Revenue Performance - Revenue for the six months ended September 30, 2024, decreased by 9.8% to HKD 448.32 million compared to HKD 497.285 million in the same period last year[3] - Hong Kong revenue declined by 6.4% to HKD 241.856 million, while Mainland China revenue dropped by 15.3% to HKD 195.861 million[3] - Other revenue, primarily from a joint venture, increased by 40.7% to HKD 10.603 million[3] - Total revenue from external customers for the six months ended September 30, 2024, was HK$448,320 thousand, compared to HK$497,285 thousand in the same period in 2023[23] - Revenue from Hong Kong decreased to HK$241,856 thousand in 2024 from HK$258,472 thousand in 2023[23] - Revenue from Mainland China declined to HK$195,861 thousand in 2024 from HK$231,276 thousand in 2023[23] - Revenue from other regions increased to HK$10,603 thousand in 2024 from HK$7,537 thousand in 2023[23] - Total revenue for the six months ended September 30, 2024, was HK$448.32 million, compared to HK$497.285 million in the same period in 2023, representing a decrease of approximately 9.8%[28] - Restaurant operation revenue decreased to HK$436.436 million in 2024 from HK$487.263 million in 2023, a decline of approximately 10.4%[28] - Food sales revenue increased to HK$11.884 million in 2024 from HK$10.022 million in 2023, an increase of approximately 18.6%[28] - Revenue decreased by 9.8% to approximately HKD 448.3 million during the review period[55] - Revenue for the review period was approximately HKD 448.3 million, a decrease of 9.8% compared to the previous period's HKD 497.3 million, primarily due to economic downturns in Hong Kong and mainland China[74] Profitability and Earnings - EBITDA decreased by 7.9% to HKD 69.685 million, and net profit attributable to owners of the company fell by 4.8% to HKD 6.423 million[3] - Basic earnings per share decreased by 4.1% to 0.47 HK cents[3] - Total comprehensive income for the period was HKD 6.106 million, compared to a loss of HKD 11.432 million in the same period last year[9] - Net profit attributable to shareholders remained stable at approximately HKD 6.4 million[55] - The group recorded revenue of approximately HKD 448.3 million, a decrease of 9.8% compared to the previous period, with a net profit attributable to owners of approximately HKD 6.4 million[64] - The company's pre-tax profit for the six months ended September 30, 2024, included a government subsidy of HK$449,000 from the Chinese government[32] - Basic earnings per share for the period ended September 30, 2024, were calculated based on a profit attributable to ordinary shareholders of HK$6.423 million[39] Restaurant Operations and Expansion - The total number of restaurants decreased to 69 as of September 30, 2024, from 72 as of March 31, 2024[3] - The group operates a total of 69 restaurants across Hong Kong, Macau, Mainland China, and Singapore as of September 30, 2024[64] - The group closed 2 restaurants in Hong Kong and Mainland China respectively, while opening 1 new restaurant in Hong Kong during the review period[66] - The group plans to open a new Tsui Wah restaurant near Fudan University's EMBA building in Shanghai, marking its first entry into the university catering market[59] - The group will open a new "21 Hall" restaurant in Kowloon Bay and a fifth Tsui Wah restaurant in Singapore by the end of 2024[60] - The group's Singapore operations include 4 Tsui Wah restaurants, with a new branch opened at Clarke Quay Central in January 2024, showing steady growth in foot traffic and sales[70] - The company successfully opened its first overseas branch of "Jian Xin Hao Shanghai Sheng Jian Huang" in Singapore in early October 2024[56] Financial Position and Assets - Cash and cash equivalents decreased to HKD 169.528 million as of September 30, 2024, from HKD 235.013 million as of March 31, 2024[11] - Property, plant, and equipment decreased to HKD 141.398 million as of September 30, 2024, from HKD 157.879 million as of March 31, 2024[11] - Investment in joint ventures increased to HKD 93.355 million as of September 30, 2024, from HKD 75.853 million as of March 31, 2024[11] - Total current liabilities decreased to HK$218,962 thousand as of September 30, 2024, from HK$242,483 thousand as of March 31, 2024[13] - Net current assets decreased to HK$33,484 thousand as of September 30, 2024, from HK$67,419 thousand as of March 31, 2024[13] - Total assets minus current liabilities decreased to HK$621,672 thousand as of September 30, 2024, from HK$647,841 thousand as of March 31, 2024[13] - Total non-current liabilities increased to HK$167,574 thousand as of September 30, 2024, from HK$162,527 thousand as of March 31, 2024[13] - Net assets decreased to HK$454,098 thousand as of September 30, 2024, from HK$485,314 thousand as of March 31, 2024[13] - Non-current assets as of September 30, 2024, totaled HK$531.043 million, compared to HK$526.483 million as of March 31, 2024, showing a slight increase[27] - Accounts receivable as of September 30, 2024, totaled HK$4.027 million, compared to HK$2.636 million as of March 31, 2024[42] - Accounts receivable from joint ventures increased to HKD 1,672,000 as of September 30, 2024, compared to HKD 1,308,000 as