太兴集团(06811) - 2025 - 中期财报

Corporate Information Board of Directors and Committees The Board comprises executive, non-executive, and independent non-executive directors, with audit, remuneration, and nomination committees ensuring robust corporate governance - Executive Directors include Mr. Chan Wing On (Chairman), Mr. Yuen Chi Ming, Ms. Chan Shuk Fong, and Mr. Chan Ka Keung (appointed on July 1, 2025)[4] - Dr. Sa Tsui Wan is the Chairman of the Audit Committee, Mr. Mak Ping Leung is the Chairman of the Remuneration Committee, and Mr. Chan Wing On is the Chairman of the Nomination Committee[4][5] Key Professionals and Contact Information The company's auditor is Ernst & Young, legal advisors include Deacons and Conyers Dill & Pearman, with major banks being Bank of China (Hong Kong), Hang Seng Bank, and HSBC - The auditor is Ernst & Young, Certified Public Accountants[5][6] - Legal advisors include Deacons (Hong Kong law) and Conyers Dill & Pearman (Cayman Islands law)[7][8] - The company's stock code is 6811, and its official website is www.taihing.com[8](index=8&type=chunk)[9] Financial Highlights Key Financial Performance Indicators For the six months ended June 30, 2025, revenue grew 6.2% to HK$1.712 billion, profit attributable to shareholders surged 280.8% to HK$40.813 million, and interim dividend is HK 3.50 cents per share 2025 H1 Key Financial Data (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,712,240 | 1,612,488 | 6.2% | | Revenue from Hong Kong & Macau | 1,579,294 | 1,430,721 | 10.4% | | Revenue from Mainland China | 132,946 | 181,767 | -26.9% | | Gross profit margin | 73.4% | 73.7% | -0.3 percentage points | | Profit attributable to owners of the Company | 40,813 | 10,719 | 280.8% | | Earnings per share (HK cents) | 4.19 | 1.07 | 291.6% | | Interim dividend per share (HK cents) | 3.50 | 2.50 | 40.0% | Restaurant Network and Revenue Distribution As of June 30, 2025, the group's total restaurants increased to 217, with Hong Kong and Macau contributing 92.4% of revenue, and dine-in remaining the primary income source Restaurant Count Change (As of June 30, 2025) | Region | June 30, 2025 (Restaurants) | December 31, 2024 (Restaurants) | Change | | :--- | :--- | :--- | :--- | | Hong Kong | 187 | 179 | +8 | | Mainland China | 29 | 31 | -2 | | Macau | 1 | 1 | – | | Total | 217 | 211 | +6 | - As of H1 2025, revenue from Hong Kong and Macau accounted for 92.4%, while Mainland China accounted for 7.6%[17][22] - Dine-in accounted for approximately 81% of restaurant operating revenue, with takeaway at approximately 19%[17][22] Revenue Distribution by Brand (2025 H1) | Brand | Percentage | | :--- | :--- | | Tai Hing | 37.7% | | Men Wah | 25.6% | | TeaWood | 10.3% | | Asam Chicken Rice | 7.6% | | Trusty Congee King | 4.7% | | Phở Lê | 3.5% | | Others | 10.6% | Management Discussion and Analysis Overall Performance Despite macroeconomic uncertainties and rising costs, the Group achieved 6.2% revenue growth and a 280.8% increase in profit attributable to shareholders in H1 2025, supported by marketing, digitalization, and cost management - Global macroeconomic uncertainty, Hong Kong consumer outflow, rising food and labor costs, and weak Mainland China consumption with intense competition hindered the catering market recovery[24][26] - Group revenue grew 6.2% to approximately HK$1,712.2 million (H1 2024: HK$1,612.5 million), primarily through increased promotional efforts via "Tai Hing App" and social media, and new product launches[25][27] - Profit attributable to owners of the Company was approximately HK$40.8 million (H1 2024: HK$10.7 million), a 280.8% year-on-year increase, attributed to stringent cost management and outlet consolidation strategies[25][27] - As of June 30, 2025, the Group had no bank borrowings, with cash and cash equivalents of HK$282.3 million (December 31, 2024: HK$330.8 million), indicating a sound financial position[28][31] Other Income and Gains Other income and gains for H1 2025 totaled HK$8.6 million, slightly lower than the previous year, mainly from bank interest, utility company subsidies, and rental income Other Income and Gains (For the six months ended June 30) | Item | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 2,175 | 3,394 | | Rental income | 802 | 942 | | Royalty income | 306 | 875 | | Subsidies from utility companies | 1,331 | 1,419 | | Government grants | 559 | 442 | | Net gain on deregistration of subsidiaries | 2,616 | – | | Net foreign exchange differences | – | 714 | | Others | 848 | 1,078 | | Total | 8,637 | 8,864 | Operating Costs The Group effectively controlled operating costs through various measures, with staff costs and rental-related expenses as a percentage of revenue decreasing, while cost of materials consumed slightly increased Cost of Materials Consumed Despite fluctuating food prices, the Group managed material costs through direct sourcing, contract pricing, new suppliers, in-house production, and optimized inventory management Cost of Materials Consumed (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Cost of materials consumed | 455,841 | 424,318 | | As a percentage of revenue | 26.6% | 26.3% | - The Group adopted a direct