叙福楼集团(01978) - 2023 - 中期业绩

Financial Highlights The company reported significant growth in revenue and profit, with interim and special dividends declared Financial Highlights | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Revenue | 660.5 HKD Million | 400.0 HKD Million | | Profit Attributable to Shareholders | 47.6 HKD Million | 6.8 HKD Million | | Earnings Per Share (Basic and Diluted) | 5.94 HK Cents | 0.85 HK Cents | | Interim Dividend | 4.75 HK Cents | Nil | | Special Dividend | 12.50 HK Cents | Nil | Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements, including comprehensive income, financial position, and changes in equity Unaudited Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2023, group revenue surged 65.1% to HKD 660 million, with profit attributable to shareholders increasing over sixfold to HKD 47.55 million, driven by market recovery and cost control Unaudited Condensed Consolidated Statement of Comprehensive Income | Item | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 660,509 | 400,023 | | Profit Before Tax | 56,207 | 930 | | Profit for the Period Attributable to Shareholders | 47,550 | 6,788 | | Earnings Per Share (Basic and Diluted) | 5.94 HK Cents | 0.85 HK Cents | Condensed Consolidated Statement of Financial Position As of June 30, 2023, total assets were HKD 870 million and total liabilities were HKD 475 million, showing slight growth from year-end 2022, while total equity decreased slightly to HKD 395 million due to dividend payments Condensed Consolidated Statement of Financial Position | Item | As at June 30, 2023 (HKD Thousand) | As at December 31, 2022 (HKD Thousand) | | :--- | :--- | :--- | | Total Assets | 869,885 | 846,592 | | Non-current Assets | 451,080 | 418,403 | | Current Assets | 418,805 | 428,189 | | Total Liabilities | 474,993 | 437,090 | | Non-current Liabilities | 166,235 | 149,025 | | Current Liabilities | 308,758 | 288,065 | | Total Equity | 394,892 | 409,502 | Unaudited Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2023, total shareholders' equity decreased from HKD 409.5 million to HKD 394.9 million, primarily due to dividend payments of HKD 62.16 million exceeding the period's profit of HKD 47.55 million Unaudited Condensed Consolidated Statement of Changes in Equity | Item (HKD Thousand) | Share Capital | Share Premium | Retained Earnings | Other Reserves | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2023 | 80,000 | 122,781 | 179,102 | 27,619 | 409,502 | | Profit for the period | — | — | 47,550 | — | 47,550 | | Dividends | — | — | (62,160) | — | (62,160) | | As at June 30, 2023 | 80,000 | 122,781 | 164,492 | 27,619 | 394,892 | Notes to the Financial Statements This section provides detailed notes on the financial statements, covering general information, revenue, key income statement and balance sheet items, and dividends General Information and Basis of Preparation The company is an investment holding company registered in the Cayman Islands, with subsidiaries primarily operating Asian cuisine restaurants in Hong Kong, and these interim financial statements are prepared under HKAS 34 - The company is an investment holding company, with its principal business being the operation of full-service restaurants in Hong Kong, offering Asian cuisine, particularly Japanese and Cantonese dishes[93] - The unaudited interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure requirements of the Listing Rules[94] Revenue and Segment Information The group's total revenue primarily stems from Hong Kong restaurant operations, segmented into 'Own Brands' and 'Franchised Brands', with franchised brands contributing over 70% of total revenue and profit, and all non-current assets and revenue sources located in Hong Kong Revenue Sources | Revenue Source | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--- | :--- | :--- | | Restaurant Operations | 657,367 | 397,354 | | Sale of Food Ingredients and Others | 3,142 | 2,669 | | Total | 660,509 | 400,023 | Business Segment Performance | Business Segment | Revenue (HKD Thousand) | Segment Profit/(Loss) (HKD Thousand) | | :--- | :--- | :--- | | Own Brands | 173,993 | 14,897 | | Franchised Brands | 483,374 | 73,227 | | Sale of Food Ingredients and Others | 3,142 | (1,749) | | Total | 660,509 | 86,375 | - All of the Group's operating entities, sources of revenue, and non-current assets are located in Hong