Interim Report 2007 中期報告
2007

Interim Report 中期報告

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AF DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
2 Directors and Corporate Information
3 Highlights
4 Chairman’s Statement
8 Other Information
18 Condensed Consolidated Balance Sheet
20 Condensed Consolidated Income Statement
21 Condensed Consolidated Statement of
Recognised Income and Expense
22 Condensed Consolidated Cash Flow Statement
23 Notes to the Condensed Consolidated Financial
Information
Contents

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DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Directors and Corporate Information
BOARD OF DIRECTORS

Executive Directors
Mr. Chan Yue Kwong, Michael (Chairman)
Mr. Lo Hoi Kwong, Sunny
(Managing Director)
Ms. Lo Pik Ling, Anita
Mr. Lo Tak Shing, Peter
Non-executive Directors
Mr. Lo Tang Seong, Victor
Mr. Lo Hoi Chun
Mr. Hui Tung Wah, Samuel
Mr. Choi Ngai Min, Michael
Mr. Li Kwok Sing, Aubrey
Mr. Kwok Lam Kwong, Larry
Independent Non-executive Directors
COMPANY SECRETARIES

Ms. Li Oi Chun, Helen
Mr. To Hon Fai, Alfred
QUALIFIED ACCOUNTANT

Ms. Chung Sau Man, Grace
REGISTERED OFFICE

Canon’s Court, 22 Victoria Street
Hamilton HM12, Bermuda
HEAD OFFICE

10th Floor, Caf de Coral Centre
5 Wo Shui Street, Fo Tan
Shatin, New Territories, Hong Kong
AUDITORS

Messrs. PricewaterhouseCoopers
SOLICITORS

Messrs. Johnson Stokes & Master
PRINCIPAL BANKERS

Bank of China (Hong Kong) Limited
Bank of Communications Co., Ltd.
Bank of Tokyo-Mitsubishi UFJ
BNP Paribas
Calyon Corporate and Investment Bank
China Construction Bank Corporation
Citibank, N.A.
Hang Seng Bank Limited
The Hongkong and Shanghai Banking
Corporation Limited
Mizuho Corporate Bank, Ltd.
Standard Chartered Bank (Hong Kong) Ltd.
Sumitomo Mitsui Banking Corporation
Wing Lung Bank Ltd.
BERMUDA SHARE REGISTRARS

The Bank of Bermuda Limited
HONG KONG BRANCH SHARE
REGISTRARS

Computershare Hong Kong Investor
Services Limited
WEBSITE

http://www.cafedecoral.com

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DE CORAL HOLDINGS LIMITED

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HIGHLIGHTS

• Half-year double digit profit growth reaching record high
of HK$175 million.
• Recognized as “PRC Consumer’s Most Favourable Hong
Kong Brand” and “2007 Service Retailer of the Year”.
• HK$300 million investment in new central food processing
plants both in Hong Kong and China.
• Establish presence at major international airports in
Shenzhen, Zhuhai, Chicago, Dallas, New York, and Hong
Kong International Airport.
• Return on investment in “Tao Heung” with attractive
dividend yield and capital appreciation.

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DE CORAL HOLDINGS LIMITED

Interim Repor
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Chairman’s Statement
I am glad to report that the Group achieved another encouraging interim results for
the six months ended 30th September, 2007. Turnover and profit attributable to
shareholders reached HK$2.09 billion and HK$175 million, both representing another
period of double-digit growth of 10.2% and 15.6% respectively as compared last
year.
In recognition of the long term support of our shareholders, the Board resolved to
distribute an interim dividend of 15 HK cents per share to shareholders whose
names appear on the register of members of the Company on 3rd January, 2008,
representing an increase of 25% over that of last year.
HONG KONG BUSINESS PLATFORM

In the period under review, it was gratifying to witness that the performance of our
core businesses in Hong Kong recorded a solid growth amid the ever-increasingly
competitive landscape in this territory. Both our Caf de Coral and The Spaghetti
House in Hong Kong achieved a double digit growth in operating profit against the
operating pressure of rising labour and raw material costs. Other than the contribution
from the new outlets, much of the growth was, in fact, derived from our dedicated
effort in marketing initiatives, product mix and enhancing business and operating
efficiencies which, altogether, resulted in encouraging volume increase and margin
improvement.
Our strong branding power was recognized by the recent award of “2007 Top
Service Awards” to our Caf de Coral and the “Certificate Award for the Best
Brand Enterprise” and the “2007 Service Retailer of the Year” to our The Spaghetti
House, both of which are indeed testaments of our brand preference among the
dining public in Hong Kong. Furthermore, our Caf de Coral once again won the
applause among the mainland visitors by claiming the Gold Award as “PRC
Consumer’s Most Favourable Hong Kong Brand” which ultimately translated to our
business competitiveness in brand building and customer loyalty.

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DE CORAL HOLDINGS LIMITED

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Chairman’s Statement
Other than our core businesses, Luncheon Star raised its bar on its quality standard
in April, 2007 with the accreditation of ISO22000, being the strictest food safety
system in the industry in addition to its two other quality recognitions, namely ISO9001
and HACCP. With the vote of confidence from parent and teachers, Luncheon Star
now firmly secures its market leading position in the school catering arena.
As I reported to you in the last annual report, we decided to devote more resources
on our back up infrastructure, including searching for suitable sites to establish new
central food processing plants both in Hong Kong and in the Pearl River Delta
Region, in order to cope with the fast growing business at these strategic markets of
great potentials. I am glad to report that we have procured a suitable site at the Tai
Po Industrial Estate, Hong Kong for developing it into another central food processing
plant of the Group in Hong Kong. The capital expenditure involved is expected in the
region of HK$200 million. Upon completion by middle of 2010, we plan to transfer
our existing central food processing facilities in Fo Tan, Shatin to this new processing
plant, thereby freeing the necessary space in Fo Tan plant for the future expansion
of Luncheon Star. The strategic relocation not only further enhances our productivity
and operating efficiency, it also safeguards the quality assurance and food safety
standards in all our products.
PRC BUSINESS PLATFORM

In Southern China, our proactive expansion initiative of Caf de Coral continues.
Notwithstanding that the Central Government introduced certain austerity measures
to cool down the property market, it did not hamper our rapid pace of development.
As at today, there are 36 operating units of this branded restaurant in the region, an
increase of 7 units from the beginning of this financial year, covering almost all the
key first-tier and second-tier cities in the Pearl River Delta region. Among these new
openings, two of which were strategically located at the Shenzhen Airport and the
Zhuhai Airport which, we believe, would have significant strategic value for our future
expansion in major transportation hubs in China.

