Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 29,403,000, a decrease of 34.5% compared to RMB 44,965,000 for the same period in 2023[2] - Loss from operations for the six months ended June 30, 2024, was RMB 4,430,000, compared to a loss of RMB 466,000 for the same period in 2023[2] - Net loss for the period was RMB 5,617,000, compared to a net loss of RMB 2,325,000 for the same period in 2023, representing an increase of 141.5%[2] - The group experienced a total comprehensive loss of RMB 7,404,000 for the six months ended June 30, 2024, compared to RMB 4,184,000 for the same period in 2023[2] - Operating loss for the six months ended June 30, 2024, was RMB 4,430,000, compared to an operating profit of RMB 3,418,000 for the same period in 2023[13] - The loss attributable to the company's owners for the period was RMB 5,600,000, compared to RMB 2,300,000 for the six months ended June 30, 2023[43] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 68,142,000, an increase from RMB 45,401,000 as of December 31, 2023[4] - Current liabilities as of June 30, 2024, were RMB 223,544,000, compared to RMB 218,275,000 as of December 31, 2023[5] - The group’s total liabilities as of June 30, 2024, were RMB 239,322,000, compared to RMB 236,103,000 as of December 31, 2023[5] - The company's net asset value per share was approximately RMB 1.60 as of June 30, 2024, down from RMB 1.90 as of December 31, 2023[48] - The debt-to-asset ratio was approximately 0.45 as of June 30, 2024, compared to 0.50 as of December 31, 2023[48] - The total debt, including borrowings and payables, was approximately RMB 30.7 million against total assets of approximately RMB 68.1 million as of June 30, 2024[48] Cash Flow and Financing - Cash and cash equivalents as of June 30, 2024, were RMB 28,124,000, significantly up from RMB 2,928,000 as of December 31, 2023[4] - The group completed a new share placement, raising net proceeds of RMB 26,926,000 to improve liquidity[9] - The net proceeds from the share placement were approximately HKD 28.8 million (approximately RMB 26.9 million), with planned uses including debt repayment of approximately HKD 25.9 million[49] - Total cash outflow from leases for the six months ended June 30, 2024, was approximately RMB 6,941,000, down from RMB 8,800,000 in the same period of 2023, showing a reduction in lease-related cash expenses[25] Operational Strategies - The group plans to slow down the opening of new restaurants and close underperforming locations as part of cost control measures[9] - The group anticipates that successful implementation of cost control measures and business plans will be critical for improving operational performance and cash flow[9] - The company plans to implement cost-saving strategies and improve productivity in the coming years to enhance shareholder value[44] - The company aims to attract high-end market customers by expanding the variety of ingredients offered in its hot pot menu[45] Employee and Expenses - Employee benefits and related expenses for the six months ended June 30, 2024, totaled RMB 15,240,000, a decrease of 18.9% from RMB 18,682,000 in 2023[17] - The employee count as of June 30, 2024, was 252, down from 272 as of December 31, 2023[55] - The cost of food and beverages and other consumables decreased by approximately 41.2% to about RMB 9,000,000, compared to approximately RMB 15,300,000 in the previous year[36] - Property rental and related expenses decreased by approximately 28.6% to about RMB 2,500,000, compared to approximately RMB 3,500,000 in the previous year[38] - The net financing expenses decreased by approximately 36.8% to about RMB 1,200,000, down from approximately RMB 1,900,000 in the same period last year[42] Governance and Compliance - The company has complied with the corporate governance code principles during the reporting period, with some deviations noted[65] - The audit committee is composed of three independent non-executive directors, ensuring compliance with corporate governance codes[70] - The audit committee reviewed the group's unaudited condensed consolidated financial statements for the period, confirming adherence to applicable accounting standards[70] - The roles of the chairman and CEO are separated, with 洪瑞澤 serving as chairman, ensuring strong leadership and effective decision-making[67] Going Concern and Risks - The company highlighted significant uncertainty regarding its ability to continue as a going concern due to its net loss and current liabilities exceeding current assets[8] - There is significant uncertainty regarding the group's ability to continue as a going concern, dependent on successful financing and operational strategies[9] - The company has no foreign currency risk as most transactions are denominated in RMB[54] - The company has established a debt transfer agreement with Global Courage Limited to assume all outstanding unknown liabilities[57] Shareholder Information - The average number of ordinary shares used for calculating basic and diluted loss per share increased to 107,109,680 for the six months ended June 30, 2024, from 99,155,458 in 2023, reflecting an increase in share count[22] - As of June 30, 2024, the company has 168,592,867 shares issued, with major shareholder 瑞澤集團 holding 52,842,462 shares, representing 31.34% of the total issued share capital[59] - The company has no arrangements in place to allow directors or senior management to hold any interests in the company's shares or related securities during the six months ending June 30, 2024[60] - There were no purchases, redemptions, or sales of the company's listed securities by the company or any of its subsidiaries during the reporting period[63] - The company has a share option scheme approved by shareholders on June 2, 2021, but no options were granted, exercised, cancelled, or lapsed during the period[64]
龙辉国际控股(01007) - 2024 - 中期业绩