Financial Performance - In the first half of 2025, the Group's overall revenue decreased by 11.8% year-on-year, recording RMB 464.9 million due to weak consumer sentiment and cautious spending behavior [14]. - Overall revenue decreased by 11.8% to approximately RMB 464.9 million, while the overall gross profit margin slightly increased to 67.2% compared to 66.2% in 2024 [31]. - Revenue for the six months ended June 30, 2025, was RMB 464,928,000, a decrease of 11.8% compared to RMB 527,309,000 for the same period in 2024 [97]. - Loss for the period attributable to owners of the Company was RMB 18,159,000, compared to a profit of RMB 3,379,000 in the same period of 2024 [97]. - Basic and diluted loss per share was RMB (1.69) cents, compared to earnings of RMB 0.31 cents per share in the previous year [97]. - Total comprehensive loss for the period was RMB 17,710,000, compared to a total comprehensive income of RMB 3,890,000 in the same period of 2024 [99]. - The company reported a loss of RMB 18,159,000 for the six months ended June 30, 2025, compared to a profit of RMB 3,379,000 in the same period of 2024 [155]. Market Conditions - The Hong Kong operation faced challenges with a decline in revenue attributed to a branch closure and a persistently weak local consumer market [15]. - Nearly 3 million restaurants in Mainland China closed in 2024, indicating intensified competition and operational pressures in the catering market [11]. - The Chinese government introduced regulations promoting thrift, including strict alcohol bans for civil servants, negatively impacting the consumer market [14]. - Structural changes in consumption patterns were influenced by international trade uncertainties and a slowdown in the real estate market in Mainland China [14]. - Market conditions reflect a shift in consumer behavior towards value-for-money and essential dining, impacting the Group's operations [14]. Operational Strategy - The Group's strategy focused on stabilizing dine-in revenue, maintaining online exposure, and expanding takeaway business during the period [15]. - The takeaway business segmentation has become a core growth factor, with six takeaway satellite stores opened in Beijing, Shanghai, and Chengdu as of June 30, 2025 [21]. - The Group aims to promote a distinctive seafood-themed offering to support business growth, with strategies set for increasing seafood sales ratio in the first half of the year [20]. - The specialty soup and dim sum store in Shanghai has shown stable performance, prompting plans to open a second store in Beijing within the year [25]. - The Group plans to open new branches in Shanghai and Shenzhen in Q3 and Q4 of 2025, respectively, to strengthen regional presence [24]. Financial Position - Cash and cash equivalents increased by approximately RMB 9.3 million, from approximately RMB 328.3 million as of December 31, 2024, to approximately RMB 337.5 million as of June 30, 2025 [39]. - The Group's total assets as of June 30, 2025, were approximately RMB 708.3 million, down from approximately RMB 760.4 million as of December 31, 2024 [40]. - The current ratio as of June 30, 2025, was 1.0, compared to 1.1 as of December 31, 2024 [41]. - The Group had no bank borrowings as of June 30, 2025, maintaining a nil gearing ratio [41]. - The Group's capital commitment was approximately RMB 0.6 million as of June 30, 2025, compared to RMB 0.5 million as of December 31, 2024 [50]. Employee and Operational Costs - Staff costs as a percentage of revenue increased to 43.1% during the Period, compared to 40.6% in 2024 [32]. - Total staff costs decreased to RMB 200,214,000 in 2025 from RMB 216,109,000 in 2024, representing a reduction of approximately 7.4% [148]. - Depreciation of property, plant, and equipment was RMB 15,307,000 for the six months ended June 30, 2025, down from RMB 17,357,000 in 2024, a decrease of approximately 11.9% [105]. - Advertisement and promotion expenses rose to RMB 11,772,000 in 2025, compared to RMB 9,304,000 in 2024, an increase of approximately 26.5% [148]. Shareholder Information - As of June 30, 2025, Ms. Weng Peihe held 34,950,000 shares, representing approximately 3.24% of the total shareholding [69]. - Mr. Yip Shu Ming held 247,944,000 shares, representing approximately 23.04% of the total shareholding [69]. - Best Active Investments Limited, owned by Mr. Chan Man Wai, held 352,500,000 shares, representing approximately 32.75% of the total shareholding [74]. - The Company adopted a Share Award Scheme on April 1, 2021, which is valid for a term of 10 years, with approximately 5 years and 7 months remaining [78]. - As of June 30, 2025, the total number of shares available for issue under the Share Award Scheme is 97,602,750, representing approximately 9.07% of the total issued shares [84]. Dividends - No interim dividend was declared for the six months ended June 30, 2025, consistent with the previous year [90]. - A final dividend of HK1.00 cent per share for the year ended December 31, 2024, was approved, amounting to approximately RMB 10,115,000 [90]. Impairment and Losses - The Group recognized impairment losses on property, plant, and equipment of approximately RMB 2.9 million, up from approximately RMB 0.4 million in 2024 [33]. - The impairment of property, plant, and equipment increased significantly to RMB 2,912,000 in 2025 from RMB 423,000 in 2024, marking a substantial rise [148]. Cash Flow and Investments - Net cash generated from operating activities during the Period was approximately RMB 33.1 million [39]. - For the six months ended June 30, 2025, net cash flows from investing activities were RMB 1,720,000, a significant improvement from RMB (33,798,000) in the same period of 2024 [106]. - Cash generated from operations for the six months ended June 30, 2025, was RMB 37,905,000, down from RMB 66,238,000 in 2024, indicating a decrease of approximately 42.9% [105]. Financial Instruments and Fair Value - The Group's financial instruments are categorized into three levels based on the observability of inputs used in valuation, with Level 3 inputs being the most significant [181]. - The fair value hierarchy includes Level 1 (quoted prices in active markets), Level 2 (significant observable inputs), and Level 3 (significant unobservable inputs) for financial instruments [183]. - The total loss recognized in the statement of profit or loss for unlisted debt investments was RMB 9,015,000 during the period [185].
唐宫中国(01181) - 2025 - 中期财报