Financial Performance - Revenue for the six months ended September 30, 2024, was approximately HKD 854.1 million, a decrease of about 4.4% compared to HKD 893.8 million in the same period of 2023[2] - Loss attributable to owners of the company was approximately HKD 40.6 million, compared to a profit of HKD 2.1 million in the same period of 2023[2] - Basic loss per share was HKD 3.13, compared to a basic earnings per share of HKD 0.16 in the same period of 2023[2][3] - Total comprehensive loss for the period was approximately HKD 42.6 million, compared to a total comprehensive income of HKD 1.9 million in the same period of 2023[8] - Total revenue for the six months ended September 30, 2024, was HKD 830,962, a decrease of 5.3% from HKD 877,293 for the same period in 2023[19] - The group reported a loss of approximately HKD 40,638,000 for the six months ended September 30, 2024, compared to a profit of approximately HKD 2,111,000 for the same period in 2023[36] - Gross profit decreased by approximately 4.9% to HKD 612.6 million from HKD 644.5 million[59] Revenue Breakdown - Revenue from external customers in Hong Kong was HKD 826,926, down 3.3% from HKD 854,771 in the previous year, while revenue from mainland China decreased by 30.4% to HKD 27,193 from HKD 39,061[22] - Restaurant operation revenue fell by about 5.0% to approximately HKD 796.8 million, down from HKD 838.9 million[53] - The "Fu Lin" series brand revenue decreased by 14.0% to HKD 305.9 million, while the "Tao Yuan" series brand revenue dropped by 24.9% to HKD 75.2 million[55] - The "Concept Line" series revenue increased by 8.5% to HKD 415.7 million[55] - Food court operation revenue rose by approximately 26.5% to HKD 28.6 million, up from HKD 22.6 million[56] - Other income and net gains increased by about 70% to HKD 17 million, primarily due to the sale of a subsidiary[57] Expenses and Liabilities - Employee benefits expenses increased to HKD 306,978,000 from HKD 303,987,000 year-on-year[8] - The group’s depreciation of property, plant, and equipment increased to HKD 32,215,000 from HKD 26,738,000 year-on-year[8] - Trade payables amounted to HKD 80,103,000 as of September 30, 2024, compared to HKD 54,452,000 as of March 31, 2024[44] - Current liabilities increased from HKD 736.8 million as of March 31, 2024, to HKD 744.1 million as of September 30, 2024[10] Assets and Cash Flow - Non-current assets decreased from HKD 944.9 million as of March 31, 2024, to HKD 797.5 million as of September 30, 2024[10] - Cash and cash equivalents decreased from HKD 121.8 million as of March 31, 2024, to HKD 94.8 million as of September 30, 2024[10] - As of September 30, 2024, the group had cash and cash equivalents of approximately HKD 94.8 million, down from HKD 121.8 million as of March 31, 2024[69] Operational Challenges and Strategies - The group continues to face challenges in the restaurant industry due to decreased consumer spending and changing dining patterns[47] - The group is actively negotiating rent reductions with landlords and implementing cost control measures to improve cash flow and financial condition[16] - The group plans to continue expanding its food court business and seeks suitable locations for new outlets in various regions[52] - The group expects changes in consumer spending patterns to continue impacting the restaurant industry positively due to recent economic stimulus measures from the Chinese government and the U.S. entering a rate-cutting cycle[73] - The Hong Kong government announced a calendar of over 100 events for the second half of 2024, which is anticipated to attract more tourists and boost local consumption[73] - The group plans to monitor market conditions and consumer preferences closely, implementing operational and production efficiency measures to drive business and revenue growth[73] Dividends and Governance - The board of directors resolved not to declare any interim dividend for the period[2] - The group did not recommend any interim dividend for the period[34] - No interim dividend was declared for the reporting period, consistent with the previous year[74] - The audit committee reviewed the unaudited condensed consolidated interim financial statements, confirming they were prepared in accordance with applicable accounting standards and fairly presented the group's financial position and performance for the six months ending September 30, 2024[80] Customer Base - The group has not identified any single customer contributing over 10% of total revenue during the period, indicating a diversified customer base[25] - The group operated 107 restaurants in Hong Kong as of September 30, 2024, including 14 "Fu Lin" series, 7 "Tao Yuan" series, and 81 "Concept Line" restaurants[49]
富临集团控股(01443) - 2025 - 中期业绩