Financial Performance - The group recorded unaudited revenue of approximately HKD 13,500,000 for the six months ended September 30, 2020, a decrease of about 48.7% compared to HKD 26,300,000 for the same period in 2019[3]. - For the three months ended September 30, 2020, the group reported unaudited revenue of approximately HKD 5,200,000, down 53.6% from HKD 11,200,000 in the same period of 2019[3]. - The group achieved an unaudited profit attributable to owners of the company of approximately HKD 21,400,000 for the six months ended September 30, 2020, compared to a loss of HKD 20,500,000 in 2019[3]. - The unaudited profit attributable to owners for the three months ended September 30, 2020, was approximately HKD 18,600,000, compared to a loss of about HKD 7,500,000 in the same period of 2019[3]. - Total comprehensive income for the six months ended September 30, 2020, was HKD 21,304,000, compared to a total comprehensive loss of HKD 20,486,000 in 2019[5]. - The group reported a net loss for the six months ended September 30, 2020, of HKD 20,486,000, compared to a loss of HKD 6,027,000 for the same period in 2019, indicating a significant increase in losses[12]. - The company reported a profit of HKD 643,000 from restaurant operations for the six months ended September 30, 2020, compared to a loss of HKD 16,122,000 in the same period of 2019[33]. - The group reported a pre-tax profit of HKD 21,416,000 for the six months ended September 30, 2020, compared to a pre-tax loss of HKD 20,486,000 for the same period in 2019[25]. Revenue and Operations - Revenue from restaurant operations for the six months ended September 30, 2020, was HKD 13,546,000, a decrease of 48.6% compared to HKD 26,307,000 for the same period in 2019[23]. - The group's total revenue for the six months ended September 30, 2020, was HKD 22,846,000, down from HKD 60,935,000 in the same period of 2019, representing a decline of 62.5%[25]. - The operating segment "銅鑼灣三希樓" generated revenue of HKD 13,546,000 for the six months ended September 30, 2020, while the "心齋台北" segment reported revenue of HKD 1,678,000[25]. - Membership fee income for the six months ended September 30, 2020, was HKD 38,000, consistent with the previous year[23]. - The group reported a total of HKD 2,226,000 in other income for the six months ended September 30, 2020[25]. Financial Position - The group reported a net current liability of HKD 22,023,000 as of September 30, 2020, compared to HKD 50,862,000 as of March 31, 2020[6]. - The total assets less current liabilities amounted to HKD (19,663,000) as of September 30, 2020, compared to HKD (45,422,000) as of March 31, 2020[6]. - The group’s total liabilities as of September 30, 2020, were HKD 25,774,000, compared to HKD 64,086,000 as of March 31, 2020[8]. - As of September 30, 2020, the company reported a total equity of HKD 8,582,000, a decrease from HKD 11,923,000 as of March 31, 2019, reflecting a decline of approximately 28.5%[10]. - The total liabilities exceeded total assets by HKD 25,774,000 as of September 30, 2020, compared to HKD 64,086,000 as of March 31, 2020, indicating a reduction in financial distress[16]. - The group’s total liabilities and shareholders' deficit amounted to approximately HKD 31.7 million as of September 30, 2020, down from approximately HKD 73.1 million as of March 31, 2020[81]. Cash Flow and Financing - The company raised a total of HKD 17,008,000 from a share placement completed on September 4, 2020, aimed at repaying existing debts and supporting further operations[20]. - Cash and cash equivalents decreased by HKD 58,000, ending at HKD 1,129,000 as of September 30, 2020, compared to HKD 10,609,000 at the end of the previous year[12]. - The company reported a net cash outflow from operating activities of HKD 4,740,000 for the six months ended September 30, 2020, an improvement from HKD 6,027,000 in the prior year[12]. - The company’s financing activities generated a net cash inflow of HKD 5,059,000 for the six months ended September 30, 2020, compared to HKD 8,182,000 in the previous year[12]. - The company completed a share subscription on November 10, 2020, raising a net amount of HKD 14,500,000 for debt repayment and future operations[57]. - The company issued 160,000,000 new shares at a price of HKD 0.112 per share, raising approximately HKD 17,000,000 in net proceeds[44]. - The actual net proceeds from the share issuance amounted to approximately HKD 42.3 million, which is lower than the estimated figure in the prospectus[75]. Cost Management - The cost of materials and supplies used decreased to approximately HKD 4,100,000, down about 50.6% from approximately HKD 8,300,000 in the previous year[64]. - Employee costs decreased to approximately HKD 6,400,000, a reduction of about 37.9% from approximately HKD 10,300,000 for the same period in 2019[65]. - Rental and related expenses decreased to approximately HKD 1,400,000, down about 33.3% from approximately HKD 2,100,000 in the previous year[68]. - The company is actively controlling costs related to raw materials and rental expenses, which constitute a large portion of its operating costs[102]. Strategic Decisions - The company sold four restaurants in June and July 2020 to focus financial resources on developing existing restaurants and businesses[60]. - The company disposed of its wholly-owned subsidiary, which operated the "浪人" brand restaurant, for a total consideration of HKD 1 due to the impact of political activities and COVID-19[89]. - The company entered into agreements to sell its subsidiaries Dalaran Group Limited, Higher Top Limited, and Xunhai Limited for a total consideration of HKD 1 each due to the impact of political activities and COVID-19[91][92][92]. - The company sold four underperforming restaurants to focus financial resources on developing existing restaurants and adjusting operational costs[104]. Market Conditions and Risks - The COVID-19 pandemic significantly impacted the company's financial performance, leading to reduced customer traffic and overall consumption sentiment in the restaurant industry[63]. - The impact of COVID-19 on the company's operations and financial performance remains uncertain, with ongoing monitoring and assessment of market developments[103]. - The company faces significant risks from reliance on the Hong Kong market, where all revenue was generated, and potential economic downturns due to external events[99]. - The company’s management is negotiating with suppliers and landlords to find feasible measures to navigate the challenging environment[103]. Corporate Governance - The audit and risk management committee consists of three independent non-executive directors, ensuring compliance with applicable laws and regulations[123]. - The company has adopted a code of conduct for securities trading by directors, with no reported non-compliance during the reporting period[119]. - The company has complied with the corporate governance code, with the chairman also serving as the CEO, which the board believes is in the best interest of the group[121]. - The executive directors are Mr. Zhu Jiafei and Mr. Ying Qinnian, with independent non-executive directors including Mr. Wang Qingyun, Mr. Deng Zhaoming, and Mr. Ye Qizhi[127]. Shareholder Information - As of September 30, 2020, JSS Group holds 461,888,000 shares, representing approximately 48.11% of the company[114]. - The company issued 192,000,000 subscription shares at a price of HKD 0.077 per share, increasing the issued share capital by about 16.67%[125]. - The total amount raised from the subscription was approximately HKD 14,780,000, with a net amount of HKD 14,500,000 after expenses[125]. - The board of directors did not recommend an interim dividend for the six months ended September 30, 2020[95].
TOPSTANDARDCORP(08510) - 2020 - 中期财报