Financial Performance - The group's revenue for the six months ended September 30, 2019, was approximately HKD 46.1 million, a decrease of about 12.7% compared to the same period in 2018[6]. - The group recorded a loss of approximately HKD 6.4 million for the six months ended September 30, 2019[6]. - The board did not recommend any dividend payment for the six months ended September 30, 2019, consistent with 2018[6]. - The basic loss per share for the six months ended September 30, 2019, was HKD 1.28, compared to HKD 0.78 for the same period in 2018[8]. - The group reported a total comprehensive loss of HKD 6.3 million for the six months ended September 30, 2019, compared to HKD 3.6 million for the same period in 2018[8]. - The company reported a net loss of HKD 6,398,000 for the six months ended September 30, 2019, compared to a loss of HKD 2,936,000 in the previous period[12]. - The group reported a pre-tax loss of HKD 6,398,000, compared to a loss of HKD 2,936,000 for the same period in 2018, representing a 118% increase in losses year-over-year[61]. - The company incurred financing costs of HKD 894,000 for the six months ended September 30, 2019, compared to HKD 88,000 in 2018, reflecting a significant increase of 908%[54]. Assets and Liabilities - Non-current assets increased to HKD 71.3 million as of September 30, 2019, compared to HKD 18.6 million as of March 31, 2019[10]. - Current assets decreased to HKD 65.0 million as of September 30, 2019, from HKD 92.4 million as of March 31, 2019[10]. - Current liabilities increased to HKD 30.7 million as of September 30, 2019, compared to HKD 19.6 million as of March 31, 2019[10]. - The net asset value decreased to HKD 84.8 million as of September 30, 2019, from HKD 91.2 million as of March 31, 2019[10]. - The company’s total equity as of September 30, 2019, was HKD 29,480,000, reflecting a decrease from HKD 27,046,000 at the beginning of the period[12]. - The company’s accumulated losses reached HKD 21,720,000 as of September 30, 2019[12]. - The group's total current assets and current liabilities were approximately HKD 65.0 million and HKD 30.7 million, respectively, resulting in a current ratio of approximately 2.1 times, down from 4.7 times on March 31, 2019[107]. - The group's debt-to-equity ratio was approximately 47.2% as of September 30, 2019, significantly up from 3.7% on March 31, 2019, primarily due to an increase in lease liabilities[107]. Revenue Breakdown - Total revenue for the six months ended September 30, 2019, was HKD 46,063,000, a decrease of 12.8% compared to HKD 52,773,000 in the same period of 2018[47]. - Revenue from Hong Kong operations for the six months was HKD 36,935,000, down 7.5% from HKD 39,929,000 in 2018[47]. - Revenue from China operations for the six months was HKD 6,379,000, a decline of 35.5% from HKD 9,952,000 in the previous year[47]. - Revenue from external customers for the six months ended September 30, 2019, was HKD 46.1 million, with HKD 36.9 million from Hong Kong, HKD 6.4 million from China, and HKD 2.7 million from Macau[84]. Expenses and Costs - The group’s employee costs increased to HKD 17.8 million for the six months ended September 30, 2019, from HKD 15.2 million in 2018[8]. - Total employee costs for the six months ended September 30, 2019, amounted to HKD 17,760,000, up from HKD 15,243,000 in 2018, indicating a 16.5% increase[55]. - Other expenses rose by approximately 39.7% from HKD 7.0 million to HKD 9.7 million for the six months ended September 30, 2019, mainly due to increased utility and consumable costs from new restaurant openings[92]. - The company recognized a depreciation expense of HKD 3,772,000 for property and equipment for the six months ended September 30, 2019, compared to HKD 2,635,000 in 2018, which is a 43% increase[55]. - Rental and related expenses decreased significantly by approximately HKD 7.4 million or 76.6% due to the adoption of HKFRS 16, with depreciation of right-of-use assets recorded at approximately HKD 7.1 million for the six months ended September 30, 2019[89]. Cash Flow - Cash used in operating activities was HKD 5,234,000 for the six months ended September 30, 2019, compared to HKD 971,000 in the same period last year[14]. - Cash used in investing activities increased significantly to HKD 12,633,000 from HKD 3,143,000 year-on-year[14]. - The company experienced a net cash outflow from financing activities of HKD 9,455,000, contrasting with a net inflow of HKD 2,631,000 in the prior year[14]. - As of September 30, 2019, the company's cash and cash equivalents decreased to HKD 57,213,000 from HKD 84,535,000 at the beginning of the period[14]. - As of September 30, 2019, the group's bank balance and cash amounted to approximately HKD 57.2 million, a decrease of about HKD 27.3 million from HKD 84.5 million on March 31, 2019[106]. Business Operations and Strategy - The company is focused on expanding its operations in the Japanese ramen restaurant sector in Hong Kong and China[16]. - The group plans to open new restaurants in strategic locations in Hong Kong and introduce new Japanese ramen brands to capture the growing demand for food delivery services in China[103]. - The group has initiated collaboration with third-party online delivery platforms in China since late September 2019 to enhance market penetration and meet the rising demand for takeout in the restaurant industry[103]. - The company plans to continue evaluating market conditions and social events to prudently select locations and timing for new restaurant openings[98]. - The company is enhancing brand awareness through promotional activities and is researching suitable social media platforms and marketing systems[98]. - The group opened a new restaurant in Tseung Kwan O in September 2019 and a new franchise store in Sha Tin in October 2019 to diversify its brand portfolio[102]. Accounting Standards and Compliance - The company adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2019, with no significant impact on the financial statements[19]. - The company has adopted Hong Kong Financial Reporting Standard 16 (HKFRS 16) for the first time, which introduces a comprehensive model for lease identification and accounting treatment, replacing HKAS 17[20]. - The company recognizes right-of-use assets at the lease commencement date, measured at cost less any accumulated depreciation and impairment losses[27]. - The company will apply HKAS 12 "Income Taxes" to determine deferred tax arising from lease transactions related to right-of-use assets and lease liabilities[39]. - The audit committee has been established in accordance with GEM Listing Rule 5.28, ensuring compliance with applicable accounting standards and regulations[135]. - The financial performance for the six months ending September 30, 2019, has been reviewed by the audit committee, although it remains unaudited[135]. Shareholder Information - As of September 30, 2019, Mr. Tang Zhenhao and Mr. Tang Qingzhi each hold 341,250,000 shares, representing 68.25% of the company's issued share capital[121]. - Brilliant Trade, owned by Mr. Tang Zhenhao and Mr. Tang Qingzhi, is considered to have a beneficial ownership of 341,250,000 shares, equating to 68.25%[124]. - The company did not purchase, sell, or redeem any shares during the six months ended September 30, 2019[126]. - The company has adopted a share option scheme to incentivize selected participants for their contributions[129]. - The company confirmed that there were no competitive businesses or conflicts of interest involving directors or major shareholders during the reporting period[127]. - The company maintains a commitment to high-quality governance practices to enhance shareholder value[134].
赏之味(08096) - 2020 - 中期财报