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DE CORAL HOLDINGS LIMITED

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Chairman’s Statement
As a long term strategy to back up the fast growing business in Southern China
region, we acquired a parcel of land of 30,000 square meters at the Guangzhou
Development District, China in November, 2007, aiming to develop it into a new
central food processing plant. The capital expenditure involved for the project is
expected in the region of HK$120 million and the new factory plant is expected to
commence production by the late 2009. Once completed, our production capacity
in Southern China would be greatly enhanced and the new factory plant would also
act as our permanent training centre to the ever growing demand of our frontline
staff.
In Eastern China, I am glad to report that the business performance of the chain,
New Asia Dabao, finally turned around with profits for the months under review.
The profit-making of the chain, New Asia Dabao, is not a coincidence but a result
of years of dedicated effort in adopting various value-added business improvement
initiative. Notwithstanding however that we were still in the progress of establishing
Caf de Coral presence in the region, there remain certain teething challenges to
establish a relatively unknown brand in this part of the region, and naturally certain
preliminary development expenses were incurred. We adhere and remain confident
to our dual-brands market penetration strategy in capturing the sizeable market
potential of the Yangtze River Delta Region development platform.
NORTH AMERICA BUSINESS PLATFORM

Across the Ocean, since acquiring the remaining interests in Manchu Wok in October,
2005, we adopted various value-added initiative to rationalize the cost structure of
this sizeable business platform, resulting in substantial savings in business overheads.
Other than the necessary consolidation, we commenced our business development
program by focusing on the development opportunities at non-traditional areas such
as casinos, airports and military bases. Our presence in various renowned airports in
North America, such as Chicago O’Hare Airport, Dallas Fort Worth International
Airport and JFK International Airport, exemplified our effort in pursuing this
development strategy. As a result, Manchu Wok was able to strengthen its branding
power in this sizable market.

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DE CORAL HOLDINGS LIMITED

Interim Repor
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Chairman’s Statement
LOOKING AHEAD

The buoyant stock and property markets in Hong Kong brought us challenges and
opportunities. With the successful listing of “Tao Heung” in June, 2007, our strategic
investment in this leading Chinese restaurant group has returned us with attractive
dividend income as well as capital appreciation due to its reputable image with the
investing public.
As reported, since acquiring the 6,500 sq feet property in Admiralty, we are now
going through a major restructuring of the premises to turn it into a restaurant court,
planning to house our own reputable restaurant brands at this strategic location. We
believe such move would not only help to generate constant rental income stream to
the Group but more importantly, to provide a haven for our many restaurants at this
very important catchment area of the central business district.
In respect of all the other business platforms in the Greater China region and overseas,
it is the Group’s objective to unlock their vast potential in the not too distant future,
turning them to become meaningful profit contributors to the Group in their own
rights. In the second half of the year, we are confident that our shareholders would
recognize our effort made for enhancing the shareholders’ value and our commitment
in delivering quality services to our customers.
By Order of the Board
Chan Yue Kwong, Michael
Chairman
Hong Kong, 11th December, 2007

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DE CORAL HOLDINGS LIMITED

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Other Information
INTERIM DIVIDEND

In acknowledging continuous supports from our shareholders, the Directors have
declared the payment of an interim dividend of 15 HK cents (2006: 12 HK cents) per
share in respect of the year ending 31st March, 2008, payable on 11th January,
2008 to those persons registered as shareholders on 3rd January, 2008.
CLOSURE OF REGISTER OF MEMBERS

The Register of Members of the Company will be closed from 3rd January, 2008
(Thursday) to 4th January, 2008 (Friday), both days inclusive, during which period no
transfer of shares will be effected. In order to qualify for the interim dividend, all
completed transfer forms accompanied by the relevant share certificates, must be
lodged with the Company’s Hong Kong Branch Registrars, Computershare Hong
Kong Investor Services Limited, at Rooms 1712-1716, 17th Floor, Hopewell Centre,
183 Queen’s Road East, Wanchai, Hong Kong for registration not later than 4:30
p.m. on 2nd January, 2008.
HUMAN RESOURCES

As at 30th September, 2007, the Group (other than associated companies and
jointly controlled entities) employed approximately 13,000 employees. Remuneration
packages are generally structured by reference to market terms and individual
qualifications and experience. With a unique Share Option Scheme together with
profit sharing bonus and performance incentive system, employees were entitled to
share in the growth of the Group.
During the period, various training activities have been conducted to improve the
front-end quality of services as well as to ensure the smooth and effective installation
of the Group’s business systems.

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DE CORAL HOLDINGS LIMITED

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Other Information
FINANCIAL REVIEW

The Group’s financial position, as at 30th September, 2007, continues to be very
strong, with a net cash of close to about HK$661 million and available banking
facilities of HK$836 million.
As at 30th September, 2007, the Group did not have any external borrowing (31st
March, 2007: Nil) and maintained a healthy gearing (being total borrowings over
shareholders’ funds) of Nil (31st March, 2007: Nil). There has been no material
change in contingent liabilities or charges on assets since 31st March, 2007.
As at 30th September, 2007, the Company has given guarantees totaling
approximately HK$836,000,000 (31st March, 2007: HK$836,000,000) to financial
institutions in connection with the banking facilities granted to its subsidiaries.
Regarding foreign exchange fluctuations, for the six months’ period under review,
the Group earned revenue and incurred costs and expenses are mainly denominated
in Hong Kong dollars, while those of our North America and PRC subsidiaries and
jointly controlled entities are denominated in United States dollars, Canadian dollars
and Renminbi respectively. While foreign currency exposure did not pose significant
risk for the Group, we will continue to take proactive measures and monitor closely
of our exposure to such currency movement.

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DE CORAL HOLDINGS LIMITED

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Other Information
DIRECTORS’ AND CHIEF EXECUTIVES’ INTERESTS AND SHORT
POSITIONS IN SHARES, UNDERLYING SHARES AND
DEBENTURES

As at 30th September, 2007, the interests of each Director and Chief Executive of
the Company in the shares, underlying shares and debentures of the Company and
its associated corporations (within the meaning of Part XV of the Securities and
Futures Ordinance (“SFO”)), as recorded in the register maintained by the Company
under Section 352 of the SFO or as notified to the Company and Lo Hoi Kwong, Sunny (a) & (b) 4,620,000 ––88,539,394 2,000,000 95,159,394 17.28%
Mr. Lo Tak Shing, Peter (c) 210,000 ––87,626,213 70,000 87,906,213 15.96%
Mr. Lo Hoi Chun (d) 132,000 ––67,880,834 – 68,012,834 12.35%
Ms. Lo Pik Ling, Anita (a) 8,936,339 ––51,156,000 400,000 60,492,339 10.98%
Mr. Chan Yue Kwong, (a) & (e) 4,621,407 1,189,400 – 51,156,000 2,000,000 58,966,807 10.71%
Michael
Mr. Li Kwok Sing, Aubrey (f) 55,000 ––––55,000 0.01%
Mr. Hui Tung Wah, Samuel 25,837 ––––25,837 0.01%
Mr. Lo Tang Seong, Victor –––––––
Mr. Choi Ngai Min, Michael –––––––
Mr. Kwok Lam Kwong, Larry –––––––