sourcing strategy, signed contracts with suppliers to stabilize prices, and introduced new suppliers for more cost-effective alternative ingredients[30][33] - Leveraging the synergistic advantages of factories in Hong Kong and Mainland China, the Group converted some outsourced food and processing procedures to in-house production, enhancing capacity and quality consistency[30][33] Staff Costs Staff costs as a percentage of revenue decreased to 36.0%, driven by optimized human resource allocation, customized scheduling, and accelerated automation and digitalization investments in outlets Staff Costs (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Staff costs | 616,713 | 601,017 | | As a percentage of revenue | 36.0% | 37.3% | - Optimized human resource deployment and scheduling schemes to enhance human resource utilization efficiency[34][36] - Accelerated investment in outlet automation and digitalization, including enhancing "Tai Hing App" functions, deploying automated kitchen equipment, and conducting AI application training to improve operational efficiency and staff soft skills[34][36] Amortisation of Right-of-Use Assets, Rental and Related Expenses Leveraging its market scale, the Group actively negotiated rent reductions, decreasing right-of-use asset amortization, rental, and related expenses as a percentage of revenue to 15.1% in H1 2025 Rental and Related Expenses (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Rental and related expenses | 258,299 | 257,971 | | As a percentage of revenue | 15.1% | 16.0% | - Actively negotiated rent reduction agreements with landlords to optimize cost structure and support business expansion[35][37] Other Operating Expenses Total other operating expenses increased to HK$253.4 million, primarily due to higher transaction fees and utility costs from revenue growth, but decreased as a percentage of revenue (excluding one-off items) Other Operating Expenses (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Other operating expenses | 253,422 | 237,568 | | As a percentage of revenue (excluding one-off expenses) | 13.4% | 13.5% | - Impairment losses on property, plant and equipment and right-of-use assets amounted to HK$22.5 million (H1 2024: HK$18.4 million), mainly targeting underperforming outlets[38][40] - Continuous implementation of restaurant network consolidation strategy, with initial results seen in resource optimization and integration[38][40] Industry and Geographical Analysis Hong Kong's market benefited from tourism and events, driving revenue growth, while Mainland China faced supply-demand imbalance and intense competition, prompting resource reallocation and brand innovation - The HKSAR Government actively promoted tourism and major events, with approximately 24 million visitor arrivals in H1 2025, positively impacting economic growth[39][41] - The Group consolidated existing business districts in Hong Kong, expanded into core and tourist areas like Kai Tak Sports Park, Mong Kok, and Tseung Kwan O, and launched promotional offers such as spring treats and e-food vouchers[39][41] - Mainland China's catering industry faced challenges including supply-demand imbalance, rising costs, fierce competition, and accelerated market reshuffling[42][45] - The Group reallocated resources in Mainland China, focusing on high-potential cities and restaurants, innovating products to meet diverse demands, and opening a "Men Wah Bing Teng" flagship store in Lujiazui to enhance brand influence[42][45] Business Segment Analysis The Group operates 217 restaurants across multiple brands in Hong Kong, Macau, and Mainland China, with "Tai Hing" and "Men Wah Bing Teng" as key revenue drivers, and "Trusty Congee King" receiving Michelin recognition - As of June 30, 2025, the Group's restaurant network comprised 217 outlets (December 31, 2024: 211), with 188 in Hong Kong and Macau and 29 in Mainland China (17 in Greater Bay Area)[44][47] - "Tai Hing" brand revenue grew 6.5% to HK$645.0 million, accounting for 37.7% of total revenue, enhancing brand recognition and turnover through its "Roast Meat King" positioning, TV collaborations, and festive promotions[48][50] - "Men Wah Bing Teng" revenue slightly decreased by 0.2% to HK$438.2 million, accounting for 25.6% of total revenue, mainly due to strategic outlet consolidation in Mainland China, with new advertisements and "Classic Limited-Time Combo" strengthening brand image[49][51] - "Asam Chicken Rice" revenue grew 9.4% to HK$129.4 million, accounting for 7.6% of total revenue, expanding market coverage through Malaysian New Year film sponsorship, "Asam Laksa Combo" launch, and two new outlets in Hong Kong[52][54] - "Trusty Congee King" revenue grew 20.9% to HK$80.8 million, accounting for 4.7% of total revenue, with its Wan Chai branch receiving the "Michelin Bib Gourmand" for the 15th consecutive year[53][55] - The Group launched new brands like "An Jin Dao" (Korean ethnic-style bibimbap) and "Ichibashi Ramen" (premium ramen), and introduced "Dumpling Town" with a new image at Kai Tak Sports Park[56][58] - "Tai Hing App" membership exceeded 270,000, expanding services such as pre-ordering, takeaway, self-pickup, and