Core Viewpoint - Despite an 8.9% increase in revenue to HKD 380.4 million, the company's net profit fell by 31.0% to HKD 24.9 million, highlighting the challenges faced in a tough business environment, particularly due to rising costs and intensified market competition [1][3][4]. Revenue Performance - For the six months ending June 30, 2025, the company reported total revenue of HKD 380.4 million, an increase of HKD 31.0 million from HKD 349.4 million in the same period of 2024, representing an 8.9% growth [3]. - The net profit attributable to shareholders was approximately HKD 24.9 million, down from HKD 36.1 million in 2024, a decrease of HKD 11.2 million or 31.0% [3][4]. - The net profit margin dropped significantly from 10.3% in 2024 to 6.5% in 2025, indicating a substantial impact on profitability [3][4]. Cost and Margin Analysis - The company's gross profit margin decreased from 35.7% in 2024 to 30.5% in 2025, a decline of 5.2 percentage points, primarily due to rising global coffee bean prices [4]. - Historical data shows that the gross profit margin for the entire year of 2024 was 34.11%, which was an improvement from 33.00% in 2023, but the first half of 2025 shows a significant drop below the 2024 annual level [4]. Market Outlook - The company anticipates a highly competitive and sluggish business environment in Hong Kong, which poses ongoing challenges for its operations in this key market [6]. - Conversely, there are early signs of recovery in the Chinese market, with expectations of gradually improving consumer confidence and demand, providing a more optimistic outlook for business expansion in mainland China [6]. - The company has launched a new coffee production line during the reporting period, aimed at enhancing production efficiency and supporting long-term business growth, although the effectiveness of this initiative under current cost pressures remains to be seen [6].