香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 LUK HING ENTERTAINMENT GROUP HOLDINGS LIMITED 陸慶娛樂集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8052） 截至2023年6月30日止六個月的 中期業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM之定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所 上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險， 並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較於聯交所主板買 賣之證券承受較大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量 之市場。 香港交易及結算所有限公司及聯交所對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致 ...

Financial Performance - Revenue for the first quarter of 2023 reached HKD 23,806,000, a significant increase from HKD 6,571,000 in the same period of 2022, representing a growth of approximately 262%[3] - The cost of goods sold was HKD 6,295,000, up from HKD 1,881,000 in the previous year, indicating a rise of about 234%[3] - The company reported a pre-tax profit of HKD 122,000, a turnaround from a loss of HKD 15,213,000 in Q1 2022[3] - The net profit attributable to the owners of the company was a loss of HKD 430,000, compared to a loss of HKD 9,918,000 in the same quarter last year, showing an improvement[5] - Total comprehensive loss for the period was HKD 771,000, significantly reduced from HKD 15,430,000 in Q1 2022[3] - Basic and diluted loss per share for the first quarter was HKD 0.02, compared to HKD 0.44 in the same period last year[5] - Total revenue increased by 260.6% from approximately HKD 6.6 million in Q1 2022 to approximately HKD 23.8 million in Q1 2023, as restaurant sales recovered to 90% of pre-pandemic levels[34] - The company reported a loss attributable to owners of approximately HKD 0.4 million in Q1 2023, a significant decrease from HKD 9.9 million in the same period of 2022, primarily due to a rebound in restaurant sales and minimized operating expenses after the termination of CUBIC SPACE+ in October 2022[38] Costs and Expenses - The company incurred financing costs of HKD 381,000, down from HKD 1,689,000 in the previous year, reflecting a decrease of approximately 77%[3] - Employee costs increased by 20.5% from approximately HKD 7.3 million in Q1 2022 to approximately HKD 8.8 million in Q1 2023, reflecting a return to normal levels as sales revenue rebounded[35] - Property rental and related expenses decreased by 9.5% from approximately HKD 2.1 million in Q1 2022 to approximately HKD 1.9 million in Q1 2023 due to the termination of CUBIC SPACE+ operations[35] - Advertising and marketing expenses fell by 70.0% from approximately HKD 0.1 million in Q1 2022 to approximately HKD 0.03 million in Q1 2023, attributed to strict cost control measures[35] - Other operating expenses increased by 23.1% from approximately HKD 2.6 million in Q1 2022 to approximately HKD 3.2 million in Q1 2023, driven by higher variable costs due to increased sales revenue[36] - Depreciation and amortization decreased by 50.7% from approximately HKD 6.7 million in Q1 2022 to approximately HKD 3.3 million in Q1 2023, primarily due to the cessation of CUBIC SPACE+ operations[36] Financing and Capital Raising - The group completed a placement of 450,880,000 shares on March 17, 2023, raising net proceeds of approximately HKD 6.9 million, primarily used to repay convertible notes and loans[15] - The group plans to raise approximately HKD 43.9 million through a rights issue, with an estimated net amount of HKD 40.9 million to be used for repaying outstanding debts and operational funding[15] - The company is actively exploring fundraising activities, including a proposed rights issue to raise up to approximately HKD 43.9 million[32] - The board believes that the proposed rights issue in Q2 and Q3 2023 will provide an opportunity to repay major outstanding debts and strengthen the company's financial position while raising additional funds for operations without any interest burden[39] Liquidity and Going Concern - As of March 31, 2023, the group had current liabilities of approximately HKD 112,597,000 and total liabilities of approximately HKD 101,613,000, raising significant doubts about the group's ability to continue as a going concern[13] - The company successfully placed new shares to new investors in March 2023 to repay part of its outstanding debt, although the net debt remains significant, creating uncertainty regarding the company's ability to continue as a going concern[39] - The group is actively exploring financing arrangements to improve liquidity and has engaged in discussions with banks to renew existing financing[17] Operational Focus and Strategy - The company is focused on expanding its operations in the dining and entertainment sectors, with plans for new product offerings and market expansion[9] - The company