Revenue Performance - Revenue for the six months ended June 30, 2021, was RMB 86,047,000, representing an increase of 11.2% compared to RMB 77,318,000 in the same period of 2020[8]. - The Group's revenue increased by approximately 11.3% to approximately RMB 86.0 million for the six months ended June 30, 2021, compared to approximately RMB 77.3 million in the last corresponding period[153]. - The Group's total revenue from external customers in the PRC was RMB 86,047,000 for the six months ended June 30, 2021, which accounted for the majority of its revenue[42]. Loss and Financial Performance - Loss for the period was RMB 15,664,000, a decrease in loss of 70.3% compared to RMB 52,774,000 in the same period of 2020[10]. - Total comprehensive loss for the period was RMB 15,461,000, compared to RMB 52,421,000 in the same period of 2020, indicating a significant reduction in overall losses[10]. - The Group reported a consolidated net loss of approximately RMB 15,664,000 for the six months ended 30 June 2021[29]. - The loss from operating activities for the six months ended June 30, 2021, was RMB 15,541,000, a decrease from RMB 52,465,000 in the same period of 2020, representing a reduction of approximately 70.4%[67]. - Loss for the period attributable to owners of the Company decreased by approximately 70.5% to approximately RMB 15.5 million for the six months ended June 30, 2021, from approximately RMB 52.5 million in the last corresponding period[165]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 144,382,000, down from RMB 161,471,000 as of December 31, 2020[12]. - As of June 30, 2021, total liabilities amounted to RMB 271,874,000, a decrease of 12.4% from RMB 310,545,000 as of December 31, 2020[14]. - Current liabilities decreased to RMB 237,777,000 from RMB 258,242,000, reflecting a reduction of 7.9%[14]. - The company’s total equity as of June 30, 2021, was RMB 144,382,000, down from RMB 161,471,000 as of December 31, 2020, a decrease of 10.6%[14]. - The company’s net current liabilities improved to RMB (179,798,000) from RMB (204,315,000), showing a positive trend[14]. Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 37,972,000 from RMB 34,395,000 as of December 31, 2020, reflecting improved liquidity[12]. - Cash and cash equivalents at the end of the period increased to RMB 5,137,000 from RMB 1,723,000, representing a growth of 197.5%[19]. - Net cash used in operating activities was RMB 6,112,000 for the six months ended June 30, 2021, compared to a net cash generated of RMB 19,930,000 in the same period of 2020[19]. Cost Control Measures - Employee benefit and related expenses decreased to RMB 31,530,000 from RMB 34,697,000, indicating cost control measures[8]. - Management is implementing various cost control measures to improve operating results and cash flows, including slowing down the opening of new restaurants[29]. - The costs of food and beverage and other materials consumables decreased by approximately 9.2% to approximately RMB 31.5 million for the six months ended June 30, 2021, from approximately RMB 34.7 million in the last corresponding period[154]. - Employee benefit and related expenses decreased by approximately 3.4% to approximately RMB 34.3 million for the six months ended June 30, 2021, from approximately RMB 35.5 million in the last corresponding period[156]. - Property rentals and related expenses decreased by approximately 35.3% to approximately RMB 7.7 million for the six months ended June 30, 2021, from approximately RMB 11.9 million in the last corresponding period[162]. Share Capital and Financing - The company completed a rights issue on February 22, 2021, issuing 318,680,121 shares at a subscription price of HK$0.142 per share, raising gross proceeds of HK$45,253,000[108]. - The company’s share capital was adjusted following a share consolidation on January 14, 2021, where every twenty shares of HK$0.00002 were consolidated into one share of HK$0.0004[108]. - The intended use of the net proceeds includes repayment of existing indebtedness of approximately HK$25.88 million and general working capital of approximately HK$13.62 million[173]. - The conversion price of the Convertible Bonds was adjusted following the share consolidation effective January 14, 2021[182]. - The conversion price of the Convertible Bonds was adjusted from HK$2.05 to HK$1.75, increasing the number of shares to be issued upon conversion from 2,153,628 to 2,522,821 shares[188]. Employee and Operational Metrics - As of June 30, 2021, the number of employees decreased to 641 from 754 as of December 31, 2020[195][199]. - Employee remuneration is reviewed annually based on performance appraisals, with competitive packages offered to eligible staff[195][199]. - The Group's employee benefits and related expenses for the six months ended June 30, 2021, totaled RMB 34,273,000, a slight decrease from RMB 35,454,000 in the same period of 2020, reflecting a reduction of approximately 3.3%[54]. Regulatory and Compliance - The financial statements were approved for issue by the board of directors on August 24, 2021, ensuring compliance with regulatory standards[23]. - The statutory reserve requires a transfer of 10% of profit after taxation until it reaches 50% of the registered capital, which is a regulatory requirement for subsidiaries in the PRC[21]. - The financial statements are presented in Renminbi (RMB), with all values rounded to the nearest thousand (RMB'000)[29]. Related Party Transactions - The Group's related party transactions included purchases of goods, with no recorded transactions for the six months ended 30 June 2021[135]. - The Group's related parties include entities controlled by the controlling shareholder, Mr. Hung, and his elder sister[126].
龙辉国际控股(01007) - 2021 - 中期财报