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DE CORAL HOLDINGS LIMITED

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Other Information
Notes:
(a) 51,156,000 shares were held under a family trust of which Mr. Lo Hoi Kwong, Sunny, Ms.
Lo Pik Ling, Anita and the associate of Mr. Chan Yue Kwong, Michael were beneficiaries.
(b) Mr. Lo Hoi Kwong, Sunny was deemed to be interested in 37,383,394 shares held under a
family trust in the capacity of founder.
(c) These shares were held by Wandels Investment Limited (“Wandels”). Wandels was 50%
owned by Sky Bright International Limited (“Sky Bright”) and 50% owned by Verdant
Success Holdings Limited (“Verdant Success”). Both of Sky Bright and Verdant Success
were wholly-owned subsidiaries of Royal Bank of Canada Trustees Limited (renamed to
RBC Trustees (CI) Limited) which was the trustee of two discretionary family trusts. Mr. Lo
Tak Shing, Peter was deemed to be interested by virtue of being beneficiary of one of the
family trusts.
(d) 31,911,701 shares were held under a family trust of which Mr. Lo Hoi Chun and his
associates were beneficiaries. 35,969,133 shares were held under a family trust of which
Mr. Lo Hoi Chun was the founder and both of Mr. Lo Hoi Chun and his associates were
beneficiaries.
(e) Mr. Chan Yue Kwong, Michael was deemed to be interested in 1,189,400 shares through
interests of his associates.
(f) These shares were held by Mr. Li Kwok Sing, Aubrey jointly with his spouse.
(g) These represented interests of options granted to Directors under share option scheme(s)
to subscribe for shares of the Company, further details of which are set out in the section
“Share Option Schemes”.
All the interests in shares and underlying shares of equity derivatives of the Company
are long positions. None of the Directors held any short position in the shares,
underlying shares of equity derivatives or debentures of the Company.
Save as disclosed above and other than certain nominee shares in subsidiaries held
by the Directors in trust for the Company, none of the Directors or their respective
associates had any interest or short position in any shares, underlying shares of
equity derivatives or debentures of the Company or any of its associated corporations
within the meaning of the SFO.

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Other Information
SUBSTANTIAL SHAREHOLDERS’ INTERESTS
As at 30th September, 2007, the interests and short positions of every persons,
other than a Director or chief executive of the Company, in the shares and underlying
shares of the Company, being 5% or more of the Company’s issued share capital,
as recorded in the register kept by the Company under Section 336 of the SFO were
as follows:
Number of ordinary shares (long position)
Trusts and % of total
Personal Family Corporate similar Total issued
Name of shareholder Note interests interests interests interests interests Shares
GZ Trust Corporation (a) –––119,036,834 119,036,834 21.61%
Wandels Investment Limited (b) 87,626,213 87,626,213 15.91%
Sky Bright International Limited (b) –––87,626,213 87,626,213 15.91%
Verdant Success Holdings Limited (b) 87,626,213 87,626,213 15.91%
Royal Bank of Canada Trustees (b) –––87,626,213 87,626,213 15.91%
Limited (renamed to RBC
Trustees (CI) Limited)
Mr. Man Tak Wah (c) – 60,492,339 ––60,492,339 10.98%
NKY Holding Corporation (d) –––51,156,000 51,156,000 9.29%
Ms. Tso Po Ping (e) – 44,003,394 ––44,003,394 7.99%
Ardley Enterprises Limited (f) –––37,383,394 37,383,394 6.79%
Ms. Man Bo King (g) – 36,101,133 ––36,101,133 6.56%
LBK Holding Corporation (h) –––35,969,133 35,969,133 6.53%
MMW Holding Corporation (i) 31,911,701 31,911,701 5.79%
Matthews International (j) 38,923,200 –––38,923,200 7.07%
Capital Management, LLC

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Other Information
Notes:
(a) GZ Trust Corporation was deemed to be interested in the capacity of trustee.
(b) These interests were held by Wandels Investment Limited (“Wandels”). Wandels was 50%
owned by Sky Bright International Limited (“Sky Bright”) and 50% owned by Verdant
Success Holdings Limited (“Verdant Success”). Both of Sky Bright and Verdant Success
were wholly-owned subsidiaries of Royal Bank of Canada Trustees Limited (renamed to
RBC Trustees (CI) Limited) which was the trustee of two discretionary family trusts. Mr. Lo
Tak Shing, Peter, being a director of the Company, is also deemed to be interested by
virtue of his being beneficiary of one of the family trusts.
(c) Mr. Man Tak Wah was deemed to be interested through the interests of his spouse, Ms.
Lo Pik Ling, Anita (of which 400,000 shares were interests in underlying shares).
(d) These interests were held by NKY Holding Corporation in the capacity of trustee. These
interests represented part of the interests held by GZ Trust Corporation and disclosed in
Note (a) above.
(e) Ms. Tso Po Ping was deemed to be interested in these shares through the interests of her
spouse, Mr. Lo Hoi Kwong, Sunny (of which 2,000,000 shares were interests in underlying
shares).
(f) These interests were held by Ardley Enterprises Limited in the capacity of trustee. These
interests represented part of the interests of Mr. Lo Hoi Kwong, Sunny, being a director of
the Company.
(g) Ms. Man Bo King was deemed to be interested in these shares through the interests of her
spouse, Mr. Lo Hoi Chun.
(h) These interests were held by LBK Holding Corporation in the capacity of trustee. These
interests represented part of the interests held by GZ Trust Corporation and disclosed in
Note (a) above.
(i) These interests were held by MMW Holding Corporation in the capacity of trustee. These
interests represented part of the interests held by GZ Trust Corporation and disclosed in
Note (a) above.
(j) These interests were held in the capacity of investment manager.

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Other Information
All interests in the shares and underlying shares of equity derivatives of the Company
held by the above persons are long positions.
Save as disclosed above, as at 30th September, 2007, the Directors are not aware
of any other persons (other than a Director or chief executive of the Company) who
have interests or short positions in the shares, underlying shares of equity derivatives
of the Company which would be required to be disclosed to the Company pursuant
to Part XV of the SFO.
SHARE OPTION SCHEMES

Pursuant to a share option scheme adopted by the Company on 30th January, 1991
(the “Previous Scheme”), the Company has granted certain options to executives
and employees of the Group including executive directors employed by the Group to
subscribe for ordinary shares in the Company subject to the terms and conditions
stipulated therein. The Previous Scheme was terminated upon the passing of a
shareholders’ resolution for adoption of another share option scheme on 19th
September, 2000 (the “Scheme”). Accordingly, no options can be granted under the
Previous Scheme as at the date of this report. However, for the outstanding options
granted and yet to be exercised under the Previous Scheme, the existing rights of
the grantees are not affected. No options had been granted under the Scheme since
its adoption.
On 24th September, 2003, the Scheme was terminated upon the passing of a
shareholders’ resolution for adoption of a new share option scheme (the “New
Scheme”). Pursuant to the New Scheme, the Company may grant options to executive
and non-executive directors, employees, suppliers and customers of the Group and
consultants, advisors, managers, officers and corporations that provided research,
development or other technical support to the Group to subscribe for ordinary shares
in the Company subject to the terms and conditions stipulated therein. The Company
granted options to certain employees of the Group (including executive directors of
the Company) pursuant to the New Scheme.

