Revenue Performance - The group's revenue for the year ended December 31, 2021, was approximately HKD 147.6 million, a decrease of about 3.1% compared to the previous year[12]. - The wine trading business recorded significant revenue growth to approximately HKD 145.3 million in 2021, up from HKD 96.6 million in 2020, despite a segment loss of approximately HKD 61.3 million[13]. - The food production business's revenue plummeted to approximately HKD 2.3 million in 2021, a decline of about 95.9% from HKD 55.8 million in 2020, resulting in a loss of approximately HKD 0.8 million[15]. - Total revenue for the group decreased by approximately HKD 4.9 million or 3.1%, from about HKD 152.5 million in 2020 to about HKD 147.6 million in 2021, primarily due to the scaling down of the food production business[23]. - The food business's new brand "Big Brother Roast" contributed only 1.6% to total revenue in 2021[15]. - The wine business achieved significant revenue growth, with sales reaching approximately HKD 145.2 million in 2021, compared to HKD 96.6 million in 2020, despite a segment loss of about HKD 61.3 million[20]. - The food business experienced a drastic decline in revenue, dropping approximately 95.9% from about HKD 55.8 million in 2020 to about HKD 2.3 million in 2021, accounting for only 1.6% of total group revenue[21]. Financial Performance - The group recorded a net loss of approximately HKD 63.2 million in 2021, compared to a loss of about HKD 29.5 million in 2020, driven by increased impairment losses and rising sales costs[31]. - Other income plummeted by approximately HKD 7.1 million or 95.4%, from about HKD 7.4 million in 2020 to about HKD 0.3 million in 2021, largely due to the absence of government subsidies received in the previous year[25]. - Employee benefits expenses significantly decreased by approximately HKD 31.9 million or 90.0%, from about HKD 34.9 million in 2020 to about HKD 3.5 million in 2021, due to workforce reductions in the food production business[26]. - The group’s administrative expenses decreased by approximately HKD 15.1 million or 62.1%, from about HKD 24.4 million in 2020 to about HKD 9.2 million in 2021, reflecting cost-saving measures following the downsizing of the food production business[29]. - The group’s financial costs decreased by approximately HKD 2.6 million or 41.8%, from about HKD 6.3 million in 2020 to about HKD 3.7 million in 2021, primarily due to the repayment of bank notes[30]. - The company reported a loss before tax of HKD 75,265,000, compared to a loss of HKD 32,373,000 in the previous year, indicating a worsening of 132.5%[195]. - The total loss for the year, including discontinued operations, was HKD 63,190,000, compared to HKD 38,048,000 in 2020, an increase of 66.2%[195]. - The company reported a total comprehensive loss of HKD 63,089,000 for the year ended December 31, 2021, compared to HKD 28,322,000 in 2020, representing an increase of 123% in losses[197]. Operational Challenges - The wine trading business faced challenges due to the COVID-19 pandemic, leading to increased competition and a need for cost control measures[13]. - The board is actively monitoring the impact of the Omicron variant on the business environment and will respond accordingly to potential financial and operational impacts[16]. - The company aims to diversify its business portfolio and expand revenue sources to improve operational and financial conditions while enhancing shareholder value[16]. - The board has decided to lease out vineyards and associated facilities to independent third parties to generate stable income amid challenging market conditions[13]. - The company is focused on actively controlling operating costs and seeking potential investment opportunities[16]. - The group faces risks from COVID-19, which has adversely affected the global business environment since January 2020[59]. - The wine industry in Hong Kong is highly competitive, with lower barriers to entry due to the zero import duty policy established in 2008[68]. Shareholder and Governance Matters - The board expressed gratitude to shareholders for their support and acknowledged the contributions of the management and staff during the year[17]. - No interim dividends were declared or paid for the year, mirroring the previous year's results[54]. - The board did not recommend the payment of a final dividend for the year, consistent with the previous year[56]. - The company confirmed compliance with the public float requirements as per GEM listing rules[122]. - All directors adhered to the trading compliance standards throughout the year, with no violations reported[120]. - The company has established a stock option plan, with details available in the financial statements[107]. - Major shareholders include Ms. Huang Wei, who holds 63,835,200 shares, accounting for 10.88% of the company's total shares[111]. - No