1957 & Co. (Hospitality) Limited (GEM: 08495) reported a narrower interim loss for the six months ended 30 June 2026, helped by non-recurring income and cost discipline, even as top-line performance softened.
Financial performance • Revenue fell 8.4% year on year to HK$204.06 million (H1 2025: HK$222.76 million), reflecting one restaurant closure and softer sales at certain Shanghainese and Japanese outlets. • Loss attributable to owners improved to HK$1.02 million from HK$2.76 million a year earlier; basic and diluted loss per share narrowed to HK0.26 cents from HK0.72 cents. • Operating profit reached HK$2.89 million (H1 2025: HK$2.30 million), but finance costs of HK$2.98 million and a HK$0.91 million share of joint-venture losses led to a pre-tax loss of HK$0.72 million.
Revenue mix Restaurant operations accounted for 98.1% of turnover. By cuisine: – Shanghainese: HK$96.33 million (49.4% of restaurant sales; ‑16.0% YoY) – Japanese: HK$45.49 million (23.3%; ‑3.2% YoY) – Thai: HK$17.38 million (8.9%; ‑2.2% YoY) – Vietnamese: HK$15.29 million (7.8%; +11.7% YoY) – Italian: HK$20.72 million (10.6%; ‑1.9% YoY)
Key cost lines • Cost of inventories sold held steady at 25.0% of revenue (HK$51.10 million). • Employee expenses fell 4.1% to HK$80.82 million, representing 39.6% of revenue. • Depreciation and amortisation dropped 15.3% to HK$33.07 million after closures and asset roll-offs. • Finance costs declined 28.3% to HK$2.98 million on lower borrowings and interest rates.
Balance sheet and liquidity • Cash and cash equivalents stood at HK$51.16 million, down 4.8% from 31 December 2025 as operating inflow was offset by HK$32.17 million in financing outflows (lease and debt repayments). • Bank borrowings decreased to HK$20.86 million (31 December 2025: HK$25.64 million); gearing ratio eased to 36.9% (31 December 2025: 43.7%). • Total equity was HK$64.35 million; no interim dividend was declared.
Operational highlights • Restaurant network trimmed to 11 outlets (H1 2025: 12) following the closure of an Akanoshou Japanese restaurant in Causeway Bay. • Other income rose to HK$2.97 million, mainly from a HK$2.65 million settlement related to a terminated business transfer and HK$0.24 million in government technology-upgrade grants.
Post-period events • Final settlement of the Akanoshou business transfer dispute resulted in net retention of HK$2.65 million by the Group after a HK$0.35 million payment to the purchaser. • The tenancy for the former Akanoshou site was surrendered effective 30 June 2026, with HK$0.64 million liquidated damages offset against the rental deposit; the remaining HK$0.48 million deposit is pending refund subject to licence transfer completion.
Outlook Management remains “cautiously optimistic” and will focus on enhancing dining experiences, expanding packaged food sales under existing and self-developed brands, and pursuing cost efficiencies while monitoring market conditions in Hong Kong’s competitive F&B sector.