Financial Performance - The Group recorded revenue of approximately HK$30.0 million for the six months ended 30 September 2019, a decrease of 39% compared to approximately HK$49.3 million for the same period in 2018[36]. - The Group's gross profit for the six months ended 30 September 2019 was approximately HK$16.9 million, down from approximately HK$30.0 million in the previous year, representing a decline of 43%[36]. - Loss attributable to owners of the Company for the six months ended 30 September 2019 was approximately HK$8.4 million, compared to a loss of approximately HK$6.7 million for the same period in 2018, indicating an increase in loss of about 25%[37]. - Basic and diluted loss per share was approximately 0.70 HK cents for the six months ended 30 September 2019, compared to approximately 0.56 HK cents for the same period in 2018, reflecting a 25% increase in loss per share[37]. - Revenue for the three months ended September 30, 2019, was HK$12,737,000, a decrease of 44.6% compared to HK$23,019,000 for the same period in 2018[42]. - Loss before tax for the six months ended September 30, 2019, was HK$8,374,000, compared to a loss of HK$2,929,000 for the same period in 2018, indicating a significant increase in losses[42]. - Revenue from restaurant operations for the six months ended 30 September 2019 is HK$30,010,000, compared to HK$49,302,000 for the same period in 2018[139]. - Loss before tax for the three months ended 30 September 2019 is HK$5,524,000, compared to HK$8,600,000 for the same period in 2018[142]. Cash Flow and Assets - Cash and cash equivalents at the end of the reporting period were HK$36,354,000, a decrease from HK$45,466,000 at the beginning of the period, representing a decline of 20%[50]. - The company reported a net cash used in operating activities of HK$797,000 for the six months ended September 30, 2019, compared to HK$6,872,000 for the same period in 2018, showing an improvement in cash flow[50]. - Total assets less current liabilities as of September 30, 2019, amounted to HK$65,595,000, an increase from HK$60,447,000 as of March 31, 2019[43]. - Net current assets as of September 30, 2019, were HK$34,271,000, down from HK$46,279,000 as of March 31, 2019, reflecting a decrease of 26%[43]. - Trade receivables as at 30 September 2019 were HK$137,000, down from HK$506,000 as at 31 March 2019, indicating improved collection[165]. - Trade payables as at 30 September 2019 were HK$1,524,000, compared to HK$1,991,000 as at 31 March 2019, reflecting a decrease in outstanding obligations[170]. Equity and Dividends - Total equity as of September 30, 2019, was HK$52,073,000, down from HK$60,447,000 as of March 31, 2019, indicating a decrease of 13.8%[44]. - The Board does not recommend the payment of an interim dividend for the six months ended 30 September 2019[37]. - No dividend was recommended for the six months ended 30 September 2019, consistent with the previous year where no dividend was paid[154]. Cost Management - Staff costs for the six months ended September 30, 2019, were HK$9,591,000, compared to HK$14,767,000 for the same period in 2018, reflecting a reduction of 35.1%[42]. - Cost of inventories sold decreased by approximately HK$6.2 million to HK$13.1 million, with the cost as a percentage of revenue increasing by approximately 4.5% to 43.6%[189]. - Gross profit for the six months ended September 30, 2019, decreased by approximately HK$13.1 million to HK$16.9 million, with the gross profit margin decreasing by approximately 4.5% to 56.4%[193]. - Property rentals and related expenses decreased by approximately HK$11.9 million to HK$1.0 million, attributed to restaurant closures and the adoption of HKFRS 16[197]. - Employee benefit expenses for the six months ended 30 September 2019 total HK$9,591,000, down from HK$14,767,000 in 2018[142]. Accounting Policies and Standards - The unaudited condensed consolidated financial statements for the six months ended 30 September 2019 have been prepared in accordance with HKAS 34 Interim Financial Reporting[57]. - The Group has applied HKFRS 16 for the first time, which supersedes HKAS 17 Leases[68]. - The accounting policies used in the preparation of the financial statements are consistent with those adopted in the annual financial statements for the year ended 31 March 2019[58]. - The financial performance and position for the current or prior periods have not been materially affected by the application of new and revised HKFRSs, except for HKFRS 16[61]. - The Group has not applied new and revised standards that have been issued but are not yet effective[62]. Lease Accounting - The Group recognized lease liabilities of HK$24,034,000 and right-of-use assets of HK$24,034,000 as of April 1, 2019[99]. - Right-of-use assets are recognized at the commencement date of the lease and measured at cost, less accumulated depreciation and impairment losses[82]. - Lease liabilities are recognized at the present value of unpaid lease payments at the commencement date, using the incremental borrowing rate if the implicit interest rate is not determinable[87]. - The Group applies the short-term lease recognition exemption for leases of machinery and equipment with a term of 12 months or less, which do not contain a purchase option[81]. - The Group's adjustments upon application of HKFRS 16 included recognizing lease liabilities and right-of-use assets at the same amount[99]. Business Operations - The Group's principal activity is the provision of catering services in Hong Kong[56]. - The Group closed two underperforming restaurants in May 2019 to consolidate operations and focus on new brands[186]. - The introduction of the "3H Island Fusion Pot" brand aims to attract a wider customer base with a modern dining experience[187]. - The Group's financial performance was impacted by severe market competition and rising costs of raw materials, labor, and rental[185].
国茂控股(08428) - 2020 - 中期财报