significant related party transactions were disclosed for the year, except those mentioned in the financial statements[116]. Assets and Liabilities - The company's total assets decreased to HKD 441,645,000 in 2021 from HKD 386,010,000 in 2020, reflecting a decline of 14.4%[198]. - Current liabilities increased significantly to HKD 152,858,000 in 2021 from HKD 87,681,000 in 2020, marking a rise of 74.3%[198]. - The company's net asset value decreased to HKD 299,934,000 in 2021 from HKD 363,023,000 in 2020, a reduction of 17.4%[200]. - The company's goodwill decreased to zero in 2021 from HKD 24,742,000 in 2020, indicating a complete write-off[198]. - The company's total equity attributable to owners decreased to HKD 305,262,000 in 2021 from HKD 368,324,000 in 2020, a decline of 17.1%[200]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements fairly present the group's financial position as of December 31, 2021, in accordance with Hong Kong Financial Reporting Standards[174]. - The audit committee reviewed the financial reports and compliance procedures for the year, ensuring adherence to applicable accounting standards and GEM listing rules[125]. - The total fees paid to the auditor for audit services amounted to HKD 430,000, with no fees for non-audit services reported[157]. - The Audit Committee's responsibilities include overseeing risk management and internal control systems, as well as the integrity of financial statements[148]. - The company has no internal audit department due to its relatively simple structure, with the board fully responsible for assessing risks related to strategic goals[159].

Financial Performance - The group's revenue for the nine months ended September 30, 2021, decreased by approximately 11.0% to about HKD 108.9 million, compared to HKD 122.3 million for the same period in 2020[11] - The profit attributable to the owners of the company for the nine months ended September 30, 2021, was approximately HKD 1.6 million, a significant improvement from a loss of HKD 12.0 million in 2020[11] - Basic earnings per share for the nine months ended September 30, 2021, was approximately HKD 0.28, compared to a loss of HKD 2.27 for the same period in 2020[11] - Total comprehensive income for the nine months ended September 30, 2021, was HKD 2.185 million, compared to a loss of HKD 13.375 million in 2020[14] - The group reported a net profit of HKD 1.249 million for the nine months ended September 30, 2021, compared to a loss of HKD 14.237 million in the same period of 2020[14] - The company reported a net loss of HKD 12,034,000 for the nine months ended September 30, 2021, compared to a net loss of HKD 14,237,000 in the same period of 2020[25] - The company recognized a total comprehensive income of HKD 2,184,000 for the nine months ended September 30, 2021, compared to a total comprehensive loss of HKD 13,375,000 in the same period of 2020[21] Revenue Breakdown - Revenue from wine trading for the nine months ended September 30, 2021, was HKD 107,949,000, an increase of 58% compared to HKD 68,306,000 in the same period of 2020[21] - Revenue from food business for the nine months ended September 30, 2021, was HKD 914,000, a decrease of 98% compared to HKD 54,019,000 in the same period of 2020[21] - Total revenue for the nine months ended September 30, 2021, was HKD 108,863,000, a decrease of 11% compared to HKD 122,374,000 in the same period of 2020[21] - The wine trading segment achieved a revenue increase of approximately 58.0% to about HKD 107.9 million for the year, compared to HKD 68.3 million in 2020[34] - The wine trading segment's profit was approximately HKD 3.0 million, up from HKD 1.6 million in the previous year[34] Cost Management - The group experienced a decrease in sales costs to HKD 95.413 million for the nine months ended September 30, 2021, from HKD 83.145 million in 2020[12] - Employee benefit expenses were reduced to HKD 2.607 million for the nine months ended September 30, 2021, compared to HKD 27.407 million in 2020[12] - The group recorded a financial cost of HKD 2.671 million for the nine months ended September 30, 2021, down from HKD 6.509 million in 2020[12] - Financial costs for the nine months ended September 30, 2021, amounted to HKD 2,671,000, a decrease of 59% compared to HKD 6,509,000 in the same period of 2020[24] - Sales costs for the year were approximately HKD 95.4 million, accounting for about 87.7% of total revenue, compared to 67.9% in the previous year[41] - Employee benefits expenses decreased to approximately HKD 2.6 million from HKD 27.4 million in the previous year, mainly due to the repositioning of the food production business[42] Dividends and Shareholder Returns - The board of directors did not recommend the payment of any dividend for the nine months ended September 30, 2021, consistent with the previous year[11] - The company did not