Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately HKD 74.5 million, a decrease of about 20.3% compared to the previous period[1]. - The loss attributable to the owners of the company was approximately HKD 13.9 million, an increase of about HKD 9.8 million from approximately HKD 4.1 million in the previous period[1]. - The basic and diluted loss per share was HKD 1.23, compared to HKD 0.37 in the previous period[2]. - The group reported a net loss of HKD 13.9 million for the period, compared to a net loss of HKD 4.1 million in the previous period[2]. - Revenue from external customers for the six months ended June 30, 2024, was HKD 74,514,000, a decrease from HKD 93,456,000 in the same period of 2023[11]. - Revenue from the restaurant business for the same period was HKD 74,514,000, down from HKD 93,456,000 year-on-year[12]. - The company reported a loss attributable to shareholders of HKD 13,897,000 in 2024, compared to a loss of HKD 4,105,000 in 2023, representing an increase in losses of approximately 238%[18]. - The group recorded total revenue of approximately HKD 74.5 million, a decrease of about 20.3% compared to HKD 93.5 million in the previous period[26]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 111.6 million, an increase from HKD 108.0 million as of December 31, 2023[4]. - Current liabilities totaled HKD 112.5 million, compared to HKD 110.6 million in the previous period[4]. - As of June 30, 2024, the group's net liabilities amounted to approximately HKD 43,787,000, with current liabilities exceeding current assets by approximately HKD 59,601,000[6]. - Trade receivables as of June 30, 2024, were HKD 1,672,000, down from HKD 1,713,000 as of December 31, 2023, a decrease of approximately 2.4%[19]. - Trade payables as of June 30, 2024, totaled HKD 10,374,000, slightly down from HKD 10,439,000 as of December 31, 2023, a decrease of about 0.6%[24]. Cash Flow and Financing - Cash and cash equivalents increased significantly to HKD 35.4 million from HKD 16.9 million[3]. - The group is actively seeking new financing sources, including bank loans, to improve its working capital situation[6]. - The group had no bank borrowings as of June 30, 2024, consistent with the situation on December 31, 2023[35]. - The company successfully placed a total of 194,650,000 new shares, raising net proceeds of approximately HKD 27.1 million after expenses[37]. - The net proceeds from the recent placement of 194,650,000 new shares amount to approximately HKD 27.1 million, with planned uses including HKD 16.26 million for developing cat poop coffee business in Hong Kong and China[44]. - As of June 30, 2024, approximately HKD 3.42 million of the net proceeds has been utilized for operational and general working capital purposes[44]. Operating Expenses - Employee benefit expenses were HKD 25.1 million, a slight decrease from HKD 26.5 million in the previous period[2]. - Total operating expenses, including depreciation, were HKD 10,561,000 in 2024, down from HKD 14,820,000 in 2023, representing a decrease of about 29%[13]. - Other operating expenses were approximately HKD 18.4 million, a decrease of about 5.2% from HKD 19.4 million in the previous period, mainly due to cost control measures[30]. - Depreciation for property, plant, and equipment decreased to HKD 3,490,000 in 2024 from HKD 4,921,000 in 2023, a reduction of approximately 29%[13]. - Interest expense on lease liabilities was HKD 2,924,000 in 2024, compared to HKD 3,945,000 in 2023, reflecting a decrease of approximately 26%[14]. - The total tax expense for the period was HKD 40,000 in 2024, down from HKD 486,000 in 2023, indicating a significant reduction of about 92%[15]. Business Strategy and Market Conditions - The group plans to rebrand and develop its coffee business, including opening coffee shops in China to diversify its restaurant operations[6]. - The group anticipates challenges in the restaurant business due to ongoing geopolitical issues, including the US-China trade war and conflicts in Ukraine and Israel-Gaza, which may negatively impact consumer spending in Hong Kong and China[42]. - The group plans to invest in online marketing to promote existing businesses and increase market share, with a focus on a multi-brand strategy for steady development in Hong Kong and cautious expansion into the Chinese market[43]. - The group recognizes the importance of adapting to changing market trends and consumer preferences, necessitating ongoing research and development of new menu items and dining services[43]. - The group aims to enhance existing restaurant facilities and strengthen employee training to attract more new customers[43]. - Future success is dependent on the ability to respond to fluctuating food prices and potential labor shortages in the food and beverage industry[43]. - The group is considering diversifying its food and beverage business by expanding into other cuisines and business models to maximize shareholder returns[43]. - The group will continue to uphold its commitment to quality while exploring opportunities for growth and expansion in the food and beverage sector[43]. Corporate Governance - The group is committed to maintaining high standards of corporate governance and business ethics, although the roles of Chairman and CEO are currently held by the same individual[46]. - The company has established a clear division of responsibilities between the Chairman and the CEO, with the Chairman overseeing the board's functions and the CEO managing the group's business[47]. - The board will continue to review the company's corporate governance functions and assess their effectiveness against evolving standards[47]. - The company has adopted a code of conduct for securities trading by directors, confirming full compliance during the reporting period[48]. - The company has established an audit committee to review financial information and oversee the relationship with external auditors[52]. - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting and internal controls[52]. - The interim financial performance of the group has not been reviewed by the audit committee during the reporting period[52]. Employee and Operational Changes - The number of employees decreased by approximately 16% to 399 as of June 30, 2024, down from about 475 on June 30, 2023, primarily due to reduced revenue[40]. - Employee benefit expenses for the period were approximately HKD 25.1 million, compared to HKD 26.5 million in the previous period[40]. - The group has taken measures to control costs through various channels, including optimizing human resources and adjusting management salaries[6].
利宝阁集团(01869) - 2024 - 中期业绩