Financial Performance - Revenue for the six months ended June 30, 2022, was approximately HKD 1,217.6 million, a decrease of 20.6% compared to HKD 1,532.7 million in the same period of 2021[7] - Gross profit for the same period was approximately HKD 879.8 million, with a gross margin of 72.3%, compared to 71.8% in the previous year[10] - The company reported a loss attributable to shareholders of HKD 52.5 million, compared to a profit of HKD 33.4 million in the same period of 2021[10] - The company reported a net loss of HKD 52,485,000 for the six months ended June 30, 2022, compared to a profit of HKD 33,441,000 in the same period of 2021[53] - Total comprehensive loss for the period amounted to HKD 66,416,000, compared to a total comprehensive income of HKD 36,237,000 in the previous year[45] - Basic and diluted loss per share was HKD 5.23, compared to earnings of HKD 3.34 per share in the same period last year[43] Operational Changes - The number of restaurants decreased to 205 as of June 30, 2022, down from 217 at the end of 2021, reflecting a reduction of 12 locations[7] - The company plans to optimize internal operations and restaurant networks to mitigate the impact of the pandemic[10] - The management highlighted the importance of enhancing delivery and takeout services to offset the decline in dine-in traffic[10] - The company is preparing for post-pandemic recovery by improving the resilience of its business model[10] - New brands such as "Tommy Yummy," "Hua Jiao Zi," and "Niao Shi Yi" were launched in Q2 2022 to diversify the dining options and expand the customer base[23] Cost Management - Material costs for the period were HKD 337.8 million, down from HKD 431.7 million in the previous year, with a cost-to-revenue ratio of 27.7%[13] - Employee costs decreased to HKD 466.7 million in H1 2022, down from HKD 534.4 million in H1 2021, with an employee cost to revenue ratio of 38.3% compared to 34.9% in the previous year[14] - Rental and related expenses amounted to HKD 204.3 million in H1 2022, down from HKD 251.6 million in H1 2021, with a total of HKD 17.1 million in rent reductions negotiated[15] Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2022, were HKD 311.8 million, a decrease from HKD 452.6 million at the end of 2021[10] - The company has sufficient operating cash flow to meet its obligations, indicating a focus on maintaining liquidity[60] - Cash flow from operating activities for the six months ended June 30, 2022, was HKD 195,914,000, down from HKD 322,243,000 in the prior year[55] Segment Performance - Revenue from the Hong Kong, Macau, and Taiwan segment was HKD 968.5 million, down 17.7% from HKD 1,177.1 million in the previous year[74] - The China segment generated revenue of HKD 275.5 million, a decline of 32.4% from HKD 408.1 million in the same period last year[74] - The adjusted profit before tax for the Hong Kong, Macau, and Taiwan segment was HKD 6.1 million, compared to HKD 55.1 million in the previous year[74] - The adjusted loss before tax for the China segment was HKD 66.2 million, worsening from a loss of HKD 12.4 million in the same period of 2021[74] Shareholder Information - The company declared an interim dividend of HKD 0.025 per share, consistent with the previous year[8] - The company’s major shareholder, Mr. Chen, holds 538,449,500 shares, representing approximately 53.65% of the issued ordinary shares as of June 30, 2022[137] - The company’s major shareholder, Junfa Limited, holds approximately 70.67% of its shares, which further consolidates Mr. Chen's control over the company[139] Compliance and Governance - The company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules for the six months ended June 30, 2022[153] - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[59]
太兴集团(06811) - 2022 - 中期财报