Financial Performance - The group's revenue for the three months ended June 30, 2022, was HKD 14,624,000, a decrease of 69.1% compared to HKD 47,496,000 in the same period of 2021[3]. - For the six months ended June 30, 2022, the group's revenue was HKD 21,195,000, down 76.4% from HKD 89,792,000 in the same period of 2021[3]. - The group reported a loss before tax of HKD 14,031,000 for the three months ended June 30, 2022, compared to a loss of HKD 4,661,000 in the same period of 2021, representing an increase in loss of 200.5%[3]. - The total comprehensive loss for the six months ended June 30, 2022, was HKD 29,391,000, which is an increase of 61.1% from HKD 18,235,000 in the same period of 2021[5]. - The loss attributable to owners of the company for the six months ended June 30, 2022, was HKD 21,032,000, compared to HKD 15,854,000 in the same period of 2021, reflecting a 32.5% increase in loss[5]. - Basic loss per share for the six months ended June 30, 2022, was HKD 0.93, compared to HKD 0.80 for the same period in 2021[5]. - For the six months ended June 30, 2022, the company reported a net loss of HKD 21,032,000, compared to a net loss of HKD 15,854,000 for the same period in 2021, representing a 32.5% increase in losses year-over-year[9]. - The company incurred a total comprehensive loss of HKD 21,032,000 for the period, which includes a loss from operations and other comprehensive income[9]. Assets and Liabilities - The group's total assets decreased to HKD 85,022,000 as of June 30, 2022, from HKD 111,478,000 as of December 31, 2021[6]. - Current liabilities increased to HKD 121,102,000 as of June 30, 2022, compared to HKD 111,617,000 as of December 31, 2021[8]. - The net current liabilities as of June 30, 2022, were HKD 95,865,000, worsening from HKD 76,318,000 as of December 31, 2021[8]. - The group's non-current assets decreased to HKD 60,785,000 as of June 30, 2022, from HKD 76,179,000 as of December 31, 2021[6]. - The company's total liabilities as of June 30, 2022, were approximately HKD 95,865,000, indicating a significant financial burden[17]. - Total liabilities increased to HKD 87,803,000 as of June 30, 2022, from HKD 74,310,000 at the end of 2021[59]. Cash Flow and Liquidity - The company's cash and cash equivalents decreased by HKD 1,027,000, ending at HKD 1,869,000 as of June 30, 2022, compared to HKD 10,636,000 at the end of June 30, 2021[11]. - Operating cash outflow for the six months was HKD 2,100,000, an improvement from HKD 7,343,000 in the previous year, indicating a 71.5% reduction in cash used in operations[11]. - As of June 30, 2022, the current ratio was 0.2, down from 0.3 in 2021, indicating a decline in liquidity[84]. - The quick ratio also decreased to 0.2 in 2022 from 0.3 in 2021, reflecting a similar trend in financial health[85]. - The debt ratio increased significantly to 203.5% in 2022 from 154.4% in 2021, suggesting a higher level of leverage[86]. Revenue Breakdown - Revenue from food and beverage sales for the six months ended June 30, 2022, was HKD 18,279,000, down 32.8% from HKD 27,207,000 in 2021[26]. - Revenue from beverage sales for the six months ended June 30, 2022, was HKD 2,744,000, down 95.5% from HKD 61,506,000 in 2021[26]. - Total revenue decreased by 76.4% from HKD 89.8 million in the first half of 2021 to HKD 21.2 million in the same period of 2022, primarily due to the suspension of CUBIC SPACE+ operations and the ban on dine-in services from January 7 to April 20, 2022[78]. Government Support - The company received government subsidies related to COVID-19 amounting to HKD 1,872,000 for the six months ended June 30, 2022, compared to HKD 820,000 in 2021[29]. - The group obtained HKD 1.2 million from the Hong Kong government's restaurant subsidy scheme and approximately HKD 0.7 million from the employment support scheme during the review period[87]. Operational Changes - The company is considering other financing arrangements to increase capital and support ongoing growth[20]. - The company has taken steps to improve its liquidity position, which includes measures to enhance cash flow and manage financial obligations[19]. - The company is in discussions with landlords for rent reductions due to decreased customer numbers caused by COVID-19[20]. - The company has implemented stricter measures to ensure the health of employees and the community, with 99% of its staff in Hong Kong vaccinated[77]. Shareholder Information - As of June 30, 2022, Welmen holds 1,093,500,000 shares, representing a 47.74% stake in the company[102]. - The major shareholder 富瑆 (Fuhsi) holds 1,093,500,000 shares, accounting for 47.74% of the total shares[102]. - The company has established a non-competition agreement with its controlling shareholder, which does not cover the shareholder's restaurant and bar businesses[111]. Corporate Governance - The company aims to maintain high corporate governance standards to enhance transparency and accountability, which is believed to create long-term value for shareholders[119]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022[129]. - The company has adopted a code of conduct for directors' securities transactions, confirming compliance with the GEM Listing Rules[126].
陆庆娱乐(08052) - 2022 - 中期财报