Interim Report 2021

INTERIM REPORT

2021

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.

This report, for which the directors (collectively the "Directors" and individually a "Director") of Royal Catering Group Holdings Company Limited (the "Company", together with its subsidiaries, the "Group") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.

ROYAL CATERING GROUP HOLDINGS COMPANY LIMITED

INTERIM REPORT

2021

CONTENTS

		Pages
Financial Highlights	2
Unaudited Condensed Consolidated Statements of Profit or Loss	3
and Other	Comprehensive Income
Unaudited	Condensed Consolidated Statement of Financial Position	4
Unaudited	Condensed Consolidated Statement of Changes in Equity	6
Unaudited	Condensed Consolidated Statement of Cash Flows	7
Notes tothe	Unaudited Condensed Consolidated Financial Statements	8
Management	Discussion and Analysis	18

ROYAL CATERING GROUP HOLDINGS COMPANY LIMITED • INTERIM REPORT 2021

FINANCIAL HIGHLIGHTS

• The Group recorded an unaudited revenue of approximately HK$22.7 million for the six-month period ended 30 September 2021 (six-month period ended 30 September 2020: approximately HK$21.9 million), representing an increase of approximately 3.7% over the same period of the previous year.
• The Group recorded an unaudited loss and total comprehensive loss attributable to owners of the Company of approximately HK$0.6 million for the six-month period ended 30 September 2021 (six-month period ended 30 September 2020: unaudited loss and total comprehensive loss attributable to owners of the Company of approximately HK$1.1 million).
• The basic and diluted loss per share attributable to owners of the Company for the six-month period ended 30 September 2021 was HK0.02 cents (six-month period ended 30 September 2020: the basic and diluted loss per share attributable to owners of the Company of HK0.04 cents).
• The Board does not recommend the payment of an interim dividend for the six-month period ended 30 September 2021.

2

ROYAL CATERING GROUP HOLDINGS COMPANY LIMITED • INTERIM REPORT 2021

The board (the "Board") of the Company is pleased to announce the unaudited condensed consolidated results of the Group for the six-month period ended 30 September 2021, together with the unaudited comparative figures for the respective corresponding period in 2020 as follows:

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six-month period ended 30 September 2021

		Six-month period
		ended 30 September
		2021	2020
	Notes	HK$'000	HK$'000
		(Unaudited)	(Unaudited)
Revenue	4	22,749	21,903
Cost of inventories sold		(4,898)	(4,590)
Gross profit		17,851	17,313
Other revenue and other income		6,250	7,951
Staff costs		(10,502)	(10,498)
Depreciation expenses		(2,113)	(2,157)
Property rentals and related expenses		(856)	(814)
Fuel and utility expenses		(949)	(811)
Administrative expenses		(8,904)	(10,635)
Profit from operations		777	349
Share of result of an associate		(1)	(36)
Finance costs	5	(517)	(532)
Profit/(loss) before tax	6	259	(219)
Income tax expenses	7	(868)	(448)
Loss and total comprehensive loss for the period		(609)	(667)
Loss and total comprehensive loss for the period attributable to:
Owners of the Company		(609)	(1,132)
Non-controlling interests		-	465
		(609)	(667)
Loss per share attributable to owner of the Company
Basic and diluted loss per share (HK cents)	8	(0.02)	(0.04)
			3