Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,285,575, a decrease of 14.6% compared to HKD 1,504,553 in the same period of 2023[7]. - Profit attributable to equity holders of the company was HKD 4,022, down 88.0% from HKD 33,400 in the previous year[7]. - Gross profit margin decreased to 7.4% from 12.1%, representing a decline of 38.8%[7]. - Net profit margin fell to 0.3% from 2.2%, a decrease of 86.4%[7]. - The company's profit for the six months ended June 30, 2024, was HKD 9,430,000, a decrease of 73.9% compared to HKD 36,117,000 for the same period in 2023[10]. - Total comprehensive income for the period was HKD 1,185,000, down from HKD 22,251,000, reflecting a significant decline[10]. - Basic and diluted earnings per share were HKD 0.40, down 88.0% from HKD 3.29 in the same period last year[7]. - The group's pre-tax profit for the six months ended June 30, 2024, was HKD 4,022,000, a decrease of 88% compared to HKD 33,400,000 for the same period in 2023[36]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 1,976,118, down 9.7% from HKD 2,188,819 at the end of 2023[7]. - Non-current assets totaled HKD 1,412,633,000, a decrease of 8.2% from HKD 1,538,932,000 as of December 31, 2023[11]. - Current assets decreased to HKD 563,485,000 from HKD 649,887,000, representing a decline of 13.3%[11]. - Current liabilities were reduced to HKD 451,707,000 from HKD 576,658,000, a decrease of 21.7%[11]. - The company's equity attributable to shareholders decreased to HKD 1,198,740,000 from HKD 1,233,034,000, a decline of 2.8%[12]. - The company's total assets less current liabilities stood at HKD 1,524,411,000, down from HKD 1,612,161,000, a decrease of 5.4%[11]. - The total interest-bearing bank borrowings decreased to approximately HKD 54.9 million from HKD 85.7 million as of December 31, 2023[56]. Cash Flow and Investments - Cash and cash equivalents decreased by 16.0% to HKD 289,974 from HKD 345,146[7]. - The net cash flow from operating activities for the six months ended June 30, 2024, was HKD 139,830,000, down 47.5% from HKD 266,464,000 in the previous year[16]. - The company incurred a net cash outflow from investing activities of HKD 29,398,000, compared to a minimal outflow of HKD 331,000 in the previous year[17]. - The financing activities resulted in a net cash outflow of HKD 175,894,000, compared to HKD 164,503,000 in the same period of 2023[17]. - Cash and cash equivalents at the end of the period were HKD 275,098,000, a decrease from HKD 290,663,000 at the end of the same period in 2023[17]. Revenue Breakdown - Revenue from restaurant and bakery operations was HKD 1,132,831, down from HKD 1,314,907, representing a decline of 13.8%[25]. - Revenue from mainland China was HKD 447,427, a decrease of 26.8% from HKD 612,201 in the previous year[22]. - The company reported a total of HKD 1,285,575 in revenue from customer contracts, consistent with the total revenue figure[26]. - Sales in the self-operated supermarket business fell by approximately 20%, but gross margin increased by about 3% due to product mix adjustments[54]. Operational Changes - The company launched various promotional activities, including the "One Dollar" series and "$9.9" late-night hot pot, to attract customers[50]. - The company aims to source quality ingredients at reasonable prices to combat high food and labor costs[51]. - The logistics center successfully acquired new clients for contract manufacturing, enhancing its service offerings[51]. - The group plans to implement a multi-brand strategy by opening more specialty restaurants to enhance brand recognition and competitive advantage[62]. - The logistics center achieved FSSC 22000 certification, which is expected to increase confidence in food safety and attract more large chain restaurant processing contracts[62]. Future Outlook - The group anticipates a challenging economic and business environment in Hong Kong and mainland China for the second half of 2024, adopting a prudent operational and development strategy[62]. - Future market expansion will target overseas regions including Malaysia, Thailand, Australia, and the UK to increase sales and profits[62]. - The group will continue to invest in enhancing equipment and manufacturing technology to broaden product variety[62]. - The group aims to expand its product offerings and improve product quality in response to rising customer expectations in mainland China[62]. Shareholder Information - Major shareholder Billion Era International Limited holds 423,434,689 shares, representing 41.74% of the issued share capital[68]. - The board has resolved not to declare an interim dividend for the six months ending June 30, 2024[63]. - The company expresses gratitude to management, employees, shareholders, business partners, banks, and auditors for their support during the reporting period[76].
稻香控股(00573) - 2024 - 中期财报