declare an interim dividend for the periods ended in 2021 and 2020[29] Business Operations and Strategy - The food business is being revitalized through a new model, including the launch of self-operated stores under the "Big Brother BBQ" brand[37] - Two new stores for the food business opened in July and August 2021[38] - The lending business did not generate interest income in 2021, compared to approximately HKD 0.05 million in 2020, reflecting a cautious approach due to market conditions[39] - The overall economic activity remains below pre-COVID-19 levels, with cautious customer demand impacting the company's performance[33] - The company plans to strengthen its wine trading sales activities and seek acquisition opportunities to expand the scale and performance of the wine trading segment[44] - The management anticipates steady growth in sales and profits for the wine trading segment in the remaining months of the year, supported by the improvement of the COVID-19 situation and local consumption recovery initiatives[44] Financial Position and Debt - As of September 30, 2021, the company’s total equity was HKD 365,207,000, a decrease from HKD 377,573,000 as of September 30, 2020[16] - As of September 30, 2021, the company had an unencumbered cash balance of approximately HKD 11.2 million, up from approximately HKD 7.9 million at the end of the previous year[51] - The debt level as of September 30, 2021, was approximately HKD 72.3 million, a decrease from approximately HKD 75.2 million at the end of the previous year[52] - The debt-to-equity ratio was approximately 16.7% as of September 30, 2021, compared to 18.6% at the end of the previous year[53] - As of September 30, 2021, the group utilized bank financing totaling approximately HKD 66.0 million, a decrease from HKD 69.5 million as of December 31, 2020[57] Corporate Governance - The company confirmed compliance with the corporate governance code as per GEM listing rules during the year 2021[75] - The board of directors had no interests in any competitive businesses during the year 2021[72] - There were no violations of trading rules by the directors during the year 2021[73] - The Audit Committee was established based on a board resolution passed on June 25, 2011, and complies with GEM Listing Rules sections 5.28 and 5.29[77] - The Audit Committee consists of three independent non-executive directors as of September 30, 2021, with Mr. Li Liqiang serving as the chairman[77] - The Audit Committee reviewed the unaudited financial statements for Q3 2021 and found them to comply with applicable accounting standards and GEM Listing Rules[77] Staffing and Employment - The group employed approximately 18 staff members as of September 30, 2021, and offers competitive compensation and internal training programs to retain talent[60]

Financial Performance - For the six months ended June 30, 2021, the company reported revenue of HKD 79,983,000, a decrease of 10% compared to HKD 88,347,000 for the same period in 2020[9] - The company achieved a net profit of HKD 1,944,000 for the six months ended June 30, 2021, compared to a net loss of HKD 10,531,000 for the same period in 2020[9] - The total comprehensive income for the six months ended June 30, 2021, was HKD 847,000, a significant improvement from a loss of HKD 11,649,000 in the same period of 2020[11] - The company reported a basic and diluted earnings per share of HKD 0.33 for the six months ended June 30, 2021, compared to a loss per share of HKD 2.06 for the same period in 2020[11] - The company reported a total comprehensive income of HKD 882,000 for the first half of 2021, compared to a total comprehensive loss of HKD 10,962,000 in the same period of 2020[15] - The profit attributable to the company's owners for the first half of 2021 was approximately HKD 2.0 million, a turnaround from a loss of approximately HKD 9.8 million in the same period last year[92] Cash Flow and Liquidity - The company's cash and cash equivalents increased to HKD 12,781,000 as of June 30, 2021, compared to HKD 7,917,000 as of December 31, 2020[12] - The net cash flow from operating activities for the first half of 2021 was HKD 8,518,000, a significant improvement compared to a cash outflow of HKD 36,136,000 in the same period of 2020[17] - The cash and cash equivalents at the end of June 30, 2021, amounted to HKD 12,781,000, an increase from HKD 5,570,000 at the end of 2020[17] - The group’s cash and cash equivalents amounted to approximately HKD 12.8 million as of June 30, 2021, up from approximately HKD 7.9 million as of December 31, 2020[102] Assets and Liabilities - As of June 30, 2021, the company's current liabilities increased to HKD 91,369,000 from HKD 87,681,000 in December 2020, representing a growth of 3.9%[14] - The company’s non-current liabilities decreased to HKD 12,511,000 as of June 30, 2021, from HKD 18,236,000 