Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 31,540,000, a decrease of 63.4% compared to RMB 86,047,000 for the same period in 2021[8] - Loss for the period was RMB 14,681,000, slightly improved from a loss of RMB 15,664,000 in the same period of 2021[10] - Total comprehensive loss for the period was RMB 15,885,000, compared to RMB 15,461,000 in the previous year[10] - The company reported a significant increase in trade payables, which rose to RMB 25,833,000 from RMB 29,551,000 in the previous period[14] - The Group reported a consolidated net loss of approximately RMB 14,681,000 for the six months ended 30 June 2022[30] - The Group reported an operating loss of RMB 12,688 for the six months ended June 30, 2022, compared to an operating loss of RMB 5,178 for the same period in 2021, indicating a worsening of performance[48] - The Group's loss before income tax for the six months ended June 30, 2022, was RMB 14,682, compared to a loss of RMB 5,774 for the same period in 2021, indicating a significant increase in losses[48] - Loss for the period attributable to owners of the Company decreased by approximately 5.8% to approximately RMB 14.6 million for the six months ended 30 June 2022 from approximately RMB 15.5 million in the last corresponding period[170] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 74,035,000, down from RMB 90,523,000 as of December 31, 2021, representing a decrease of 18.2%[12] - Cash and cash equivalents decreased to RMB 1,945,000 from RMB 2,196,000, a decline of 11.4%[12] - The equity attributable to owners of the Company was RMB (151,219,000) as of June 30, 2022, compared to RMB (137,044,000) at the end of 2021[12] - As of June 30, 2022, total liabilities amounted to RMB 227,020,000, a slight decrease from RMB 229,204,000 as of December 31, 2021[14] - Current liabilities totaled RMB 213,906,000, compared to RMB 210,753,000 at the end of 2021, indicating a marginal increase[14] - The net current liabilities as of June 30, 2022, were RMB (181,103,000), compared to RMB (168,224,000) at the end of 2021, reflecting an increase in net liabilities[14] - The Group had net current liabilities of approximately RMB 181,103,000 as of June 30, 2022[30] Cash Flow - The company reported a net cash generated from operating activities of RMB 9,894,000 for the six months ended June 30, 2022, compared to a cash outflow of RMB 6,112,000 for the same period in 2021[20] - Cash and cash equivalents at the end of the period were RMB 1,945,000, down from RMB 5,137,000 at the end of June 2021[20] - The company’s financing activities resulted in a net cash outflow of RMB (9,047,000) for the six months ended June 30, 2022, compared to an inflow of RMB 9,456,000 in the same period of 2021[20] Cost Management - Employee benefit and related expenses were RMB (11,618,000), down from RMB (31,530,000) in the previous year, indicating a reduction of 63.2%[8] - Property rentals and related expenses decreased to RMB (15,533,000) from RMB (34,273,000), a reduction of 54.7%[8] - Professional service expenses significantly decreased to RMB 872,000 in 2022 from RMB 4,597,000 in 2021, indicating cost-cutting measures[72] - Cleaning fees incurred were RMB 391,000 in 2022, down from RMB 570,000 in 2021, reflecting a reduction in operational costs[72] - The Group's food and beverage and other materials consumables costs decreased by approximately 63.2% to approximately RMB 11.6 million for the six months ended June 30, 2022, from approximately RMB 31.5 million in the last corresponding period[158] - Employee benefit and related expenses decreased by approximately 54.8% to approximately RMB 15.5 million for the six months ended June 30, 2022, from approximately RMB 34.3 million in the last corresponding period[160] - Labour outsourcing expenses decreased by approximately 58.1% to approximately RMB 10.6 million for the six months ended June 30, 2022, from approximately RMB 25.3 million in the last corresponding period[160] Share Capital and Financing - The company’s share capital as of June 30, 2022, was RMB 1,689,000, reflecting a slight change from previous periods due to share consolidation[113] - The company completed a rights issue on February 22, 2021, issuing 318,680,121 shares at a subscription price of HK$0.142 per share, raising gross proceeds of HK$45,253,000[117] - The company underwent a share consolidation on January 14, 2021, consolidating every twenty shares of HK$0.00002 into one share of HK$0.0004[117] - The company increased its authorized share capital from HK$380,000 to HK$2,000,000 by creating an additional 405,000,000 new consolidated shares effective June 30, 2022[117] - The bank borrowings carry a fixed annual interest rate of 4.70% and are due for repayment by April 16, 2022[128] - The company reported unsecured and guaranteed bank borrowings of RMB 1,200,000 as of June 30, 2022, down from RMB 4,800,000 as of December 31, 2021[126] Operational Strategy - Management is implementing cost control measures and plans to slow down the opening of new restaurants or close underperforming ones[30] - The Group plans to open more restaurants but will slow down the planned expansion due to uncertainty over the impact of COVID-19[171] - The operation of a new branded restaurant "混" was suspended due to the COVID-19 pandemic, but is expected to return to normal as the economy recovers[172] - The Group will target high-end customer segments by introducing more diversified food materials, including seafood, to attract higher spending[176] - New food ingredients will be added to hotpot dining to enhance customer appeal and diversify offerings[177] - The delivery food service is growing rapidly in the PRC, and the Group will strengthen its competitiveness in this segment[178] Dividend Policy - The company did not recommend any dividend for the six months ended June 30, 2022, consistent with the previous year[80] - No interim dividend is recommended for the six months ended 30 June 2022[179]
龙辉国际控股(01007) - 2022 - 中期财报