Financial Performance - The group recorded unaudited revenue of approximately HKD 223.5 million for the six months ended June 30, 2023, representing an increase of about 63.9% compared to HKD 136.4 million for the same period in 2022[3]. - The group reported an unaudited adjusted loss before tax and government grants of approximately HKD 10.6 million for the six months ended June 30, 2023, an improvement from a loss of HKD 15.8 million in the same period of 2022[3]. - The group recorded an unaudited loss attributable to owners of the company of approximately HKD 10.9 million for the six months ended June 30, 2023, compared to a loss of HKD 8.2 million for the same period in 2022[3]. - For the three months ended June 30, 2023, the group achieved unaudited revenue of approximately HKD 110.7 million, a 20.5% increase from HKD 91.9 million in the same period of 2022[3]. - The group reported an unaudited adjusted loss before tax and government grants of approximately HKD 0.9 million for the three months ended June 30, 2023, compared to an adjusted profit of HKD 3.6 million in the same period of 2022[3]. - The group recorded an unaudited loss attributable to owners of the company of approximately HKD 0.3 million for the three months ended June 30, 2023, down from a profit of HKD 6.7 million in the same period of 2022[3]. - The company reported a net loss of HKD 10,929,000 for the six months ended June 30, 2023, compared to a loss of HKD 8,233,000 for the same period in 2022, indicating a deterioration of 32.7%[12]. - The group reported a loss before tax of HKD 10,592,000 for the six months ended June 30, 2023, compared to a loss of HKD 8,656,000 for the same period in 2022[27]. - For the six months ended June 30, 2023, total revenue reached HKD 236,895,000, a significant increase from HKD 144,595,000 for the same period in 2022, representing a growth of approximately 64%[27]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 324.8 million, an increase from HKD 251.5 million as of December 31, 2022[8]. - Non-current assets increased significantly to HKD 243.9 million as of June 30, 2023, compared to HKD 157.3 million as of December 31, 2022[8]. - The group reported total equity of HKD 62.6 million as of June 30, 2023, down from HKD 75.8 million as of December 31, 2022[8]. - The group’s cash and cash equivalents decreased to HKD 47.4 million as of June 30, 2023, from HKD 54.2 million as of December 31, 2022[8]. - Total liabilities increased to HKD 262,136,000 as of June 30, 2023, compared to HKD 175,742,000 as of December 31, 2022, representing a growth of 49.2%[9]. - Non-current liabilities rose significantly, with lease liabilities increasing from HKD 31,226,000 to HKD 99,950,000, a rise of 219.5%[9]. - The total equity attributable to owners decreased to HKD 53,654,000 as of June 30, 2023, from HKD 64,716,000 at the beginning of the year, a decline of 17.1%[12]. - The company’s bank borrowings increased to HKD 47,465,000 as of June 30, 2023, compared to HKD 33,170,000 at the end of 2022, reflecting a rise of 42.9%[9]. - The group’s liabilities as of June 30, 2023, totaled HKD 262,136,000, an increase from HKD 175,742,000 as of December 31, 2022, representing a growth of approximately 49%[32][33]. Revenue Breakdown - Revenue from restaurant operations for the six months ended June 30, 2023, was HKD 223,107,000, up from HKD 135,490,000 in the same period of 2022, marking an increase of approximately 64%[37]. - Revenue from Shanghai-style restaurants increased by approximately 87.1% to HKD 75.2 million, driven by the opening of a new restaurant and the lifting of social distancing measures[66]. - Revenue from Japanese restaurants rose by approximately 79.5% to HKD 60.5 million, primarily due to the sales from a new restaurant opened in Tsim Sha Tsui[67]. - Revenue from Thai restaurants increased by approximately 13.5% to HKD 31.2 million, despite a decline due to the closure of two underperforming locations[69]. - Revenue from Vietnamese restaurants surged by approximately 83.3% to HKD 30.8 million, benefiting from the removal of social distancing measures[70]. - Revenue from Italian restaurants grew by approximately 46.2% to HKD 25.3 million, also influenced by the lifting of restrictions[71]. Expenses and Costs - Cost of goods sold for the six months ended June 30, 2023, was approximately HKD 60.8 million, representing 27.3% of total revenue, down from 30.3% in the previous year[72]. - Employee costs increased by approximately 47.9% from about HKD 58.5 million to about HKD 86.5 million for the six months ended June 30, 2023, primarily due to additional labor for new restaurants[73]. - Depreciation and amortization expenses rose from approximately HKD 26.8 million to about HKD 41.6 million for the same period, attributed to new leases and acquisitions for five new restaurants[75]. - Rental expenses increased by approximately 45.2% from about HKD 3.1 million to about HKD 4.5 million, driven by increased restaurant revenues[77]. - Other operating expenses rose by about 55.1% from approximately HKD 18.5 million to about HKD 28.7 million, mainly due to increased sales revenue[80]. - Financing costs increased significantly from about HKD 0.9 million to approximately HKD 4.4 million, primarily due to rising bank loan interest rates and new lease financing costs[82]. Corporate Governance and Future Outlook - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[121]. - The company is actively exploring new business opportunities in the food supply chain sector[94]. - The management team is focused on evaluating internal growth and investment prospects to optimize sustainable long-term expansion positioning[110]. - The company anticipates steady improvement in the second half of 2023, benefiting from the Hong Kong government's consumer voucher program and tourism promotion activities[110]. - A new mobile membership application will be gradually introduced to enhance customer interaction and brand loyalty[110]. - The board plans to continue expanding the restaurant network, which is expected to lead to increased property rental and related expenses in the future[76]. Shareholder Information - As of June 30, 2023, Real Hero Ventures Limited holds a significant 71.45% stake in the company, representing 274,350,000 shares[115][116]. - The company has not granted any share options under the share option plan as of June 30, 2023, with a total of 32,000,000 shares available for grant, representing 10% of the total shares issued at listing[118]. - The board does not recommend the distribution of any dividends during the six-month review period, consistent with 2022[129].
1957 & CO.(08495) - 2023 - 中期财报