delivery, and enhancing customer spending willingness and loyalty through exclusive member offers and cross-company collaborations[59][61] Sustainable Development Tai Hing Group actively pursues sustainable development, signing a low-carbon charter, winning a "Green Driving Excellence Award," collaborating with social welfare organizations, and receiving an "ERB Excellent Employer Award" - Signed the "Catering Industry Low-Carbon Living" action charter, committing to continuous carbon emission reduction, and won the "Green Driving Excellence Award" from the "Environment and Conservation Fund Carbon Neutrality Programme for the Catering Industry"[60][62] - Collaborated with over 10 social welfare organizations to host community and fundraising events, responded to the government's "Love Dining Scheme," and organized blood donation, rice dumpling donations, and inclusive workshops[63][66] - Awarded the "ERB Annual Awards 2024/25 – Excellent Employer Award" for the seventh consecutive year, and signed the Equal Opportunities Commission's "Racial Diversity and Inclusion Employer Charter" to promote an inclusive workplace culture[64][66] Prospects The Group will adhere to a "steady progress" development philosophy, enhancing customer experience, upgrading brand image, optimizing product portfolios, refining time-slot operating strategies, and expanding its store network - Adhering to the "steady progress" development philosophy, actively seizing market opportunities to enhance competitiveness[65][67] - Continuously advancing "Tai Hing" store renovations with modern design elements; "TeaWood" revamping its decor style to offer a unique Taiwanese dining experience[68][71] - Optimizing existing products and developing new ones, such as "Tai Hing" and "Trusty Congee King" launching seasonal limited products, and enhancing cooking craftsmanship[69][71] - Optimizing the store network, consolidating existing business districts, and concentrating resources on developing emerging potential areas like Tseung Kwan O, Kai Tak, and Tsuen Wan[70][72] - Deepening strategic cooperation with mainstream e-commerce platforms such as AlipayHK, The Club, Television Broadcasts Limited, and "Neighbourhood Buy" to explore new generation business models[73][76] Liquidity and Financial Resources, Borrowings, Capital Structure, Exposures to Fluctuations in Exchange Rates and Others The Group's primary funding sources are internal cash flow and IPO proceeds, with HK$282.3 million in cash, a current ratio of 0.6x (adjusted 1.4x), and no interest-bearing bank borrowings Liquidity and Financial Resources The Group's main funding sources are internal cash flow and IPO proceeds, with HK$282.3 million in cash and cash equivalents as of June 30, 2025, and no interest-bearing bank borrowings Liquidity and Financial Resources (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cash and cash equivalents | 282,321 | 330,758 | | Total current assets | 485,801 | 532,064 | | Total current liabilities | 759,610 | 756,552 | | Current ratio | 0.6 times | 0.7 times | | Adjusted net current assets | 143,700 | 204,400 | | Adjusted current ratio | 1.4 times | 1.6 times | | Gearing ratio | 58.4% | 56.0% | - Funds are primarily used for opening new restaurants, strengthening and expanding food factories, renovating existing restaurants, repurchasing shares, and paying dividends[75][77] - As of June 30, 2025, the Group had no interest-bearing bank borrowings[79][82] Foreign Currency Risk The Group's revenue and costs are primarily denominated in HKD and RMB, with RMB fluctuations potentially impacting results, and no current hedging policy in place - Revenue and costs are primarily denominated in Hong Kong Dollars and Renminbi[83][87] - Fluctuations in the value of Renminbi against Hong Kong Dollars, influenced by China's political and economic conditions, may affect the Group's performance[83][87] - The Group does not have any currency hedging policies or instruments[83][87] Contingent Liabilities As of June 30, 2025, the Group's contingent liabilities amounted to approximately HK$75.9 million, mainly bank guarantees for landlords and utility companies in lieu of deposits Contingent Liabilities (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank guarantees | 75,881 | 62,106 | - Contingent liabilities primarily consist of bank guarantees provided to landlords and utility companies in lieu of deposits[84][88] Charge on Group Assets As of June 30, 2025, the Group pledged property, plant and equipment and right-of-use assets with a total net book value of approximately HK$201.3 million to secure bank facilities Pledged Asset Value (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Property, plant and equipment and right-of-use assets | 201,300 | 205,900 | - Asset pledges are made to obtain bank facilities granted to the Group[85][89] Material Acquisitions and Disposal For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associated corporations, joint ventures, or significant investments - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals[86][90] - As of the reporting date, there were no other significant investment or capital asset acquisition plans[86][90] Human Resources As of June 30, 2025, the Group employed approximately 6,400 staff, with remuneration policies based on individual strengths and qualifications, and director/senior management compensation advised by the Remuneration Committee Employee Count (As of June 30, 2025) | Indicator | June 30, 2025 (Employees) | December 31, 2024 (Employees) | | :--- | :--- | :--- | | Employee count | Approx. 