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Other Information
Details of the share options outstanding as at 30th September, 2007 which have
been granted under the Previous Scheme and the New Scheme are as follows:
Options Options
Options Options cancelled outstanding
outstanding Granted exercised Options upon at 30th
Date of at 1st April, during during lapsed termination of September,
Type of grantees Grant 2007 the period the period on expiry employment 2007
Executive Directors
Mr. Chan Yue Kwong, 4/11/1999
(a)
300,000 – (300,000) –––
Michael 1/11/2005
(b)
2,000,000 ––––2,000,000
Mr. Lo Hoi Kwong, 4/11/1999
(a)
600,000 – (600,000) –––
Sunny 1/11/2005
(b)
2,000,000 ––––2,000,000
Ms. Lo Pik Ling, Anita 4/11/1999
(a)
400,000 ––––400,000
Mr. Lo Tak Shing, Peter 4/11/1999
(a)
140,000 – (70,000) ––70,000
Continuous contract 4/11/1999
(a)
4,226,000 – (3,478,000) – (40,000) 708,000
employees 1/11/2005
(b)
8,814,000 – (332,000) ––8,482,000
18,480,000 – (4,780,000) – (40,000) 13,660,000
Notes:
(a) The share options were granted under the Previous Scheme.
(b) The share options were granted under the New Scheme.
(c) Under the Previous Scheme and in respect of the category of “Executive Directors”, the
weighted average closing price of the Company’s shares immediately before the dates on
which the share options were exercised during the period was HK$14.03 where in respect
of the category of “Continuous contract employees”, the weighted average closing price of
the Company’s shares immediately before the dates on which the share options were
exercised during the period was HK$14.38.
(d) Under the New Scheme and in respect of the category of “Continuous contract employees”,
the weighted average closing price of the Company’s shares immediately before the dates
on which the share options were exercised during the period was HK$14.64.

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Other Information
Share Options granted under the Previous Scheme are exercisable at HK$2.95 per
share and the holders of the said share options may exercise the share options
during the period from 1st April, 2003 to 31st March, 2013.
Share Options granted under the New Scheme are exercisable at HK$8.80 per
share (in respect of the Executive Directors) and at HK$8.75 per share (in respect of
the other continuous contract employees). The holders of the said share options
may exercise the share options during the period from 1st January, 2007 to 31st
October, 2015.
Save as disclosed above, no share options were granted, exercised, lapsed or
cancelled during the period.
COMPLIANCE WITH THE CODE ON CORPORATE GOVERNANCE
PRACTICES UNDER APPENDIX 14 OF THE LISTING RULES

During the six months period ended 30th September, 2007, the Company has
complied with all the code provisions of the Code on Corporate Governance Practices
(the “Code Provisions”) as set out in Appendix 14 of the Listing Rules, except for the
deviation from the Code Provision A.2.1:
Code Provision A.2.1
Code Provision A.2.1 provides that the roles of chairman and chief executive officer
should be separate and should not be performed by the same individual.
Mr. Chan Yue Kwong, Michael assumes the roles of Chairman and Chief Executive
Officer of the Group. The Board considers that, given the current corporate structure,
there is no separation between the roles of Chairman and Chief Executive Officer.
Although the roles and responsibilities for Chairman and Chief Executive Officer are
vested in one person, all major decisions are made in consultation with the Board
and appropriate Board committees. There are three independent non-executive
directors in the Board with sufficient independent element. Therefore, the Board is of
the view that there are adequate impartiality and safeguards in place.
Management has taken note of the external consultant’s recommendations made in
the year 2006/07, aiming at further strengthening the Group’s internal control on
continual process. Actions are in progress in accordance with the established timelines
in the year 2007/08.

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Other Information
MODEL CODE FOR SECURITIES TRANSACTION BY DIRECTORS

The Company has adopted the Model Code as set out in Appendix 10 to the Listing
Rules as its own code of conduct for dealings in securities of the Company by the
directors (the “Code”). The Company, having made specific enquiry of all Directors,
confirms that its Directors had complied with the required standard set out in the
Code during the six months ended 30th September, 2007.
AUDIT COMMITTEE

The Company has established an audit committee which currently consists of three
independent non-executive directors of the Company with written terms of reference
which deal clearly with its authority and duties. Amongst the committee’s principal
duties is to review and supervise the Company’s financial reporting process and
internal controls (including the review of the unaudited interim financial statements
for the six months ended 30th September, 2007).
PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES

During the six months ended 30th September, 2007, neither the Company nor any
of its subsidiaries had purchased, sold or redeemed the Company’s listed securities.

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Condensed Consolidated Balance Sheet
As at 30th September, 2007
As at As at
30th September, 31st March,
2007 2007

Note HK$’000 HK$’000
(Unaudited) (Audited)
ASSETS

Non-current assets
Property, plant and equipment 5 540,420 491,978
Leasehold land and
land use rights 5 276,779 308,788
Investment properties 5 217,800 155,200
Intangible assets 5 246,889 213,068
Available-for-sale financial assets 6 454,081 267,398
Held-to-maturity investments 1,022 8,837
Investment in associates 7 5,465 4,357
Investment in jointly
controlled entities 8 32,365 32,195
Non-current deposits 114,508 107,079
Deferred income tax assets 14,526 12,647
Retirement benefit assets 34,479 31,736
1,938,334 1,633,283
------------------- -------------------

Current assets
Inventories 97,475 74,413
Trade and other receivables 9 50,581 44,145
Prepayments, deposits and
other current assets 126,873 87,811
Financial assets at fair value
through profit or loss 11 141,712 98,720
Cash and cash equivalents 660,595 546,655
1,077,236 851,744
------------------- -------------------

Total assets 3,015,570 2,485,027

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Condensed Consolidated Balance Sheet (Continued)
As at 30th September, 2007
As at As at
30th September, 31st March,
2007 2007

Note HK$’000 HK$’000
(Unaudited) (Audited)
LIABILITIES

Non-current liabilities
Deferred income tax liabilities 74,053 65,121
Provision for long service payments 4,563 4,377
78,616 69,498
------------------- -------------------

Current liabilities
Trade payables 10 115,410 94,741
Other creditors and
accrued liabilities 373,173 300,463
Current income tax liabilities 39,496 23,858
528,079 419,062
------------------- -------------------

Total liabilities 606,695 488,560
------------------- -------------------
EQUITY

Capital and reserves attributable
to the equity holders
of the Company
Share capital 12 55,071 54,593
Reserves (including interim dividend
proposed of HK$82,622,000;
31st March, 2007:
final dividends proposed of
HK$164,791,000) 21 2,353,804 1,941,874
Total equity 2,408,875 1,996,467
------------------- -------------------

Total equity and liabilities 3,015,570 2,485,027
Net current assets 549,157 432,682
Total assets less current liabilities 2,487,491 2,065,965
The notes on pages 23 to 46 are an integral part of this condensed consolidated
interim financial information.