will continue to closely monitor its costs while striving to maximize revenue by providing first-class service to customers[40] - The company remains optimistic about its business and operations due to the gradual easing of social restrictions in multiple countries, leading to a rebound in domestic activities, reopening of borders, and recovery of international travel[39] Corporate Governance - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and GEM Listing Rules, ensuring compliance and transparency[12] - The audit committee has been established in accordance with GEM Listing Rules and consists of independent non-executive directors, ensuring compliance and effective risk management[61] - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2023[62] - The board of directors includes executive and non-executive members, with recent changes in appointments reflecting ongoing governance adjustments[64] Shareholding Structure - As of March 31, 2023, Welmen and its controlled entities hold a total of 1,093,500,000 shares, representing approximately 39.89% of the company's issued share capital[48] - Kenbridge Limited and its controlled entity hold 121,500,000 shares, accounting for about 4.43% of the company's issued share capital[50] - Trendy Pleasure Limited and its controlled entity also hold 300,000,000 shares, which is approximately 10.94% of the company's issued share capital[50] Other Information - The company did not purchase, sell, or redeem any of its listed securities during the three-month period ending March 31, 2023[55] - No significant events that could materially impact the company's operations or financial performance have occurred after March 31, 2023[54] - The company maintains a clear operational boundary with its controlling shareholder's restaurant business in Macau, which is distinct from its own operations[56] - The controlling shareholder has interests in several restaurant businesses in Hong Kong, which are not part of the company[58] - The company has no knowledge of any conflicts of interest involving its directors or controlling shareholders as of March 31, 2023[60]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表明概不就因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 LUK HING ENTERTAINMENT GROUP HOLDINGS LIMITED 陸 慶 娛 樂 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8052） 2023 3 31 截至 年 月 日止三個月之第一季度業績公告 GEM 香港聯合交易所有限公司（「聯交所」） 的特色 GEM 之定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所 上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險， 並應經過審慎周詳的考慮後方作出投資決定。 GEM GEM 由於 上市公司普遍為中小型公司，在 買賣之證券可能會較於聯交所主板買 GEM 賣之證券承受較大之市場波動風險，同時無法保證在 買賣之證券會有高流通量 之市場。 香港交易及結算所有限公司及聯交所對本公告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因 ...

Business Challenges and Recovery - The company faced significant challenges in 2022 due to labor shortages, insufficient tourists from mainland China and overseas, and rising operational costs[10]. - The restaurant business was severely impacted by COVID-19, with ongoing public gathering restrictions affecting operations and increasing costs for ingredients and shipping containers[11]. - The company has limited its operations in mainland China due to deteriorating business conditions and disagreements with property owners[12]. - The board is cautious about potential challenges from global political tensions, rising food prices, and increased labor costs in the upcoming year[13]. - The company plans to optimize and transform its existing business in 2023 to improve operational efficiency and capitalize on post-pandemic reopening momentum[13]. - The company aims to continuously review its existing business and seek potential business and investment opportunities to expand revenue sources[15]. Financial Performance - Total revenue decreased by 63.5% from approximately HKD 160.4 million in 2021 to approximately HKD 58.6 million in 2022, primarily due to the termination of operations at Club Cubic Macau and CUBIC SPACE+, as well as the ban on dine-in services from January 7 to April 20, 2022[27]. - Restaurant business generated revenue of approximately HKD 57.7 million in 2022, accounting for about 98.5% of the total revenue, compared to HKD 65.9 million in 2021[19]. - The net loss attributable to owners of the company for 2022 was approximately HKD 32.1 million, a significant decrease from HKD 72.0 million in 2021, mainly due to the sale of Club Cubic Macau[33]. - Current ratio decreased from 0.3 in 2021 to 0.1 in 2022, while the debt ratio increased from 154.4% in 2021 to 358.9% in 2022[34]. - Cash and cash equivalents as of December 31, 2022, were HKD 0.6 million, down from HKD 2.0 million in 2021[34]. - The company received approximately HKD 3.9 million in government subsidies related to COVID-19 in 