运兴泰集团(08362) - 2025 - 中期业绩

Interim Results Announcement Consolidated Financial Statements For the six months ended June 30, 2025, the Group's total revenue saw slight growth, but increased cost of inventories consumed and declining restaurant business revenue led to an expanded loss of HKD 2.24 million for the period, with significantly reduced operating cash flow and a decrease in cash and cash equivalents at period-end, while overall net assets slightly decreased, maintaining a stable financial position Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue slightly increased by 1.7% year-on-year to HKD 55.11 million, but increased cost of inventories consumed led to expanded operating and pre-tax losses, with loss attributable to owners of the Company at HKD 2.39 million, compared to HKD 0.41 million in the prior period, and basic loss per share widening to HKD 0.17 cents Condensed Consolidated Statement of Profit or Loss | Metric | For the Six Months Ended June 30, 2025 (Thousand HKD) | For the Six Months Ended June 30, 2024 (Thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 55,106 | 54,172 | +1.7% | | Cost of Inventories Consumed | (32,813) | (29,443) | +11.4% | | Loss Before Tax | (2,240) | (807) | +177.6% | | Loss for the Period | (2,240) | (807) | +177.6% | | Loss Attributable to Owners of the Company | (2,387) | (414) | +476.6% | | Basic and Diluted Loss Per Share (HK cents) | (0.17) | (0.03) | +466.7% | Condensed Consolidated Statement of Comprehensive Income The period recorded a loss of HKD 2.24 million, but other comprehensive income from property revaluation (net of tax) generated HKD 1.31 million, resulting in a total comprehensive loss for the period of HKD 0.93 million, compared to a total comprehensive income of HKD 0.49 million in the prior period - Total comprehensive loss for the period was HKD 0.933 million, compared to total comprehensive income of HKD 0.489 million in the prior period, primarily due to the expanded operating loss in the current period[5] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's net assets were HKD 87.28 million, a slight decrease from HKD 88.22 million at the end of 2024, with net current assets remaining stable at HKD 18.59 million and cash and cash equivalents at HKD 11.81 million Condensed Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (Unaudited, Thousand HKD) | As of December 31, 2024 (Audited, Thousand HKD) | | :--- | :--- | :--- | | Total Non-current Assets | 78,052 | 79,188 | | Total Current Assets | 32,484 | 32,859 | | Total Current Liabilities | 13,899 | 14,216 | | Net Assets | 87,283 | 88,216 | | Cash and Cash Equivalents | 11,809 | 13,155 | | Total Equity | 87,283 | 88,216 | Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total shareholders' equity decreased from HKD 88.22 million at the beginning of the period to HKD 87.28 million at the end, primarily due to a loss of HKD 2.39 million for the period, partially offset by HKD 1.31 million in other comprehensive income from asset revaluation - Equity attributable to owners of the Company decreased from HKD 90.80 million to HKD 89.72 million, primarily due to a total comprehensive loss of HKD 1.08 million recorded during the period[8] Condensed Consolidated Statement of Cash Flows Net cash flow from operating activities for the period was HKD 1.33 million, a significant decrease from HKD 8.02 million in the prior period, with both investing and financing activities resulting in net cash outflows, and the period-end cash and cash equivalents balance at HKD 11.81 million, a decrease of HKD 1.35 million from the beginning of the period Condensed Consolidated Statement of Cash Flows | Cash Flow Activities | For the Six Months Ended June 30, 2025 (Thousand HKD) | For the Six Months Ended June 30, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 1,327 | 8,024 | | Net Cash Flows Used in Investing Activities | (443) | (86) | | Net Cash Flows Used in Financing Activities | (2,230) | (4,109) | | Net Decrease in Cash and Cash Equivalents | (1,346) | 3,829 (Increase) | | Cash and Cash Equivalents at End of Period | 11,809 | 14,112 | Notes to the Financial Statements The notes detail key information including the company's accounting policies, business segment performance, revenue composition, and related party transactions, with the Group's operations divided into food processing and trading and restaurant operations, where the former saw revenue growth but the latter significantly declined, with all operations and assets located in Hong Kong, and significant related party transactions also disclosed Company Information, Basis of Preparation and Accounting Policies The company is an investment holding company incorporated in the Cayman Islands, primarily engaged in food processing and trading and restaurant operations in Hong Kong, with financial statements presented in HKD and prepared in accordance with Hong Kong Accounting Standards, and new and revised Hong Kong Financial Reporting Standards adopted in the current period having no significant impact on results - The Group's principal activities are processing and trading of fresh food, frozen food, and cooked food, and operating restaurants[12] - The accounting policies adopted for the preparation of the interim financial information are consistent with those applied in the previous annual financial information, with no significant impact from new accounting standards[16][17] Segment Information The Group's operations are divided into two segments: food processing and trading (including transportation services) and restaurant operations; during the period, food processing and trading segment revenue increased by 10.8% year-on-year to HKD 48.29 million, while restaurant operations segment revenue significantly decreased by 35.7% year-on-year to HKD 6.82 million, with the food processing segment's loss narrowing and the restaurant segment's performance shifting from profit to a small profit, indicating a substantial decline in profitability Segment Revenue | Segment | Revenue for H1 2025 (Thousand HKD) | Revenue for H1 2024 (Thousand HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Food Processing and Trading | 48,289 | 43,564 | +10.8% | | Restaurant Operations | 6,817 | 10,608 | -35.7% | | Total | 55,106 | 54,172 | +1.7% | Segment Results | Segment | Results for H1 2025 (Thousand HKD) | Results for H1 2024 (Thousand HKD) | | :--- | :--- | :--- | | Food Processing and Trading | (2,561) | (2,960) | | Restaurant Operations | 324 | 2,143 | - All of the Group's revenue and non-current assets are derived from Hong Kong, with no other geographical segment information available[22] - Revenue