Financial Performance - Revenue for the six months ended September 30, 2025, was HKD 20,642,000, a decrease of 14.5% compared to HKD 24,232,000 for the same period in 2024[4] - Gross profit for the same period was HKD 14,501,000, down 16.4% from HKD 17,363,000 in 2024[4] - Operating loss increased to HKD 6,341,000, compared to a loss of HKD 3,201,000 in the previous year, reflecting a deterioration in operational performance[4] - The company reported a loss attributable to owners of the company of HKD 6,706,000, compared to a loss of HKD 3,398,000 in 2024, indicating a significant increase in net losses[4] - Basic and diluted loss per share for the six months ended September 30, 2025, was HKD 0.34, compared to HKD 0.17 in 2024, reflecting worsening financial performance[6] - The net loss for the period was approximately HKD 6,706,000, an increase of about HKD 3,308,000 from the net loss of HKD 3,398,000 in the previous year[20] - Gross profit decreased from approximately HKD 17,400,000 to about HKD 14,500,000, a reduction of approximately HKD 2,900,000, partly due to a decline in revenue and a drop in gross margin by about 1.4%[23] Assets and Liabilities - Total assets as of September 30, 2025, were HKD 49,283,000, a decrease from HKD 52,847,000 as of March 31, 2025[7] - Current liabilities increased to HKD 46,090,000 from HKD 43,473,000, indicating a rise in short-term financial obligations[7] - The company reported a net current asset value of HKD 3,193,000, down from HKD 9,374,000 in the previous period, highlighting liquidity challenges[7] - The group had a bank and cash balance of approximately HKD 30,100,000 as of September 30, 2025, with a capital debt ratio of zero, indicating no bank loans[30] Business Operations - The group operates a single business segment focused on Chinese restaurants in Hong Kong, with no significant revenue contributions from other segments[16] - The restaurant business in Hong Kong faced a revenue decline of approximately HKD 3,600,000, attributed to weak local consumer sentiment and increased competition[28] - Employee costs totaled approximately HKD 11,200,000, down from HKD 11,600,000 in the previous year, primarily due to a reduction in part-time staff[25] - The group terminated the lease for the Kwun Tong restaurant due to unfavorable operating conditions and declining customer traffic[29] Future Outlook and Strategies - The group's restaurant business is expected to improve in the second half of the fiscal year due to the upcoming festive season, which is traditionally a peak period for the industry[35] - The company is facing challenges such as cost pressures, strong competition from mainland rivals, and rising food prices, which are impacting the outlook for Chinese restaurants in Hong Kong[35] - The company plans to enhance the performance of its Tsim Sha Tsui branch by reallocating staff from the Kwun Tong branch, extending operating hours, and launching attractive dining packages[35] - The company is optimistic about finding a suitable new store location by Q2 2026, with a focus on high foot traffic areas in Kowloon West and East[37] - The company aims to implement cost control strategies and negotiate favorable lease terms to ensure new stores positively impact overall financial stability[37] - The new store will continue to focus on Chaozhou cuisine while exploring related or emerging cooking styles to align with market trends[38] - The company is prioritizing revenue enhancement and cash flow improvement at the Tsim Sha Tsui branch through various strategies, including promotional activities[38] - The Tsim Sha Tsui branch has upgraded audiovisual equipment to boost customer spending during peak seasons[39] Corporate Governance - The company has established various committees, including an audit committee and a remuneration committee, to ensure compliance with corporate governance standards[41][43] - The interim financial results announcement will be published on the company's website and the Hong Kong Stock Exchange website[46] - The interim report for the six months ending September 30, 2025, will be timely posted on the aforementioned websites[46] - The report will only be sent to shareholders upon request[46] Dividends and Other Income - The group decided not to declare any interim dividend for the six months ended September 30, 2025[34] - Other income and losses decreased by approximately HKD 600,000, mainly due to a reduction in interest income by about HKD 500,000[24] - Accounts receivable aged analysis showed HKD 221,000 for 0-30 days as of September 30, 2025, compared to HKD 101,000 as of March 31, 2025[21] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending September 30, 2025[40]
环科国际(00657) - 2026 - 中期业绩