Kong[84] Key Income Statement Items Other income and gains significantly decreased due to lower government grants, while finance income rose sharply from increased bank deposit interest, and income tax shifted from a credit to an expense Other Income and Gains | Other Income and Gains (HKD Thousand) | 2023 | 2022 | | :--- | :--- | :--- | | Government grants | 249 | 17,766 | | Credit card company promotion income | 1,650 | 1,650 | | Miscellaneous income | 613 | 790 | | Total | 2,512 | 20,206 | Finance Income and Costs | Finance Income and Costs (HKD Thousand) | 2023 | 2022 | | :--- | :--- | :--- | | Finance income | 6,662 | 470 | | Finance costs | (4,608) | (3,225) | Tax | Tax (HKD Thousand) | 2023 | 2022 | | :--- | :--- | :--- | | Current income tax | 10,760 | 1,253 | | Deferred income tax | (2,103) | (7,111) | | Income tax expense/(credit) | 8,657 | (5,858) | Earnings Per Share Basic earnings per share significantly increased to 5.94 HK Cents from 0.85 HK Cents due to substantial profit growth, with diluted EPS remaining the same as no potential dilutive ordinary shares were outstanding Earnings Per Share Calculation | Item | 2023 | 2022 | | :--- | :--- | :--- | | Profit attributable to shareholders (HKD Thousand) | 47,550 | 6,788 | | Number of ordinary shares in issue (Thousand shares) | 800,000 | 800,000 | | Earnings Per Share | 5.94 HK Cents | 0.85 HK Cents | Dividends The Board declared an interim dividend of 4.75 HK Cents and a special dividend of 12.50 HK Cents per share for the six months ended June 30, 2023, totaling HKD 138 million, with no interim dividend declared in the prior period - The Board declared an interim dividend of 4.75 HK Cents per share (totaling HKD 38 million) and a special dividend of 12.50 HK Cents per share (totaling HKD 100 million)[46] - No interim dividend was declared for the corresponding period last year (six months ended June 30, 2022)[46] Key Balance Sheet Items Trade receivables primarily consist of credit card settlements, mostly within 30 days, while trade payables typically have 30 to 60-day payment terms, and other payables include accrued employee benefits and contract liabilities Ageing Analysis of Trade Receivables | Ageing Analysis of Trade Receivables | As at June 30, 2023 (HKD Thousand) | As at December 31, 2022 (HKD Thousand) | | :--- | :--- | :--- | | Within 30 days | 5,404 | 7,747 | | 31 to 60 days | 304 | 223 | | 61 to 180 days | 546 | 568 | | Total | 6,254 | 8,538 | Ageing Analysis of Trade Payables | Ageing Analysis of Trade Payables | As at June 30, 2023 (HKD Thousand) | As at December 31, 2022 (HKD Thousand) | | :--- | :--- | :--- | | Within 30 days | 39,419 | 37,727 | | 31 to 60 days | 15,437 | 20,208 | | Over 61 days | 634 | 375 | | Total | 55,490 | 58,310 | Management Discussion and Analysis This section reviews the group's business and financial performance, liquidity, employee policies, and future outlook, highlighting strong recovery and strategic initiatives Business Review The group, a leading full-service, multi-brand Asian cuisine restaurant operator in Hong Kong, expanded to 55 restaurants as of June 30, 2023, demonstrating strong resilience and rapid revenue rebound post-pandemic restrictions - The Group operates 55 restaurants in Hong Kong, comprising 16 own-brand restaurants and 39 franchised-brand restaurants[27] Number of Restaurants by Brand Type | Brand Type | As at June 30, 2023 | As at June 30, 2022 | | :--- | :--- | :--- | | Own Brands | 16 | 16 | | Franchised Brands | 39 | 34 | | Total | 55 | 50 | - Following the relaxation of social distancing measures in late April 2022, the Group's business demonstrated strong resilience, with a rapid rebound in turnover[7] Financial Review Revenue increased by 65.1% to HKD 660 million due to eased social distancing and network expansion, with profit surging over 600% to HKD 47.6 million, and improved cost control reflected in lower food and beverage costs as a percentage of revenue - Revenue increased by 65.1% from HKD 400 million in the prior period to HKD 660 million, primarily due to the lifting of social distancing measures and an increase in the number of restaurants from 50 to 55[148] - Franchised brand revenue grew by 64.6%, accounting for 73.2% of total revenue, while own-brand revenue increased by 67.9%[148] - Food and beverage costs as a percentage of revenue decreased from 32.3% to 30.5%, and staff costs