20
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Condensed Consolidated Income Statement
For the six months ended 30th September, 2007
Six months
ended 30th September,
2007 2006

Note HK$’000 HK$’000
(Unaudited) (Unaudited)
Revenue 14 2,085,381 1,892,717
Cost of sales (1,782,055) (1,616,259)
Gross profit 303,326 276,458
Administrative expenses (112,219) (107,643)
Other gain, net 15 3,301 1,774
Operating profit 16 194,408 170,589
Finance income 17 17,687 17,277
Finance costs 17 (134) (803)
211,961 187,063

Share of profit/(loss) of
– Associated companies 1,228 560
– Jointly controlled entities (368) (2,937)
Profit before income tax 212,821 184,686
Income tax expense 18 (37,723) (33,214)
Profit attributable to equity holders
of the Company 175,098 151,472
Earnings per share for profit attributable to
the equity holders of the Company,
expressed in HK cents per share
– Basic 19 31.88 HK cents 28.00 HK cents
– Diluted 19 31.53 HK cents 27.61 HK cents
Dividends 20 82,622 65,390
The notes on pages 23 to 46 are an integral part of this condensed consolidated
interim financial information.

21
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DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Condensed Consolidated Statement of Recognised Income and Expense
For the six months ended 30th September, 2007
2007 2006

HK$’000 HK$’000
(Unaudited) (Unaudited)
Exchange differences arising from consolidation 23,647 (2,727)
Fair value gains, net of tax:
– available-for-sale financial assets 195,281 5,813
Net income recognised directly in equity 218,928 3,086
--------------- ---------------

Profit for the period 175,098 151,472
Total recognised income for the period 394,026 154,558
--------------- ---------------

Attributable to:
– Equity holders of the Company 394,026 154,558
The notes on pages 23 to 46 are an integral part of this condensed consolidated
interim financial information.

22
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Condensed Consolidated Cash Flow Statement
For the six months ended 30th September, 2007
Six months
ended 30th September,
2007 2006

HK$’000 HK$’000
(Unaudited) (Unaudited)
Net cash generated from
operating activities 285,557 277,955
Net cash used in investing activities (190,674) (89,842)
Net cash generated from/(used in)
financing activities 16,015 (233,140)
Net increase/(decrease) in cash
and cash equivalents 110,898 (45,027)
Cash and cash equivalents,
beginning of the period 546,655 559,506
Effect of foreign exchange
rate changes 3,042 (3,709)
Cash and cash equivalents,
end of the period 660,595 510,770
The notes on pages 23 to 46 are an integral part of this condensed consolidated
interim financial information.

23
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
1 GENERAL INFORMATION

Caf de Coral Holdings Limited (the “Company”) and its subsidiaries (together
the “Group”) was incorporated in Bermuda as an exempted company under the
Companies Act 1981 of Bermuda with limited liability on 1st October, 1990. The
address of its registered office is Canon’s Count, 22 Victoria Street, Hamilton
HM 12, Bermuda.
The Group is principally engaged in the operation of quick service restaurants,
fast casual dining, institutional catering and specialty restaurant chains, and the
food processing and distribution business.
The Company has its primary listing on the Main Board of The Stock Exchange
of Hong Kong Limited.
The condensed consolidated interim financial information is presented in
thousands of units of Hong Kong dollars (HK$’000) unless otherwise stated.
This report has been approved for issue by the Board of Directors on 11th
December, 2007.
2 BASIS OF PREPARATION

This condensed consolidated interim financial information for the six months
ended 30th September, 2007 has been prepared in accordance with Hong
Kong Accounting Standard (“HKAS”) 34 “Interim Financial Reporting” issued by
the Hong Kong Institute of Certified Public Accountants (“HKICPA”).
This condensed consolidated interim financial information should be read in
conjunction with the 2007 annual financial statements for the year ended 31st
March, 2007.

24
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
3 ACCOUNTING POLICIES

The accounting policies adopted are consistent with those described in the
annual financial information for the year ended 31st March, 2007.
The following new standards, amendments to standards and interpretations are
mandatory and relevant for financial year ending 31st March, 2008:
HKAS 1 (Amendment) Presentation of Financial Statements:
Capital Disclosures
HKFRS 7 Financial Instruments: Disclosures
HK(IFRIC) – Int 8 Scope of HKFRS 2
HK(IFRIC) – Int 9 Reassessment of Embedded Derivatives
HK(IFRIC) – Int 10 Interim Financial Reporting and Impairment
HK(IFRIC) – Int 11 HKFRS 2 – Group and Treasury
Share Transactions
The adoption of these new standards, amendments to standards and
interpretations has no significant impact on the Group’s interim results and
financial position.
The following new standards, amendments to standards and interpretations,
which are relevant to the Group, have been issued but are not effective for the
financial year ending 31st March, 2008 and have not been early adopted by the
Group:
HKAS 23 (Revised) Borrowing Costs
HKFRS 8 Operating Segments
HK(IFRIC) – Int 12 Service Concession Arrangements
HK(IFRIC) – Int 13 Customer Loyalty Programmes
HK(IFRIC) – Int 14 HKAS 19 – The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and
their Interaction

25
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
4 SEGMENT INFORMATION

(i) Primary reporting format – geographical segments
The Group’s business activities are conducted predominantly in Hong Kong,
Mainland China and North America.
The segment results for the six months ended 30th September, 2007 are as
follows:
Mainland North
Hong Kong China America Group
HK$’000 HK$’000 HK$’000 HK$’000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Segment revenues
Total segment revenue 1,751,523 203,913 161,605 2,117,041
Inter-segment revenue (569) (31,091) – (31,660)
Revenue 1,750,954 172,822 161,605 2,085,381
Segment results 184,994 16,781 (7,367) 194,408
Finance income 17,094 471 122 17,687
Finance costs – (134) – (134)
Share of profit of associates 1,228 ––1,228
Share of loss of jointly
controlled entities – (368) – (368)
Profit before income tax 212,821
Income tax expense (37,723)
Profit attributable to the
equity holders of
the Company 175,098

26
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
4 SEGMENT INFORMATION (Continued)
(i) Primary reporting format – geographical segments (Continued)
Other segment terms included in the condensed consolidated interim income
statement for the six months ended 30th September, 2007 are as follows:
Mainland North
Hong Kong China America Group
HK$’000 HK$’000 HK$’000 HK$’000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Depreciation 59,071 8,740 5,886 73,697
Amortisation of intangible
assets 1,351 – 4,280 5,631
Amortisation of leasehold
land and land use rights 2,498 721 – 3,219
(Gain)/loss on disposal of
property, plant and
equipment (2,925) (45) 887 (2,083)

