Financial Performance - Revenue for the six months ended 30 September 2020 was approximately HK$105.1 million, a decrease of approximately 68.4% compared to HK$332.2 million for the same period in 2019[12]. - Loss for the period was approximately HK$57.3 million, representing an increase of approximately 34.9% from HK$42.5 million in the same period of 2019[12]. - Loss per share was approximately HK5.7 cents, an increase of approximately 34.8% from HK4.3 cents in the previous year[12]. - The Group's revenue decreased by approximately 68.4% from approximately HK$332.2 million for the six months ended 30 September 2019 to approximately HK$105.1 million for the six months ended 30 September 2020[34]. - Revenue from banquet services significantly decreased by approximately 90.4% compared to the six months ended 30 September 2019[34]. - Loss before tax for the period was HK$57,199,000, compared to a loss of HK$45,880,000 in the same period last year, indicating a deterioration of 24.0%[149]. - Loss attributable to owners of the Company was HK$57,295,000, up from HK$42,470,000, reflecting a 34.9% increase in losses[149]. - Basic and diluted loss per share increased to HK$5.73 from HK$4.25, representing a rise of 34.9%[149]. - The Group incurred a net loss of approximately HK$57,295,000 for the six months ended 30 September 2020[166]. - The company reported a total loss for the period, reflecting the impact of the pandemic on its operations[197]. Revenue Sources and Business Operations - The Group's revenue is derived from catering services and sales of goods, net of discounts, indicating a focus on service-based income[182]. - The catering industry in Hong Kong, particularly the Chinese restaurant sector, experienced a significant decline, with receipts decreasing by approximately 46.6% in value in the third quarter of 2020 compared to the same quarter in 2019[15]. - The average spending per customer of comparable restaurants decreased from HK$99 to HK$77[38]. - The guest count of comparable restaurant sales decreased from 2,510,000 to 1,128,000[38]. - The seat turnover rate of comparable restaurants decreased from 2.0 to 1.4[38]. - The Group's operations are entirely located in Hong Kong, with no individual external customer contributing over 10% of total revenue for the six months ended September 30, 2020[184]. Cost Management - The Group's cost of food and beverages decreased by approximately 67.4%, from approximately HK$80.7 million for the six months ended 30 September 2019 to approximately HK$26.3 million for the six months ended 30 September 2020, with the cost as a percentage of revenue remaining stable at 25.0%[45]. - The Group's staff costs decreased by approximately 65.4%, from approximately HK$127.1 million for the six months ended 30 September 2019 to approximately HK$44.0 million for the six months ended 30 September 2020, with staff costs as a percentage of revenue increasing to 41.9%[46]. - Property rentals and related expenses decreased by approximately 22.7%, from approximately HK$34.3 million for the six months ended 30 September 2019 to approximately HK$26.5 million for the six months ended 30 September 2020[50]. Strategic Initiatives - The company plans to negotiate with landlords for rent reductions and adjust operating hours to control costs amid ongoing COVID-19 challenges[18]. - The company will explore business opportunities beyond Hong Kong, including in mainland China, due to uncertainties in the local market[19]. - The Group plans to continue considering new restaurant openings after conducting feasibility analyses, while being cautious due to the ongoing COVID-19 pandemic[30]. - The company aims to develop dining and banquet services in prime locations with comparable rent[18]. Financial Position and Capital Management - As of 30 September 2020, the Group's cash and cash equivalents were approximately HK$103.2 million, down from HK$139.0 million as of 31 March 2020[59]. - The Group's total borrowings amounted to approximately HK$36.2 million as at 30 September 2020, down from HK$44.8 million as of 31 March 2020[62]. - The Group's gearing ratio increased to approximately 44.7% as at 30 September 2020, compared to 32.4% as at 31 March 2020[63]. - The net proceeds from the placing amounted to approximately HK$36.5 million, which will be used for general working capital and to improve the cash position of the group[81]. - Cash and cash equivalents at the end of the period were HK$103,152,000, down from HK$133,778,000 at the end of the same period in 2019[158]. - The Group's cash used in financing activities amounted to HK$44,350,000 for the six months ended 30 September 2020, compared to HK$67,136,000 in 2019[158]. Employee and Shareholder Information - As at 30 September 2020, the Group had approximately 371 employees, an increase from 279 employees as at 31 March 2020[71]. - The board does not recommend payment of an interim dividend for the six months ended September 30, 2020[92]. - The company maintained a sufficient public float of at least 25% of the issued shares for the six months ended September 30, 2020[83]. - As of September 30, 2020, Mr. Chan Shou Ming holds 662,500,000 shares, representing 66.25% of the company's total shareholding[114]. - Ms. Chen Xiao Ping owns 22,500,000 shares, accounting for 2.25% of the company's total shareholding[114]. - Ms. Qian Chunlin has an interest in 15,000,000 shares, which is 1.50% of the company's total shareholding[114]. Share Option Scheme - The share option scheme was adopted on January 25, 2019, to motivate eligible participants and reward past contributions[125]. - As of September 30, 2020, no share options have been granted under the Scheme, and there are no outstanding share options[139]. - The total number of shares available for issue under the Scheme is 100,000,000 shares, representing 8.70% of the Company's issued share capital[139]. - The maximum number of shares that can be granted under the Scheme is limited to 10% of the issued share capital as of the Listing Date, subject to shareholder approval[130]. - The maximum number of shares issuable under the share options to each eligible person within any 12-month period is limited to 1% of the shares of the Company in issue at any time[131]. Government Support and Subsidies - The company recognized a government subsidy of HK$22,919,000 under the Anti-Epidemic Fund, which was not present in the previous year[199]. - Other income increased significantly by approximately 578.7% from approximately HK$4.3 million to approximately HK$29.3 million, primarily due to one-off government grants of approximately HK$22.9 million received during the period[40].
维力生活科技(01703) - 2021 - 中期财报