Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 43,161,000, a decrease of 20.5% compared to HKD 54,325,000 for the same period in 2023[7]. - Gross profit for the same period was HKD 31,075,000, down 21.6% from HKD 39,667,000 in the previous year[7]. - The company recorded a loss before tax of HKD 1,433,000, compared to a profit of HKD 4,646,000 in the prior year, indicating a significant decline in performance[7]. - Basic and diluted loss per share was HKD (0.62), a decrease from earnings of HKD 2.69 per share in the same period last year[7]. - The company incurred total employee costs of HKD 18,521,000, slightly down from HKD 19,706,000 in the previous year[7]. - Other income and net gains were HKD 26,000, significantly lower than HKD 182,000 in the previous year, indicating reduced ancillary revenue streams[7]. - The company reported a total comprehensive income of HKD 4,646,000 for the six months ended June 30, 2024, compared to a loss of HKD 1,433,000 in the previous period[11]. - The company's loss attributable to owners was approximately HKD 1.4 million, a decrease from a profit of approximately HKD 4.6 million in the previous period, primarily due to the closure of two restaurants[52]. Assets and Liabilities - As of June 30, 2024, the total non-current assets amounted to HKD 29,447,000, a decrease from HKD 30,031,000 as of December 31, 2023, reflecting a decline of approximately 1.9%[8]. - Current assets increased to HKD 18,436,000 from HKD 14,754,000, representing a growth of about 25.5%[8]. - The total current liabilities slightly decreased to HKD 143,035,000 from HKD 144,687,000, a reduction of approximately 1.1%[9]. - The total equity deficit as of June 30, 2024, was HKD 95,197,000, an improvement from HKD 102,379,000 as of December 31, 2023, showing a reduction of approximately 7%[9]. - As of June 30, 2024, the group's current liabilities exceeded current assets by approximately HKD 124,599,000, with net liabilities of about HKD 95,197,000[16]. - The total amount of interest-bearing bank and other borrowings was approximately HKD 60,721,000, while cash and cash equivalents were only about HKD 8,094,000[16]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 1,105,000, down from HKD 4,816,000 in the same period last year, indicating a decline of about 77%[12]. - The company raised HKD 8,615,000 through the placement of new shares during the financing activities[12]. - Cash and cash equivalents increased significantly to HKD 8,094,000 from HKD 1,014,000, marking a rise of approximately 696%[12]. - The company intends to use 50% of the net proceeds from a recent share placement, approximately HKD 4.26 million, for general working capital, including rent and salary expenses in Hong Kong and China[54]. Revenue Breakdown - Revenue from the "Dragon Emperor" brand decreased by approximately HKD 7.4 million or 21.0% to about HKD 27.9 million, primarily due to the closure of two restaurants[44]. - Revenue from the "Dragon Robe" brand decreased by approximately HKD 3.8 million or 20.0% to about HKD 15.2 million, impacted by challenging business conditions and lingering effects of the COVID-19 pandemic[45]. Employee and Operational Costs - Employee costs for the period were approximately HKD 18.5 million, a decrease of about HKD 1.2 million or 6.1% compared to HKD 19.7 million in the previous period[48]. - Rental and related expenses decreased by approximately HKD 0.2 million or 4.3% to about HKD 4.5 million, attributed to a reduction in the number of restaurants operated[50]. - Other operating expenses decreased by approximately HKD 0.7 million or about 8.0% to approximately HKD 8.0 million, mainly due to the closure of certain restaurants[51]. Corporate Governance and Compliance - The company remains committed to transparency and accuracy in its financial reporting, as emphasized by the board's responsibility for the information provided[2]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the period and found them compliant with applicable accounting standards and GEM listing rules[75]. - The company has complied with the corporate governance code except for minor deviations noted during the period[72]. Future Plans and Strategies - The company plans to enhance its market presence and explore new strategies for growth, although specific details were not disclosed in the report[7]. - The company plans to launch a new light meal brand in China, utilizing dining robots to enhance service quality and efficiency, and aims to increase market share through franchising[53]. - The company will continue to monitor and adjust its operational strategies to meet consumer demands and seize holiday consumption opportunities[53]. Legal Matters - The company is involved in significant litigation, including a judgment requiring payment of HKD 1,500,000 plus interest and legal fees to Fubi Capital Limited[64]. - Another litigation case involves a judgment against the company's subsidiary, requiring payment of HKD 2,000,000 plus interest and legal fees to Chen Zhenqiu[66]. - The company has reached a settlement in a lawsuit related to renovation contracts for its restaurant in Wan Chai, Hong Kong[66]. Shareholder Information - As of June 30, 2024, major shareholder Chen Yuanlong holds 34,560,000 shares, representing approximately 14.29% of the company's equity[67]. - UBS Group AG holds 17,747,999 shares, accounting for 7.34% of the company's equity, while UBS AG London Branch holds 17,736,000 shares, representing 7.33%[67].
龙皇集团(08493) - 2024 - 中期业绩