Restaurant Operations - The group opened two new restaurants during the six months ended September 30, 2022: a Taiwanese hot pot restaurant in Mong Kok and QUE Japanese Café in Tung Chung[18]. - The group closed the restaurant in Shanghai due to significantly lower than expected foot traffic, resulting in a total of 37 restaurants as of September 30, 2022[18][19]. - The number of restaurants in Hong Kong remained stable at 34, with a slight reduction in the number of "Pin Yue" restaurants from 3 to 2[19]. - The group experienced employee shortages, leading to the closure of two restaurants in September 2022, with plans to reallocate staff to more efficient locations[18]. - The group reported a total of 10 new restaurants opened during the fiscal year, with 5 closures, resulting in a net increase of 2 restaurants[23]. - The group maintains a diversified cuisine offering, with 19 Japanese, 12 Chinese, 3 Southeast Asian, and 3 Western restaurants as of September 30, 2022[22]. - The group aims to enhance employee productivity by reallocating staff to higher-performing restaurants[18]. - The group is focused on strategic expansion and optimizing restaurant performance to improve profitability[18]. Financial Performance - The company recorded revenue of HKD 335,486,000 for the first half of the 2023 fiscal year, an increase of 6.4% compared to HKD 315,172,000 in the same period of 2021[32]. - The total number of customers served across all restaurants was 1,431,274, a decrease of 106,359 customers or 6.9% compared to the first half of the 2022 fiscal year[28]. - Average spending per customer increased from HKD 205.0 to HKD 234.4, reflecting a positive trend in consumer spending[28]. - The company received approximately HKD 1,700,000 in subsidies related to the anti-epidemic fund and about HKD 14,300,000 from the employment support scheme during the first half of the 2023 fiscal year[37]. - The company achieved a slight increase in average daily revenue per restaurant, surpassing the benchmark set in June 2020, despite ongoing social distancing measures[36]. - The cost of materials and supplies increased by approximately 4.2% compared to the previous year, aligning with revenue growth, while the percentage of materials and supplies to revenue slightly decreased from 30.4% to 29.8%[39]. - Employee costs rose by 19.0% to HKD 104,416,000, representing 31.1% of total revenue, compared to 27.8% in the previous year[39]. - The company experienced a significant impact on customer numbers due to the government's dining restrictions prior to April 20, 2022[28]. - Employee costs increased by approximately 19.0% in the first half of the 2023 fiscal year compared to the same period in 2022, with employee costs as a percentage of revenue rising from 27.8% to 31.1%[40]. - Property rental and related expenses grew by about 23.9% due to more restaurants being operational, with these expenses as a percentage of revenue increasing from 5.2% to 6.0%[42]. - Other expenses amounted to approximately HKD 18,083,000, an increase of about 11.5%, with these expenses as a percentage of revenue slightly rising from 5.1% to 5.4%[43]. - Net profit for the six months ended September 30, 2022, was approximately HKD 32,092,000, representing an increase of about HKD 7,080,000 or 28.3%[45]. - Adjusted net profit decreased by approximately HKD 8,875,000 or 35.5% after accounting for government subsidies and listing expenses[46]. - As of September 30, 2022, the group had cash and cash equivalents of HKD 117,400,000, with no bank borrowings[48]. - The group is in a net cash position, indicating no significant debt relative to equity[49]. - The interim cash dividend declared is HKD 0.048 per share, totaling approximately HKD 18,200,000[58]. - The current dividend policy is to distribute no less than 50% of the profit attributable to the owners of the company[59]. Strategic Focus and Future Plans - The business is expected to continue improving as vaccination rates in Hong Kong and mainland China rise, with a focus on enhancing food quality and service[60]. - The company is actively negotiating new potential locations in Hong Kong and mainland China, in addition to two committed new leases[62]. - The company emphasizes the importance of providing value for money to meet customer expectations during challenging times[60]. - The company plans to continue its strategy of market expansion and enhancing customer dining experiences[60]. - The focus on improving dining experiences aligns with the company's strategy to adapt to changing customer behaviors due to social distancing[60]. - The company plans to continue its market expansion and product development strategies in the upcoming periods[196]. Share Options and Governance - The total number of unexercised share options for Mr. Liu is 60,000 shares, representing approximately 0.016% of the equity[66]. - The company has granted share options to directors, with various exercise prices and periods outlined[66]. - The company is committed to maintaining transparency regarding the interests of directors and senior management in shares and related securities[66]. - The company repurchased a total of 8,456,000 shares from the market between September 28, 2022, and October 11, 2022, demonstrating confidence in its long-term business prospects[75]. - The highest share price during the repurchase period was HKD 1.09, while the lowest was HKD 1.07, with a total cost of approximately HKD 10,000,000[77]. - As of September 30, 2022, the company had 7,260,000 unexercised share options, representing about 1.9% of the total issued share capital[85]. - The share option plan allows for a total of 40,000,000 shares to be granted, which is approximately 10.6% of the company's issued share capital[81]. - The exercise price for share options is determined based on the average closing price of the shares over the five trading days prior to the grant date[80]. - The company aims to attract and retain experienced personnel through the share option plan, which has been in effect since January 17, 2018, for a duration of 10 years[81]. - The company purchased shares at an average price of approximately HKD 1.08 during the repurchase period[77]. - The repurchase of shares is intended to enhance shareholder value by reflecting the company's belief in its intrinsic value[75]. - The company has not engaged in any other purchases, sales, or redemptions of its listed securities during the reporting period[77]. - The share option plan requires independent non-executive director approval for grants to directors or major shareholders, ensuring compliance with governance standards[83]. Compliance and Corporate Governance - The company has complied with the corporate governance code as per GEM listing rules during the reporting period[193]. - The audit committee reviewed the unaudited consolidated financial statements for the six months ended September 30, 2022, and found them compliant with applicable accounting standards[195]. - The company has no competition-related business activities from directors or major shareholders as of September 30, 2022[194]. - The company expressed gratitude to all employees and management for their contributions during the reporting period[197]. - The board of directors includes executive and independent non-executive members, ensuring a balanced governance structure[198]. - The company has adopted written guidelines for directors' securities transactions, adhering to GEM listing rules[194]. - The financial statements reviewed include the consolidated financial position as of September 30, 2022, and the related consolidated income statement for the six-month period ending on that date[200]. - The report complies with the GEM listing rules and Hong Kong Accounting Standards No. 34 for interim financial reporting[200]. - The responsibility for preparing and presenting the financial statements lies with the company's board of directors[200].
尝高美集团(08371) - 2023 - 中期财报