Financial Performance - Revenue for the six months ended June 30, 2024, was SGD 28,619,000, an increase of 8.4% compared to SGD 26,384,000 for the same period in 2023[4] - The company reported a pre-tax profit of SGD 125,000, a significant improvement from a loss of SGD 328,000 in the previous year[4] - The net loss for the period was SGD 130,000, compared to a loss of SGD 575,000 in the same period last year, indicating a reduction in losses[6] - Operating cash flow for the six months was SGD 4,165,000, up from SGD 3,863,000 in the previous year, reflecting improved operational efficiency[12] - The company reported a comprehensive loss of SGD 130 thousand for the period[1] - The company reported a loss of SGD 2,011,000 for the six months ended June 30, 2024, compared to a loss of SGD 2,304,000 in the same period of 2023[34] - The company’s total comprehensive loss for the period reflects a decrease from the previous reporting period[1] Assets and Liabilities - Total assets as of June 30, 2024, were SGD 190,683,000, slightly down from SGD 190,683,000 as of December 31, 2023[10] - The company’s net assets stood at SGD 86,288,000, a minor decrease from SGD 86,418,000 at the end of 2023[10] - Total assets amounted to SGD 200,887 thousand, with total liabilities at SGD 114,599 thousand[29] - Total assets as of June 30, 2024, were SGD 191,077,000, while total liabilities were SGD 114,078,000[34] - The group's current liabilities increased to SGD 24,060,000 from SGD 20,378,000, resulting in a net current liability of SGD (13,856,000) compared to SGD (9,610,000) in the previous period[59] - The total outstanding bank borrowings amounted to SGD 94.7 million, reflecting a slight increase of SGD 4.0 million or 4.5% from SGD 90.7 million as of December 31, 2023[59] - The capital-to-debt ratio as of June 30, 2024, was approximately 109.8%, up from 104.9% as of December 31, 2023, primarily due to increased borrowings during the reporting period[61] Costs and Expenses - The company incurred finance costs of SGD 1,715,000, an increase from SGD 1,242,000 in the previous year, indicating rising borrowing costs[4] - The company incurred finance costs of SGD 1,785,000 for bank loans and SGD 176,000 for lease liabilities, compared to SGD 1,293,000 and SGD 123,000 respectively in the previous year[36] - Employee costs for the reporting period were approximately SGD 8.9 million, representing about 31.4% of total revenue, an increase of about SGD 0.5 million or 5.7% due to wage increases and additional staff for new outlets[54] - Property rental and related expenses increased by approximately SGD 0.3 million or 14.5% to about SGD 2.1 million, attributed to the opening of multiple new outlets during the reporting period[55] - Financial costs rose from approximately SGD 1.2 million in the first half of 2023 to SGD 1.7 million in the current period, an increase of about 40.0% due to higher interest rates on outstanding loans and additional working capital loans[58] Revenue Sources - For the six months ended June 30, 2024, total revenue was SGD 22,062 thousand, with external rental income contributing SGD 6,557 thousand[29] - Customer contract revenue from food and beverage sales was SGD 22,062,000, up 6.9% from SGD 20,631,000 year-over-year[34] - Revenue from the sale of prepared food, beverages, and tobacco products was approximately SGD 22.1 million, representing 77.1% of total revenue, an increase of about SGD 1.5 million or 6.9% from SGD 20.6 million in the previous year[51] - Rental income from leasing space to tenants increased by approximately SGD 0.6 million or 16.0% to about SGD 4.4 million, driven by improved occupancy rates in the first half of 2024[52] Business Segments - The company operates two main business segments: rental and shop management, and food stalls, focusing on leasing restaurant spaces and managing food stalls[26] - The segment profit for the rental and shop management division was SGD 2,371 thousand, while the food stall segment reported a loss of SGD 301 thousand[29] Corporate Governance and Compliance - The group has maintained compliance with corporate governance codes and has a balanced board structure with three executive directors and three independent non-executive directors[70] - The group’s financial statements are prepared in accordance with the International Financial Reporting Standards and the Hong Kong Stock Exchange listing rules[19] Shareholder Information - The company does not recommend declaring any interim dividends during the reporting period[78] - As of June 30, 2024, the company’s major shareholders include Strong Oriental with a beneficial ownership of 600,000,000 shares, representing 75.00% of the total shares[77] Future Commitments and Acquisitions - The group has capital commitments of approximately SGD 1.7 million related to the redevelopment of a subsidiary's property as of June 30, 2024[63] - The acquisition of New Chance Properties Pte. Ltd. is ongoing, with a total consideration of SGD 9.5 million, of which SGD 475,000 has been paid to date[63] - A subsidiary of the company entered into a share purchase agreement on April 3, 2024, to acquire shares for a total consideration of SGD 9,500,000, expected to complete on October 11, 2024[79] - The company exercised an option to purchase a property for a total consideration of SGD 8,800,000 on June 19, 2024, with completion expected on September 11, 2024[79]
K2 F&B(02108) - 2024 - 中期财报