from the largest customer A constituted a significant portion of the food processing and trading segment, contributing HKD 22.17 million in revenue during the period, a year-on-year increase of 12.4%[23] Revenue and Taxation All of the Group's revenue is derived from contracts with customers; by business type, food sales revenue was HKD 48.25 million, and restaurant operations revenue was HKD 6.82 million, with no income tax expense for the period - The Group incurred no income tax expense during the period, consistent with the prior period[29][30] Dividends and Loss Per Share The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025; basic loss per share was HKD 0.17 cents, compared to HKD 0.03 cents in the prior period, with the expanded loss primarily due to an increase in loss attributable to owners of the Company - The Board does not recommend the payment of an interim dividend[31] - The weighted average number of ordinary shares used in the calculation of basic loss per share was 1,400,000,000 shares[37] Related Party Transactions The Group has significant transactions with multiple related parties, including sales of goods to You Xing, Wing Chi, and Wing's Group, and purchases of goods from Wing Chi, all constituting connected transactions under the GEM Listing Rules; additionally, the Group leases properties from related party You Ye for use as a food factory and warehouse Related Party Transactions | Related Party | Type of Transaction | Amount for H1 2025 (Thousand HKD) | | :--- | :--- | :--- | | You Xing | Sales of Goods | 3,930 | | Wing Chi | Sales of Goods | 706 | | Wing Chi | Purchases of Goods | 2,878 | | Wing's Group | Sales of Goods | 3,524 | - The Group leases properties from related party You Ye; as of June 30, 2025, the related right-of-use assets recognized were HKD 1.85 million, and lease liabilities were HKD 2.13 million[50] Management Discussion and Analysis Management reviewed the period's results, with total revenue slightly increasing by 1.7% year-on-year to HKD 55.10 million, primarily driven by growth in food processing and trading business, despite a decline in restaurant operations revenue; gross profit margin decreased from 45.8% to 40.5%, leading to an expanded loss of HKD 2.20 million for the period, while the Group's financial position remains robust with a low gearing ratio, and it will continue to develop its business in a pragmatic and proactive manner Business Review and Prospects The Group primarily engages in food processing sales and restaurant operations in Hong Kong; through joint ventures established with Wing's and Tin Kwong, the Group participates in the catering business and serves as the main food ingredient supplier for the joint venture restaurants, aiming to enhance future sales and revenue, and will continue to actively develop its business to enhance shareholder value - The Group participates in Hong Kong's catering and food business through joint ventures Wing Tai Catering and Sun King Tai[53][54] - The Group will serve as the primary supplier of food and beverage ingredients for the joint venture restaurants, which is expected to enhance the Group's sales and revenue[55] Financial Review For the six months ended June 30, 2025, the Group's revenue increased by 1.7% year-on-year to HKD 55.10 million, with growth in food processing and trading revenue offset by a decline in restaurant operations revenue; gross profit and gross profit margin both decreased to HKD 22.30 million and 40.5% respectively, leading to an expanded loss of HKD 2.20 million for the period due to lower gross profit Financial Performance | Financial Metric | H1 2025 (Million HKD) | H1 2024 (Million HKD) | | :--- | :--- | :--- | | Revenue | 55.10 | 54.20 | | Gross Profit | 22.30 | 24.80 | | Gross Profit Margin | 40.5% | 45.8% | | Loss for the Period | 2.20 | 0.80 | - Employee benefit expenses decreased from HKD 12.90 million to HKD 12.40 million, primarily due to a reduction in employees responsible for restaurant operations[60] Liquidity and Capital Structure As of June 30, 2025, the Group's financial position is robust, with net current assets of approximately HKD 18.60 million and cash holdings of HKD 11.80 million; the gearing ratio (calculated as bank borrowings divided by equity) remained low at 2.2%, and the Group adopts a prudent treasury policy with no significant currency risks or capital commitments - The gearing ratio was approximately 2.2%, a slight decrease from 2.4% at the end of 2024[65] - The Group's leasehold land and buildings, with a net book value of approximately HKD 55.60 million, have been pledged to secure bank facilities[69] - The majority of the Group's transactions are denominated in Hong Kong Dollars and US Dollars, posing no significant currency risk[70] Other Information This section discloses the shareholdings of directors and substantial shareholders, with Grand View Ventures Limited holding 70% of the shares as a substantial shareholder; during the reporting period, the company neither granted any share options nor purchased, sold, or redeemed any securities, and has complied with the Model Code for Securities Transactions by Directors, generally adhering to corporate governance code provisions, with a single deviation regarding the employment status of the company secretary Directors' and Substantial Shareholders' Interests Disclosures indicate that directors Ms. Au Hung Lin and Mr. Chung Yuk Wah (spouse) jointly hold 70% of the company's shares; substantial shareholder Grand View Ventures Limited holds 980 million shares, representing 70% of the issued share capital - Substantial shareholder Grand View Ventures Limited holds 980,000,000 shares of the Company, representing 70% of the shareholding[78] - No share options have been granted since the adoption of the share option scheme[80] Corporate Governance The company has adopted the Corporate Governance Code and complied with its provisions during the reporting period, with one deviation: Mr. Tsang Hing Wan, the company secretary, is not an employee of the company; the company has appointed executive director Mr. Lai Ho Yin as a contact person to ensure information flow, and the Audit Committee has reviewed this interim results announcement - The Company complied with the Corporate Governance Code during the reporting period, with a deviation regarding the company secretary not being an employee of the Company[85] - The Audit Committee, comprising three independent non-executive directors, has reviewed this results announcement and is of the opinion that it has complied with applicable accounting standards and made adequate disclosures[86]