Financial Performance - Revenue for the six months ended 30 September 2019 was approximately HK$332.2 million, a decrease of approximately 0.3% compared to HK$333.0 million for the same period in 2018[10]. - Loss for the period was approximately HK$42.5 million, an increase of approximately 49.3% from HK$28.5 million in the same period last year[11]. - Loss per share was approximately HK4.3 cents, an increase of approximately 12.1% from HK3.8 cents in the previous year[11]. - The Group's revenue decrease in this period marked the first decline in four years[15]. - Comparable restaurant sales decreased by approximately 9.2% from approximately HK$291.6 million in 1H2018 to approximately HK$264.9 million in 1H2019[30]. - Loss before tax increased to HK$45,880,000 for the six months ended September 30, 2019, compared to a loss of HK$30,683,000 in the same period of 2018, representing a 49.3% increase[142]. - Total comprehensive loss attributable to owners of the Company was HK$42,470,000 for the six months ended September 30, 2019, compared to HK$28,452,000 in 2018, indicating a 49.2% increase[142]. - Basic and diluted loss per share for the period was HK$4.25, compared to HK$3.79 in 2018, reflecting a 12.15% increase in loss per share[142]. Operational Changes - The Group operated 19 full-service restaurants under two brand names during the reporting period[19]. - Two restaurants ceased operations in May and June 2019 due to lease expirations, while two new restaurants were opened in July and September 2019[19]. - The number of restaurants operated as of September 30, 2019, remained at 19, with two new restaurants opened during the period[25]. - Eight restaurants underwent renovation in 1H2019 to maintain competitiveness[28]. - The Group plans to review the pace of opening new restaurants due to recent unstable market conditions[24]. - The management is closely monitoring the economic and business environment to maintain its position in Hong Kong's banquet market[18]. Cost and Expenses - Staff costs increased by approximately 6.1%, from approximately HK$119.8 million in 1H2018 to approximately HK$127.1 million in 1H2019, driven by the raise in statutory minimum wage[38]. - The cost of food and beverages decreased by approximately 5.1% to approximately HK$80.7 million in 1H2019, with the cost as a percentage of revenue at approximately 24.3%[36]. - Employee costs increased by approximately 6.1% from HK$119.8 million in 1H2018 to HK$127.1 million in 1H2019, accounting for about 38.3% of revenue[39]. - Property rentals and related expenses decreased significantly from approximately HK$92.2 million in 1H2018 to approximately HK$34.3 million in 1H2019 due to the adoption of HKFRS 16[41]. - Depreciation of property, plant, and equipment rose from approximately HK$11.8 million in 1H2018 to approximately HK$15.9 million in 1H2019, attributed to the amortization of initial setup costs for new restaurants[42]. - Finance costs increased from approximately HK$3.1 million in 1H2018 to approximately HK$11.1 million in 1H2019, primarily due to the recognition of interest on lease liabilities under HKFRS 16[47]. Liquidity and Financial Position - As of September 30, 2019, the Group's cash and cash equivalents were approximately HK$193.8 million, down from HK$242.6 million as of March 31, 2019[58]. - The current ratio decreased to approximately 0.8 times as of September 30, 2019, from approximately 1.8 times as of March 31, 2019, mainly due to the adoption of HKFRS 16[61]. - Total borrowings amounted to approximately HK$51.8 million as of September 30, 2019, down from approximately HK$57.3 million as of March 31, 2019[62]. - The gearing ratio was approximately 24.9% as of September 30, 2019, compared to 22.9% as of March 31, 2019, indicating a stable capital structure[63]. - The Group's current ratio as of September 30, 2019, was 1.4 times, indicating a stable liquidity position[65]. - The debt-to-equity ratio as of September 30, 2019, was approximately 24.9%, up from 22.9% as of March 31, 2019, reflecting a reasonable and stable capital structure[65]. - The total cash and cash equivalents at the end of the period were HK$133,778,000, down from HK$89,684,000 at the end of the previous year, indicating a decrease in liquidity[155]. - The Group's financial statements have been prepared on a going concern basis, indicating confidence in future operations despite current liabilities[166]. Accounting Standards and Policies - The adoption of HKFRS 16 resulted in significant changes to the Group's accounting policies, particularly in lease accounting, requiring the recognition of right-of-use assets and lease liabilities for all leases[179]. - The Group has applied HKFRS 16 retrospectively, adjusting the opening balance of equity as of April 1, 2019, without restating comparatives for the 2018 reporting period[182]. - The Group recognized lease liabilities for leases previously classified as operating leases under HKAS 17, measured at the present value of remaining lease payments[186]. - The new accounting policies introduced by HKFRS 16 are expected to impact the Group's financial performance and positions, although the specific effects are not detailed in the current report[179]. - The Group's accounting policies remain consistent with those followed in the preparation of the annual consolidated financial statements for the year ended March 31, 2019, except for the changes due to the adoption of new standards[172]. Shareholder Information - The Board does not recommend the payment of any dividend for the six months ended 30 September 2019[11]. - The Board does not recommend payment of a dividend for 1H2019, compared to HK$14 million in 1H2018[91]. - As of September 30, 2019, Mr. Chan Shou Ming holds 662,500,000 shares, representing 66.25% of the company's total shareholding[110]. - Ms. Chen Xiao Ping holds 22,500,000 shares, representing 2.25% of the company's total shareholding[110]. - Ms. Qian Chunlin holds 15,000,000 shares, representing 1.50% of the company's total shareholding[110]. - Agile Valley Limited, owned by Mr. Chan Shou Ming, is the beneficial owner of 662,500,000 shares, accounting for 66.25% of the company[118]. - The company did not purchase, sell, or redeem any of its listed securities in the first half of 2019[104]. - The interests of directors and chief executives in the company's shares are recorded in compliance with the Securities and Futures Ordinance[108].
维力生活科技(01703) - 2020 - 中期财报