27
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
4 SEGMENT INFORMATION (Continued)
(i) Primary reporting format – geographical segments (Continued)
The segment assets and liabilities at 30th September, 2007 and capital
expenditure for the six months ended 30th September, 2007 are as follows:
Mainland North
Hong Kong China America Group
HK$’000 HK$’000 HK$’000 HK$’000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Segment assets 1,752,470 301,340 312,589 2,366,399
Associated companies 5,465 ––5,465
Jointly controlled entities – 32,365 – 32,365
1,757,935 333,705 312,589 2,404,229

Unallocated assets 611,341
Total assets 3,015,570
Segment liabilities 387,659 55,100 50,387 493,146
Unallocated liabilities 113,549
Total liabilities 606,695
Capital expenditure 141,074 28,339 13,014 182,427
Segment assets consist primarily of leasehold land and land use rights,
property, plant and equipment, intangible assets, investments in associates
and jointly controlled entities, inventories, receivables, cash and cash
equivalents and other operating assets. Unallocated assets comprise deferred
taxation, available-for-sale financial assets, held-to-maturity investments and
financial assets at fair value through profit or loss.
Segment liabilities comprise operating liabilities and borrowing. They exclude
items such as taxation.

28
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
4 SEGMENT INFORMATION (Continued)
(i) Primary reporting format – geographical segments (Continued)
Capital expenditure comprises additions to leasehold land and land use
rights, property, plant and equipment, investment properties and intangible
assets.
The segment results for the six months ended 30th September, 2006 are as
follows:
Mainland North
Hong Kong China America Group
HK$’000 HK$’000 HK$’000 HK$’000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Segment revenues
Total segment revenue 1,617,967 152,431 151,535 1,921,933
Inter-segment revenue (674) (28,542) – (29,216)
Revenue 1,617,293 123,889 151,535 1,892,717
Segment results 163,947 16,288 (9,646) 170,589
Finance income 16,625 590 62 17,277
Finance costs (803) ––(803)
Share of profit of associates 560 ––560
Share of loss of jointly
controlled entities – (2,937) – (2,937)
Profit before income tax 184,686
Income tax expense (33,214)
Profit attributable to
the equity holders of
the Company 151,472

29
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
4 SEGMENT INFORMATION (Continued)
(i) Primary reporting format – geographical segments (Continued)
Other segment terms included in the condensed consolidated interim income
statement for the six months ended 30th September, 2006 are as follows:
Mainland North
Hong Kong China America Group
HK$’000 HK$’000 HK$’000 HK$’000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Depreciation 62,553 8,300 6,617 77,470
Amortisation of intangible
assets 1,351 – 3,829 5,180
Amortisation of leasehold
land and land use rights 2,893 107 – 3,000
Impairment of trade receivables ––242 242
Loss on disposal of
property, plant and
equipment 2,129 ––2,129

30
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
4 SEGMENT INFORMATION (Continued)
(i) Primary reporting format – geographical segments (Continued)
The segment assets and liabilities at 31st March, 2007 and capital
expenditure for the six months ended 30th September, 2006 are as follows:
Mainland North
Hong Kong China America Group
HK$’000 HK$’000 HK$’000 HK$’000
(Audited) (Audited) (Audited) (Audited)
Segment assets 1,518,550 258,964 283,359 2,060,873
Associated companies 4,357 ––4,357
Jointly controlled entities – 32,195 – 32,195
1,522,907 291,159 283,359 2,097,425

Unallocated assets 387,602
Total assets 2,485,027
Segment liabilities 321,040 38,472 40,069 399,581
Unallocated liabilities 88,979
Total liabilities 488,560
Capital expenditure
(Unaudited) 87,647 17,724 3,724 109,095
(ii) Secondary reporting format – business segment
No segment analysis by business segment is presented as the Group
principally operates in one business segment, which is the operation of
quick service restaurants, fast casual dining, institutional catering and
specialty restaurant chains.

31
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
5 CAPITAL EXPENDITURE

Intangible assets
Leasehold
Total Property, land and
intangible Investment plant and land use
Goodwill Trademark assets properties equipment rights Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
At 1st April, 2006
Cost/Valuation 103,551 173,117 276,668 122,450 1,549,698 422,856 2,371,672
Accumulated
deprecation/
amortisation – (53,241) (53,241) – (1,081,302) (83,880) (1,218,423)
Net book amount 103,551 119,876 223,427 122,450 468,396 338,976 1,153,249
Period ended
30th September,
2006

Opening net book
amount 103,551 119,876 223,427 122,450 468,396 338,976 1,153,249
Additions ––––109,095 – 109,095
Depreciation/
amortisation
expense – (5,180) (5,180) – (77,470) (3,000) (85,650)
Disposals ––– (2,146) – (2,146)
Exchange
differences ––––982 – 982
Provision for
impairment ––––(1,000) – (1,000)
Closing net book
amount 103,551 114,696 218,247 122,450 497,857 335,976 1,174,530
At 30th September,
2006

Cost/Valuation 103,551 173,117 276,668 122,450 1,635,315 422,856 2,457,289
Accumulated
deprecation/
amortisation – (58,421) (58,421) – (1,137,458) (86,880) (1,282,759)
Net book amount 103,551 114,696 218,247 122,450 497,857 335,976 1,174,530

32
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
5 CAPITAL EXPENDITURE (Continued)
Intangible assets
Leasehold
Total Property, land and
intangible Investment plant and land use
Goodwill Trademark assets properties equipment rights Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Period ended
30th September,
2007

Opening net
book amount 103,551 109,517 213,068 155,200 491,978 308,788 1,169,034
Additions –––62,600 119,827 – 182,427
Depreciation/
amortisation
expense – (5,631) (5,631) – (73,697) (3,219) (82,547)
Disposals ––– (2,188) (28,864) (31,052)
Exchange
differences 20,362 19,090 39,452 – 4,500 74 44,026
Closing net
book amount 123,913 122,976 246,889 217,800 540,420 276,779 1,281,888
At 30th September,
2007

Cost/Valuation 123,913 194,673 318,586 217,800 1,744,899 361,680 2,642,965
Accumulated
deprecation/
amortisation – (71,697) (71,697) – (1,204,479) (84,901) (1,361,077)
Net book amount 123,913 122,976 246,889 217,800 540,420 276,779 1,281,888

33
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
6 AVAILABLE-FOR-SALE FINANCIAL ASSETS

30th September, 31st March,
2007 2007

HK$’000 HK$’000
(Unaudited) (Audited)
Available-for-sale financial assets:
– Unlisted debts securities with
floating interest or fixed interest
ranging from 3% to 9% per
annum, and with maturity dates
between 6 months and 10 years 159,146 167,038
– Listed investments 294,935 –
– Unlisted equity securities – 100,360
454,081 267,398
7 INVESTMENT IN ASSOCIATES

30th September, 31st March,
2007 2007

HK$’000 HK$’000
(Unaudited) (Audited)
Share of net assets 4,407 3,299
Due from associated companies 1,058 1,058
5,465 4,357

Unlisted investments, at cost 202 202
The amounts due from the associated companies are unsecured, non-interest
bearing and not repayable within the next twelve months.

