Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 42,251,000, a decrease of 10.8% compared to HKD 47,285,000 for the same period in 2023[2] - The group reported a loss before tax of HKD 3,476,000 for the six months ended June 30, 2024, compared to a loss of HKD 3,099,000 for the same period in 2023[2] - Total comprehensive loss for the period was HKD 3,475,000, compared to a total comprehensive loss of HKD 1,530,000 in 2023[3] - Basic and diluted loss per share for the six months ended June 30, 2024, was HKD 0.50, compared to HKD 3.01 for the same period in 2023[4] - The company reported a net loss of HKD 2,732,000 for the six months ended June 30, 2024, compared to a net loss of HKD 3,807,000 for the same period in 2023, representing a 28.2% improvement in loss[23] - Total financing costs decreased to HKD 527,000 for the six months ended June 30, 2024, down from HKD 747,000 in the same period of 2023, reflecting a 29.4% reduction[25] - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with no dividend declared in 2023[26] Revenue Breakdown - Revenue from food sales was HKD 38,038,000, down from HKD 43,097,000 in the previous year, representing a decrease of approximately 11.6%[17] - Revenue from beverage sales was HKD 4,213,000, slightly up from HKD 4,188,000 in the previous year, indicating a marginal increase of about 0.6%[17] - Total revenue decreased by 10.6% from approximately HKD 47.3 million in the first half of 2023 to approximately HKD 42.3 million in the first half of 2024, primarily due to a shift in consumer spending towards mainland China[55] Assets and Liabilities - Non-current assets as of June 30, 2024, included property, plant, and equipment valued at HKD 2,438,000, down from HKD 4,100,000 in 2023[5] - Current assets totaled HKD 28,878,000 as of June 30, 2024, compared to HKD 14,541,000 in 2023[7] - Current liabilities increased to HKD 47,760,000 as of June 30, 2024, from HKD 43,151,000 in 2023[8] - The net liabilities position as of June 30, 2024, was HKD 25,517,000, compared to HKD 22,042,000 in 2023[8] - The group reported a net current liability of approximately HKD 43,438,000, raising concerns about its ability to continue as a going concern[13] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 5,909,000, compared to HKD 4,422,000 for the same period in 2023, representing an increase of approximately 33.6%[10] - The company’s cash and cash equivalents decreased to HKD 484,000 as of June 30, 2024, from HKD 846,000 in 2023[7] - The cash and cash equivalents at the end of the period were HKD 484,000, a decrease from HKD 598,000 at the end of June 2023, reflecting a decline of approximately 19.1%[10] - The net cash used in financing activities was HKD (6,035,000) for the six months ended June 30, 2024, compared to HKD (5,411,000) in the same period of 2023, showing an increase in cash outflow of about 11.5%[10] Share Capital and Financing - The company issued 450,880,000 shares at a price of HKD 0.016 per share, raising approximately HKD 7,214,000 in cash[47] - The company’s issued share capital increased to 1,000,000,000 shares as of June 30, 2024, following a rights issue[46] - The company’s loans from shareholders increased to HKD 2,138,000 as of June 30, 2024, compared to HKD 1,082,000 on December 31, 2023[45] - The company plans to continue discussions with banks for refinancing and considers other financing arrangements to support growth and improve cash flow[14] Operational Efficiency and Cost Management - Employee costs decreased by 7.3% from approximately HKD 17.8 million in the first half of 2023 to approximately HKD 16.5 million in the first half of 2024, attributed to strict cost control measures[56] - Property rental and related expenses decreased by 16.2% from approximately HKD 3.7 million in the first half of 2023 to approximately HKD 3.1 million in the first half of 2024, consistent with the decline in revenue from HEXA[56] - Advertising and marketing expenses increased by 49.3% from approximately HKD 144,000 in the first half of 2023 to approximately HKD 215,000 in the first half of 2024, due to a rebound in sales revenue[56] Corporate Governance - The audit committee, chaired by an independent non-executive director, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[82] - The company has maintained good corporate governance standards to enhance transparency and accountability, which is believed to create long-term value for shareholders[78] - The board of directors confirmed compliance with the company's securities trading standards throughout the reporting period[80] - The company adopted and complied with the corporate governance code as per GEM listing rules during the reporting period[78] Future Outlook - The group will adopt a cautious approach towards business development in the restaurant industry due to the prolonged economic recovery, with inflation pressure and financing cost risks being the main concerns for the second half of 2024[64] - The board believes that the economy will further recover in the remaining time of 2024, and the group plans to continue optimizing its existing business to improve operational efficiency[64] - Management is exploring investment opportunities in the restaurant and/or new business sectors to expand revenue sources[64] - The company will continuously review its existing business and strive to improve its operational and financial conditions despite the challenging business environment in Hong Kong[64] Share Options and Interests - As of June 30, 2024, the number of share options available for grant under the share option scheme remains at 585,769[77] - The share option scheme was adopted on October 18, 2016, and will remain effective for 10 years unless revoked or amended[74] - The total number of shares that may be issued under the share option scheme is capped at 10% of the company's issued shares[74] - No share options were granted to eligible participants during the six-month period ending June 30, 2024[76] Shareholding Structure - As of June 30, 2024, Mr. Cai Shaojie holds 109,350,000 shares of the company, representing approximately 19.95% of the total equity[65] - Welmen Investment Co. Ltd. holds 109,350,000 shares, also representing approximately 19.95% of the total equity[67] - Trendy Pleasure Limited and Saint Lotus Cultural Development Group Co., Limited each hold 30,000,000 shares, representing approximately 5.47% of the total equity[67] - The company’s shareholding structure indicates that certain directors collectively hold approximately 19.95% of the issued share capital[6] Legal and Compliance - There were no significant lawsuits or arbitrations involving the company during the six months ended June 30, 2024[84] - The company has confirmed that there are no other interests or potential conflicts of interest with its directors or controlling shareholders during the reporting period[73] - There were no significant post-reporting events that materially affected the company's operations and financial performance after June 30, 2024[83]
陆庆娱乐(08052) - 2024 - 中期财报