Financial Performance - The group recorded unaudited revenue of approximately HKD 222.8 million for the six months ended June 30, 2025, a decrease of about 3.7% compared to HKD 231.4 million in the same period of 2024[5]. - The group reported an unaudited loss attributable to owners of the company of approximately HKD 2.8 million, improving from a loss of HKD 4.4 million in 2024[5]. - Operating profit for the six months was HKD 2.3 million, compared to HKD 1.3 million in the previous year, indicating a positive trend in operational performance[6]. - The company reported a net loss of HKD 4,352,000 for the period ending June 30, 2024, compared to a loss of HKD 2,763,000 for the same period in 2025, indicating a worsening financial performance year-over-year[12]. - Total comprehensive income for the period ending June 30, 2025, was a loss of HKD 2,660,000, compared to a loss of HKD 3,929,000 for the same period in 2024, indicating a reduction in losses[12]. - The company reported a net loss of HKD 2,763,000 attributable to shareholders for the six months ended June 30, 2025, compared to a loss of HKD 4,352,000 in 2024[37]. - The company reported a net loss before tax of HKD 2,465,000 for the six months ended June 30, 2025, compared to a net loss of HKD 2,665,000 for the same period in 2024[24]. Assets and Liabilities - The group’s total assets decreased to HKD 259.2 million as of June 30, 2025, down from HKD 305.0 million at the end of 2024[9]. - Non-current assets decreased to HKD 179.0 million from HKD 218.1 million, primarily due to a reduction in property, plant, and equipment[9]. - Current assets also declined to HKD 80.1 million from HKD 86.9 million, with cash and cash equivalents dropping to HKD 42.0 million from HKD 53.1 million[9]. - Total liabilities decreased to HKD 194.9 million from HKD 234.2 million, reflecting a reduction in both non-current and current liabilities[10]. - The company’s total equity as of June 30, 2025, was HKD 64,257,000, down from HKD 69,206,000 as of January 1, 2024, reflecting a decline in shareholder value[12]. - The company's bank borrowings amounted to HKD 34,861,000 as of December 31, 2024, decreasing to HKD 30,335,000 by June 30, 2025, a decline of about 13%[47]. - The group's debt-to-equity ratio was approximately 54.4% as of June 30, 2025, a decrease from 55.7% on December 31, 2024, due to the repayment of bank borrowings[80]. Revenue Breakdown - Total revenue for the restaurant operations was HKD 220,347,000, while the revenue from food management and consulting services was HKD 15,366,000, resulting in a total of HKD 235,713,000 for the six months ended June 30, 2025[23]. - Revenue from Shanghai-style restaurants increased by approximately 14.1% to about HKD 120.6 million, driven by new openings in Tseung Kwan O and Sham Shui Po, despite the closure of a restaurant in Causeway Bay[56]. - Revenue from Japanese restaurants decreased by approximately 14.8% to about HKD 47.2 million, primarily due to the closure of a restaurant in Taikoo Shing in April 2024[57]. - Revenue from Vietnamese restaurants saw a significant decline of approximately 51.6% to about HKD 13.7 million, mainly due to the closure of a restaurant in Kowloon Tong[59]. Expenses and Costs - Total cost of goods sold was approximately HKD 56.9 million, accounting for 25.5% of total revenue, compared to HKD 58.8 million or 25.4% in the previous year[61]. - Employee benefits expenses were approximately HKD 84.2 million, representing 37.8% of total revenue, slightly down from 37.9% in the previous year[63]. - Rental expenses increased by approximately 59.6% to about HKD 7.5 million, driven by rising building management fees and other costs[66]. - Financing costs decreased to approximately HKD 4.2 million from HKD 4.8 million, attributed to lower bank borrowing costs and new lease financing[72]. Cash Flow and Financing - Operating cash flow before changes in working capital was HKD 41,297,000 for the six months ending June 30, 2025, down from HKD 47,904,000 in 2024, reflecting a decrease of approximately 12%[13]. - The company experienced a net cash outflow from financing activities of HKD 37,714,000 for the six months ending June 30, 2025, compared to HKD 38,407,000 in 2024, showing a slight improvement in cash management[13]. - The company’s operating cash flow after interest and tax payments was HKD 29,346,000 for the six months ending June 30, 2025, compared to HKD 42,268,000 in 2024, indicating a decline in operational efficiency[13]. Operational Developments - The company operates a total of 12 restaurants as of June 30, 2025, including four self-owned brands and three franchised brands[53]. - The group plans to continue monitoring costs and implementing effective control measures to maintain sustainable gross margins[62]. - The group operates twelve restaurants in Hong Kong, with plans to add two or more restaurants in the second half of 2025, aiming to enhance profitability and reduce overall capital investment[89]. - The group is developing a range of high-quality food and beverage products to diversify revenue sources, including retail and online sales channels[89]. - The group maintains a focus on providing excellent food quality and customer service to enhance customer satisfaction and loyalty[89]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code throughout the review period[99]. - The audit committee reviewed the interim financial performance and confirmed compliance with applicable accounting standards[101]. - No significant matters requiring disclosure occurred after June 30, 2025, up to the report date[105]. Shareholder Information - As of June 30, 2025, Real Hero Ventures Limited holds 274,350,000 shares, representing approximately 71.45% of the company's total shares[92]. - The company has not granted any stock options under the stock option plan as of June 30, 2025, with a total of 32,000,000 shares available for grant, accounting for about 8.33% of the issued shares[95]. - The stock option plan was approved on November 6, 2017, and has approximately 2 years and 2 months remaining[95]. - The company does not hold any treasury shares as of June 30, 2025[97]. Risks and Challenges - The group faces risks related to reliance on a stable supply of ingredients and potential fluctuations in food prices, as well as risks associated with commercial real estate leasing in Hong Kong[87].
1957 & CO.(08495) - 2025 - 中期财报