Financial Performance - Revenue for the six months ended September 30, 2022, was approximately HKD 414.6 million, a decrease of 20.7% compared to HKD 522.5 million in the previous period[6]. - Profit attributable to owners of the company was HKD 40.9 million, a significant increase of 234.3% from a loss of HKD 30.4 million in the same period last year[6]. - The group reported a profit of HKD 42,513,000 for the six months ended September 30, 2022, compared to a loss of HKD 30,365,000 in the same period of 2021[59]. - The group recorded a profit of approximately HKD 40,900,000 for the review period, a turnaround from a loss of approximately HKD 30,400,000 in the previous period, primarily due to significant property sales[36]. - The company reported a net profit of HKD 40,867,000 for the six months ended September 30, 2022, compared to a net profit of HKD 42,513,000 for the same period in 2021, reflecting a decrease of approximately 3.9%[69]. - Total comprehensive income for the period was HKD 5,502,000, a significant decrease from HKD 7,148,000 in the previous year, representing a decline of approximately 23%[69]. Operational Highlights - The number of restaurants operated as of September 30, 2022, totaled 84, with 37 in Hong Kong, 40 in mainland China, 3 in Macau, and 4 in Singapore[7]. - The company closed 1 restaurant in Hong Kong and 3 in mainland China during the review period, while opening 3 new restaurants in Hong Kong[11]. - The group operated a total of 84 restaurants across Hong Kong, mainland China, Macau, and Singapore as of September 30, 2022, with 3 new openings and 1 closure in Hong Kong during the review period[18]. - The group plans to focus on the Guangdong-Hong Kong-Macao Greater Bay Area and other specific business areas for future expansion, particularly after the market stabilizes[22]. - The group maintains a strategic partnership with the Jumbo Group in Singapore, operating 4 restaurants under the "Tsui Wah" brand, with expectations of revenue recovery to pre-COVID levels[23]. Cost Management - The cost of goods sold during the review period was approximately HKD 120.3 million, down about 18.6% from approximately HKD 147.7 million in the previous period, representing about 29.0% of the group's revenue[25]. - Employee costs for the review period were approximately HKD 143.6 million, a decrease of about 14.9% from approximately HKD 168.8 million in the previous period[28]. - Other operating expenses decreased by about 15.7%, from approximately HKD 63.1 million in the previous period to approximately HKD 53.2 million in the review period, accounting for about 12.8% of the group's revenue[32]. - The group has implemented cost control measures, including regular reviews of ingredient prices and negotiations for potential rent adjustments to alleviate operational pressure[18]. - The group has successfully contacted government officials for funding support to enhance cash flow amid ongoing challenges[22]. Cash Flow and Financial Position - Cash and cash equivalents increased to approximately HKD 313,300,000 as of September 30, 2022, up by approximately HKD 210,000,000 from HKD 103,300,000 on March 31, 2022[38]. - The total current assets and current liabilities were approximately HKD 428,800,000 and HKD 346,900,000, respectively, resulting in a current ratio of approximately 1.2 times[38]. - The group sold several properties during the review period for a total consideration of HKD 264,000,000, with a net cash inflow of approximately HKD 199,000,000[40]. - The group recorded a net cash inflow from investing activities of HKD 272,774,000, compared to a net cash outflow of HKD 40,708,000 in the same period last year[73]. - The company’s total assets as of September 30, 2022, were HKD 526,325,000, a slight increase from HKD 516,819,000 at the end of the previous fiscal year[69]. Strategic Initiatives - The company plans to continue promoting takeaway services and seek cost-reduction solutions without compromising quality[13]. - The group plans to diversify its business and revenue sources by exploring new business models and accelerating entry into overseas markets, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area[50]. - The company plans to continue expanding its market presence in Hong Kong, mainland China, Macau, and Singapore through its restaurant and bakery services[77]. - The company plans to construct a new central kitchen in Hong Kong, utilizing 10% of the net proceeds, approximately HKD 79.4 million[163]. - The remaining unutilized net proceeds are primarily intended for the construction of a new central kitchen in Shanghai and southern China, with HKD 50.6 million still available[163]. Shareholder Information - Mr. Li holds 770,092,000 shares, representing 54.57% of the issued shares as of September 30, 2022[179]. - Major shareholders, including Ms. Chen and Mr. He, collectively hold 878,956,000 shares, representing 62.28% of the issued shares[186]. - The total number of issued shares as of September 30, 2022, was 1,411,226,450[181]. - The shareholding structure indicates significant control by major shareholders, with Mr. Li being deemed to have interests in all shares held by the controlling entity[179]. Governance and Management - The company has adopted and complied with the corporate governance code as per the listing rules, ensuring ongoing review and enhancement of governance practices[199]. - The executive directors voluntarily reduced their monthly salaries and director fees by 15% due to the challenging operating environment since the pandemic[195]. - Following improvements in the operating environment, the executive director's salary and fees were restored effective June 1, 2022[195]. - The group did not declare or recommend any dividends during the review period, consistent with the previous period[110].
翠华控股(01314) - 2023 - 中期财报