6,400 | Approx. 6,200 | - Employee remuneration policy is determined by senior management based on each employee's strengths, qualifications, and abilities[91][93] - Remuneration for directors and senior management is recommended by the Remuneration Committee based on the company's operating performance, individual performance, and prevailing market conditions[91][93] Significant Events After the Reporting Period As of the report date, the Directors are not aware of any disclosable significant events occurring after June 30, 2025 - As of the report date, the Directors are not aware of any disclosable significant events occurring after June 30, 2025[92][94] Independent Review Report Introduction and Scope of Review Ernst & Young reviewed Tai Hing Group's interim financial information for the six months ended June 30, 2025, in accordance with HKSRS 2410 and HKAS 34, noting the scope is smaller than an audit - Ernst & Young reviewed the interim financial information for the six months ended June 30, 2025[95][96] - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 and Hong Kong Accounting Standard 34[95][98] - The scope of a review is substantially less than an audit, thus no audit opinion is expressed[98][100] Conclusion Based on the review, Ernst & Young found no matters suggesting the interim financial information was not prepared in all material respects in accordance with HKAS 34 - Based on the review, nothing has come to our attention that causes us to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[99][101] Interim Condensed Consolidated Statement of Profit or Loss Profit or Loss Statement Summary For the six months ended June 30, 2025, the Group reported revenue of HK$1,712.2 million, gross profit of HK$1,256.4 million, and profit for the period significantly increased to HK$40.8 million Interim Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 1,712,240 | 1,612,488 | | Gross profit | 1,256,399 | 1,188,170 | | Profit before tax | 56,351 | 15,886 | | Profit for the period | 40,813 | 10,720 | | Profit for the period attributable to owners of the Company | 40,813 | 10,719 | | Basic and diluted earnings per share (HK cents) | 4.19 | 1.07 | Interim Condensed Consolidated Statement of Comprehensive Income Comprehensive Income Statement Summary For the six months ended June 30, 2025, total comprehensive income for the period (net of tax) significantly increased to HK$43.7 million, driven by profit for the period and positive exchange differences Interim Condensed Consolidated Statement of Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the period | 40,813 | 10,720 | | Exchange differences on translating foreign operations | 5,527 | (7,403) | | Reclassification adjustment on deregistration of foreign operations during the period | (2,616) | – | | Total comprehensive income for the period (net of tax) | 43,724 | 3,317 | | Attributable to owners of the Company | 43,724 | 3,275 | Interim Condensed Consolidated Statement of Financial Position Financial Position Summary As of June 30, 2025, total non-current assets were HK$1,880.1 million, total current assets were HK$485.8 million, and net assets decreased to HK$857.1 million, mainly due to equity changes Interim Condensed Consolidated Statement of Financial Position Key Data (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total non-current assets | 1,880,093 | 1,939,081 | | Total current assets | 485,801 | 532,064 | | Total current liabilities | 759,610 | 756,552 | | Net current liabilities | (273,809) | (224,488) | | Total non-current liabilities | 749,203 | 778,974 | | Net assets | 857,081 | 935,619 | | Equity attributable to owners of the Company | 857,081 | 935,619 | Interim Condensed Consolidated Statement of Changes in Equity Equity Changes Summary For the six months ended June 30, 2025, total equity attributable to owners of the Company decreased from HK$935.6 million to HK$857.1 million, influenced by profit, share repurchases, and dividends Interim Condensed Consolidated Statement of Changes in Equity Key Data (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Total equity at January 1 | 935,619 | 984,552 | | Profit for the period | 40,813 | 10,720 | | Total comprehensive income for the period | 43,724 | 3,317 | | Shares repurchased and cancelled | (25,120) | – | | Final dividend declared for 2024 | (24,286) | – | | Special dividend declared | (72,856) | – | | Total equity at June 30 | 857,081 | 916,379 | Interim Condensed Consolidated Statement of Cash Flows Cash Flows Statement Summary For the six months ended June 30, 2025, net cash from operating activities was HK$341.5 million, while net cash used in investing and financing activities led to a net decrease of HK$100.3 million in cash and cash equivalents