34
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
8 INVESTMENT IN JOINTLY CONTROLLED ENTITIES

30th September, 31st March,
2007 2007

HK$’000 HK$’000
(Unaudited) (Audited)
Goodwill on acquisition of
jointly controlled entities 5,604 5,604
Share of net assets 26,761 26,591
32,365 32,195

Unlisted investments, at cost 42,877 42,877
9 TRADE AND OTHER RECEIVABLES

30th September, 31st March,
2007 2007

HK$’000 HK$’000
(Unaudited) (Audited)
Trade receivables 32,148 23,991
Less: provision for impairment
of receivables (3,347) (3,347)
Trade receivables – net 28,801 20,644
Other receivables 21,780 23,501
50,581 44,145

The carrying values of trade and other receivables approximate their fair values.
The Group’s sales to customers are mainly on a cash basis. The Group also
grants a credit period between 30 to 90 days to certain customers for the
provision of the Group’s institutional catering services, sale of merchandise for
the Group’s food manufacturing businesses and receivables of royalty income
from franchisees.

35
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
9 TRADE AND OTHER RECEIVABLES (Continued)
30th September, 31st March,
2007 2007

HK$’000 HK$’000
(Unaudited) (Audited)
0 – 30 days 17,927 12,010
31 – 60 days 7,922 4,705
61 – 90 days 811 992
Over 90 days 5,488 6,284
32,148 23,991

There is no concentration of credit risk with respect to trade receivables as the
Group has a large number of dispersed customers.
10 TRADE PAYABLES

The aging analysis of the trade payables is as follows:
30th September, 31st March,
2007 2007

HK$’000 HK$’000
(Unaudited) (Audited)
0 – 30 days 107,980 83,489
31 – 60 days 5,531 4,441
61 – 90 days 82 1,810
Over 90 days 1,817 5,001
115,410 94,741

36
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
11 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR
LOSS

30th September, 31st March,
2007 2007

HK$’000 HK$’000
(Unaudited) (Audited)
Equity securities listed in Hong Kong 5,202 412
Investment funds 136,510 98,308
141,712 98,720
12 SHARE CAPITAL

(Unaudited) (Audited)
30th September, 2007 31st March, 2007
Number of Nominal Number of Nominal
shares value shares Value
’000 HK$’000 ’000 HK$’000
Authorised
Ordinary shares of
HK$0.10 each
Beginning and end of
period/year 1,000,000 100,000 1,000,000 100,000
Issued and fully paid
Beginning of period/year 545,934 54,593 540,810 54,081
Shares issued under share
option scheme (Note 13) 4,780 478 5,124 512
End of period/year 550,714 55,071 545,934 54,593

37
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
13 SHARE OPTIONS

Pursuant to a share option scheme adopted by the Company on 30th January,
1991 (the “Previous Scheme”), the Company has granted certain options to
executives and employees of the Group, including executive directors employed
by the Group, to subscribe for ordinary shares in the Company subject to the
terms and conditions stipulated therein. The Previous Scheme was terminated
upon the passing of a shareholders’ resolution for adoption of another share
option scheme on 19th September 2000 (the “Scheme”). Accordingly, no options
can be granted under the Previous Scheme after its termination. However, for
the outstanding options granted and yet to be exercised under the Previous
Scheme, the existing rights of the grantees are not affected. No share options
had been granted under the Scheme since its adoption.
On 24th September, 2003, the Scheme was terminated upon the passing of a
shareholders’ resolution for the adoption of a new share option scheme (the
“New Scheme”). Pursuant to the New Scheme, the Company may grant options
to executive and non-executive directors, employees, suppliers and customers
of the Group and consultants, advisors, managers, officers and corporations
that provided research, development or other technical support to the Group to
subscribe for ordinary shares in the Company subject to the terms and conditions
stipulated therein. As at 30th September, 2007, the Company has granted options
to certain employees of the Group (including executive directors of the Company)
pursuant to the New Scheme.
For options granted under the Previous Scheme, the exercise price in relation to
each option was determined by the board of directors of the Company, but in
any event would be the higher of (i) the nominal value of the shares of the
Company or (ii) an amount which is not less than 80% nor more than 100% of
the average of the closing price of the shares as stated in The Stock Exchange
of Hong Kong Limited (the “Stock Exchange”) daily quotations sheets for the
five business days immediately preceding the date of offer of the option. The
exercise period and the vesting period of the options were also determined by
the board of directors and the options shall expire at the end of a 5-year period
after the options become exercisable.

38
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
13 SHARE OPTIONS (Continued)
For options granted under the New Scheme, the exercise price in relation to
each option was determined by the board of directors of the Company, but in
any event would not be less than the highest of (i) the closing price of the
shares as stated in the Stock Exchange’s daily quotations sheet on the date of
grant, which must be a business day or (ii) the average of the closing prices of
the shares as stated in the Stock Exchange’s daily quotations sheet for the five
business days immediately preceding the date of grant or (iii) the nominal value
of a share. The exercise period and the vesting period of the options were also
determined by the board of directors and the option expire at the end of a 5-
year period after the options become exercisable save that such period shall not
expire later than 10 years from the date of grant.
Movements in share options
30th September, 31st March,
2007 2007

(Unaudited) (Audited)
Beginning of period/year 18,480,000 24,404,000
Exercised (4,780,000) (5,124,000)
Cancelled upon termination
of employment (40,000) (800,000)
End of period/year 13,660,000 18,480,000
Options vested 1,830,000 2,070,000

39
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
13 SHARE OPTIONS (Continued)
Details of share options
(Unaudited) (Audited)
30th September, 2007 31st March, 2007
Number Number Number Number
Exercise of options of options of options of options
Grant Date Exercise Period price outstanding vested outstanding vested
HK$
4th November 1999 1st April 2003 to 2.950 1,178,000 768,000 5,666,000 676,000
31st March 2013
1st November 2005 1st January 2007 to 8.800 4,000,000 800,000 4,000,000 800,000
31st October 2015
1st November 2005 1st January 2007 to 8.750 8,482,000 262,000 8,814,000 594,000
31st October 2015
13,660,000 1,830,000 18,480,000 2,070,000
14 REVENUE

Six months
ended 30th September,
2007 2006

HK$’000 HK$’000
(Unaudited) (Unaudited)
Sales of food and beverages 2,016,857 1,837,920
Rental income 18,022 14,622
Royalty income 21,750 21,908
Management and service fee income 4,439 2,021
Sundry income, net 24,313 16,246
2,085,381 1,892,717

40
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
15 OTHER GAIN, NET

Six months
ended 30th September,
2007 2006

HK$’000 HK$’000
(Unaudited) (Unaudited)
Gain on disposals of financial assets
at fair value through profit or loss 514 1,146
Fair value gains on financial assets
at fair value through profit or loss 2,787 628
3,301 1,774
16 OPERATING PROFIT