2022[25]. - The company successfully applied for an 8 million HKD government-guaranteed loan to cover restaurant rent payments[25]. Operational Adjustments - The company will continue to implement various menus for takeout and self-pickup to attract more customers amid ongoing restrictions[11]. - The company implemented stricter measures to improve operational cash flow and closely monitored operating expenses during the challenging business environment[25]. - Cost of goods sold decreased by 56.0% from approximately HKD 41.6 million in 2021 to about HKD 18.3 million in 2022, consistent with the decline in revenue[28]. - Employee costs fell by 62.8% from approximately HKD 86.5 million in 2021 to about HKD 32.2 million in 2022, primarily due to the closure of Club Cubic Macau and CUBIC SPACE+[28]. - Other operating expenses decreased by 42.7% from approximately HKD 27.9 million in 2021 to about HKD 16.0 million in 2022, attributed to the termination of operations at Club Cubic Macau and CUBIC SPACE+[29]. Corporate Governance - The company has complied with the corporate governance code and has taken measures to ensure transparency and accountability to shareholders[57]. - The company emphasizes the importance of maintaining stakeholder trust and confidence through good governance standards[57]. - The company regularly reviews and improves its corporate governance practices to align with the latest developments[60]. - The company has adopted a board diversity policy since November 10, 2016, emphasizing the importance of diverse backgrounds in enhancing company performance[68]. - The board consists of 7 members, including 3 executive directors, 1 non-executive director, and 3 independent non-executive directors[62]. - The company appointed Ms. Xie Meiling as an independent non-executive director and chair of the audit and remuneration committees on January 13, 2023[57]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the period from January 1, 2022, to December 31, 2022, and is prepared according to GEM listing rules[114]. - The company emphasizes reducing environmental impact and providing a safe and pleasant working environment for employees and customers[118]. - The company aims to reduce overall greenhouse gas emissions by 3% to 5% in the coming year to save costs and mitigate global warming impacts[128]. - The company has implemented policies to ensure compliance with environmental laws and to minimize its environmental impact[122]. - The company has engaged independent consultants to assess its ESG performance for the year 2022[110]. Employee Management and Diversity - The company is committed to building an inclusive corporate culture, providing equal employment opportunities without discrimination[154]. - The employee gender ratio as of December 31, 2022, is 67.09% male and 32.91% female, indicating a focus on diversity in hiring practices[71]. - The company has fulfilled all employee responsibilities, including payment of salaries, holidays, and insurance during the reporting period[159]. - Employee turnover rate for the group was 79.75% during the 2022 reporting period, with 63 employees voluntarily leaving for various reasons[161]. - The group maintained a commitment to a diverse and non-discriminatory work environment, ensuring equal opportunities for all employees[164]. Risk Management - The group faces various risks including market risk, credit risk, and liquidity risk, which could significantly impact its financial condition and operational performance[192]. - The board is responsible for the group's risk management and has established a robust internal control system to ensure efficient resource use and compliance with laws[94]. - A risk management team, composed of experienced executives, conducts quarterly risk identification and analysis, assessing potential risks and developing mitigation plans[96]. Community Engagement - During the 2022 reporting period, the group continued to focus on community needs, making donations to local charities and emphasizing local employment[187]. - The company maintains multiple communication channels with shareholders, including annual general meetings and disclosures on its website[100].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表明概不就因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 LUK HING ENTERTAINMENT GROUP HOLDINGS LIMITED 陸 慶 娛 樂 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8052） 截至 年 月 日止年度之全年業績公告 2022 12 31 香港聯合交易所有限公司（「聯交所」） 的特色 GEM GEM之定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市 的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較於聯交所主板買賣之 證券承受較大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司及聯交所對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本公告全部或任何部份 ...