Interim Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Net cash flows from operating activities | 341,514 | 306,371 | | Net cash flows used in investing activities | (98,855) | (80,086) | | Net cash flows used in financing activities | (342,976) | (297,968) | | Net decrease in cash and cash equivalents | (100,317) | (71,683) | | Cash and cash equivalents at end of period | 222,321 | 208,018 | Notes to Interim Financial Information 1. Corporate and Group Information Tai Hing Group Holdings Limited, incorporated in the Cayman Islands, is an investment holding company primarily engaged in restaurant operations and food sales, listed on the Main Board of the Stock Exchange since June 13, 2019 - The Company is an investment holding company primarily engaged in restaurant operations and food sales[112][117] - The Company's shares were listed on the Main Board of the Stock Exchange on June 13, 2019[112][117] 2. Accounting Policies The interim condensed consolidated financial information is prepared under Appendix D2 of the Listing Rules and HKAS 34, using the historical cost convention (except for investment properties), and on a going concern basis despite net current liabilities 2.1 Basis of Preparation The unaudited condensed consolidated interim financial information is prepared in accordance with Appendix D2 of the Listing Rules and HKAS 34, and should be read with the 2024 annual financial statements - Prepared in accordance with Appendix D2 of the Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[113][118] - Prepared on a historical cost basis, except for investment properties which are measured at fair value[115][118] 2.2 Basis of Presentation Despite net current liabilities of HK$273.8 million as of June 30, 2025, the Directors believe the Group has sufficient operating cash flows to meet its liabilities, thus preparing the financial statements on a going concern basis - As of June 30, 2025, the Group had net current liabilities of HK$273.8 million, including current portion of lease liabilities of HK$373.3 million and contract liabilities of HK$44.2 million[119][122] - The Directors believe the Group has sufficient operating cash flows to meet its liabilities as they fall due, thus preparing the financial statements on a going concern basis[119][122] 2.3 Changes in Accounting Policies and Disclosures The Group adopted revised HKFRS accounting standards for the first time this period, including HKAS 21 (Amendment) "Lack of Exchangeability," which had no impact due to the convertibility of its currencies - First-time adoption of revised HKFRS accounting standards, including HKAS 21 (Amendment) "Lack of Exchangeability"[121][123][124] - As the Group's transaction and functional currencies are convertible, this amendment had no impact on the interim condensed consolidated financial information[125][129] 3. Operating Segment Information The Group is segmented into Hong Kong & Macau and Mainland China. In H1 2025, Hong Kong & Macau revenue grew 10.4% to HK$1,579.3 million, while Mainland China revenue decreased 26.9% to HK$132.9 million, incurring a loss - The Group is divided into two reportable operating segments based on geographical location: Hong Kong and Macau, and Mainland China[130][132] Segment Revenue and Results (For the six months ended June 30) | Indicator | Hong Kong & Macau (HK$ thousand) | Mainland China (HK$ thousand) | Total (HK$ thousand) | | :--- | :--- | :--- | :--- | | 2025 H1 | | | | | Segment revenue | 1,579,294 | 132,946 | 1,712,240 | | Segment results | 64,664 | (7,588) | 57,076 | | 2024 H1 | | | | | Segment revenue | 1,430,721 | 181,767 | 1,612,488 | | Segment results | 41,609 | (24,955) | 16,654 | - As of June 30, 2025, Hong Kong and Macau segment assets were HK$1,792.9 million and liabilities were HK$1,361.3 million. Mainland China segment assets were HK$253.9 million and liabilities were HK$122.1 million[138] - No revenue from any single customer accounted for 10% or more of the Group's total revenue[139][140] 4. Revenue, Other Income and Gains In H1 2025, total Group revenue was HK$1,712.2 million, primarily from restaurant operations and food sales, with all revenue recognized at a point in time. Other income and gains totaled HK$8.6 million Revenue Disaggregation (For the six months ended June 30) | Type of goods or services | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Revenue from restaurant operations | 1,666,928 | 1,570,345 | | Revenue from food sales | 45,312 | 42,143 | | Total | 1,712,240 | 1,612,488 | - All revenue is recognized at a point in time[143] - Revenue recognized from contract liabilities at the beginning of the period was HK$39.6 million (H1 2024: HK$49.2 million)[144][145] Other Income and Gains (For the six months ended June 30) | Item | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 2,175 | 3,394 | | Rental income | 802 | 942 | | Royalty income | 306 | 875 | | Subsidies from utility companies | 1,331 | 1,419 | | Government grants | 559 | 442 | | Net gain on deregistration of subsidiaries | 2,616 | – | | Net foreign exchange differences | – | 714 | | Others | 848 | 1,078 | | Total | 8,637 | 8,864 | 5. Profit Before Tax Profit before tax for H1 2025 was HK$56.4 