叙福楼集团(01978) - 2024 - 中期财报

Revenue Performance - Revenue decreased by 20.9% to HK$522.6 million in the first half of 2024 compared to HK$660.5 million in the same period last year[19] - Franchised brand revenue decreased by 20.4% to HK$384.7 million, accounting for 73.6$136.0 million[19] - Revenue for the six months ended June 30, 2024, was HK$522.61 million, a decrease from HK$660.51 million in the same period in 2023[51] - Revenue from restaurant operations and ingredient sales decreased to HK$522.61 million in 2024 from HK$660.51 million in 2023, representing a decline of 20.9%[63] - Revenue from the company's own brands decreased to HK$136.01 million in 2024 from HK$173.99 million in 2023, a decline of 21.8%[67] - Revenue from franchised brands decreased to HK$384.65 million in 2024 from HK$483.37 million in 2023, a decline of 20.4%[67] Costs and Expenses - Food and beverage costs decreased by 19.4% to HK$162.3 million, representing 31.1$194.5 million, representing 37.2% of revenue[22] - Depreciation, rent, and related expenses for right-of-use assets decreased by 8.4% to HK$90.1 million[23] - Employee costs decreased to HK$194.463 million for the six months ended June 30, 2024, from HK$203.22 million in the same period in 2023[51] - Employee benefits expenses, including wages and salaries, amounted to HKD 172,627,000, with discretionary bonuses totaling HKD 11,136,000[76] - Total employee benefits and short-term compensation increased to 4,924 thousand HKD in 2024 from 4,806 thousand HKD in 2023[102] Financial Performance and Losses - The company reported a loss of HKD 26.5 million for the period, compared to a profit of HKD 47.6 million in the same period last year, primarily due to a 20.9$26.535 million, compared to a profit of HK$47.55 million in the same period in 2023[51] - The company recorded a loss before tax of HK$32.069 million for the six months ended June 30, 2024, compared to a profit of HK$56.207 million in the same period in 2023[51] - The company recorded a net loss of HK$26,535 thousand for the six months ended June 30, 2024[54] - The company reported a basic loss per share of HKD 3.32 cents, based on a loss attributable to shareholders of HKD 26,535,000 and 800,000,000 issued ordinary shares[78][79] Assets and Liabilities - As of June 30, 2024, the company's short-term bank deposits were HKD 56.4 million (down from HKD 105.1 million as of December 31, 2023), and cash and cash equivalents were HKD 137.9 million (down from HKD 147.7 million as of December 31, 2023)[25] - The company's current assets and current liabilities as of June 30, 2024, were HKD 264.4 million (down from HKD 325.2 million as of December 31, 2023) and HKD 320.0 million (up from HKD 293.7 million as of December 31, 2023), respectively, resulting in a current ratio of 0.8x (down from 1.1x as of December 31, 2023)[25] - Total assets as of June 30, 2024, were HK$691.63 million, down from HK$759.65 million as of December 31, 2023[52] - Property, plant, and equipment increased to HK$101.235 million as of June 30, 2024, from HK$96.753 million as of December 31, 2023[52] - Right-of-use assets decreased to HK$212.566 million as of June 30, 2024, from HK$239.197 million as of December 31, 2023[52] - Cash and cash equivalents stood at HK$137.878 million as of June 30, 2024, down from HK$147.657 million as of December 31, 2023[52] - Total equity decreased from HK$297,407 thousand to HK$238,392 thousand as of June 30, 2024, compared to December 31, 2023[53] - Current liabilities exceeded current assets by HK$55,639 thousand as of June 30, 2024[58] - The company's cash and cash equivalents, along with short-term bank deposits, totaled HK$194,273 thousand as of June 30, 2024[58] - Total segment assets decreased to HK$466.98 million in 2024 from HK$470.02 million in 2023[70] - Total segment liabilities increased to HK$391.75 million in 2024 from HK$375.56 million in 2023[70] - Right-of-use assets for restaurants decreased to HKD 206,519,000 as of June 30, 2024, from HKD 231,134,000 at the end of December 2023[85] - Lease liabilities as of June 30, 2024, totaled HKD 237,781,000, with current liabilities at HKD 127,407,000 and non-current liabilities at HKD 110,374,000[85] - Trade receivables from external customers decreased to HKD 6,344,000 as of June 30, 2024, from HKD 10,174,000 as of December 31, 2023[92] - Trade payables to external suppliers increased to HKD 55,653,000 as of June 30, 2024, from HKD 45,479,000 as of December 31, 2023[98] - Contract liabilities increased to HKD 39,390,000 as of June 30, 2024, from HKD 36,541,000 as of December 31, 2023[99] - The company's prepayments and deposits for rent and utilities increased to HKD 78,118,000 as of June 30, 2024, from HKD 74,865,000 as of December 31, 2023[94] - The company's total current liabilities increased to HKD 128,217,000 as of June 30, 2024, from HKD 126,585,000 as of December 31, 2023[99] - The company's total non-current liabilities decreased to HKD 53,110,000 as of June 30, 2024, from HKD 50,242,000 as of December 31, 2023[94] - The company's total equity remained unchanged at HKD 80,000,000 as of June 30, 2024, compared to the same period last year[97] Dividends and Shareholder Information - The company declared an interim dividend of HK$0.0475 per share and a special dividend of HK$0.125 per share[16] - No interim dividend declared for the current period[37] - No interim dividend was recommended for the six months ended June 30, 2024[81] - Directors and key executives hold a combined 75% stake in the company through associated entities[45][46] - Mr. Wong Kit Lung holds a 29.03% stake in associated entity Sufood Holdings, while Ms. Ko Sau Chi holds a 10.01% stake[47] - Shareholders holding 75% of the company's shares include 叙福樓控股, 高爵權先生, 黃耀鏗先生, 廖祥先生, 廖志鴻先生, 劉廣坤先生, 合群, 林群英先生, and 陳惠珍女士[48][49] - 叙福樓控股, registered in the British Virgin Islands, holds 29.03% of the company's shares, with other key shareholders holding between 2.99% and 11.99%[49] Operational Highlights - The company operated 58 restaurants as of June 30, 2024, including 14 owned brands and 44 franchised brands[17] - The company opened its first "挽肉と米" restaurant in Hong Kong in May 2024, which has been highly successful with over 300 customers queuing on the opening day and online reservations consistently fully booked[35] - The company launched a new customer relationship management system and a new membership app in 2024 to better understand customer needs and enhance service quality[36] - The company has implemented strategic measures to expand revenue sources and reduce expenses, including negotiating lower rents with property owners and securing more favorable terms with suppliers[36] - The company expects the local consumption market to improve rapidly after potential US interest rate cuts, with factors such as the potential impact of the HKD exchange rate, improved consumer spending power, and lower market financing costs positively affecting local consumption[36] Corporate Governance and Compliance - The company maintained a minimum public float of 25% of issued shares as required by the Hong Kong Stock Exchange[38] - The company has adopted the Corporate Governance Code and complies with most of its provisions, except for the separation of Chairman and CEO roles, which are both held by Mr. Wong Kit Lung[39][40] - No purchase, sale, or redemption of listed securities by the company or its subsidiaries during the period[42] - The Audit Committee, composed of three independent non-executive directors, reviewed the unaudited interim financial results[43] - Changes in board composition: Mr. Mak Kam Chiu appointed as independent non-executive director and Audit Committee Chairman, while Ms. Hung Lo Shan resigned from these positions[44] Taxation and Financial Reporting - Hong Kong profits tax provision for the six months ended June 30, 2024, was calculated at a rate of 16.5%, with a subsidiary qualifying for a two-tier tax rate of 8.25% on the first HKD 2,000,000 of taxable profits[75] - Current income tax expense for the period was HKD 2,557,000, while deferred tax credit was HKD 8,091,000, resulting in a net tax credit of HKD 5,534,000[75] - The company adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on financial performance[61] Impairment and Depreciation - Impairment loss on property, plant, and equipment for the period was HKD 8,744,000, significantly higher than the HKD 653,000 recorded in the same period last year[84] - Depreciation of property, plant, and equipment for the period was HKD 15,310,000, a decrease from HKD 19,920,000 in the same period last year[76] - Depreciation of right-of-use assets increased slightly to HK$59.21 million in 2024 from HK$58.84 million in 2023[73] - The company recognized an impairment loss on right-of-use assets of HKD 10,066,000 for the period, compared to HKD 412,000 in the same period last year[90] Cash Flow and Financing - Cash and cash equivalents decreased by HK$48,922 thousand to HK$147,540 thousand as of June 30, 2024[56] - Operating cash flow from business activities was HK$156,974 thousand for the six months ended June 30, 2024[56] - Investment activities resulted in a net cash outflow of HK$79,331 thousand, primarily due to the purchase of property, plant, and equipment[56] - Financing activities resulted in a net cash outflow of HK$123,664 thousand, mainly due to dividend payments and lease principal repayments[56] - Total lease cash outflow for the period was approximately HKD 70,685,000, compared to HKD 76,842,000 in the same period last year[87] - Variable lease payments for certain properties are linked to restaurant sales, ranging from 6$14.22 million in 2024, compared to a segment profit of HK$14.90 million in 2023[67][69] - Segment profit for franchised brands decreased to HK$15.24 million in 2024 from HK$73.23 million in 2023, a decline of 79.2$2.2 million[20] - Financing income decreased to HK$3.85 million in 2024 from HK$6.66 million in 2023[74] - Financing costs increased to HK$5.85 million in 2024 from HK$4.61 million in 2023[74] - Capital commitments for lease renovations increased to 9,192 thousand HKD as of June 30, 2024, compared to 1,942 thousand HKD as of December 31, 2023[100] - The company's property holdings remained unchanged as of June 30, 2024[103] - The company holds investment properties in Kowloon and New Territories, including residential units and workshop spaces[104]