Financial Performance - The company's revenue for the three months ended September 30, 2022, was HKD 17,176,000, a decrease of 54.5% compared to HKD 37,762,000 in the same period of 2021[3] - The total comprehensive loss for the period was HKD 26,346,000, compared to a loss of HKD 13,519,000 in the same quarter of 2021, representing a 94.5% increase in losses[5] - The basic loss per share for the three months ended September 30, 2022, was HKD 0.90, compared to HKD 0.50 in the same period of 2021[5] - For the nine months ended September 30, 2022, the company reported a total revenue of HKD 38,371,000, down 69.9% from HKD 127,553,000 in the same period of 2021[3] - The company incurred a loss of HKD 57,379,000 for the nine months ended September 30, 2022, compared to a loss of HKD 32,008,000 in the same period of 2021, marking an increase of 79.5% in losses[5] - The company’s total comprehensive loss attributable to owners for the nine months ended September 30, 2022, was HKD 40,273,000, compared to HKD 26,630,000 in the same period of 2021, reflecting a 51.4% increase in losses[5] Revenue Breakdown - Sales of food and other products for the three months ended September 30, 2022, were HKD 15,532,000, a decline of 9.6% from HKD 17,186,000 in 2021[17] - Beverage sales dropped significantly to HKD 1,560,000 for the three months ended September 30, 2022, compared to HKD 20,366,000 in the same period of 2021[17] - Total revenue decreased by 69.9% from approximately HKD 127.6 million in the first three quarters of 2021 to approximately HKD 38.4 million in the same period of 2022, primarily due to the closure of Club Cubic Macau and CUBIC SPACE+[41] Cost and Expenses - The company reported a significant increase in employee costs, totaling HKD 23,450,000 for the nine months ended September 30, 2022, compared to HKD 67,972,000 in the same period of 2021[3] - The cost of goods sold decreased by 63.4% from approximately HKD 32.8 million in the first three quarters of 2021 to approximately HKD 12.0 million in the same period of 2022, consistent with the revenue decline[42] - Employee costs fell by 65.5% from approximately HKD 68.0 million in the first three quarters of 2021 to approximately HKD 23.5 million in the same period of 2022, mainly due to the closure of Club Cubic Macau and CUBIC SPACE+[42] - Other operating expenses decreased by 23.4% from approximately HKD 24.4 million in the first three quarters of 2021 to approximately HKD 18.7 million in the same period of 2022, attributed to the closure of Club Cubic Macau and CUBIC SPACE+[42] Government Support - The group received government subsidies amounting to HKD 2,319,000 for the nine months ended September 30, 2022, compared to HKD 820,000 in the same period of 2021[19] - For the nine months ended September 30, 2022, government subsidies related to COVID-19 amounted to HKD 2,319,000, compared to HKD 820,000 in 2021, with HKD 1,200,000 related to the Hong Kong government's anti-epidemic fund[20] Financial Position and Liabilities - The company’s total assets as of September 30, 2022, were reported at HKD 115,363,000, a decrease from previous periods, indicating potential liquidity challenges[6] - The group has a net current liability of approximately HKD 109,419,000 as of September 30, 2022, indicating significant uncertainty regarding its ability to continue as a going concern[12] Fundraising and Financing - The company is exploring fundraising activities, including rights issues and/or share placements, to meet its repayment obligations[15] - The company is in discussions with banks to renew financing, believing that existing bank financing will be renewed upon expiration[15] - The total financing costs for the nine months ended September 30, 2022, were HKD 4,476,000, down 29% from HKD 6,346,000 in 2021[24] Operational Challenges - The group experienced operational losses due to strict dining restrictions and social distancing measures during the COVID-19 pandemic in early 2022[49] - The company recognized a loss of approximately HKD 11.2 million related to the termination of CUBIC SPACE+, including asset write-offs and lease termination income[37] - The company made a provision of approximately HKD 2.2 million for unpaid rent in the third quarter of 2022 due to legal disputes[44] Management and Governance - The company has established an audit committee to oversee financial reporting, internal controls, and risk management systems[68] - The