Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 20,623,000, a decrease of 30.6% compared to HKD 29,814,000 in the same period of 2021[9] - Gross profit for the same period was HKD 13,999,000, down 32.0% from HKD 20,583,000 in 2021[9] - Operating loss narrowed to HKD 5,172,000, compared to a loss of HKD 11,100,000 in the previous year, representing a 53.4% improvement[9] - Loss attributable to shareholders for the period was HKD 5,533,000, compared to HKD 12,260,000 in 2021, indicating a 55.0% reduction in losses[9] - The total comprehensive loss for the six months ended September 30, 2022, was HKD 5,533,000, compared to a loss of HKD 12,260,000 for the same period in 2021, representing a 55.0% improvement[23] - The group recorded a consolidated revenue of approximately HKD 20,600,000 for the six months ended September 30, 2022, a decrease of 30.8% compared to HKD 29,800,000 in the same period last year[58] - The net loss for the period was approximately HKD 5,500,000, an improvement from a net loss of HKD 12,300,000 in the previous year[58] Assets and Liabilities - Total assets as of September 30, 2022, were HKD 48,696,000, down from HKD 53,470,000 as of March 31, 2022[13] - Current assets decreased to HKD 33,414,000 from HKD 36,429,000, reflecting a decline of 8.3%[13] - Total equity as of September 30, 2022, was HKD 28,545,000, down from HKD 34,377,000, a decrease of 17.0%[13] - Cash and cash equivalents were HKD 28,299,000, down from HKD 31,730,000, a decline of 10.0%[13] - Non-current liabilities decreased to HKD 9,441,000 from HKD 10,820,000, a reduction of 12.7%[14] - The total liabilities of the group as of September 30, 2022, were HKD 20,151,000, with liabilities in the restaurant business at HKD 19,470,000[27] Cash Flow - Cash used in operating activities for the six months was HKD 2,324,000, an improvement from HKD 32,323,000 in the prior year[17] - The cash and cash equivalents at the end of the period were HKD 28,299,000, compared to HKD 11,810,000 at the end of the previous year, showing an increase of 139.5%[17] - The company reported a net cash outflow from financing activities of HKD 1,106,000, down from an inflow of HKD 22,435,000 in the previous year[17] Revenue Sources - Revenue from external customers for the restaurant business in Hong Kong was HKD 20,623,000, down from HKD 29,814,000 in the previous year, indicating a decline of 30.9%[23] - The group reported a revenue of HKD 20,623,000 from restaurant operations for the six months ended September 30, 2022, a decrease of 30.7% compared to HKD 29,814,000 in the same period of 2021[32] - The group did not report any revenue from property development in Australia for the six months ended September 30, 2022[23] Cost Management - The cost of goods sold for the period was HKD 6,624,000, down from HKD 9,231,000 in the previous year, indicating a reduction of 28.0%[38] - Employee costs totaled approximately HKD 10,600,000, with a year-on-year savings of HKD 1,800,000 due to reduced staff numbers and increased unpaid leave[60] - Rental expenses under HKFRS 16 were approximately HKD 2,200,000, down from HKD 4,100,000 in the previous year, primarily due to the closure of a restaurant[61] - Depreciation of right-of-use assets was approximately HKD 1,100,000, a decrease from HKD 2,000,000 in the previous year[61] Shareholder Information - Major shareholders include Golden Toy with 172,869,780 shares (8.88%) and Kong Fai with 1,277,168,061 shares (65.62%), collectively holding 74.50% of the issued share capital[89] - The company has 28,000,000 unexercised stock options, representing approximately 1.4% of the company's issued shares[84] - The stock options plan (2020 Plan) is valid until August 3, 2030, and allows for participation from various stakeholders contributing to the company's growth[84] Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, but has not fully complied with certain provisions regarding the separation of roles between the Chairman and CEO[92][94] - The Audit Committee consists of three independent non-executive directors, ensuring compliance with accounting standards and internal controls[95] - The Remuneration Committee is responsible for recommending the remuneration policies for directors and senior management to the board[96] - The Nomination Committee reviews the board's structure and diversity at least annually, aligning with the company's business needs and future development[97] Future Plans and Strategies - The group plans to adopt a more cautious approach for future expansion plans and further capital expenditures[78] - The strategy for the restaurant business focuses on operating medium-sized restaurants while implementing effective risk management[78] - The group aims to explore opportunities for strategic investments and acquisitions to improve its situation and revenue sources[78] - The group is currently seeking a suitable location to reopen the Chaozhou restaurant[64] Other Information - The company did not declare an interim dividend for the current period, consistent with the previous year[40] - The group did not enter into any new lease agreements during the six months ended September 30, 2022, maintaining the status quo from the previous year[43] - The group has established a project team in Australia to oversee the development of a low-rise apartment building, with a capitalized contract cost of approximately AUD 11,500,000 (equivalent to HKD 66,400,000)[72] - No significant events affecting the company or its subsidiaries have occurred since the reporting period ended on September 30, 2022[79] - The company has not disclosed any other information that requires reporting under the relevant stock exchange rules[85]
环科国际(00657) - 2023 - 中期财报