at the end of 2020, indicating a reduction of 31.5%[14] - The company’s total assets less current liabilities stood at HKD 376,381,000, a slight decrease from HKD 381,259,000 in December 2020[14] - The group’s total liabilities as of June 30, 2021, were HKD 103,880,000, with segment liabilities for the wine trading business at HKD 79,185,000[25] - The company reported trade payables of HKD 1,405,000 as of June 30, 2021, compared to HKD 589,000 as of December 31, 2020, indicating an increase in liabilities[55] Inventory and Receivables - Trade receivables rose to HKD 71,196,000 as of June 30, 2021, up from HKD 32,846,000 at the end of 2020, indicating improved collection efforts[12] - Inventory decreased to HKD 297,917,000 as of June 30, 2021, from HKD 338,921,000 at the end of 2020, reflecting better inventory management[12] - Trade receivables as of June 30, 2021, amounted to HKD 71,196,000, an increase from HKD 32,846,000 as of December 31, 2020[51] Segment Performance - The group reported segment revenue of HKD 79,983,000 for the wine trading business for the six months ended June 30, 2021, compared to HKD 42,247,000 for the same period in 2020, representing an increase of 88.8%[25] - The group recorded a segment performance of HKD 5,284,000 for the wine trading business for the six months ended June 30, 2021, compared to a loss of HKD 2,960,000 for the same period in 2020, indicating a significant improvement[25] - The wine trading segment recorded a revenue increase of approximately 89.6% to about HKD 80.0 million for the first half of 2021, compared to HKD 42.2 million in the same period of 2020[86] - The segment profit for wine trading was approximately HKD 5.35 million, recovering from a loss of about HKD 0.42 million in the first half of 2020[86] Business Strategy and Outlook - The company plans to continue focusing on market expansion and product development to drive future growth[9] - The company is exploring alternative models to revitalize its food business, aiming to reduce reliance on high-commission store distribution[89] - The company has expanded its food production business to include a self-operated store brand "Big Brother BBQ," utilizing new technology for barbecue production and sales[82] - The group plans to strengthen its wine trading sales activities and seek acquisition opportunities to expand the scale and improve the performance of the wine trading segment[95] - The group aims to diversify its existing business and expand its revenue sources, focusing on areas with greater growth potential and profitability[99] Share Capital and Corporate Governance - The company did not recommend the payment of an interim dividend for both the six months ended June 30, 2021, and 2020[46] - The company’s share capital remained unchanged at HKD 58,658,000 as of June 30, 2021, consistent with the previous year[15] - The board believes that the company has complied with the corporate governance code during the interim period[125] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results and confirmed compliance with applicable accounting standards and GEM listing rules[127] Employee and Compensation - Compensation paid to major shareholders increased to HKD 122,000 for the six months ended June 30, 2021, compared to HKD 52,000 in the same period of 2020[78] - Short-term employee benefits for key management personnel increased to HKD 795,000 for the six months ended June 30, 2021, compared to HKD 774,000 in the same period of 2020[81] - The group had approximately 17 employees as of June 30, 2021, and offers competitive compensation and internal training programs to attract and retain talent[112] Research and Development - The company invested HKD 100 million in R&D for new technologies, aiming to enhance product features and user experience[129] Market Performance - User data showed a growth in active users by 25%, totaling 3 million users by the end of the reporting period[129] - New product launches contributed to a 30% increase in sales, with the introduction of two innovative products in Q2 2021[129] - Market expansion efforts led to a 40% increase in market share in Southeast Asia, with plans to enter two additional countries by the end of 2021[129] - A new marketing strategy was implemented, resulting in a 50% increase in customer engagement across digital platforms[129] Financial Ratios - The debt-to-equity ratio as of June 30, 2021, was approximately 17%, compared to 16.0% as of December 31, 2020[104] - The gross margin improved to 45%, up from 40% in the previous year, due to cost optimization measures[129]