audit committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2022[69] - The board acknowledges non-compliance with GEM listing rules due to the resignation of an independent non-executive director, resulting in only two independent non-executive directors remaining[70] - The company aims to fill the vacancy within three months from October 13, 2022, to ensure compliance with GEM listing rules[72] Future Outlook - The management anticipates a strong rebound in revenue once social distancing measures are relaxed, supported by loyal customers[49] - The management expresses confidence in the long-term prospects of its restaurant business in Hong Kong as the pandemic situation gradually improves[51] - The group aims to leverage its brand and network to improve financial conditions for shareholders and stakeholders despite a challenging business environment[51]

Financial Performance - The group's revenue for the three months ended June 30, 2022, was HKD 14,624,000, a decrease of 69.1% compared to HKD 47,496,000 in the same period of 2021[3]. - For the six months ended June 30, 2022, the group's revenue was HKD 21,195,000, down 76.4% from HKD 89,792,000 in the same period of 2021[3]. - The group reported a loss before tax of HKD 14,031,000 for the three months ended June 30, 2022, compared to a loss of HKD 4,661,000 in the same period of 2021, representing an increase in loss of 200.5%[3]. - The total comprehensive loss for the six months ended June 30, 2022, was HKD 29,391,000, which is an increase of 61.1% from HKD 18,235,000 in the same period of 2021[5]. - The loss attributable to owners of the company for the six months ended June 30, 2022, was HKD 21,032,000, compared to HKD 15,854,000 in the same period of 2021, reflecting a 32.5% increase in loss[5]. - Basic loss per share for the six months ended June 30, 2022, was HKD 0.93, compared to HKD 0.80 for the same period in 2021[5]. - For the six months ended June 30, 2022, the company reported a net loss of HKD 21,032,000, compared to a net loss of HKD 15,854,000 for the same period in 2021, representing a 32.5% increase in losses year-over-year[9]. - The company incurred a total comprehensive loss of HKD 21,032,000 for the period, which includes a loss from operations and other comprehensive income[9]. Assets and Liabilities - The group's total assets decreased to HKD 85,022,000 as of June 30, 2022, from HKD 111,478,000 as of December 31, 2021[6]. - Current liabilities increased to HKD 121,102,000 as of June 30, 2022, compared to HKD 111,617,000 as of December 31, 2021[8]. - The net current liabilities as of June 30, 2022, were HKD 95,865,000, worsening from HKD 76,318,000 as of December 31, 2021[8]. - The group's non-current assets decreased to HKD 60,785,000 as of June 30, 2022, from HKD 76,179,000 as of December 31, 2021[6]. - The company's total liabilities as of June 30, 2022, were approximately HKD 95,865,000, indicating a significant financial burden[17]. - Total liabilities increased to HKD 87,803,000 as of June 30, 2022, from HKD 74,310,000 at the end of 2021[59]. Cash Flow and Liquidity - The company's cash and cash equivalents decreased by HKD 1,027,000, ending at HKD 1,869,000 as of June 30, 2022, compared to HKD 10,636,000 at the end of June 30, 2021[11]. - Operating cash outflow for the six months was HKD 2,100,000, an improvement from HKD 7,343,000 in the previous year, indicating a 71.5% reduction in cash used in operations[11]. - As of June 30, 2022, the current ratio was 0.2, down from 0.3 in 2021, indicating a decline in liquidity[84]. - The quick ratio also decreased to 0.2 in 2022 from 0.3 in 2021, reflecting a similar trend in financial health[85]. - The debt ratio increased significantly to 203.5% in 2022 from 154.4% in 2021, suggesting a higher level of leverage[86]. Revenue Breakdown - Revenue from food and beverage sales for the six months ended June 30, 2022, was HKD 18,279,000, down 32.8% from HKD 27,207,000 in 2021[26]. - Revenue from beverage sales for the six months ended June 30, 2022, was HKD 2,744,000, down 95.5% from HKD 61,506,000 in 2021[26]. - Total revenue decreased by 76.4% from HKD 89.8 million in the first half of 2021 to HKD 21.2 million in the same period of 2022, primarily due to the suspension of CUBIC SPACE+ operations and the ban on dine-in services from January 7 to April 20, 2022[78]. Government Support - The company received government subsidies related to COVID-19 amounting to HKD 