Financial Performance - Revenue for the six months ended June 30, 2024, was HK$1,612,488,000, representing a 2.8% increase from HK$1,568,193,000 in 2023[4] - Profit attributable to owners of the Company decreased to HK$10,719,000, down 76.4% from HK$45,326,000 in the previous year[4] - Basic earnings per share for the period was 1.07 HK cents, a decline of 76.3% compared to 4.51 HK cents in 2023[4] - The gross profit margin improved slightly to 73.7%, up from 73.5% in the previous year[4] - Profit before tax decreased significantly to HK$15,886,000, down 73.7% from HK$60,374,000 in the previous year[76] - Total comprehensive income for the period, net of tax, was HK$3,317,000, a significant decrease from HK$31,876,000 in 2023[77] - The total tax charge for the period was HK$5,166,000, down from HK$15,038,000 in 2023, indicating a reduction of about 65.6%[116] Revenue Breakdown - Revenue distribution by brand shows Tai Hing contributing 37.5% with 60 restaurants, while Men Wah contributed 27.2% with 69 restaurants[7] - The Hong Kong and Macau segment generated revenue of HK$1,430,721,000, a 9.0% increase from the previous year[4] - The Chinese Mainland segment reported revenue of HK$181,767,000, a decrease of 28.8% from HK$255,468,000 in 2023[4] - Total segment revenue for the six months ended June 30, 2024, was HK$1,664,225,000, an increase from HK$1,608,011,000 in the same period of 2023, representing a growth of 3.5%[97] - Revenue from restaurant operations was HK$1,570,345,000, up from HK$1,529,336,000, reflecting a growth of 2.7%[102] Cost and Expenses - The cost of materials consumed amounted to HK$424.3 million, representing 26.3% of revenue, a slight decrease from 26.5% in the first half of 2023[18] - Staff costs increased to HK$601.0 million from HK$544.8 million in 1H2023, with staff costs as a percentage of revenue rising to 37.3% from 34.7%[22] - Amortization of right-of-use assets and rental expenses reached HK$258.0 million, with lease-related expenses accounting for 16.0% of revenue, up from 15.5% in 1H2023[23] - Other operating expenses decreased to HK$219.2 million from HK$224.6 million in 1H2023, with the ratio of these expenses to revenue declining to 13.6% from 14.3%[26] Operational Challenges - The Group faced challenges from rising labor and rental costs, as well as a consumption downgrade in the Chinese Mainland, impacting profitability[14] - The economic recovery in Hong Kong has been weaker than expected, contributing to a restrained revenue growth environment[12] - The Group implemented stringent cost management measures and menu adjustments to enhance brand image and consolidate its restaurant network[13] Cash Flow and Liquidity - As of June 30, 2024, the Group had cash and cash equivalents of HK$268.0 million and no bank borrowings, down from HK$328.1 million at the end of 2023[16] - The Group's total current assets were approximately HK$506.8 million and total current liabilities were approximately HK$775.2 million, resulting in a current ratio of approximately 0.7 times[60] - The net current assets, after excluding current portion of lease liabilities and contract liabilities, were approximately HK$147.8 million as of June 30, 2024, compared to HK$212.4 million as of December 31, 2023[60] Business Strategy and Expansion - The Group plans to expand its business in new shopping areas such as Kai Tak Sports Park to strengthen its market position[53] - The Group is actively investing in digitalisation and innovative technology to enhance operational efficiency and reduce employee workload[52] - The Group's operational strategies included a centralized logistics model to improve supply chain efficiency and reduce costs[18] Shareholder Information - The interim dividend per share proposed is 2.50 HK cents, a decrease of 26.5% from 3.40 HK cents in 2023[4] - The Group's issued and fully paid share capital remained at 1,005,399,000 shares as of June 30, 2024, unchanged from previous periods[124] - The Group's mobile application "Tai Hing Group App" has accumulated approximately 210,000 members since its launch in mid-2023, driving steady business growth[45] Sustainability and ESG Initiatives - The Group received multiple ESG recognitions, including the "2024 Environmental Excellent Enterprise Awards" and "Super MD" status from the Employees Retraining Board[47] - The Group's commitment to sustainable development includes promoting a low-carbon lifestyle and engaging in community projects[48] Employee Information - The Group employed approximately 6,200 employees as of June 30, 2024, a decrease from approximately 6,300 employees as of December 31, 2023[65] - Total compensation paid to key management personnel for the six months ended 30 June 2024 was HK$10,923,000, compared to HK$10,268,000 for the same period in 2023, reflecting an increase of approximately 6.4%[133]
太兴集团(06811) - 2024 - 中期财报