million, with this section detailing various costs and expenses impacting it, including cost of materials, depreciation, amortization, and impairment losses Profit Before Tax Components (For the six months ended June 30) | Item | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Cost of materials consumed | 455,841 | 424,318 | | Depreciation of property, plant and equipment | 60,128 | 66,743 | | Amortisation of right-of-use assets | 202,696 | 216,881 | | Employee benefit expenses | 616,713 | 601,017 | | Net impairment loss on right-of-use assets | 14,851 | 12,890 | | Net impairment loss on property, plant and equipment | 7,617 | 5,491 | | Utility expenses | 73,174 | 68,830 | 6. Finance Costs The Group's finance costs for H1 2025 totaled HK$20.1 million, primarily consisting of interest on lease liabilities, showing an increase from the prior year Finance Costs (For the six months ended June 30) | Item | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Interest on lease liabilities | 20,123 | 17,849 | 7. Income Tax Total income tax expense for H1 2025 was HK$15.5 million, significantly higher than the previous year, with applicable tax rates for Hong Kong (16.5%), Mainland China (25%), and Macau (12%) Income Tax Expense (For the six months ended June 30) | Item | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Current — Hong Kong | 11,626 | 8,842 | | Current — Elsewhere | 830 | 238 | | Deferred tax | 3,082 | (3,914) | | Total tax expense for the period | 15,538 | 5,166 | - Hong Kong profits tax rate is 16.5%, with the first HK$2,000,000 for qualifying entities taxed at 8.25%[155][156] - Mainland China tax rate is 25%, and Macau tax rate is 12%[155][156] 8. Dividend The Board declared an interim dividend of HK 3.50 cents per share for the six months ended June 30, 2025, an increase from HK 2.50 cents in the prior year Interim Dividend (For the six months ended June 30) | Indicator | 2025 H1 (HK cents/share) | 2024 H1 (HK cents/share) | | :--- | :--- | :--- | | Interim dividend per share | 3.50 | 2.50 | | Total declared | 34,000 | 25,135 | 9. Earnings Per Share Attributable to Owners of the Company Basic and diluted earnings per share attributable to owners of the Company for the six months ended June 30, 2025, were HK 4.19 cents, significantly higher than HK 1.07 cents in the prior year Earnings Per Share Calculation (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand/share) | 2024 H1 (HK$ thousand/share) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company | 40,813 (HK$ thousand) | 10,719 (HK$ thousand) | | Weighted average number of ordinary shares outstanding | 973,233,000 (shares) | 1,005,399,000 (shares) | | Basic and diluted earnings per share (HK cents) | 4.19 | 1.07 | - The Group had no potentially dilutive ordinary shares outstanding for the periods ended June 30, 2025, and June 30, 2024[161][162] 10. Property, Plant and Equipment and Right-of-Use Assets In H1 2025, the Group acquired HK$51.1 million in property, plant and equipment and right-of-use assets, with HK$201.3 million pledged and HK$22.5 million in impairment losses recognized for underperforming restaurants Property, Plant and Equipment and Right-of-Use Assets Related Data (For the six months ended June 30) | Indicator | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Purchases of property, plant and equipment and right-of-use assets | 51,100 | 68,600 | | Total net book value of pledged assets (as at period end) | 201,300 | 205,900 | | Net impairment loss on right-of-use assets | 14,851 | 12,890 | | Net impairment loss on property, plant and equipment | 7,617 | 5,491 | - Impairment losses were determined based on the value-in-use method, using a pre-tax discount rate of 12.0% for cash flow projections[169][171] 11. Trade Receivables As of June 30, 2025, the Group's total trade receivables were HK$30.3 million, slightly higher than year-end 2024, with most balances due within one month Trade Receivables (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 30,303 | 28,203 | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | Amount (HK$ thousand) | | :--- | :--- | | Within 1 month | 28,632 | | 1 to 2 months | 176 | | 2 to 3 months | 732 | | Over 3 months | 763 | | Total | 30,303 | - Credit terms generally range from a few days to two months, and the Group does not hold any collateral or other credit enhancements[173][174] 12. Trade Payables As of June 30, 2025, the Group's total trade payables were HK$82.6 million, slightly lower than year-end 2024, with most payables due within one month Trade Payables (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 82,596 | 85,269 | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | Amount (HK$ thousand) | | :--- | :--- | | Within 1 month | 81,383 | | 1 to 2 months | 3 | | 2 to 3 months | 174 | | Over 3 months | 1,036 | | Total | 82,596 | 13. Share Capital As of June 30, 2025, the Company's issued share capital was HK$9.7 million, with 971,419,000 shares outstanding, following the repurchase and cancellation of 33,980,000 ordinary shares for HK$25.12 million during the period Share Capital Changes (As of June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand/shares) | December 