1,872,000 for the six months ended June 30, 2022, compared to HKD 820,000 in 2021[29]. - The group obtained HKD 1.2 million from the Hong Kong government's restaurant subsidy scheme and approximately HKD 0.7 million from the employment support scheme during the review period[87]. Operational Changes - The company is considering other financing arrangements to increase capital and support ongoing growth[20]. - The company has taken steps to improve its liquidity position, which includes measures to enhance cash flow and manage financial obligations[19]. - The company is in discussions with landlords for rent reductions due to decreased customer numbers caused by COVID-19[20]. - The company has implemented stricter measures to ensure the health of employees and the community, with 99% of its staff in Hong Kong vaccinated[77]. Shareholder Information - As of June 30, 2022, Welmen holds 1,093,500,000 shares, representing a 47.74% stake in the company[102]. - The major shareholder 富瑆 (Fuhsi) holds 1,093,500,000 shares, accounting for 47.74% of the total shares[102]. - The company has established a non-competition agreement with its controlling shareholder, which does not cover the shareholder's restaurant and bar businesses[111]. Corporate Governance - The company aims to maintain high corporate governance standards to enhance transparency and accountability, which is believed to create long-term value for shareholders[119]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022[129]. - The company has adopted a code of conduct for directors' securities transactions, confirming compliance with the GEM Listing Rules[126].

Financial Performance - The group's revenue for the three months ended March 31, 2022, was HKD 6,571,000, a decrease of 84.4% compared to HKD 42,296,000 in the same period of 2021[3] - The group reported a loss before tax of HKD 15,213,000, compared to a loss of HKD 13,545,000 in the previous year, indicating a worsening financial performance[3] - The total comprehensive loss for the period was HKD 15,430,000, compared to HKD 13,481,000 in the same period last year, showing an increase in overall losses[3] - Basic loss per share was HKD 0.44, an improvement from HKD 0.63 in the previous year, indicating a relative decrease in loss per share despite the overall losses[5] - The group incurred a loss attributable to owners of HKD 9,918,000 for the three months ended March 31, 2022, compared to a loss of HKD 11,365,000 in the same period of 2021[21] - The group’s non-controlling interests reported a loss of HKD 5,295,000, compared to HKD 2,180,000 in the previous year, highlighting increased losses attributed to minority shareholders[5] Revenue and Sales - Revenue from food and beverage sales was HKD 5,179,000, down 54.8% from HKD 11,463,000 in the previous year[18] - Total revenue decreased by 84.4% from HKD 42.3 million in Q1 2021 to HKD 6.6 million in Q1 2022 due to the suspension of CUBIC SPACE+ operations and dining restrictions[31] - The restaurant sales plummeted by 60% to 90% during the dining ban from January 7 to April 20, 2022[28] Cost Management - The cost of goods sold for the period was HKD 1,881,000, down from HKD 11,877,000, reflecting a significant reduction in operational costs[3] - Employee costs fell by 70.4% from HKD 24.7 million in Q1 2021 to HKD 7.3 million in Q1 2022, primarily due to strict cost-cutting measures during the suspension of operations[32] - Other operating expenses decreased by 65.3% from HKD 7.5 million in Q1 2021 to HKD 2.6 million in Q1 2022, attributed to the operational suspension and dining restrictions[33] - The financing costs for the period were HKD 1,689,000, down from HKD 2,211,000, indicating improved management of financial expenses[3] Liquidity and Financial Position - The group had net current liabilities of approximately HKD 85,716,000 and total liabilities of approximately HKD 76,100,000 as of March 31, 2022, raising significant doubts about its ability to continue as a going concern[13] - The group is exploring fundraising activities, including rights issues and bank financing renewals, to improve its liquidity situation[16] - The group plans to implement tighter measures to enhance operational cash flow and closely monitor operating expenses[16] - The group is considering applying for government-backed loans to support rental payments for its restaurants[16] Government Support and Subsidies - The group received government