Financial Performance - For the six months ended June 30, 2020, the Group reported revenue of HKD 106,042,000, a decrease of 50.8% compared to HKD 215,672,000 for the same period in 2019[11] - The gross profit for the six months ended June 30, 2020, was HKD 74,741,000, down 49.6% from HKD 147,931,000 in the previous year[11] - The Group recorded a loss attributable to owners of the company of HKD 11,913,000 for the six months ended June 30, 2020, compared to a loss of HKD 9,500,000 for the same period in 2019, representing a 25.5% increase in loss[11] - Basic and diluted loss per share for the six months ended June 30, 2020, was HKD 0.83, compared to HKD 0.66 for the same period in 2019[11] - The Group's total comprehensive loss for the six months ended June 30, 2020, was HKD 11,766,000, compared to HKD 9,760,000 for the same period in 2019, indicating a 20.5% increase in total comprehensive loss[13] - The Group's net loss before tax for the three months ended June 30, 2020, was HKD 2,781,000, compared to a loss of HKD 9,858,000 in the same period of 2019, showing a 71.8% improvement[11] Revenue Breakdown - Revenue from restaurant operations for the six months ended June 30, 2020, was HKD 106,042, a decrease of 50.9% from HKD 215,672 in 2019[36] - Revenue from the Hong Kong and Macau market for the six months ended June 30, 2020, was HKD 94,822, down 51.6% from HKD 195,920 in 2019[36] - Revenue from Long Wang decreased by approximately HKD 54.5 million or 44.1% to about HKD 69.2 million for the six months ended June 30, 2020, compared to HKD 123.7 million for the same period in 2019[65] - Long Xi's revenue fell by approximately HKD 20.3 million or 61.5% to about HKD 12.7 million, primarily due to pandemic-related measures[67] - Long Pao's revenue decreased by approximately HKD 5.4 million or 35.1% to about HKD 10.0 million, attributed to the pandemic and related restrictions[68] - Revenue from Huang Xi dropped by approximately HKD 8.6 million or 43.4% to about HKD 11.2 million, mainly due to temporary closure during the pandemic[69] - Long Yan's revenue plummeted by approximately HKD 21.0 million or 87.9% to about HKD 2.9 million, following the sale of a branch in mid-January 2020[70] Expenses and Cost Management - The Group's operating expenses included employee costs of HKD 20,443,000 for the three months ended June 30, 2020, compared to HKD 34,665,000 in the same period of 2019, reflecting a decrease of 41%[11] - The Group's financing costs for the six months ended June 30, 2020, were HKD 8,124,000, down from HKD 18,267,000 in the same period of 2019, a reduction of 55.5%[11] - Employee costs decreased by approximately HKD 30.0 million or 40.2% to about HKD 44.6 million, due to unpaid leave measures[73] - Management has implemented a seven-day unpaid leave for all directors, senior management, and employees starting from February 2020 to save costs[26] Assets and Liabilities - As of June 30, 2020, total non-current assets decreased to HKD 130,118 thousand from HKD 174,437 thousand, representing a decline of approximately 25.4%[15] - Current assets totaled HKD 79,333 thousand, a slight decrease from HKD 82,475 thousand, reflecting a reduction of about 3.1%[15] - Total liabilities decreased from HKD 238,715 thousand as of December 31, 2019, to HKD 203,020 thousand, indicating a reduction of approximately 15.0%[17] - The net asset value dropped significantly to HKD 6,431 thousand from HKD 18,197 thousand, a decline of about 64.7%[17] - Cash and cash equivalents at the end of the period were HKD 10,086 thousand, down from HKD 14,227 thousand, a decrease of approximately 29.0%[15] - The total current liabilities amounted to HKD 157,775 thousand, slightly down from HKD 159,495 thousand, a decrease of about 1.1%[15] Financing and Cash Flow - The company reported a net cash outflow from financing activities of HKD 17,236 thousand for the six months ended June 30, 2020, compared to an inflow of HKD 4,065 thousand in the same period of 2019[20] - The group’s total liabilities include approximately HKD 43,670,000 in bank borrowings, with HKD 21,073,000 due within the next twelve months[26] - The company has repaid four outstanding bank loans totaling HKD 3.0 million ahead of schedule[81] Corporate Governance and Compliance - The company has confirmed compliance with the GEM Listing Rules regarding securities trading by directors, with no non-compliance incidents reported during the period[127] - The board believes that good corporate governance is essential for managing the company's business and has complied with the corporate governance code during the reporting period[135] - The audit committee was established on December 15, 2017, and is chaired by independent non-executive director Mr. Kwan Ping Man[136] - The audit committee confirmed that the financial statements comply with applicable accounting standards and GEM listing rules, ensuring adequate disclosure[138] Future Plans and Strategies - The group plans to delay the opening of new branches and close underperforming ones as part of cost control measures[26] - The company plans to enhance promotional efforts and introduce new seasonal dishes to maintain competitiveness amid economic challenges[78] - The company plans to delay the opening of new restaurants until the overall economic and political environment is deemed suitable, expected by the end of 2021[100] Shareholder Information - Major shareholders include Wanli Development Limited and Good Vision Limited, each holding approximately 40.20% and 16.50% of the shares, respectively[118] - The company’s major shareholders include individuals and entities with significant voting rights, such as Mr. Chen and Ms. Qu, who control over 33.70% of the voting rights in Tang Palace (China) Holdings Limited[120]
龙皇集团(08493) - 2020 - 中期财报