Corporate Information Financial Highlights The company's revenue grew significantly, and adjusted profit more than doubled, driven by strong core business performance despite a reported profit decline Key Financial Metrics | Metric | H1 FY2022 (as of 2021/9/30) | H1 FY2021 (as of 2020/9/30) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue (HK$ million) | 1,181 | 826 | +43.0% | | Profit for the Period (HK$ million) | 138 | 156 | -11.8% | | Adjusted Profit for the Period(1) (HK$ million) | 147 | 71 | +107.8% | | Profit Margin | 11.7% | 18.9% | -7.2pp | | Adjusted Profit Margin | 12.4% | 8.6% | +3.8pp | - Adjusted profit for the period excludes the impact of one-time COVID-19 related government subsidies and listing expenses; government subsidies were HK$1.97 million in H1 FY2022, compared to HK$89.63 million in the prior-year period[8][13] Financial Position Summary | Metric (HK$ million) | As of Sep 30, 2021 | As of Mar 31, 2021 | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 864 | 852 | +1.5% | | Current Assets | 424 | 553 | -23.3% | | Current Liabilities | 547 | 526 | +3.9% | | Capital and Reserves | 409 | 545 | -25.1% | Management Discussion and Analysis Strong revenue growth was driven by network expansion and improved operational efficiency, with successful market recovery in Hong Kong and strategic expansion overseas Business Review Revenue and adjusted profit surged due to an expanded restaurant network and strong comparable sales, supported by operational efficiencies and market expansion - As of September 30, 2021, the Group operated a total of 157 restaurants across Hong Kong, Mainland China, and Singapore[20] - Sales from comparable restaurants in Hong Kong have largely recovered to pre-COVID-19 levels, driven by a stable local pandemic situation, the consumption voucher scheme, and strong takeaway business[25] - The Group successfully controlled costs and improved profit margins by integrating the central kitchens of the Tamjai and Samgor brands and implementing a "smart rostering" system for staff, without any pandemic-related layoffs[31][32] - The Group actively expanded into new markets, opening 4 new restaurants in Shenzhen that met management's expectations for revenue and profitability; the Singapore and Japan markets remain in the initial investment phase[38][39] Prospects The Group will focus on product innovation, supply chain optimization, and technology investment while pursuing further expansion in Hong Kong and international markets - The Group will continue to leverage its diverse menu by introducing new products and premium toppings, and will implement a new supply chain management system to optimize costs and inventory[56] - Investments are planned in new technologies such as a Customer Relationship Management (CRM) system and a voice ordering system to enhance efficiency for dine-in, takeaway, and delivery orders[56] - Expansion plans include opening 14 new restaurants in Hong Kong between October 2021 and March 2022, with further expansion in the Greater Bay Area and Singapore; two new restaurants are expected to open in Japan in Q1 2022[62] Performance of Restaurant Operations Restaurant-level operating profit and margin increased significantly, driven by revenue growth, cost efficiencies, and positive performance across key metrics Restaurant-level Operating Performance | Metric | H1 FY2022 | H1 FY2021 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Profit (HK$ million) | 303 | 154 | +96.7% | | Operating Profit Margin | 25.7% | 18.7% | +7.0pp | Restaurant Count by Region | Region | No. of Restaurants as of Sep 30, 2021 | No. of Restaurants as of Sep 30, 2020 | | :--- | :--- | :--- | | Hong Kong | 150 | 131 | | Mainland China | 4 | 0 | | Singapore | 3 | 0 | | Total | 157 | 131 | - Revenue from comparable restaurants in the Hong Kong market increased by 20.0% YoY, from HK$771 million to HK$925 million[84] Key Performance Indicators (H1 FY2022) | KPI | Hong Kong | Mainland China | Singapore | Overall | | :--- | :--- | :--- | :--- | :--- | | Average Spending per Customer (HK$) | 59.5 | 61.8 | 85.0 | 59.6 | | Daily Bowl Sales per Seat | 6.8 | 6.4 | 2.4 | 6.7 | | Daily Revenue per Restaurant (HK$) | 43,546 | 30,643 | 19,494 | 42,889 | Financial Review Revenue grew 43.0% with improved cost ratios, though cash decreased due to a significant dividend payment during the period - Total revenue increased by 43.0% YoY, primarily due to an increase in the number of restaurants and growth in comparable restaurant revenue[92] - Other income decreased significantly to HK$2.5 million from HK$98.4 million in the prior-year period, mainly due to a substantial reduction in COVID-19 related government subsidies[93] - Overall staff costs rose by 38.7% YoY to HK$359 million, but the staff cost-to-revenue ratio improved from 31.3% to 30.3%, indicating enhanced labor efficiency[98][99] - Advertising and promotion expenses surged by 206.0% YoY to HK$18.3 million, mainly for brand promotion in Hong Kong and Singapore and market launch activities in Shenzhen[112] - The adjusted effective tax rate slightly increased from 17.3% to 18.7%; excluding listing expenses and government subsidies, adjusted profit grew by 107.8% YoY[130] - As of September 30, 2021, cash and cash equivalents stood at HK$321 million, a decrease of HK$140 million from the beginning of the period, mainly due to net cash from operations of HK$349 million being offset by net cash used in financing activities of HK$448 million (including a HK$280 million dividend payment)[144] Unaudited Consolidated Financial Statements This section presents the unaudited statements of profit or loss, financial position, changes in equity, and cash flows for the six-month period Unaudited Consolidated Statement of Profit or Loss The company generated revenue of HK$1.181 billion and