The following items have been charged/(credited) to the operating profit during
the interim period:
Six months
ended 30th September,
2007 2006

HK$’000 HK$’000
(Unaudited) (Unaudited)
Depreciation of property,
plant and equipment 73,697 77,470
Amortisation of leasehold land
and land use rights 3,219 3,000
Amortisation of trademarks and
franchise rights (including in
administrative expense) 5,631 5,180
(Gain)/loss on disposal of property,
plant and equipment (2,083) 2,129
Fair value gains of financial assets
at fair value through profit or loss (2,787) (628)
Gain on disposal of financial assets
at fair value through profit or loss (514) (1,146)
Provision for impairment of property,
plant and equipment – 1,000
Provision for impairment on trade
and other receivables – 242

41
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
17 FINANCE INCOME AND COSTS

Six months
ended 30th September,
2007 2006

HK$’000 HK$’000
(Unaudited) (Unaudited)
Finance income – interest income 17,687 17,277
Finance costs – interest expense
on bank loans (134) (803)
17,553 16,474
18 INCOME TAX EXPENSE

The Company is exempted from taxation in Bermuda until 2016. Hong Kong
profits tax has been provided at the rate of 17.5% (2007: 17.5%) on the estimated
assessable profit for the period. Taxation on overseas profits has been calculated
on the estimated assessable profit for the period at the rates of taxation prevailing
in the countries in which the Group operates.
The amount of taxation charged to the condensed consolidated income statement
represents:
Six months
ended 30th September,
2007 2006

HK$’000 HK$’000
(Unaudited) (Unaudited)
Current income tax:
– Hong Kong profits tax 31,352 24,598
– Overseas taxation 5,380 5,769
Deferred income tax charged
relating to the origination and
reversal of temporary differences 991 2,847
37,723 33,214

42
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F

DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
19 EARNINGS PER SHARE

Basic
Basic earning per share is calculated by dividing the profit attributable to equity
holders of the Company by the weighted average number of ordinary shares in
issued during the period.
Six months
ended 30th September,
2007 2006

’000 ’000
(Unaudited) (Unaudited)
Profit attributable to equity
holders of the Company HK$175,098 HK$151,472
Weighted average number of
ordinary shares in issue 549,267 541,002
Basic earnings per share
(HK cents per share) 31.88 HK cents 28.00 HK cents
Diluted
Diluted earning per share is calculated adjusting the weighted average number
of ordinary shares outstanding to assume conversion of all dilutive potential
ordinary shares. The Company has dilutive potential ordinary shares – share
options. For the share options, a calculation is done to determine the number of
shares that could have been acquired at fair value (determined as the average
annual market share price of the Company’s shares) based on the monetary
value of the subscription rights attached to shares that would have been issued
assuming the exercise of the share options.

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Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
19 EARNINGS PER SHARE (Continued)
Diluted (Continued)
Six months
ended 30th September,
2007 2006

’000 ’000
(Unaudited) (Unaudited)
Profit attributable to equity holders of
the Company HK$175,098 HK$151,472
Weighted average number of
ordinary shares in issue 549,267 541,002
Adjustments for - share options 5,989 7,561
Weighted average number of
ordinary shares for diluted
earnings per share 555,256 548,563
Diluted earnings per share
(HK cents per share) 31.53 HK cents 27.61 HK cents
20 DIVIDENDS

Six months
ended 30th September,
2007 2006

HK$’000 HK$’000
(Unaudited) (Unaudited)
Dividends proposed
– Interim, 15 HK cents
(2006: 12 HK cents) per share 82,622 65,390
The interim dividend was declared on 11th December, 2007. This interim financial
information does not reflect this dividend payable.

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DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
21 RESERVES

Share based
Capital Exchange compensa-
Share redemption translation tion Capital Contributed Investment Revaluation Retained
premium reserve reserve reserve reserve surplus reserve reserves earnings Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
At 1st April, 2006 57,505 152,034 2,432 3,449 21,079 85,197 (8,875) – 1,497,172 1,809,993
Proceeds from
shares issued 11,656 ––––––––11,656
Exchange differences
arising on
consolidation ––(2,727) ––––––(2,727)
Changes in fair value
of available-for-sale
financial assets ––––––5,813 ––5,813
Employees shares
option scheme-value
of employee services –––3,758 –––––3,758
Profit attributable to
equity holders
of the Company ––––––––151,472 151,472
Dividends (245,205) (245,205)
At 30th September, 2006 69,161 152,034 (295) 7,207 21,079 85,197 (3,062) – 1,403,439 1,734,760
At 1st April, 2007 79,243 152,034 8,195 9,547 21,079 85,197 (1,467) 180 1,587,866 1,941,874
Proceeds from
shares issued 15,537 ––––––––15,537
Exchange differences
arising on consolidation ––23,647 ––––––23,647
Changes in fair value of
available-for-sale
financial assets ––––––195,281 ––195,281
Employees shares option
scheme-value of
employee services –––2,367 –––––2,367
Release of share based
compensation reserve
to share premium
upon exercise of
share option 1,894 ––(1,894) ––––––
Profit attributable to
equity holders
of the Company ––––––––175,098 175,098
At 30th September, 2007 96,674 152,034 31,842 10,020 21,079 85,197 193,814 180 1,762,964 2,353,804

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DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
22 CAPITAL COMMITMENTS

30th September, 31st March,
2007 2007

HK$’000 HK$’000
(Unaudited) (Audited)
Acquisition of property,
plant and equipment
Contracted but not provided for 49,701 12,858
Authorised but not contracted for 42,241 118,942
91,942 131,800
23 RELATED PARTIES TRANSACTIONS

(a) Transactions with a related party
Particulars of significant transactions between the Group and a related party
are summarised as follows:
Six months
ended 30th September,
2007 2006

HK$’000 HK$’000
(Unaudited) (Unaudited)
Operating lease rentals
paid to a related party:
– Tinway Investments Limited
(Note (a)) 1,056 1,056

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DE CORAL HOLDINGS LIMITED

Interim Repor
t 2007
Notes to the Condensed Consolidated Financial Information
(Continued)
23 RELATED PARTIES TRANSACTIONS (Continued)
(a) Transactions with a related party (Continued)
(a) Tinway Investments Limited is a company jointly owned by Ms. Lo Pik Ling,
Anita, a director of the Company, an associate of Mr. Chan Yue Kwong, Michael,
the Chairman of the Company and Ardley Enterprises Limited, a company wholly
and beneficially owned by the family members of Mr. Lo Hoi Kwong, Sunny, a
director of the Company.
The above transactions were carried out in accordance with the terms of
the contracts entered into by the Group with the related party.
(b) Key management compensation
Six months
ended 30th September,
2007 2006

HK$’000 HK$’000
(Unaudited) (Unaudited)
Salaries and allowances 4,338 3,695
Others 16,019 9,114
20,357 12,809

Interim Report 2007 中期報告
2007

Interim Report 中期報告