Financial Performance - For the six months ended September 30, 2022, the group recorded unaudited revenue of approximately HKD 14,100,000, a decrease of about HKD 8,600,000 or 37.9% compared to HKD 22,700,000 for the same period in 2021[9]. - The group reported an unaudited loss attributable to owners of the company of approximately HKD 8,000,000, compared to a loss of approximately HKD 600,000 for the same period in 2021[9]. - Basic and diluted loss per share attributable to owners of the company was HKD 0.30, compared to HKD 0.02 for the same period in 2021[9]. - Gross profit for the six months ended September 30, 2022, was HKD 10,860,000, down from HKD 17,851,000 in the same period of 2021[11]. - The group incurred operating losses of HKD 7,595,000 for the six months ended September 30, 2022, compared to a profit of HKD 777,000 for the same period in 2021[11]. - The group’s total comprehensive loss for the period was HKD 8,074,000, compared to HKD 609,000 for the same period in 2021[11]. - For the six months ended September 30, 2022, the company's revenue from restaurant operations was HKD 14,133,000, a decrease of 38.1% compared to HKD 22,749,000 for the same period in 2021[28]. - The pre-tax loss for the six months ended September 30, 2022, was HKD 8,013,000 compared to a loss of HKD 609,000 for the same period in 2021[37]. - The group recorded a loss of approximately HKD 8,100,000 for the six months ended September 30, 2022, compared to a loss of HKD 600,000 in the same period of 2021, primarily due to a significant decline in revenue[87]. Assets and Liabilities - Total assets as of September 30, 2022, amounted to HKD 54,199,000, a decrease from HKD 66,713,000 as of March 31, 2022[13]. - Current liabilities were HKD 28,680,000 as of September 30, 2022, compared to HKD 29,572,000 as of March 31, 2022[13]. - Cash and cash equivalents decreased to HKD 42,063,000 from HKD 60,672,000 as of March 31, 2022[13]. - The total equity as of September 30, 2022, was HKD 35,273,000, down from HKD 43,047,000 as of March 31, 2022, representing a decrease of 18.1%[18]. - The accumulated losses increased to HKD (107,910,000) as of September 30, 2022, from HKD (99,897,000) as of April 1, 2022[18]. - The company's non-current liabilities included lease liabilities of HKD 7,530,000 as of September 30, 2022, compared to HKD 1,735,000 as of March 31, 2022[16]. - The total lease liabilities increased to HKD 13,898,000 as of September 30, 2022, from HKD 6,089,000 as of March 31, 2022, reflecting a growth of about 128%[43]. - The group’s bank borrowings secured by collateral amounted to HKD 12,917,000 as of September 30, 2022, down from HKD 14,854,000 as of March 31, 2022, a decrease of approximately 13%[57]. - Total borrowings increased to approximately HKD 26,800,000 as of September 30, 2022, from HKD 20,900,000 as of March 31, 2022[97]. - As of September 30, 2022, the company's debt-to-equity ratio was approximately 76.5%, an increase from 48.7% as of March 31, 2022, primarily due to increased lease liabilities and a decrease in equity attributable to owners[99]. Cash Flow and Expenses - The net cash used in operating activities for the six months ended September 30, 2022, was HKD (15,902,000), compared to HKD (722,000) for the same period in 2021[21]. - Cash and cash equivalents as of September 30, 2022, were approximately HKD 42,100,000, down from HKD 60,700,000 as of March 31, 2022[96]. - The cash and cash equivalents decreased by HKD 18,609,000 during the reporting period, ending at HKD 42,603,000 compared to HKD 68,994,000 at the end of the same period in 2021[21]. - Employee benefit expenses, including director remuneration, decreased to HKD 8,833,000 in 2022 from HKD 10,502,000 in 2021, a decline of about 16%[31]. - Administrative expenses reduced by approximately 16.9% from HKD 8,900,000 to HKD 7,400,000 during the same period, mainly due to decreases in marketing and promotional expenses[83]. - Tax expenses decreased significantly from HKD 900,000 to HKD 100,000, attributed to a reduction in taxable income from existing restaurants[85]. - Financial costs for the six months ended September 30, 2022, totaled HKD 375,000, a decrease of 27.4% from HKD 517,000 for the same period in 2021[30]. - Depreciation expenses remained stable at approximately HKD 2,100,000 and HKD 2,600,000 for the six months ended September 30, 2021, and 2022, respectively[80]. Shareholder Information - As of September 30, 2022, the major shareholder, Mr. Wang Wenwei, holds 1,500,000,000 shares, representing 56.7% of the company's equity[118]. - Mr. Wang Wenwei also holds an additional 162,120,000 shares directly, accounting for 6.2% of the equity[119]. - Other significant shareholders include Ms. Lin Huijun and Mr. Chen Zetao, each holding 20,000,000 shares, which is 0.76% of the equity[121]. - Fortune Round Limited, owned entirely by Mr. Wang Wenwei, holds 1,500,000,000 shares, representing 56.7% of the total equity[124]. - The total equity held by Ms. Li Yingyan, Mr. Li Chi Keung, and Ms. Wong Hoi Ping collectively amounts to 1,662,120,000 shares, which is 62.9% of the equity[124]. - Keenfull Investments Limited, controlled by Mr. Li Chi Keung, holds 317,280,000 shares, representing 12.0% of the equity[124]. Corporate Governance and Compliance - The company has complied with the corporate governance code, with a noted exception regarding the roles of the Chairman and CEO being held by the same individual[114][115]. - The company has adopted a code of conduct for directors' securities transactions, which complies with GEM Listing Rules[131]. - The audit committee has been established in accordance with GEM Listing Rules and is responsible for reviewing financial statements and internal control procedures[132]. - The company did not purchase, sell, or redeem any shares during the review period[118]. - The company has not granted any stock options as of September 30, 2022, for the six-month period[129]. Business Operations and Strategy - The company aims to maintain sufficient working capital to support daily operations while monitoring business trends for potential market opportunities[112]. - The company plans to consolidate its position in the Hong Kong restaurant sector and explore opportunities for introducing popular restaurant brands through franchising or partnerships[112]. - The company faces risks related to the supply of food ingredients, which may experience price volatility[109]. - The company has no major investment or capital asset plans beyond those disclosed in the report as of September 30, 2022[110]. - The company will continue to manage expenses conservatively and maintain a cautious outlook on profitability in the coming months due to economic uncertainties[112]. - The company has confirmed that all bank borrowings are guaranteed by Mr. Wang, with an effective annual interest rate of 2.75%[58]. Changes and Developments - The company has undergone a name change to Royal Group Holdings International Company Limited, effective from September 19, 2022[62]. - The restaurant "Hanlin Tea Room" closed in August 2021, impacting revenue for the current reporting period[73]. - The restaurant "Dumpling Master" temporarily suspended operations in August 2022 due to relocation, affecting its revenue contribution[73]. - The company has not disclosed any new product or technology developments during this reporting period[27]. - There were no significant changes in accounting policies that impacted the financial statements for the six months ended September 30, 2022[24].
皇玺集团(08300) - 2023 - 中期财报