Financial Performance - The Group's revenue for the six months ended June 30, 2021, amounted to approximately HK$134.1 million, representing an increase of approximately 46.6% compared to the corresponding period in 2020[11]. - Loss attributable to owners of the Company was approximately HK$25.4 million, an increase in loss of approximately HK$1.8 million compared to a loss of approximately HK$23.6 million for the same period in 2020[12]. - Basic loss per share was approximately HK2.54 cents, compared to HK2.36 cents for the same period in 2020[15]. - The Group's operating loss for the period was approximately HK$20.2 million, compared to HK$16.4 million for the same period in 2020[15]. - Total comprehensive expense for the period attributable to owners of the Company was approximately HK$24.6 million, compared to HK$24.9 million for the same period in 2020[15]. - Other income for the period was approximately HK$6.4 million, compared to HK$6.8 million for the same period in 2020[15]. - The Group's loss before income tax was approximately HK$26.3 million, compared to HK$23.6 million for the same period in 2020[15]. - Total revenue and other income for the six months ended June 30, 2021, was HK$140,475,000, an increase from HK$98,276,000 in 2020, representing a growth of approximately 42.8%[61]. - The Group's gross profit for the six months ended June 30, 2021, amounted to approximately HK$76.9 million, an increase of approximately 34.2% from approximately HK$57.3 million in 2020[147]. - The overall gross profit margin decreased from approximately 62.7% in 2020 to approximately 57.4% in 2021, attributed to increased concessions to attract customers and general food cost inflation[147]. Revenue Breakdown - For the six months ended June 30, 2021, revenue from external customers was HK$134,118,000, a significant increase from HK$91,477,000 in the same period of 2020, representing a growth of approximately 46.5%[56]. - Revenue from external customers in Hong Kong decreased to HK$27,114,000 in 2021 from HK$43,198,000 in 2020, reflecting a decline of about 37.2%[56]. - Revenue from external customers in Mainland China surged to HK$107,004,000 in 2021, up from HK$48,279,000 in 2020, indicating an increase of approximately 121.5%[56]. - The revenue from the seven Chinese restaurants in Hong Kong and Shenzhen was approximately HK$112.7 million, up from approximately HK$84.0 million in 2020, while the Thai (Mongkok) Restaurant's revenue decreased to approximately HK$4.1 million from approximately HK$5.1 million[143][144]. - Revenue from cooperation with Freshippo increased significantly to approximately HK$15.0 million from approximately HK$2.4 million in the previous year[143][144]. Expenses and Costs - Employee benefits expense for the period was approximately HK$40.4 million, an increase from HK$27.8 million in the same period in 2020[15]. - Other expenses amounted to approximately HK$33.2 million, an increase of approximately HK$10.8 million or 48.4% compared to approximately HK$22.4 million in 2020[152]. - The cost of materials consumed was approximately HK$57.2 million, compared to HK$34.1 million for the same period in 2020[15]. - Interest expense on bank borrowings and lease liabilities totaled HK$6,026,000 for the six months ended June 30, 2021, down from HK$6,803,000 in 2020, a decrease of approximately 11.4%[71]. Assets and Liabilities - Total assets decreased from HK$330,700,000 as of December 31, 2020, to HK$287,006,000 as of June 30, 2021, representing a decline of approximately 13.2%[17]. - Total liabilities decreased from HK$270,646,000 as of December 31, 2020, to HK$253,087,000 as of June 30, 2021, indicating a reduction of approximately 6.5%[18]. - Cash and cash equivalents at the end of the period were HK$19,322,000, down from HK$36,744,000 at the end of June 30, 2020, showing a decrease of about 47.4%[21]. - The company reported a net decrease in cash and cash equivalents of HK$9,753,000 for the six months ended June 30, 2021, compared to a decrease of HK$33,958,000 in the same period of 2020, indicating an improvement in cash flow management[21]. - Equity attributable to owners of the company decreased from HK$60,054,000 as of December 31, 2020, to HK$33,919,000 as of June 30, 2021, a decline of approximately 43.5%[17]. - The Group reported a net current liabilities of HK$59,327,000 as of June 30, 2021, compared to HK$49,420,000 as of December 31, 2020, indicating a worsening of liquidity position[18]. Operational Insights - The Group operates a single operating segment focused on restaurant operations, with no external customer contributing more than 10% of total revenue[54]. - The Group's financial performance is assessed based on profit after income tax, with all business activities consolidated into one operating segment[52]. - The Group's resources are integrated, and no discrete operating segment financial information is available for separate reporting[53]. - The Group ceased operations of a Cantonese dim sum tea house in Luohu District in June 2021 to avoid further losses and reallocate working capital[135][136]. - As of June 30, 2021, the Group operated four full-service restaurants in Hong Kong and three in Shenzhen, along with eighteen food counters in Shanghai[135][139]. Future Outlook and Strategies - The Group anticipates facing various challenges in the foreseeable future due to uncertainties in the Hong Kong and Mainland China economies[174]. - The Group's future success relies on its ability to adapt to changing market trends and customer preferences, which may require significant costs for research and development[175]. - The Group has established a strategic cooperation with Freshippo to accelerate the development of the light meal takeaway market in Mainland China[180]. - The Group plans to introduce new products with pure Hong Kong flavors and develop new dishes to enhance competitiveness[183]. - The Group will continue to seek rent remission and streamline operating costs in Hong Kong to enhance efficiency[184]. Shareholding Structure - As of June 30, 2021, Mr. Chan Chun Kit holds a significant interest of 37.65% in the company through a controlled corporation[195]. - The Company has disclosed its substantial shareholders' interests as of June 30, 2021, in accordance with regulatory requirements[198]. - Bright Creator holds approximately 37.65% of the entire issued share capital of the Company, equating to 376,531,400 shares[199]. - Mr. Chan, together with Ms. Liu Siu Kuen, controls approximately 39.52% of the entire issued share capital of the Company[196].
利宝阁集团(01869) - 2021 - 中期财报