Revenue Performance - Revenue decreased by approximately HK$837.5 million, from HK$872.4 million for the six months ended September 30, 2021, to HK$34.9 million for the current period[10]. - Revenue from restaurant operations decreased by 24%, or HK$8.9 million, from HK$36.9 million for the last corresponding period to HK$28.0 million for the current period[12]. - Revenue from the trading business decreased by 100%, or HK$832.4 million, from HK$832.4 million for the last corresponding period to nil for the current period[15]. - The decline in revenue was attributed to decreased operations in both the trading and restaurant businesses, as well as a reduction in the number of operating restaurants[10]. - The Group's restaurant revenue decline was also due to fierce competition in the food and beverage industry[12]. Business Operations and Challenges - The trading business slowdown was influenced by a change in the major shareholder of the largest customer and ongoing COVID-19 outbreaks in various cities in the PRC[15]. - The Group's trading business faced challenges due to adverse effects on supply chains and logistics operations caused by COVID-19 quarantine measures[15]. - The Hong Kong Government's gradual loosening of COVID-19 measures since April 2022 positively impacted the food and beverage sector, although market sentiment remained negative[12]. - The group faces challenges due to uncertainties in global economic recovery and COVID-19 control measures in Hong Kong, impacting business operations[77]. - The trading business will continue to be developed despite the economic challenges posed by the pandemic[81]. IT Solutions and Revenue Growth - The Group's IT solution business includes Software-as-a-Service (SaaS) and membership benefits solution services, which are provided in the PRC[8]. - The revenue of the IT solution business increased by 119.1%, or HK$3.7 million, from HK$3.2 million for the Last Corresponding Period to HK$6.9 million for the Period[17]. - The cost of revenue from the IT solution business decreased by 42.6%, or HK$3.6 million, from HK$8.6 million for the Last Corresponding Period to HK$5.0 million for the Period[21]. - The digital economy is a major trend, and the company will enhance its IT solution business to improve user experience and loyalty[82]. - The company is focused on optimizing its IT solutions to create value-added benefits for enterprises across various industries[82]. Financial Position and Assets - As of September 30, 2022, the Group's cash and cash equivalents were HK$24.4 million, an increase of 2.4% from HK$23.8 million as of March 31, 2022[38]. - The Group's total current assets and current liabilities were HK$89.0 million and HK$24.1 million, respectively, with a current ratio of approximately 3.7 times as of September 30, 2022, compared to 2.5 times as of March 31, 2022[38]. - The gearing ratio of the Group was 0% as of September 30, 2022, down from 0.1% as of March 31, 2022, indicating a net cash position[38]. - Total assets as of September 30, 2022, amounted to HK$204,799,000, an increase from HK$198,638,000 as of March 31, 2022[173]. - Total liabilities decreased to HK$32,411,000 as of September 30, 2022, down from HK$40,235,000 as of March 31, 2022, reflecting a reduction of 19.4%[177]. Employee and Operational Costs - The Group's staff costs decreased by 6.3%, or HK$0.7 million, from HK$11.4 million for the Last Corresponding Period to HK$10.7 million for the Period[22]. - The cost of food and beverages decreased by 21.4%, or HK$2.2 million, from HK$10.2 million for the Last Corresponding Period to HK$8.0 million for the Period[19]. - The Group's property rentals and related expenses decreased by 17.6%, or HK$1.5 million, from HK$8.5 million for the Last Corresponding Period to HK$7.0 million for the Period[23]. - Employee benefit expenses decreased to HK$10,685,000, down from HK$11,402,000 in the previous year[152]. Acquisitions and Investments - The Group agreed to acquire 100% equity interests in Context Image Holdings Limited for a maximum consideration of HK$114.2 million, to be settled through the issuance of consideration shares[46]. - The acquisition of Context Image Holdings Limited was completed on 22 June 2022 for a maximum consideration of HKD114,236,118[48]. - The acquisition will be settled through the issuance of up to 171,783,636 consideration shares at a price of HKD0.665 per share[48]. - The Group's investment in new supply chain business was allocated HK$10 million from the unutilized proceeds[42]. Future Plans and Market Strategy - The company aims to become Hong Kong's leading full-service casual dining chain, supported by an efficient supply chain and diversified operations[75]. - The company aims to create a diversified and integrated group with food and beverage as the core business while exploring e-commerce opportunities[66]. - The group plans to maintain market share by replacing closed restaurants and opening new Vietnamese-style casual dining locations[80]. - The company will broaden its cuisine offerings to capture a larger market share, including full-menu Vietnamese and French-Vietnamese restaurants[80]. - Upgrading information technology systems is a priority to support future expansion and growth[80]. Compliance and Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the period, except for a deviation regarding the roles of chairman and chief executive[138]. - All directors confirmed compliance with the Model Code for Securities Transactions during the period[142]. - No director had interests in any competing business during the period[145]. - The company has maintained a sufficient public float of at least 25% of the issued shares throughout the period, in compliance with the Listing Rules[134]. Losses and Financial Results - The loss attributable to the shareholders of the Company was approximately HK$3.1 million for the Period compared to a loss of approximately HK$0.7 million for the Last Corresponding Period[34]. - Total comprehensive loss for the period was HK$6,500,000, compared to a loss of HK$195,000 in the same period last year[162]. - Loss before income tax was HK$3,376,000, significantly higher than the loss of HK$538,000 in the previous year[152]. - Basic and diluted loss per share attributable to shareholders was HK$0.11, compared to HK$0.09 in the same period last year[168]. - The company reported a loss for the period of HK$3,052,000 for the six months ended September 30, 2022, compared to a loss of HK$752,000 for the same period in 2021[180].
民商创科(01632) - 2023 - 中期财报