2025-11-27 04:03Financial Performance - For the six months ending September 30, 2025, the group's revenue decreased by 5.4% to HKD 4,036.2 million, compared to HKD 4,264.8 million in the same period last year[3]. - Adjusted EBITDA for the same period fell by 29.4% to HKD 242.9 million, down from HKD 343.8 million in the previous year[4]. - Shareholders' profit decreased by 67.6% to HKD 46.7 million, compared to HKD 144.0 million in the prior year[4]. - The group's gross profit margin decreased to 8.2% from 10.3% in the previous year, primarily due to weak consumer sentiment and intense price competition[11]. - The group reported a decline in revenue across various segments, with fast food revenue down 5.9% to HKD 2,422.2 million and casual dining down 5.6% to HKD 386.2 million[10]. - Basic earnings per share fell by 67.3% to HKD 0.082 from HKD 0.250 in 2024[18]. - Total comprehensive income for the period was HKD 54,139, compared to HKD 133,917 in the previous year, reflecting a decrease of 59.6%[43]. - The group reported a net loss of HKD 18,792,000 from other income and losses for the six months ended September 30, 2025[61]. Operational Efficiency - The group is implementing measures to improve operational efficiency, including new business models and streamlining operations[5]. - The company plans to implement a new business model for its fast-food operations, leveraging successful experiences from the casual dining sector[39]. - The company aims to enhance operational efficiency by streamlining processes and optimizing the supply chain in Hong Kong and mainland China[40]. - The group integrated strategic procurement in Hong Kong and mainland China to enhance supply chain robustness and reduce procurement costs[29]. Store Network and Expansion - The group is expanding its store network in the Greater Bay Area despite challenges in the mainland China economy[5]. - The number of stores in Hong Kong decreased to 378 from 381, while stores in mainland China increased to 190 from 185[20]. - The group opened 5 new fast food outlets during the first six months of the fiscal year, ending with 173 outlets[25]. - The group opened 11 new stores in mainland China during the review period, bringing the total to 190 stores[28]. - The company is focusing on expanding its store network in high-traffic locations, particularly in the Greater Bay Area, to drive future growth[39]. Dividends and Shareholder Returns - The interim dividend declared for the six months ending September 30, 2025, is HKD 0.10 per share, down from HKD 0.15 per share in the previous year, with a payout ratio of 124.1%[3]. - The company declared an interim dividend of 10 HK cents per share for 2025, compared to 15 HK cents per share in 2024, indicating a reduction of 33.3%[74]. - The record date for the interim dividend is December 12, 2025, with the dividend to be distributed on December 23, 2025[79]. Awards and Recognition - The group received multiple industry awards, including recognition for its "Club 100" membership program and ESG achievements[8]. - The group received multiple industry awards, including the "IAI International Advertising Award 2025" and recognition as one of China's top 50 chain brands[30]. - The "Club 100" membership program surpassed 2 million registered members following targeted promotional activities[22]. Financial Position and Liabilities - The group’s cash balance as of September 30, 2025, was approximately HKD 965 million, with a current ratio of 0.8[31]. - The group reported a net current liability of HKD 414,892,000 as of September 30, 2025, an increase from HKD 303,877,000 as of March 31, 2025[47]. - The group recognized lease liabilities of HKD 681,268,000 in current liabilities and HKD 1,083,719,000 in non-current liabilities as of September 30, 2025[47]. - The group incurred a fair value loss on investment properties of HKD 11,800,000 during the six months ended September 30, 2025[61]. - The company's financial costs for the six months ended September 30, 2025, were HKD 46,072,000, down from HKD 53,942,000 in 2024, a decrease of 14.7%[64]. Compliance and Governance - The company has complied with all provisions of the Corporate Governance Code as of September 30, 2025[80]. - The Audit Committee, consisting of three independent non-executive directors and two non-executive directors, has reviewed the interim financial information for the six months ending September 30, 2025[81]. - The independent auditor has reviewed the unaudited condensed consolidated financial information for the same period according to the relevant standards[81]. Customer Engagement and Social Responsibility - The group actively supports the elderly economy, providing discounted meals to 50,000 elderly beneficiaries during the review period[37]. - The customer membership program in mainland China expanded to over 7.4 million registered members[29].