 2019[144]. Asset and Liability Management - Total assets decreased by 20.5% to HK$1,380.6 million as of 30 June 2020, down from HK$1,737.4 million at the end of 2019[5]. - The gearing ratio increased to 141.4%, up from 130.0% in the previous year, indicating higher financial leverage[5]. - The Group's net current liabilities were approximately HK$131.7 million, an increase of 74.0% compared to HK$75.7 million as of December 31, 2019[122][124]. - The total current assets decreased by 47.7% to HK$214.3 million from HK$409.7 million as of December 31, 2019[122]. - The net assets of the Group decreased by approximately 17.3% to HK$530.5 million as of June 30, 2020, down from HK$641.7 million as of December 31, 2019[124][126]. Operational Changes - The Group permanently closed all Mad for Garlic restaurants and several others due to poor performance, significantly impacting revenue[7]. - Management has permanently closed several underperforming restaurants across various regions, including Taiwan, Hong Kong, and Mainland China, due to unsatisfactory performance[23]. - The Group's central food and logistic processing center in Macau is now operational, enhancing operational efficiency[151]. - The Group continues to actively enhance its logistic support, including food sourcing and processing facilities[151]. - The number of food court counters increased to 23 in 2020 from 12 in 2019, with significant growth in Macau and Hong Kong[136]. Market Conditions and Future Outlook - Future performance remains uncertain, with expectations of continued challenges due to the ongoing impact of the COVID-19 pandemic[24]. - Management expects a challenging operating environment in the second half of 2020 due to the ongoing COVID-19 pandemic and strained US-China relations[34]. - The COVID-19 pandemic has caused material disruption to the Group's restaurant operations, adversely affecting business, financial condition, and operating performance[199]. - The Hong Kong Government has implemented further social distancing measures due to the third wave of COVID-19, impacting restaurant operations[199]. - The individual traveler scheme in Macau resumed on 26 August 2020, but overall operations remain affected by the pandemic[199]. - The Group is actively adopting cost control measures, including reprioritizing work plans to improve liquidity[199]. - The Group is closely monitoring market conditions and adjusting business strategies in response to the pandemic[199]. Shareholder Information - Mr. Chan and his associates held 41.31% of the existing issued share capital of the Company as of June 30, 2020[171]. - Mr. Chan held 249,438,422 shares, representing 35.92% of the issued share capital of the Company as of June 30, 2020[188]. - Ophorst Van Marwijk Kooy held 97,272,000 shares, representing 14.01% of the issued share capital of the Company as of June 30, 2020[197]. - 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[191].
FUTURE BRIGHT(00703) - 2020 - 中期财报