Revenue Performance - Revenue for the six months ended 30 September 2022 was approximately HK$114.2 million, a decrease of approximately 26.8% from approximately HK$156.0 million for the same period in 2021[9]. - Revenue from Chinese restaurant operations for the six months ended September 30, 2022, was HK$114,246,000, compared to HK$156,011,000 in 2021, representing a decrease of approximately 26.8%[155]. - Other income increased by approximately 367.6% to approximately HK$15.9 million, primarily due to rent concessions of approximately HK$7.9 million and one-off government grants of approximately HK$4.9 million[19]. - The loss for the period was impacted by various income sources, totaling HK$15,915,000 for the six months ended September 30, 2022, compared to HK$3,449,000 in 2021[175]. Financial Loss and Expenses - Loss and total comprehensive expenses for the period were approximately HK$14.6 million, representing a decrease of approximately 21.9% compared to approximately HK$18.7 million for the six months ended 30 September 2021[9]. - The loss for the period decreased by approximately 21.9% from HK$18.7 million to HK$14.6 million, attributed to the combined effects of various factors discussed[31]. - For the six months ended September 30, 2022, the company reported a loss attributable to owners of HK$14,571,000, an improvement from a loss of HK$18,684,000 in the same period of 2021, representing a decrease in loss of approximately 22.5%[189]. - The company incurred a total comprehensive loss of HK$14,571,000 for the six months ended September 30, 2022, compared to a loss of HK$18,684,000 for the same period in 2021[133]. Cost Management - Cost of inventories consumed decreased by approximately 22.9% to approximately HK$30.7 million, in line with the decrease in revenue[24]. - The cost of inventories consumed as a percentage of revenue increased from approximately 25.5% to approximately 26.9%, attributed to rising food costs under inflation[24]. - Staff costs decreased by approximately 9.3% to approximately HK$48.8 million, mainly due to a reduction in headcount and fewer part-time employees[25]. - Total staff costs (excluding directors' remuneration) decreased to HK$44,785,000 in 2022 from HK$50,023,000 in 2021, reflecting a reduction of about 10.5%[181]. - Total other expenses for the six months ended September 30, 2022, were HK$15,337,000, a decrease from HK$16,976,000 in 2021, representing a reduction of approximately 9.7%[184]. Cash Flow and Liquidity - As of September 30, 2022, the Group's cash and cash equivalents were approximately HK$53.8 million, down from HK$80.2 million as of March 31, 2022[38]. - The company's cash and bank balances decreased significantly from HK$80,180,000 as of March 31, 2022, to HK$53,755,000 as of September 30, 2022, a decline of 33.0%[128]. - The company reported net current liabilities of HK$73,609,000 as of September 30, 2022, compared to HK$60,298,000 as of March 31, 2022, indicating a worsening liquidity position[130]. - Cash generated from operations for the six months ended September 30, 2022, was HK$23,360,000, down 29.0% from HK$32,865,000 in the same period of 2021[134]. Shareholder Information - The Group does not recommend the payment of any interim dividend for the period[9]. - The Company maintained a sufficient public float of at least 25% of the issued shares during the reporting period[63][66]. - The Group had no material acquisition or disposal of subsidiaries, associates, or joint ventures during the period[54]. - As of September 30, 2022, Mr. Tam Kar Wai holds a 51% interest in the company through Wonderful Cosmos Limited, which owns 586,500,000 shares[93]. Governance and Compliance - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the period[86][90]. - The Company has complied with all code provisions of the Corporate Governance Code during the period[77][81]. - The Board has adopted the Model Code for Securities Transactions by Directors, with all Directors confirming compliance[78][82]. Operational Impact - The fifth wave of COVID-19 pandemic and related government measures significantly impacted restaurant operations and customer numbers[11]. - The Group operated six Chinese full-service restaurants under the brand "Palace" and one restaurant under the brand "Royal Courtyard" as of 30 September 2022[13]. - The Group's operations are entirely located in Hong Kong, with all non-current assets also situated there[160].
维力生活科技(01703) - 2023 - 中期财报