Financial Performance - The Group's revenue for the six months ended June 30, 2022, was approximately HK$74.9 million, representing a decrease of approximately 44.2% compared to the previous period[14]. - Loss attributable to owners of the Company amounted to approximately HK$26.0 million, an increase in loss by approximately HK$0.6 million compared to a loss of approximately HK$25.4 million for the previous period[17]. - Loss per share was approximately HK$2.60 cents[18]. - Revenue for the six months ended June 30, 2022, was HK$74,857,000, a decrease of 44.3% compared to HK$134,118,000 for the same period in 2021[19]. - Operating loss for the period was HK$19,131,000, slightly improved from a loss of HK$20,226,000 in the previous year[19]. - Loss attributable to owners of the Company was HK$25,982,000, compared to HK$25,396,000 in the same period last year, indicating a 2.3% increase in loss[19]. - The total comprehensive expense for the period was HK$25,387,000, compared to HK$26,135,000 in the previous year, showing a decrease of 2.9%[19]. - For the six months ended June 30, 2022, the Group recorded a consolidated net loss of approximately HK$25,387,000[35]. Assets and Liabilities - Total assets decreased to HK$164,822,000 as of June 30, 2022, down from HK$206,513,000 at the end of 2021, reflecting a decline of 20.2%[21]. - Non-current liabilities amounted to HK$83,489,000, a decrease from HK$102,999,000 at the end of 2021, representing a reduction of 18.9%[22]. - Total liabilities were HK$229,209,000, down from HK$245,513,000, indicating a decrease of 6.6%[22]. - As of June 30, 2022, the Group had net liabilities of approximately HK$64,387,000, with current liabilities exceeding current assets by approximately HK$90,144,000[35]. - Cash and cash equivalents decreased to HK$22,255,000 from HK$26,817,000, a decline of 17.0%[21]. Cash Flow and Financing - Net cash generated from operating activities for the six months ended June 30, 2022, was HK$6,832,000, a decrease from HK$15,676,000 in the same period of 2021[26]. - The Group's interest-bearing bank borrowings amounted to approximately HK$22,311,000 as of June 30, 2022, with HK$3,155,000 repayable within one year[37]. - The Group will actively negotiate with the bank for the renewal of its bank borrowings to secure necessary funds for working capital[37]. - The Group is actively negotiating with banks to secure additional funds to improve liquidity and meet future financial needs[41]. - A substantial shareholder has agreed to provide ongoing financial support to ensure the Group can meet its liabilities and continue operations without significant curtailment[44]. Revenue Breakdown - Revenue from external customers for the six months ended June 30, 2022, was HK$74,857,000, a decrease of approximately 44.3% compared to HK$134,118,000 for the same period in 2021[58]. - Revenue from Hong Kong customers was HK$18,021,000, down from HK$27,114,000 in the previous year, while revenue from Mainland China customers decreased from HK$107,004,000 to HK$56,836,000[58]. - Revenue from Chinese restaurant operations decreased to HK$71,939,000, down 36.2% from HK$112,707,000 in the previous year[60]. - Total revenue and other income for the six months ended June 30, 2022, was HK$77,078,000, a decline of 45.1% compared to HK$140,475,000 in 2021[60]. Cost Management - The Group has implemented measures to control expenses, including optimizing human resources and adjusting management remuneration[43]. - Employee benefits expense was approximately HK$26.5 million, representing a decrease of approximately 34.5% compared to the previous period[138]. - Other expenses amounted to approximately HK$18.2 million, a decrease of approximately 45.1% from approximately HK$33.2 million in the previous period[140]. Impairment and Provisions - The company reported an impairment loss on property, plant, and equipment of HK$1,999,000 for the period[19]. - Impairment loss on property, plant, and equipment was approximately HK$2.0 million, while impairment loss on right-of-use assets was approximately HK$0.5 million, both due to ongoing losses at the Thai (Mongkok) Restaurant[145]. - A provision of HK$7.6 million has been made for contingent liabilities related to a court action, up from HK$6.0 million as of December 31, 2021[166]. Future Outlook - The Group anticipates facing various challenges in the foreseeable future due to uncertainties in the Hong Kong and China economies and the ongoing pandemic[177]. - Management is optimistic that the pandemic will stabilize by the end of 2022, potentially improving consumer confidence and economic recovery[181]. - The Group's future success relies on its ability to adapt to changing market trends and customer preferences, which may require significant investment in research and development[177]. - The Group plans to implement a multi-brand strategy for steady growth and prudent expansion in Hong Kong, alongside progressive expansion in the PRC market[186]. Shareholder Information - As of June 30, 2022, Mr. Chan Chun Kit holds a 37.65% interest in the Company through a controlled corporation[195]. - The total number of shares issued by the Company is 1,000,000,000[195]. - Mr. Chan, together with Mrs. Chan and Bright Creator, controls approximately 39.52% of the entire issued share capital of the Company[198].
利宝阁集团(01869) - 2022 - 中期财报