31, 2024 (HK$ thousand/shares) | | :--- | :--- | :--- | | Issued share capital | 9,714 (HK$ thousand) | 10,054 (HK$ thousand) | | Number of issued shares | 971,419,000 (shares) | 1,005,399,000 (shares) | - During the period, the Company repurchased and cancelled 33,980,000 ordinary shares for a total consideration of HK$25.12 million[183][184] 14. Share Option Schemes The Group has Pre-IPO and Post-IPO Share Option Schemes to incentivize participants; as of June 30, 2025, no unexercised options existed under the Pre-IPO scheme, and no options were granted under the Post-IPO scheme - The Pre-IPO Share Option Scheme aims to reward and incentivize eligible participants who have contributed to the Group's successful operations[185][187] - As of June 30, 2025, and December 31, 2024, there were no unexercised share options under the Pre-IPO Share Option Scheme[186][188] - The Post-IPO Share Option Scheme aims to encourage eligible persons to enhance performance and efficiency, and to attract and retain talent[189][191] - Since the adoption date of the Post-IPO Share Option Scheme and up to June 30, 2025, no share options have been granted, exercised, cancelled, or lapsed[190][192] 15. Commitments As of June 30, 2025, the Group's contractual commitments primarily consisted of leasehold improvements and equipment, totaling HK$9.5 million Contractual Commitments (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Leasehold improvements and equipment | 9,506 | 3,459 | 16. Related Party Transactions During the period, the Group engaged in related party transactions, including rental payments (HK$0.618 million) and administrative service fee income (HK$0.24 million), all conducted on an arm's length basis Related Party Transactions (For the six months ended June 30) | Item | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Rental payments to an associate | 618 | 744 | | Administrative service fee income from an associate | 240 | – | - Related party transactions were conducted on terms and conditions mutually agreed upon by the contracting parties and in the ordinary course of the Group's business[197] Key Management Personnel Compensation (For the six months ended June 30) | Item | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | | :--- | :--- | :--- | | Short-term employee benefits | 11,712 | 10,896 | | Post-employment benefits | 27 | 27 | | Total compensation paid to key management personnel | 11,739 | 10,923 | 17. Contingent Liabilities As of June 30, 2025, the Group's unprovided contingent liabilities amounted to HK$75.9 million, primarily bank guarantees provided to landlords and utility companies in lieu of deposits Contingent Liabilities (As of June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank guarantees provided to landlords and utility companies in lieu of deposits | 75,881 | 62,106 | 18. Fair Value and Fair Value Hierarchy of Financial Instruments Management assesses that the fair values of financial instruments like cash, trade receivables, and payables approximate their carrying amounts due to short maturities, with non-current deposits valued by discounting future cash flows - The fair values of financial assets and liabilities such as cash and cash equivalents, trade receivables, and trade payables approximate their carrying amounts due to their short-term maturities[203][207] - The fair values of non-current deposits and other receivables are calculated by discounting expected future cash flows[204][207] - The Group's finance department is responsible for determining policies and procedures for fair value measurement of financial instruments and reports directly to the Directors[205][207] Other Information Interim Dividend The Board declared an interim dividend of HK 3.50 cents per share for the six months ended June 30, 2025, to be dispatched to shareholders on or before October 16, 2025 - The Board declared an interim dividend of HK 3.50 cents per share for the six months ended June 30, 2025 (2024: HK 2.50 cents per share)[209][211] - Dividend warrants are expected to be dispatched to shareholders on or before Thursday, October 16, 2025[209][211] Closure of Register of Members To determine eligibility for the interim dividend, the Company's register of members will be closed from September 25 to September 29, 2025, with all transfer documents due by 4:30 p.m. on September 24, 2025 - The register of members will be closed from Thursday, September 25, 2025, to Monday, September 29, 2025 (both days inclusive)[210][212] - All transfer documents, accompanied by the relevant share certificates, must be lodged by 4:30 p.m. on Wednesday, September 24, 2025[210][212] Share Option Schemes The Company has Pre-IPO and Post-IPO Share Option Schemes to incentivize participants; as of June 30, 2025, no unexercised options existed under the Pre-IPO scheme, and no options were granted under the Post-IPO scheme, with a maximum of 100,000,000 shares available for grant under the latter - The Pre-IPO Share Option Scheme and Post-IPO Share Option Scheme aim to incentivize and reward eligible participants[213][215] - As at the beginning of the review period and June 30, 2025, there were