as a percentage of revenue decreased from 32.7% to 30.8%[175][176] - Profit for the period significantly increased by 600.5% from HKD 6.8 million to HKD 47.6 million[177] Liquidity and Financial Resources The group maintains a robust financial position, primarily funded by internal cash flow, with zero interest-bearing bank borrowings and a healthy current ratio of approximately 1.4 times, indicating ample liquidity - As at June 30, 2023, the Group held short-term bank deposits of approximately HKD 212.5 million and cash and cash equivalents of approximately HKD 147.5 million[12] - The Group had no outstanding interest-bearing bank borrowings, resulting in a zero gearing ratio[13] - The current ratio was approximately 1.4 times (current assets of HKD 418.8 million / current liabilities of HKD 308.8 million)[153] Employees and Remuneration Policy As of June 30, 2023, the group's employee count increased to 1,919, with a market-driven remuneration policy and an employee share option scheme in place, though no options were granted during the period - As at June 30, 2023, the Group had 1,919 employees, an increase from 1,768 as at December 31, 2022[119] - The company has a share option scheme, but no share options have been granted, exercised, or lapsed since its adoption[157] Outlook The group is optimistic about Hong Kong's economic recovery and increased tourism, planning to counter rising costs and labor shortages through menu improvements, automation, brand strengthening, network expansion, and digital marketing - With the full resumption of cross-border travel between Hong Kong and mainland China and government tourism promotion, an increase in visitor arrivals is expected, creating development opportunities for the catering industry[19] - The Group is optimistic about Hong Kong's economic recovery and has established a professional management team to address future challenges and development[20] - To address rising food costs and labor shortages, the Group will actively seek cost-effective suppliers and introduce more automation systems and artificial intelligence[146] - Future strategies include strengthening existing brands, introducing new brands, expanding the store network, enhancing digital marketing, and continuously launching innovative products[20][185] Corporate Governance and Other Information This section covers dividend declarations, corporate governance practices, and other disclosures, including compliance with the Corporate Governance Code and review of interim results Declaration of Dividends To commemorate its fifth listing anniversary and acknowledge shareholder support, the Board declared an interim dividend of 4.75 HK Cents and a special dividend of 12.50 HK Cents per share, retaining over HKD 200 million for operations and development post-payout - An interim dividend of 4.75 HK Cents per share (totaling HKD 38 million) and a special dividend of 12.50 HK Cents per share (totaling HKD 100 million) were declared[21] - The special dividend was distributed to thank shareholders for their support during the pandemic and to celebrate the Group's fifth listing anniversary[161] - To qualify for the dividends, shareholders must submit transfer documents by 4:30 p.m. on September 15, 2023[162] Corporate Governance Practices The group is committed to high corporate governance standards, complying with all code provisions except for the combined roles of Chairman and CEO, which the Board believes serves the group's and shareholders' best interests - The company has adopted the Corporate Governance Code as set out in Appendix 14 of the Listing Rules[23] - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Wong Kit Lung, a deviation from the Corporate Governance Code, which the Board believes ensures continuity in business planning and serves the overall interests of the company and its shareholders[28] Other Disclosures During the period, the group had no significant acquisitions or disposals, nor any purchases, sales, or redemptions of its listed securities, and the interim results were reviewed by the Audit Committee but not audited by the company's auditor - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[14][180] - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[29] - The interim results have not been audited or reviewed by the company's auditor but have been reviewed by the Audit Committee[25][165]