Future Bright loses HK$16.9 mln in H1

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Investment company Future Bright Holdings Limited has warned its shareholders that it expects a loss of HK$16.9 million (US$2.16 million) for the first six months of the year, according to a filing with the Hong Kong Stock Exchange.
The loss is divided between a HK$8.7 million loss experienced in the second quarter of the year, coupled with the HK$8.2 million loss recorded in the first quarter and demonstrates a 7.6 per cent increase in loss for the first half-year when compared to the same period last year.
In particular, the group points out that it suffered a loss of HK$4.5 million due to the ‘closure of a Western restaurant at the University of Macau in Hengqin Island’, as well as losses in the group’s food souvenir business. In addition, the ‘soft performance’ of newly opened restaurants of the group ‘in late 2016 which have been building up their sales volume’ – namely a restaurant in The Parisian and one in Lee Tung Avenue, and the lack of rental income from the group’s ‘Yellow House’ at the foot of the steps of the Ruins of St. Paul’s that formerly housed fashion outlet Forever 21.
During the first half-year the property yielded a loss of HK$7.9 million.
The group saw reductions in the loss on its food souvenir business of 22.1 per cent, at HK$10.9 million, while its three restaurants in Zhuhai Huafa Mall saw a 27.9 per cent reduction in loss, to HK$6.2 million. The group’s Hengqin land saw a 1,016.7 per cent increase in net fair value gain, to HK$20.1 million.
The group observed that the operating environment during the first half year ‘has been challenging’.
‘Management is actively looking for a tenant’ for the six-storey ‘yellow house’ property, notes the filing, adding it will commence interior renovation ‘soon’ on its central food and logistics processing centre, anticipating it will ‘become operational in early 2018’.
Regarding the group’s Hengqin land, it notes it has ‘started its foundation works’, having obtained foundation permits in January. The group notes it has ‘submitted its application together with an initial proposal to seek the signing of a supplemental agreement for an extension of the development milestones’.