of March 31, 2024[43] - Accounts payable aged over two months decreased to HKD 758,000 as of September 30, 2024, from HKD 872,000 as of March 31, 2024[45] - Capital commitments for property leasehold improvements amounted to HKD 7,327,000 as of September 30, 2024[45] - Cash and cash equivalents decreased by HKD 65.5 million to HKD 169.5 million as of September 30, 2024, compared to HKD 235.0 million as of March 31, 2024[87] - Total current assets decreased to HKD 252.4 million from HKD 309.9 million, and current liabilities decreased to HKD 219 million from HKD 242.5 million, resulting in a current ratio of 1.2x (previously 1.3x)[88] - The company has no interest-bearing bank borrowings, maintaining a debt-to-asset ratio of 0%[88] - Contingent liabilities decreased to HKD 1.7 million from HKD 2.9 million, related to bank guarantees provided to landlords in lieu of rental deposits[93] Costs and Expenses - Cost of goods sold decreased by 11.8% to HKD 115.6 million, accounting for 25.8% of revenue, down from 26.4% in the previous period, due to effective cost control measures[76] - Gross profit decreased by 9.1% to HKD 332.7 million, driven by economic challenges in Hong Kong and mainland China[77] - Employee costs decreased by 5.9% to HKD 152.6 million, reflecting more prudent management of related expenses[78] - Depreciation and amortization expenses totaled HKD 22.2 million, representing 5.0% of revenue, while right-of-use asset depreciation was HKD 41.3 million, accounting for 9.2% of revenue[79] - Other operating expenses decreased by 30.3% to HKD 62.6 million, primarily due to reduced impairment losses on right-of-use assets and property, plant, and equipment[81] - Employee headcount decreased to 1,619 from 1,700, with employee costs decreasing by 5.8% to HKD 152.6 million[95] Strategic Measures and Future Plans - The group has implemented strategic measures to mitigate the impact of economic downturns, including optimizing products, innovating business models, and enhancing online platform marketing[68] - The group remains confident in its core strategy of establishing one flagship store per region and multiple Tsui Wah Express outlets in Mainland China[69] - The company plans to deepen cooperation with local tourism agencies and business partners in Macau to develop market-specific products and enhance brand influence[73] - The company aims to optimize internal operations, improve service quality, and reduce costs to strengthen competitiveness in Macau's rapidly developing market[73] - The company plans to strategically expand its retail network to capitalize on government measures aimed at stimulating local consumption and attracting more tourists[100] - Net proceeds from the listing amounted to approximately HKD 794.4 million after deducting underwriting fees and related expenses[104] - Net proceeds of HKD 794.4 million were allocated as follows: 20% (HKD 158.9 million) for opening new restaurants and delivery centers in Hong Kong, 35% (HKD 278.0 million) for opening new restaurants in mainland China, 10% (HKD 79.4 million) for building a new central kitchen in Hong Kong, 20% (HKD 158.9 million) for building new central kitchens in Shanghai and South China, 5% (HKD 39.8 million) for upgrading IT systems and additional working capital, and 10% (HKD 79.4 million) for general corporate purposes[105] - As of September 30, 2024, HKD 50.6 million of the net proceeds remained unused, primarily intended for the construction of a new central kitchen in South China[105] - The company plans to utilize approximately HKD 30.0 million of the unused proceeds for the South China kitchen by Q4 2025, with the remaining HKD 20.6 million reserved for a potential Shanghai kitchen[107] - The company operates 27 restaurants in South China and is currently seeking a suitable location for the new South China kitchen[107] - The company has no immediate plans to establish a Shanghai kitchen due to the limited number of restaurants in the Shanghai area[107] - The company will further evaluate the necessity of establishing a Shanghai kitchen before the fiscal year ending March 31, 2025[107] Dividends and Shareholder Returns - The company declared an interim dividend of HK$0.01 per share for the period ended September 30, 2024, unchanged from the previous period[38] - An interim dividend of HKD 0.01 per share will be paid to shareholders registered by December 19, 2024[102] Awards and Recognition - The group has received multiple awards, including the Global Brand Award 2024 for Best Traditional Chain Restaurant (Hong Kong) and the Market Leader Award 2023/2024 for the Greater Bay Area fast food market[61] Joint Ventures and Sales - Sales to joint ventures increased to HKD 10,239,000 for the six months ended September 30, 2024, compared to HKD 7,472,000 for the same period in 2023[47] - Short-term employee benefits increased to HKD 6,033,000 for the six months ended September 30, 2024, from HKD 4,020,000 for the same period in 2023[49] Capital Expenditures - The company purchased property, plant, and equipment worth HK$2.721 million during the review period, significantly lower than the HK$17.427 million in the previous period[41]
翠华控股(01314) - 2025 - 中期业绩