no outstanding share options under the Pre-IPO Share Option Scheme[214][216] - No share options have been granted under the Post-IPO Share Option Scheme from the listing date up to June 30, 2025[214][216] - The maximum number of shares that can be granted under the Post-IPO Share Option Scheme is 100,000,000 shares[214][216] Interests of Directors and Chief Executives As of June 30, 2025, Mr. Chan Wing On held Company shares through controlled corporations and spouse's interests, and directly owned 1.54% of shares, while Ms. Chan Shuk Fong directly owned 1.31% Mr. Chan Wing On's Long Position in Company Shares (As of June 30, 2025) | Capacity | Number of Ordinary Shares Held | Approximate Percentage of Issued Ordinary Shares | | :--- | :--- | :--- | | Interest in controlled corporation | 538,449,500 | 55.43% | | Spouse's interest | 1,165,000 | 0.12% | | Beneficial owner | 14,927,000 | 1.54% | - Ms. Chan Shuk Fong beneficially owned 12,769,000 shares of the Company, representing approximately 1.31% of the issued ordinary shares[219] Directors' Interests in Shares of Associate Corporation Jun Fat (As of June 30, 2025) | Name of Director | Capacity | Number of Ordinary Shares Held in Jun Fat | Approximate Percentage of Issued Ordinary Shares | | :--- | :--- | :--- | :--- | | Mr. Chan | Beneficial owner | 166,458 | 83.23% | | Mr. Ho Ping Ki | Beneficial owner | 19,866 | 9.93% | | Mr. Yuen Chi Ming | Beneficial owner | 13,676 | 6.84% | Interests of Substantial Shareholders and Other Persons in Shares and Underlying Shares As of June 30, 2025, substantial shareholder Jun Fat beneficially owned 55.43% of the Company's shares, and Ms. Leung (Mr. Chan's spouse) was deemed to have an interest in 56.97% of the shares Long Position of Substantial Shareholders and Other Persons in Company Shares (As of June 30, 2025) | Name of Shareholder/Person | Capacity | Number of Ordinary Shares Held | Approximate Percentage of Issued Ordinary Shares | | :--- | :--- | :--- | :--- | | Jun Fat | Beneficial owner | 538,449,500 | 55.43% | | Ms. Leung | Beneficial owner | 1,165,000 | 0.12% | | Ms. Leung | Spouse's interest | 553,376,500 | 56.97% | Audit Committee Review and Review of Interim Results The Audit Committee reviewed the Group's accounting principles, risk management, internal control systems, and financial reporting, while Ernst & Young also reviewed the interim financial information - The Audit Committee reviewed the accounting principles and practices adopted by the Group, and discussed risk management, internal control systems, and financial reporting matters[232][236] - The external auditor, Ernst & Young, reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[233][236] Compliance with Corporate Governance Code For the six months ended June 30, 2025, the Company complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules - The Company complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[234][237] Compliance with Model Code The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all Directors confirmed compliance for the six months ended June 30, 2025 - The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules as its code of conduct for Directors' securities transactions[235][238] - All Directors confirmed compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[235][238] Change in Director's Information Effective January 1, 2025, executive directors' fees increased to HK$12,500 per month, and service agreements for several directors were renewed until June 30, 2027, with Mr. Yuen Chi Ming's renewed until June 30, 2026 - Effective January 1, 2025, the directors' fees for executive directors increased from HK$10,000 to HK$12,500 per month[239][242] - Service agreements for executive directors (excluding Mr. Yuen Chi Ming and Mr. Chan Ka Keung), non-executive directors, and independent non-executive directors were renewed for a new term from June 13, 2025, to June 30, 2027[240][242] - Mr. Yuen Chi Ming's service agreement was renewed from July 1, 2025, to June 30, 2026[240][242] Purchase, Sale and Redemption of Listed Securities In January 2025, the Company repurchased 27,540,000 shares on the Stock Exchange for approximately HK$25.12 million, which were subsequently cancelled, demonstrating confidence in the business - In January 2025, the Company repurchased a total of 27,540,000 shares on the Stock Exchange for approximately HK$25.12 million[241][243] - The highest and lowest prices paid per share were HK$0.97 and HK$0.79, respectively[241][243] - These repurchased shares were subsequently cancelled on February 28, 2025[241][243] - The Board believes that the share repurchases demonstrate the Company's confidence in the long-term prospects of its business and are in the best interests of the Company and its shareholders as a whole[241][243] Glossary Definitions of Key Terms This glossary provides definitions for key terms and abbreviations used in the report, ensuring a clear and consistent understanding of the content for readers - Provides definitions for key terms and abbreviations used in the report, such as "Adoption Date", "Board", "the Group", "HKAS", "Listing Rules", "Model Code", and "SFO"[245][247]