Financial Performance - The consolidated revenue for the six months ended September 30, 2021, was approximately HKD 83.7 million, a decrease of about 5.1% compared to approximately HKD 88.2 million for the same period last year[3]. - The loss attributable to the owners of the company for the six months ended September 30, 2021, was approximately HKD 8.4 million, compared to a profit of approximately HKD 5.2 million for the same period last year[3]. - The gross profit for the six months ended September 30, 2021, was HKD 47.2 million, down from HKD 54.1 million in the same period last year, reflecting a decrease of approximately 12.8%[5]. - The operating loss for the six months ended September 30, 2021, was HKD 5.8 million, compared to an operating profit of HKD 8.9 million for the same period last year[5]. - The total comprehensive loss for the six months ended September 30, 2021, was HKD 9.3 million, compared to a total comprehensive income of HKD 5.0 million for the same period last year[7]. - For the six months ended September 30, 2021, the company reported a loss before tax of approximately HKD 8,359,000, compared to a profit of HKD 5,240,000 for the same period in 2020[29]. - The total operating expenses decreased by approximately 4.5% to about HKD 55.4 million, aligning with the revenue decline due to strict cost control measures[65]. Assets and Liabilities - The company's total assets less current liabilities as of September 30, 2021, amounted to HKD (53.9) million, compared to HKD (72.6) million as of March 31, 2021[12]. - The net liabilities of the company as of September 30, 2021, were HKD (94.5) million, compared to HKD (84.6) million as of March 31, 2021[12]. - The company's basic loss per share for the six months ended September 30, 2021, was HKD (0.20), compared to earnings per share of HKD 0.13 for the same period last year[5]. - The cash and cash equivalents as of September 30, 2021, were HKD 18.3 million, down from HKD 19.1 million as of March 31, 2021[9]. - The company reported a decrease in inventory from HKD 5.7 million as of March 31, 2021, to HKD 5.1 million as of September 30, 2021[9]. - The company recorded a current liability of approximately HKD 104,991,000 in other loans, which is unsecured and bears an interest rate of 0.1% per month[38]. - The debt-to-asset ratio increased to 190% as of September 30, 2021, from 165% as of March 31, 2021[68]. Cash Flow and Financing - The net cash used in operating activities for the six months ended September 30, 2021, was HKD (8,472,000), compared to HKD 15,985,000 in the same period of 2020, indicating a significant decrease in cash flow[17]. - The cash flow from financing activities for the six months ended September 30, 2021, was HKD (8,274,000), compared to HKD (10,224,000) in the same period of 2020, indicating a reduction in financing outflows[17]. - The total cash and cash equivalents at the end of the period were HKD 54,135,000, down from HKD 86,341,000 a year earlier, reflecting a decrease of approximately 37.2%[17]. Business Operations - The restaurant business in Hong Kong added 2 new stores during the reporting period, bringing the total to 6 cafes and 25 cake shops as of September 30, 2021[55]. - The company faced challenges due to rising food costs in Q3 2021, impacting the restaurant business despite stable performance[55]. - The Japanese pork cutlet restaurant Ginza Bairin maintained satisfactory performance during the reporting period, supported by a loyal customer base[56]. - The company plans to increase the number of stores based on the findings that deploying resources in store operations yields better returns than in factory operations[55]. - The group aims to strengthen its restaurant business and enhance marketing efforts following the distribution of consumer vouchers by the government[62]. Shareholder and Corporate Governance - Major shareholder Hanbo Holdings Limited holds 57.01% of the company's shares, amounting to 2,375,096,529 shares[90]. - The company has adopted share option schemes to incentivize participants to contribute to its success[93]. - The audit committee has held two meetings to review and provide recommendations on the company's financial reports for the six months ending September 30, 2021[99]. - The company has adhered to the corporate governance code as outlined in the GEM Listing Rules during the reporting period[102]. Future Plans and Market Strategy - The group plans to implement online and offline marketing strategies for its skincare products, responding to the strong demand for beauty and health products[63]. - The group will explore partnerships with various e-commerce platforms to capitalize on the growing online shopping trend in China, with e-commerce sales expected to grow by 11.0% in 2022[63]. - The company is focusing on expanding its revenue base in the healthcare sector to enhance core competitiveness, reflecting the increasing importance of healthcare services and products[84]. - The company plans to invest HKD 15,000,000 in the e-cigarette business, including the establishment of offices and the purchase of new equipment[84].
荣晖控股(08213) - 2022 - 中期财报