Future Bright records HKD15 million in losses

Chan Chak Mo

Future Bright Holdings Limited has reported that, for the first half of the year, the company recorded some HKD15 million in losses.

The food and beverage firm of lawmaker Chan Chak Mo announced in a statement that the losses were mainly from its food souvenir businesses, and from some HKD25.1 million worth of property, plant and equipment that had to be written-off.

However, the overall losses were less than the HKD16.9 million it registered in the first half of 2017.

In a filing with the Hong Kong Stock Exchange, the group stated that the second quarter has always been a relatively “low season” for the group, and that its “Key Investment Property” has been without a tenant in that quarter and hence without rental income.

In the first quarter of 2018, Future Bright recorded a satisfactory performance of the group’s food and catering business.

As compared to the performance of the group in the second quarter of 2017, the improved performance in the second quarter has been largely due to an increase in turnover of the group’s Japanese, Western and franchise restaurants, and food court counters.

Meanwhile, the company’s HKD6.2 million in profits in the first quarter of this year were offset by some HKD21.2 million in losses during the second quarter.

Future Bright’s turnover in the first six months of the year recorded an increase of 24.5 percent to HKD39.7 million, yet its direct operating expenses also increased 21.8 percent yearly to HKD307 million.

In respect to the exchange differences in translating foreign operations, which relate mainly to the group’s subsidiary companies in mainland China, the group has recorded an overall comprehensive loss of some HKD5.3 million, as compared to an overall other comprehensive income of some HKD9.9 million for the same period of 2017.

The group has recorded no rental income for its investment property in Macau, but a gross gain of some HKD19 million from the disposal of office property in Hong Kong, and a net fair value gain of some HKD12.6 million in respect of its land use right applicable to land at Hengqin Island.