Happy Valley (00052-HK) announced that the shareholders' net profit for the six months ended September 30, 2020 was HKD 64.951 million, a year-on-year increase of 13.43%, excluding government subsidies of HKD 0.143 billion and asset impairment losses of HKD 47.6 million. Happy Valley recorded a net loss of HKD 30.3 million for the first half, with earnings per share of 50.14 cents and an interim dividend of 30 cents, up 30.43%.

During the period, revenue was HKD 1.287 billion, a year-on-year decrease of 16%. The gross margin increased by 2 percentage points to 13.3%, mainly due to the decrease in revenue and the government's job retention scheme.

The Group stated that the government's job retention scheme subsidy accounted for approximately 29.1% of the Group's Hong Kong employee costs, all of which were used to pay salaries and wages. In addition, it received HKD 20.9 million in government subsidies, mainly from the Licensed Food Service Industry Support Scheme.

Happy Valley stated that its specialty restaurants were affected by the epidemic and the government's dining restrictions, but to a lesser extent than its own restaurants, thanks to many people choosing to dine at home during the epidemic, making online delivery platforms more popular, and thus benefiting its specialty restaurants. In view of this, it will continue to look for other suitable locations for future business expansion, and the Group's short-term goal is to open more restaurants this year.

Happy Valley stated that the epidemic is still not fully under control and the future is still unclear. With the Group's full implementation of digital development, it will continue to promote the upgrading of technology and systems, and be closer to the preferences of digital consumers, thereby improving operational efficiency.