Financial Performance - The Group's revenue for the six months ended June 30, 2023, was approximately HK$93.5 million, representing an increase of approximately 24.8% compared to the previous period[15]. - Loss attributable to owners of the Company decreased to approximately HK$4.1 million, a reduction of approximately HK$21.9 million from a loss of approximately HK$26.0 million in the previous period[15]. - Basic loss per share was approximately HK$0.37 cents, compared to HK$2.60 cents in the previous period[16]. - Operating profit for the period was approximately HK$664,000, a significant improvement from an operating loss of approximately HK$19.1 million in the previous period[16]. - Total comprehensive loss for the period was approximately HK$2.71 million, compared to a total comprehensive loss of approximately HK$25.39 million in the previous period[16]. - Other income for the period was approximately HK$836,000, down from HK$2.22 million in the previous period[16]. - Total revenue and other income for the six months ended June 30, 2023, was HK$94,292,000, compared to HK$77,078,000 in the previous period, marking an increase of 22.4%[57]. - The Group reported a loss attributable to owners of the Company of HK$4,105,000 for the six months ended June 30, 2023, compared to a loss of HK$25,982,000 in the previous period, indicating a significant improvement[71]. Revenue Breakdown - Revenue from external customers for the six months ended June 30, 2023, was HK$93,456,000, an increase of 24.8% compared to HK$74,857,000 for the same period in 2022[55]. - Revenue from Chinese restaurant operations was HK$93,456,000, up from HK$71,939,000 in the previous period, indicating a significant growth in this segment[57]. - Revenue from Hong Kong decreased to HK$8,686,000 from HK$18,021,000, reflecting a decline of 51.8%[55]. - Revenue from Mainland China increased to HK$84,770,000, a rise of 49.2% from HK$56,836,000 in the previous period[55]. - Revenue from the Chinese restaurant in Hong Kong was approximately HK$8.7 million, a decrease of approximately 42.6% from approximately HK$15.1 million in the Previous Period, due to operating only one restaurant[134]. - The aggregate revenue from three Chinese restaurants in Shenzhen was approximately HK$84.8 million, an increase of approximately 49.2% from approximately HK$56.8 million in the Previous Period, attributed to the relaxation of COVID-19 restrictions[134]. Expenses and Costs - The cost of materials consumed increased to approximately HK$32.92 million from HK$27.52 million in the previous period[16]. - Employee benefits expense for the period was approximately HK$26.52 million, reflecting an increase in operational costs[16]. - Other expenses increased by approximately HK$1.1 million or 6.2% to approximately HK$19.4 million, primarily due to increased laundry expenses and staff benefits[143]. - Depreciation expenses for property, plant, and equipment were HK$4,921,000, down from HK$7,870,000, a decrease of 37.4%[60]. - Depreciation for the Period was approximately HK$9.9 million, a decrease of approximately 38.6% from approximately HK$16.1 million in the Previous Period, due to the closure of certain restaurants[142]. - Employee benefits expense remained stable at approximately HK$26.5 million, despite a reduction in staff headcount, due to increased wages and allowances[137]. Assets and Liabilities - Total assets decreased from HK$141,924,000 to HK$124,767,000, a decline of approximately 12.1%[18]. - Current liabilities decreased slightly from HK$130,317,000 to HK$128,953,000, a reduction of about 1%[19]. - Non-current liabilities decreased from HK$78,269,000 to HK$65,186,000, a decline of about 16.7%[19]. - Trade payables decreased from HK$11,638,000 to HK$9,201,000, a reduction of approximately 20.9%[19]. - The Group had interest-bearing bank borrowings of approximately HK$19,194,000, of which approximately HK$3,236,000 is repayable within one year[32]. - As of June 30, 2023, the Group had net liabilities of approximately HK$69,372,000, with current liabilities exceeding current assets by approximately HK$79,206,000[30]. Cash Flow and Liquidity - Net cash generated from operating activities increased significantly to HK$15,080,000, compared to HK$6,832,000 in the previous year, representing a growth of approximately 120.5%[22]. - Cash and cash equivalents at the end of the period rose to HK$25,011,000 from HK$22,255,000, an increase of about 12.5%[22]. - Cash generated from investing activities decreased to HK$960,000 from HK$2,187,000, a decline of approximately 56%[22]. - The Group has taken measures to improve its liquidity position, including negotiating for the renewal of bank borrowings[32]. - The Group is actively negotiating with banks to obtain additional funds to finance working capital and improve liquidity positions[40]. Management and Strategy - The Group is focused on strengthening its position in Hong Kong and the PRC while seeking suitable opportunities for expansion[125]. - The management is actively implementing cost control measures to optimize operations and enhance production efficiency in response to the challenging business environment[125]. - 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[192]. - The Group aims to enhance brand image and recognition through marketing initiatives and improve existing restaurant facilities to attract new customers[192]. - The Group will consider expanding its catering business into other cuisines and operation modes when opportunities arise, aiming to maximize shareholder returns[193]. Future Outlook and Challenges - The Group anticipates facing various challenges in the foreseeable future due to uncertainties in the Hong Kong and China economies and consumer sentiment[181]. - Management is optimistic about the growth potential of the catering industry in 2024 following economic recovery, supported by the experience of senior management in the Chinese restaurant business[186]. - Future risks include potential labor shortages and intense competition for qualified individuals in the food and beverage industry[190]. - The reopening of borders between Hong Kong and China is expected to accelerate the recovery of economic activities to pre-pandemic levels[187].
利宝阁集团(01869) - 2023 - 中期财报