Financial Performance - For the six months ended June 30, 2023, the loss attributable to owners of the Company was RMB 2,272,000, compared to a loss of RMB 14,552,000 for the same period in 2022, representing a significant improvement [6]. - The loss for the period attributable to owners of the Company decreased by approximately 84.2% to about RMB 2.3 million, compared to RMB 14.6 million for the six months ended June 30, 2022 [166]. - Total comprehensive loss for the period was RMB 4,184,000, down from RMB 15,885,000 in the previous year, indicating a 73.7% improvement [158]. - The loss per share for the period was RMB 0.02, compared to RMB 0.21 for the same period in 2022, showing a significant improvement [156]. - Adjusted EBITDA for the period was approximately RMB 2.9 million, a significant improvement from an adjusted EBITDA loss of approximately RMB 7.2 million for the six months ended June 30, 2022, representing a growth of 140.3% [118]. - The Group's operating performance improved due to the lifting of COVID-19 pandemic control measures, contributing to increased customer flow [73]. Revenue and Costs - For the six months ended June 30, 2023, the Group's revenue increased by approximately 42.9% to approximately RMB 45.0 million from approximately RMB 31.5 million in the last corresponding period [73]. - Revenue for the six months ended June 30, 2023, was RMB 44,965,000, an increase of 42.5% compared to RMB 31,540,000 for the same period in 2022 [156]. - The cost of food, beverages, and other consumables increased by approximately 31.9% from approximately RMB 11.6 million to approximately RMB 15.3 million for the six months ended June 30, 2023 [76]. - Employee benefit and related expenses increased by approximately 20.6% to approximately RMB 18.7 million for the six months ended June 30, 2023, compared to approximately RMB 15.5 million in the last corresponding period [107]. - Other operating expenses decreased by approximately 29.6% to approximately RMB 3.8 million, down from RMB 5.4 million in the last corresponding period [137]. - Property rentals and related expenses decreased by approximately 43.5% to approximately RMB 3.5 million for the six months ended June 30, 2023, down from approximately RMB 6.2 million in the last corresponding period [135]. Assets and Liabilities - Non-current assets decreased to RMB 13,688,000 as of June 30, 2023, from RMB 16,828,000 at the end of 2022, reflecting a decline of 18.4% [160]. - Total assets amounted to RMB 42,421,000, a slight decrease of 3.4% from RMB 43,902,000 as of December 31, 2022 [160]. - The Group's net current liabilities were approximately RMB 195.4 million as of June 30, 2023, compared to RMB 189.5 million as of December 31, 2022 [165]. - The deficiency attributable to owners of the company was RMB 188,616,000 as of June 30, 2023, compared to RMB 185,477,000 at the end of 2022, indicating a slight increase of 1.2% [160]. - The gearing ratio remained stable at approximately 0.20 as of June 30, 2023, with total debts of approximately RMB 8.5 million against total assets of approximately RMB 42.4 million [174]. Share Capital and Options - A total of 1,402,192 share options were exercised during the period, with no new share options granted, exercised, cancelled, expired, or lapsed [77]. - The number of shares that may be issued in respect of options and awards granted under all schemes of the Company during the period was nil, with a weighted average number of shares in issue of 99,155,458 shares [83]. - The Group's share option scheme had no shares available for issue as of June 30, 2023 [77]. Operational Changes - The number of restaurants decreased to 11 during the period, down from 15 in the same period last year [142]. - The Group plans to diversify food options in hotpot restaurants to attract different customer segments, including introducing seafood to target high-end customers [120]. - New food ingredients will be added to hotpot dining to attract customers and enhance menu offerings [148]. - The company continues to focus on improving operational efficiency and reducing costs to enhance profitability in future periods [157]. Auditor and Compliance - HLB Hodgson Impey Cheng Limited resigned as the auditor on July 25, 2023, with RSM Hong Kong appointed as the new auditor effective July 26, 2023 [186]. - There were no connected transactions subject to reporting requirements for the six months ended June 30, 2023 [186]. Cash Flow and Financing - Cash and cash equivalents increased to RMB 4,447,000 as of June 30, 2023, from RMB 1,701,000 at the end of 2022, representing a growth of 161.5% [160]. - The company reported a reduction in finance expenses, netting RMB 466,000 for the period, down from RMB 13,661,000 in the previous year, a decrease of 96.6% [156]. - The company has not entered into any instruments to hedge against foreign currency risk but will monitor exchange rate fluctuations [195]. - The company continues to provide competitive remuneration packages and bonuses based on performance evaluations [190].
龙辉国际控股(01007) - 2023 - 中期财报