subsidies related to COVID-19 amounting to HKD 400,000, a decrease from HKD 820,000 in the previous year[20] Operational Challenges and Strategies - The first quarter of 2022 was challenging for the company due to the ongoing impact of the COVID-19 pandemic on operations in mainland China and Hong Kong[36] - The company has implemented measures to safeguard employee and community health, with 99% of staff in Hong Kong vaccinated[29] - The company is actively renegotiating existing terms with suppliers and landlords to control costs effectively during this period[36] - The company has terminated the operation of the "GaGiNang" restaurant due to severe impacts from the pandemic[28] - The company aims to achieve its business objectives and create long-term value for shareholders despite the adverse effects of the pandemic[36] Shareholder Information - As of March 31, 2022, Mr. Cai Yao-xing holds 1,093,500,000 shares, representing approximately 48.51% of the company's ordinary shares[38] - Mr. Cai Shao-jie also holds 1,093,500,000 shares, equivalent to 48.51% of the company's ordinary shares[40] - Welmen Investment Co. Ltd. holds 1,093,500,000 shares, which is about 48.51% of the company's ordinary shares[44] - Kenbridge Limited holds 121,500,000 shares, representing 5.39% of the company's ordinary shares[46] - Trendy Pleasure Limited and Saint Lotus Cultural Development Group each hold 300,000,000 shares, accounting for 13.31% of the company's ordinary shares[46] - Chan Ting Fai and Lee Wan each hold 1,093,500,000 shares, which is 48.51% of the company's ordinary shares[46] - Lau Sze Mun Charmaine holds 121,500,000 shares, representing 5.39% of the company's ordinary shares[46] Corporate Governance - The audit committee has reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2022[55] - The board of directors includes executive directors and independent non-executive directors, ensuring corporate governance compliance[57] - The company has established an audit committee to provide independent opinions on financial reporting and risk management systems[54] - No other interests or potential conflicts of interest were reported among directors or controlling shareholders as of March 31, 2022[53] Dividend Policy - The company does not recommend the payment of an interim dividend for the three months ending March 31, 2022[25]

Financial Performance - The company faced significant challenges in 2021 due to the ongoing COVID-19 pandemic, impacting financial and operational performance[10]. - Total revenue increased by 1.3% from HKD 158.4 million in 2020 to HKD 160.4 million in 2021, driven by growth in HEXA and SIXA, partially offset by a 37.7% decline in revenue from Club Cubic Macau[24]. - The company incurred a loss of approximately HKD 72.0 million attributable to owners for the year ended December 31, 2021, compared to a loss of HKD 31.8 million in the same period of 2020, primarily due to the termination of Club Cubic Macau operations resulting in a loss of HKD 16.9 million[31]. - The current ratio decreased to 0.3 in 2021 from 0.8 in 2020, while the debt ratio increased to 154.4% from 98.1%[33]. - Cash and cash equivalents decreased to HKD 2.0 million as of December 31, 2021, down from HKD 9.9 million in 2020[35]. - The company secured a total of HKD 2.6 million through a fully guaranteed special loan scheme during the review period[23]. - The company completed a share subscription of HKD 11.7 million to strengthen its balance sheet[23]. Operational Challenges - The company terminated operations at Club Cubic Macau on October 8, 2021, due to disputes and adverse effects from COVID-19, leading to revenue losses[11]. - Restaurant operations were severely affected by travel restrictions and dining-in policies, with increased costs for ingredients and shipping containers due to global supply chain issues[12]. - The restaurant business experienced a sales decline of 60% to 90% due to the fifth wave of COVID-19, leading to the termination of operations at GaGiNang restaurant[22]. - The company anticipates continued disruptions to operations due to COVID-19 in 2022 and has adjusted its strategies to ensure business continuity[23]. - CUBIC SPACE+ reported impairment losses of HKD 4.6 million on property and equipment, HKD 1.9 million on right-of-use assets, and HKD 9.2 million on goodwill as of December 31, 2021[29]. Strategic Initiatives - The company aims to expand operations into the Greater Bay Area and seek potential business collaborations or investment opportunities[15]. - The management remains cautiously optimistic about the industry's future despite ongoing market uncertainties[12]. - The company will continue to review its existing operations to improve business and financial conditions[15]. - The company is exploring opportunities to diversify its supply sources and negotiate long-term contracts to mitigate supply risks[39]. - The company is in discussions to renew existing leases for its restaurants, which contributed 40% to total revenue in 2021, highlighting the importance of these operations for future growth[39]. Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM listing rules, ensuring transparency and accountability to shareholders[65]. - The management team includes experienced professionals with backgrounds in telecommunications, gaming operations, and financial services, enhancing strategic planning and operational oversight[58][59][61]. - The company is focused on maintaining good corporate governance standards to create long-term value for shareholders and ensure sustainable growth[65]. - The board includes independent non-executive directors who provide independent judgment and oversight, contributing to effective governance[60][63]. - The company has a commitment to maintaining stakeholder trust and confidence through good governance practices[65]. Environmental, Social, and Governance (ESG) Efforts - The environmental, social, and governance (ESG) report covers the company's performance and management measures for the year 2021, focusing on sustainability and stakeholder communication[113]. - The company aims to become a leading music entertainment and restaurant operator in the Greater China region, providing reasonable returns to shareholders while being socially and environmentally responsible[114]. - The company has implemented policies to ensure compliance with environmental laws and regulations, including the Hong Kong Air Pollution Control Ordinance and the Environmental Protection Law of the People's Republic of China[122]. - The company has established a communication framework with stakeholders, including regular meetings and reports, to understand their views on environmental, social, and governance matters[119]. - The company has identified key performance indicators related to environmental and social aspects, which are continuously monitored by management[4]. Employee Relations and Development - The company employed a total of 138 employees during the reporting period, all of whom were full-time, with no part-time employees[158]. - The employee turnover rate for the reporting period was 82.55%, with 123 employees voluntarily leaving for various reasons, including career advancement[164]. - The company promotes a diverse and respectful work environment, ensuring equal employment opportunities without discrimination[166]. - The company has established clear policies regarding compensation, recruitment, and promotion, adhering to local labor laws[166]. - The company has maintained a good working relationship with employees, with no strikes or major labor disputes reported in 2021[173]. Risk Management - The board is responsible for the group's risk management and internal control systems, ensuring effective use of resources to achieve business objectives[97]. - A risk management team has been established, conducting quarterly risk identification and analysis, and reviewing risk management plans[99]. - The internal control system aims to ensure operational efficiency, reliable financial reporting, and compliance with applicable laws and regulations[100]. - The company emphasizes the importance of confidentiality regarding insider information, with strict controls on access and disclosure[100]. - The board has reviewed the effectiveness of the risk management and internal control systems and considers them adequate and effective[102].

董事會（「董事會」）欣然公佈本公司及其附屬公司（統稱「本集團」）截至2021年9月30日 止三個月及九個月期間之未經審核簡明綜合業績，連同2020年各同期之未經審核比較 數字如下： 未經審核簡明綜合損益及其他全面收益表 | | | 截至9月30日止三個月期間 | | 截至9月30日止九個月期間 | | | --- | --- | --- | --- | --- | --- | | | | 2021年 | 2020年 | 2021年 | 2020年 | | | 附註 | 千港元 | 千港元 | 千港元 | 千港元 | | | | （未經審核） | （未經審核） | （未經審核） | （未經審核） | | 收益 | 2 | 37,762 | 46,537 | 127,553 | 101,374 | | 其他收入及收益 | 3 | 740 | 6,141 | 6,246 | 13,508 | | 已售存貨成本 | | (10,826) | (12,987) | (32,765) | (29,379) | | 員工成本 | | (19,774) | (12,053) | (67,972) | (36,993) | | ...