Revenue Performance - Revenue for the six months ended September 30, 2020, was approximately HKD 433.7 million, a decrease of 48.3% compared to HKD 838.2 million in the same period of 2019[6]. - Revenue from Hong Kong decreased by 60.5% to HKD 211.99 million, while revenue from Mainland China decreased by 24.8% to HKD 219.83 million[6]. - The group's revenue for the review period was approximately HKD 433.7 million, a decrease of about 48.3% compared to the previous period's revenue of approximately HKD 838.2 million[27]. - The restaurant operation revenue was HKD 429,220,000, down 48.0% from HKD 826,062,000 in the previous period[107]. - The group’s revenue from external customers in Hong Kong was HKD 211,989,000, a decrease of 60.6% from HKD 536,565,000 in the previous period[103]. - The group’s revenue from external customers in mainland China was HKD 219,831,000, down 25.0% from HKD 292,433,000 in the previous period[103]. Financial Losses - The company recorded a loss attributable to shareholders of HKD 77.65 million, compared to a loss of HKD 44.50 million in the previous period, representing a 74.5% increase in losses[6]. - The group reported a loss of HKD 76,818,000 for the period, compared to a loss of HKD 45,403,000 in the same period of 2019, representing a 69% increase in losses[68]. - The group recorded a post-tax loss of approximately HKD 76.8 million for the review period, compared to HKD 45.4 million in the previous period, primarily due to a challenging business environment[43]. - The company incurred a net loss of HKD 27,730 thousand for the six months ended September 30, 2020, compared to a loss of HKD 21,452 thousand in the same period of 2019, representing a 29.5% increase in losses year-over-year[78]. Cost Management - The cost of goods sold during the review period was approximately HKD 136.4 million, down about 43.5% from approximately HKD 241.6 million in the previous period, representing 31.4% of total revenue[28]. - Employee costs for the review period were approximately HKD 139 million, a reduction of about 52.3% from approximately HKD 291.4 million in the previous period[30]. - The group has effectively controlled costs, optimizing its cost structure and benefiting from reduced rental expenses[59]. - Rental and related expenses for the review period amounted to approximately HKD 11.5 million, a significant decrease from HKD 55.6 million in the previous review period, representing 28.3% of the group's revenue, up from 20.1%[35]. - Other operating expenses increased by approximately 9.2% to about HKD 98.3 million, accounting for 22.7% of the group's revenue, due to adverse impacts from the pandemic on restaurant performance[36]. Operational Adjustments - The number of restaurants in Hong Kong decreased from 41 to 35, and in Mainland China from 38 to 33 during the review period[6]. - The company has adjusted its restaurant network in response to the pandemic, relocating stores to smaller but strategically better locations to enhance operational efficiency[10]. - The group closed 9 restaurants in Hong Kong and 3 in mainland China during the review period, operating a total of 73 restaurants across all markets as of September 30, 2020[23]. - The group is focusing on promoting takeaway services and has enhanced its delivery team, ensuring quick and safe food service for customers[23]. - The group is actively promoting delivery services and implementing marketing campaigns to attract more customers[60]. Government Support - The group received approximately HKD 35.7 million in government subsidies under the anti-epidemic fund and employment support scheme, which helped mitigate some of the financial pressure[23]. - The group recognized rental concessions amounting to HKD 13,762,000 due to the pandemic, which were accounted for as variable lease payments[92]. Future Plans - The group plans to open 2 new restaurants in Hong Kong and 4 new restaurants in mainland China by March 2021, primarily in the Greater Bay Area[24]. - The group plans to optimize its cost structure and take advantage of falling rental prices to expand its business[24]. - The group plans to further assess the implementation of unrealized plans for building a new central kitchen in Shanghai and southern China due to adverse factors from the pandemic[156]. Financial Position - The company maintains a strong financial position with sufficient cash on hand and unused bank financing to meet business needs[13]. - Cash and cash equivalents as of September 30, 2020, were approximately HKD 197 million, a decrease of about HKD 40.4 million from HKD 237.4 million on March 31, 2020[46]. - The group's current assets and current liabilities were approximately HKD 346.8 million and HKD 408.2 million, respectively, resulting in a current ratio of approximately 0.8 times[46]. - Non-current assets totaled HKD 1,220,896,000 as of September 30, 2020, compared to HKD 1,283,762,000 as of March 31, 2020[73]. - The group’s interest-bearing bank loans amounted to HKD 60,088,000 as of September 30, 2020, up from HKD 59,251,000 as of March 31, 2020[133]. Shareholder Information - The total issued shares as of September 30, 2020, were 1,411,226,450, which is the basis for calculating the ownership percentages[185]. - Major shareholders include Mr. Li, Mr. He, Mr. Zhang Ruibiao, Mr. Zhang Ruitao, and Mr. Zhang Weiqiang, who collectively control the company's shares and must make decisions unanimously[179]. - Mr. Li holds approximately 49.90% of shares in the controlling company, Tsui Wah Holdings Limited, while Mr. He and Mr. Zhang Ruibiao hold 36.12% and 13.98%, respectively[184]. Corporate Governance - The company maintains a governance structure that requires unanimous consent from its major shareholders for operational decisions[179]. - The company has adopted and complied with the corporate governance code as per the listing rules, and will continue to review and strengthen its corporate governance practices[190].
翠华控股(01314) - 2021 - 中期财报