profit for the period of HK$138 million, resulting in basic earnings per share of 13.8 HK cents | Item | Amount (HK$'000) | | :--- | :--- | | Revenue | 1,181,494 | | Profit before tax | 169,216 | | Income tax expense | (31,345) | | Profit for the period | 137,871 | | Basic earnings per share | 13.8 HK cents | Unaudited Consolidated Statement of Financial Position The company reported total assets of HK$1.29 billion and net assets of HK$409 million, with net current liabilities of HK$122 million | Item | Amount (HK$'000) | | :--- | :--- | | Non-current Assets | 864,165 | | Current Assets | 424,350 | | Total Assets | 1,288,515 | | Current Liabilities | 546,624 | | Non-current Liabilities | 333,246 | | Total Liabilities | 879,870 | | Net Assets | 408,645 | - The company recorded net current liabilities of HK$122 million at the period end, primarily attributable to HK$308 million in lease liabilities included in current liabilities and a reduction in cash due to a HK$280 million dividend payment[212] Unaudited Consolidated Statement of Changes in Equity Total equity decreased from HK$545 million to HK$409 million, primarily due to a HK$280 million dividend payment offset by period profits - Total equity at the beginning of the period was HK$545 million[189] - A dividend payment of HK$280 million was made during the period, with equity-settled share-based payment expenses of HK$5.02 million[192] - Total equity at the end of the period was HK$409 million[193] Unaudited Condensed Consolidated Cash Flow Statement The period saw strong net cash from operations, but a net cash decrease of HK$140 million resulted from significant financing outflows | Item | Amount (HK$'000) | | :--- | :--- | | Net cash generated from operating activities | 349,298 | | Net cash used in investing activities | (41,026) | | Net cash used in financing activities | (448,381) | | Net (decrease) in cash and cash equivalents | (140,109) | | Cash and cash equivalents at beginning of period | 460,851 | | Cash and cash equivalents at end of period | 320,742 | Notes to the Unaudited Interim Financial Report These notes provide detailed explanations of key financial items, including accounting policies, segment reporting, and significant post-period events like the IPO Note 15 CAPITAL, RESERVES AND DIVIDENDS No interim dividend was proposed for the period, though a prior-year dividend was paid, and share-based compensation plans were actively utilized - The Board of Directors does not recommend the payment of an interim dividend for the six months ended September 30, 2021[276] - An interim dividend of HK$0.28 per share, totaling HK$280 million, attributable to the previous financial year was paid during the period[277] - On August 9, 2021, 3,000,000 share awards were granted to selected employees for no consideration under the Pre-IPO Share Award Scheme[283] - Share options were granted to eligible participants under the Pre-IPO Share Option Scheme with an exercise price of HK$0.85[291] Note 19 NON-ADJUSTING EVENT AFTER THE REPORTING PERIOD The company successfully completed its IPO on the Hong Kong Stock Exchange on October 7, 2021, raising approximately HK$1.116 billion in gross proceeds - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on October 7, 2021[311] - The global offering comprised 335,008,000 ordinary shares at an offer price of HK$3.33 per share, raising gross proceeds of approximately HK$1.116 billion[311] Corporate Governance and Other Information The company complied with the Corporate Governance Code post-listing, with details on share plans and the allocation of its HK$1.051 billion IPO proceeds Corporate Governance Information The company has complied with the Corporate Governance Code since its listing, with the exception of the chairman and CEO roles being combined - The Corporate Governance Code has been applicable to the company since its listing date of October 7, 2021[315] - One deviation exists: the roles of Chairman and Chief Executive Officer are both held by Mr. Lau Tat Man, which the Board believes is beneficial for effective management and operations[316] Share Option Schemes The company operates pre-IPO and post-IPO share option schemes, with options granted and outstanding under the pre-IPO plan - Under the Pre-IPO Share Option Scheme, a total of 2,848,400 share options were granted to 37 eligible participants on March 25, 2021, with an exercise price of HK$0.85 per share[323][324] - The Post-IPO Share Option Scheme was adopted on March 25, 2021, with a 10-year validity; no options have been granted under this scheme as of the reporting date[369][372] Share Award Scheme A share award scheme was adopted to incentivize employees, with awards vesting in three tranches linked to the company's listing anniversary - The Share Award Scheme was adopted on March 25, 2021, and is valid for 10 years[376] - Awarded shares vest in three tranches: 30% on the listing date (October 7, 2021), 30% on the first anniversary of listing, and 40% on the second anniversary of listing[378] Use of Proceeds from Initial Public Offering Net IPO proceeds of HK$1.051 billion are primarily allocated for network expansion, with HK$17.9 million utilized as of the reporting date | Intended Use | Net Proceeds Allocated (HK$ million) | Net Proceeds Utilized (HK$ million) | Unutilized Net Proceeds (HK$ million) | | :--- | :--- | :--- | :--- | | Expansion of restaurant network | 603.3 | 14.8 | 588.5 | | Expansion and establishment of central kitchens | 98.8 | 0 | 98.8 | | Renovation of restaurants and upgrading of equipment | 110.4 | 3.1 | 107.3 | | Upgrading systems and technology infrastructure | 53.6 | 0 | 53.6 | | International brand building | 82.0 | 0 | 82.0 | | General corporate purposes and working capital | 102.9 | 0 | 102.9 | | Total | 1,051.0 | 17.9 | 1,033.1 |
谭仔国际(02217) - 2022 - 中期财报