Store Expansion and Sales Growth - As of June 30, 2022, the total number of direct-sale and franchised stores exceeded 800, with 537 direct-sale stores and 267 franchised stores, a significant increase from approximately 700 as of December 31, 2021[24]. - For the six months ended June 30, 2022, the Group's total system sales increased by 13.4% to RMB1,230 million, up from RMB1,084.5 million for the same period in 2021[25]. - The Group's operational empowerment strategy has led to a notable increase in store numbers, reflecting growth in market presence[24]. - The number of members increased from approximately 16.0 million at the beginning of the year to approximately 20.0 million[34]. - Best Food's franchise partners expanded significantly, with multiple new stores opened in Jiangsu and other provinces[34]. Financial Performance - Best Food's revenue decreased by 27.6% from RMB 370.2 million in the first half of 2021 to RMB 268.1 million in the corresponding period of 2022[39]. - Revenue from restaurant operations fell by 36.5% from RMB 250.4 million in the first half of 2021 to RMB 159.0 million in the same period of 2022[39]. - Revenue from delivery business decreased by 9.6% from RMB 98.6 million in the first half of 2021 to RMB 89.1 million in the corresponding period of 2022[39]. - The Group recorded a loss for the period of approximately RMB107.3 million for the six months ended June 30, 2022, compared to a profit of RMB1.2 million for the six months ended June 30, 2021[53]. - The company reported a loss for the period of RMB 107.3 million in 2022, compared to a profit of RMB 1.2 million in 2021[58]. - Adjusted loss for the period was RMB 67.7 million, a significant decline from the adjusted profit of RMB 15.4 million in the previous year[58]. - EBITDA for the first half of 2022 was negative at RMB 22.7 million, down from RMB 99.6 million in the same period of 2021[65]. - The total comprehensive loss for the period was RMB 117,717,000, significantly down from a total comprehensive income of RMB 1,534,000 in the prior year[198]. - The basic and diluted loss per share attributable to equity holders of the company was RMB (6.39) for the six months ended June 30, 2022, compared to earnings of RMB 0.33 in the same period of 2021[198]. Operational Strategies and Adaptations - The Company is focusing on developing a digital-based and multi-brand food and beverage platform while ensuring sufficient cash flows and sustainable operations[23]. - Best Food is actively mitigating the impact of the COVID-19 pandemic on the catering industry through operational, digital, and investment empowerment[23]. - The Company has noted phased progress in enhancing its core capabilities despite the short-term pressures from the pandemic[23]. - The pandemic has significantly impacted the catering industry, prompting the Company to adapt its strategies accordingly[23]. - Best Food continues to explore new opportunities for expansion and improvement in its service offerings[23]. - The Company aims to leverage limited resources effectively to enhance operational capabilities and drive growth[23]. - The Company plans to focus on franchise business development, digital system promotion, operational efficiency improvement, and investment empowerment[76]. Cost Management and Expenses - Raw material used and changes in inventories of finished goods decreased by 25.9% from RMB149.3 million for the six months ended 30 June 2021 to RMB110.6 million for the corresponding period of 2022[45]. - Online platform service charges and delivery fees decreased by 17.1% from RMB21.1 million for the six months ended 30 June 2021 to RMB17.5 million for the corresponding period of 2022[45]. - Employee benefit expense decreased by 22.5% from RMB110.5 million for the six months ended 30 June 2021 to RMB85.6 million for the corresponding period of 2022[45]. - Depreciation of right-of-use assets decreased by 8.0% from RMB52.5 million for the six months ended 30 June 2021 to RMB48.3 million for the corresponding period of 2022[45]. - Depreciation and amortisation of other assets decreased by 34.8% from RMB20.7 million for the six months ended 30 June 2021 to RMB13.5 million for the corresponding period of 2022[48]. - Property rentals and other related expenses decreased by 34.5% from RMB13.9 million for the six months ended 30 June 2021 to RMB9.1 million for the corresponding period of 2022[48]. - Other expenses decreased by 25.5% from RMB31.8 million for the six months ended 30 June 2021 to RMB23.7 million for the corresponding period of 2022[48]. - Finance expenses remained unchanged at RMB23.0 million for both the six months ended 30 June 2021 and 2022[48]. Assets and Liabilities - As of June 30, 2022, the Group's total shareholders' equity was RMB239.2 million, down from RMB355.4 million as of December 31, 2021[76]. - The Group's current assets were RMB243.2 million, while current liabilities were RMB406.1 million, resulting in a current ratio of 0.60 as of June 30, 2022, compared to 0.69 as of December 31, 2021[76]. - Total assets decreased from RMB 1,520,296,000 as of December 31, 2021, to RMB 1,401,378,000 as of June 30, 2022, representing a decline of approximately 7.8%[200]. - Non-current assets decreased from RMB 1,229,349,000 to RMB 1,158,186,000, a reduction of about 5.8%[200]. - Current assets decreased from RMB 290,947,000 to RMB 243,192,000, reflecting a decline of approximately 16.4%[200]. - Cash and cash equivalents, including restricted cash, decreased from RMB 62,571,000 to RMB 28,086,000, a significant drop of about 55.1%[200]. - Trade and other receivables decreased by 3.3% from RMB 100.2 million as of December 31, 2021, to RMB 96.9 million as of June 30, 2022[70]. - Inventories decreased from RMB 35.2 million as of December 31, 2021, to RMB 30.3 million as of June 30, 2022, reflecting a slowdown in inventory turnover from 43 days to 54 days[70]. Share Capital and Corporate Governance - As of June 30, 2022, the company had 1,578,664,000 shares in issue[2]. - Sonic Tycoon Limited held 1,183,998,000 shares and had beneficial interest in convertible bonds amounting to HK$610,676,480, convertible into 517,522,440 shares at an initial conversion price of HK$1.18 per share[3]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2022[173]. - The company complied with the Corporate Governance Code throughout the reporting period[174]. - The unaudited interim results for the reporting period were reviewed by the audit committee, which includes all independent non-executive directors[176]. - All directors confirmed compliance with the Model Code for Securities Transactions throughout the reporting period[175]. Future Outlook and Growth Potential - The Directors believe there is still significant growth potential in the catering industry in China despite recent fluctuations[73]. - The company has been exploring business development through acquisitions and/or expansion of existing business, evaluating its financial position and resources for potential long-term funding[193].
百福控股(01488) - 2022 - 中期财报