1957 & Co. (Hospitality) Limited reported unaudited interim results for the six months ended 30 June 2026 marked by softer top-line growth but a markedly reduced loss.
Revenue and Profitability • Revenue fell 8.4% year on year to HK$204.06 million, reflecting lower contributions from most cuisine segments after one restaurant closure and softer demand. • Loss before tax improved to HK$0.72 million from HK$2.47 million a year earlier. • Loss attributable to shareholders narrowed to HK$1.02 million, compared with HK$2.76 million in 1H 2025. • Basic loss per share declined to HK0.26 cents from HK0.72 cents.
Cost Structure • Cost of inventories sold dropped 10.2% to HK$51.10 million, holding steady at 25.0% of revenue. • Staff costs eased 4.1% to HK$80.82 million, representing 39.6% of revenue. • Depreciation and amortisation decreased 15.3% to HK$33.07 million following asset write-downs and restaurant closures. • Finance costs fell 28.2% to HK$2.98 million in line with lower borrowings and lease-related interest.
Segment Performance • Shanghainese cuisine remained the largest contributor at HK$96.33 million, down 16.0% after the closure of a key outlet. • Japanese revenue slipped 3.2% to HK$45.49 million following early lease termination of an Akanoshou site. • Thai, Vietnamese and Italian outlets posted mixed movements, with Vietnamese sales up 11.7% to HK$15.29 million.
Balance Sheet and Liquidity • Cash and cash equivalents stood at HK$51.16 million (31 Dec 2025: HK$53.81 million). • Bank borrowings declined to HK$20.86 million from HK$25.64 million; average interest rate 4.4%. • Gearing ratio (total borrowings/total equity) improved to 36.9% from 43.7% six months earlier. • Net cash generated from operations reached HK$29.77 million, offset by HK$32.17 million used in financing chiefly for lease and loan repayments.
Operational Footprint As of period-end the group operated 11 restaurants in Hong Kong (seven proprietary brands, four franchise/sub-licensed). One Akanoshou restaurant in Causeway Bay was closed during the half-year, and no new outlets were opened.
Capital Management and Dividends No interim dividend was declared. There were no major acquisitions, disposals or capital commitments during the period.
Post-Balance-Sheet Events • A dispute over a 2025 restaurant business transfer was settled on 17 August 2026; the group retained HK$2.65 million and paid HK$0.35 million as settlement. • The tenancy for the previously closed Akanoshou site was formally surrendered effective 30 June 2026; HK$0.64 million in liquidated damages was offset against the rental deposit, with HK$0.48 million pending refund upon licence transfer.
Outlook Management targets operational improvements, product diversification under existing brands and “Homee Gourmet,” and disciplined expansion while monitoring Hong Kong’s competitive F&B landscape and macroeconomic conditions.