Financial Performance - Revenue for the six months ended September 30, 2023, was approximately HKD 497.3 million, an increase of 20.0% compared to HKD 414.6 million in the same period last year[8]. - Profit attributable to owners of the company was approximately HKD 6.7 million, down 83.5% from HKD 40.9 million in the previous year[8]. - The group reported a significant increase in revenue from mainland China, with a growth rate of 35.3% compared to the previous year[8]. - For the six months ended September 30, 2023, total revenue was HKD 497.285 million, an increase from HKD 414.564 million in the same period of 2022, representing a growth of approximately 19.9%[63]. - The net profit for the same period was HKD 2.819 million, a significant decrease from HKD 42.513 million in the previous year, reflecting a decline of approximately 93.4%[63]. - The total comprehensive income for the period, after tax, was a loss of HKD 11.432 million, compared to a gain of HKD 7.148 million in the previous year[65]. - The company reported a basic earnings per share of HKD 0.0048 for the current period, down from HKD 0.0289 in the previous period, representing a decline of 83.4%[100]. Operational Changes - The number of restaurants in Hong Kong decreased to 32 from 37 in the same period last year, while the number in mainland China decreased to 35 from 40[9]. - The company plans to open new restaurants in the Greater Bay Area in the second half of 2023 to capture local consumer demand[16]. - A new restaurant is scheduled to open in Singapore in the first quarter of 2024, continuing the promotion of Hong Kong-style dining culture overseas[16]. - The group operated a total of 73 restaurants across Hong Kong, mainland China, Macau, and Singapore as of September 30, 2023, having opened 2 and closed 8 during the period[21]. - The group plans to open 2 flagship stores in the Greater Bay Area in Q4 2023, continuing its strategic focus on this region[25]. - In Singapore, the group operates 3 restaurants and plans to open 1 more in Q1 2024, leveraging its partnership with the Jumbo Group[26]. Cost and Expenses - The cost of goods sold was approximately HKD 131.0 million, up about 8.9% from HKD 120.3 million in the previous period, accounting for 26.4% of total revenue[29]. - Gross profit was approximately HKD 366.2 million, an increase of 24.5% from HKD 294.3 million in the previous period[32]. - Employee costs rose to approximately HKD 162.1 million, a 12.8% increase from HKD 143.6 million in the previous period, primarily due to competitive labor market conditions[33]. - Other operating expenses increased by approximately 69.0%, from HKD 53.2 million to HKD 89.8 million, accounting for 18.1% of total revenue[35]. Market Challenges - The overall restaurant market continues to face challenges, including labor shortages and rising costs, impacting the dining industry[14]. - The mainland China business experienced over 35% year-on-year growth in the first half of 2023, despite a complex external market environment[23]. - The company is focusing on optimizing its operational model to improve efficiency and competitiveness in response to market challenges[14]. Cash Flow and Assets - The group's cash and cash equivalents as of September 30, 2023, were approximately HKD 226,000,000, a decrease of about HKD 60,000,000 from HKD 286,000,000 as of March 31, 2023[41]. - Current assets decreased to HKD 327.588 million from HKD 385.904 million, indicating a decline of approximately 15.1%[67]. - The company's total equity as of September 30, 2023, was HKD 468.743 million, down from HKD 534.160 million as of March 31, 2023[69]. - The company generated cash from operating activities amounting to HKD 87,446,000, a decrease of 13.2% compared to HKD 100,858,000 in 2022[73]. - The net cash flow from investing activities was HKD 82,573,000, significantly lower than HKD 272,774,000 in the prior year, primarily due to reduced proceeds from the sale of property, plant, and equipment[73]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the listing rules[135]. - The audit committee has reviewed the accounting principles and internal control matters related to the interim financial statements[138]. - The company confirmed that all directors have fully complied with the standards set out in the code during the review period[137]. - The company will continue to review and enhance its corporate governance practices to ensure compliance with the corporate governance code[135]. Shareholder Information - The company declared an interim dividend of HKD 0.01 per share, compared to no dividend in the previous period[60]. - The company has adopted a share incentive plan, granting 750,000 shares to each of four non-executive directors, totaling 1,750,000 shares, which vested on September 29, 2023[116]. - As of September 30, 2023, the total number of issued shares is 1,411,226,450, with 770,092,000 shares held by Tsui Fat Limited, representing approximately 54.57% ownership[123]. - Mr. Li holds a beneficial interest of 499,000 shares, which accounts for 49.90% of Tsui Fat Limited's shares[123].
翠华控股(01314) - 2024 - 中期财报