Financial Performance - The Group recorded a turnover of HK$135.3 million for the six months ended June 30, 2022, representing a decrease of 42.2% compared to HK$233.8 million in the same period of 2021[5]. - The gross margin decreased to HK$92.6 million, down 43.2% from HK$162.9 million in the previous year[5]. - The loss attributable to shareholders was HK$104.7 million, an increase of 122.9% from HK$46.9 million in the same period of 2021[5][10]. - The Group experienced a gross operating loss ratio of 19.2%, compared to a gross operating profit ratio of 0.1% for the same period in 2021[10]. - The net ordinary operating loss was HK$95.9 million, compared to HK$46.9 million for the same period of 2021, reflecting an increase of 104.2%[10]. - The Group recorded a negative EBITDA of HK$60.9 million, compared to a positive EBITDA of HK$17.8 million in the same period of 2021[5][10]. - The total loss for the second quarter of 2022 was HK$69.8 million, reflecting a significant increase of 298.9% from HK$17.5 million in the second quarter of 2021[95]. - The loss attributable to owners of the Company for the first quarter of 2022 was HK$34.9 million, an increase of 18.7% from HK$29.4 million in the first quarter of 2021[91]. - The basic loss per share for the first half of 2022 was approximately HK15.07 cents, which is an increase of about 122.9% from HK6.76 cents in the same period of 2021[111]. Business Segment Performance - The same store performance of the restaurant and industrial catering business decreased by 29.8%, while the food souvenir business saw a decline of 63.4% compared to the same period of 2021[10]. - The industrial catering business recorded a turnover of approximately HK$8.7 million, a decrease of about 1.1% from HK$8.8 million in the same period of 2021[21]. - The food wholesale business reported a turnover of approximately HK$6.4 million, representing a decrease of 24.7% from HK$8.5 million in the same period of 2021[21]. - The food souvenir business saw a substantial drop in turnover to HK$5.3 million from HK$14.7 million in the same period of 2021, with significant losses incurred[25]. - The gross margin for the food souvenir business decreased to 3.1% from 10.9% in the previous year, indicating a decline in profitability[25]. - The Group's food and catering business generated a turnover of HK$120.0 million, accounting for about 88.7% of the Group's total turnover, reflecting a decrease of 42.6% from HK$209.2 million in the previous year[130][131]. Operational Changes - The Group closed 5 restaurants and 7 food court counters during the Period due to poor performance, while planning to open two casual Cantonese restaurants in Macau in the second half of 2022[20]. - Management is closely monitoring the operating environment and may consider further closures of unprofitable restaurants in the future[28]. - The number of restaurants decreased to 36 as of June 30, 2022, down from 54 in the previous year, with a total restaurant area of 67,186 sq.ft.[134]. - The number of food court counters decreased to 12 from 20 in 2021, a decline of 40%[143]. - The number of restaurants in Macau decreased to 14 from 20 in 2021, a decline of 30%[142]. Financial Position - Total assets decreased by 8.9% to HK$991.4 million from HK$1,088.1 million as of December 31, 2021[5]. - The gearing ratio increased to 219.8%, up from 159.6% in the previous year, indicating a significant rise in financial leverage[5]. - As of June 30, 2022, the net current liabilities of the group were approximately HK$183.9 million, an increase of 12.7% from HK$163.2 million at the end of 2021[121]. - The Group's net assets as of June 30, 2022, were approximately HK$301.1 million, representing a decrease of approximately 25.6% compared to HK$404.8 million as of December 31, 2021[125][126]. - The cash outflow from operating activities for the first half of 2022 was approximately HK$37.2 million, compared to a cash inflow of approximately HK$29.6 million in the same period of 2021[116]. Market Conditions - The ongoing COVID-19 pandemic and recent outbreaks in Zhuhai, Shenzhen, and Macau are expected to continue negatively impacting the Group's restaurant business[28]. - The decrease in turnover was mainly due to the serious outbreak of the Omicron variant of COVID-19 and the closure of restaurants, with same store performance declining by 32.8%[37]. - The Group's restaurant chain business performance aligned with the decreased level of visitor inflow to Macau[37]. - The operating environment remains challenging, with management maintaining a cautious financial approach to mitigate negative impacts[33]. - The Hong Kong Government has reduced hotel quarantine requirements for inbound travelers, which may improve the retail and restaurant business in the future[31]. Governance and Compliance - The audit committee reviewed the condensed consolidated interim financial statements and interim results announcement before submission to the Board for adoption[194]. - The risk committee is responsible for recommending risk management frameworks and monitoring the company's risks[195]. - The company complied with the Corporate Governance Code during the period, with a minor deviation regarding the disclosure of independent non-executive directors' tenure[196]. - The company has adopted a code of conduct regarding securities transactions by directors, confirming compliance with the required standards[197].
FUTURE BRIGHT(00703) - 2022 - 中期财报