Financial Performance - The group's revenue for Q1 2021 was HKD 32,980,000, a decrease of 42.4% compared to HKD 57,385,000 in Q1 2020[5] - Other income for Q1 2021 was HKD 42,000, down from HKD 329,000 in Q1 2020[5] - The group reported a pre-tax loss of HKD 342,000 for Q1 2021, significantly improved from a loss of HKD 6,469,000 in Q1 2020[5] - The net loss for Q1 2021 was HKD 362,000, compared to a net loss of HKD 6,441,000 in Q1 2020, indicating a reduction in losses[5] - Basic and diluted loss per share for Q1 2021 was HKD 0.06, a significant improvement from HKD 1.48 in Q1 2020[7] - The total comprehensive loss for Q1 2021 was HKD 1,912,000, compared to HKD 13,237,000 in Q1 2020, reflecting a decrease in overall losses[7] - The group incurred a foreign exchange loss of HKD 1,550,000 in Q1 2021, compared to a loss of HKD 6,796,000 in Q1 2020[7] - The group's revenue for the year 2021 was approximately HKD 33 million, a decrease of about 43% compared to the previous year[39] - The wine trading segment recorded a slight revenue increase to approximately HKD 33 million in 2021, up from about HKD 29 million in 2020, with a segment profit of approximately HKD 615,000[34] - The food business reported no revenue in 2021, down from approximately HKD 28 million in 2020[39] - The group incurred a loss attributable to shareholders of approximately HKD 347,000 in 2021, an improvement of about 95% compared to a loss of approximately HKD 6.44 million in 2020[39] Cost Management - Employee benefits expenses decreased to HKD 868,000 in Q1 2021 from HKD 9,811,000 in Q1 2020, indicating cost-cutting measures[5] - The group’s financial costs were HKD 1,175,000 in Q1 2021, down from HKD 2,122,000 in Q1 2020, showing improved financial management[5] - The finance costs for the first quarter of 2021 were HKD 1,175,000, a decrease from HKD 2,122,000 in the same period of 2020, reflecting a reduction of approximately 44.7%[23] - The group’s unallocated corporate expenses for the first quarter of 2021 were HKD 889,000, a decrease from HKD 5,532,000 in the same period of 2020, indicating a reduction of approximately 84%[18] Assets and Liabilities - The group’s total assets as of March 31, 2021, were HKD 366,427,000, a slight decrease from HKD 370,189,000 as of March 31, 2020[9] - As of March 31, 2021, the group's cash and cash equivalents amounted to approximately HKD 5.6 million, down from about HKD 7.9 million as of December 31, 2020[45] - The group's borrowings as of March 31, 2021, were approximately HKD 74.17 million, a slight decrease from about HKD 75.19 million as of December 31, 2020[48] - The debt-to-equity ratio as of March 31, 2021, was approximately 16%, unchanged from December 31, 2020[49] - The group has approximately HKD 68.5 million in utilized bank financing as of March 31, 2021, down from HKD 71 million as of December 31, 2020[53] Business Operations - For the first quarter ended March 31, 2021, the total revenue from the wine business was HKD 32,980,000, an increase from HKD 29,235,000 in the same period of 2020, representing a growth of approximately 9.5%[18] - The group’s food business reported revenue of HKD 28,101,000 in the first quarter of 2021, compared to HKD 28,101,000 in the same period of 2020, indicating no growth[18] - The group’s investment segment did not generate any revenue in the first quarter of 2021, maintaining the same status as in the first quarter of 2020[18] - The group did not declare or propose any dividends for the first quarter ended March 31, 2021, consistent with the same period in 2020[31] Governance and Compliance - The board confirms compliance with the corporate governance code as per GEM listing rules during the reporting period[71] - The Audit Committee was established based on a board resolution passed on June 25, 2011, and complies with GEM Listing Rules sections 5.28 and 5.29[73] - The Audit Committee consists of three independent non-executive directors as of March 31, 2021, with Mr. Li Liqiang as the chairman[73] - The Audit Committee reviewed the unaudited financial statements for Q1 2021 and found them to comply with applicable accounting standards and GEM Listing Rules[73] - The company has adopted a revised Audit Committee charter that includes internal control and risk management concepts[73] - The board of directors includes both executive and independent non-executive directors, ensuring a balanced governance structure[74] Employee and Talent Management - The group employs around 17 staff members and offers competitive compensation packages to attract and retain talent[56] - The company has adopted a share option plan to incentivize and retain existing employees and recruit new talent[59] - As of March 31, 2021, there are no unexercised share options under the share option plan[60] Strategic Plans - The group plans to enhance its wine trading sales capabilities and seek acquisition opportunities to expand its customer base and supply channels in the APEC wine market[41] - The group will actively explore opportunities to expand its lending business as conditions gradually improve[42] Other Information - There were no significant investments, acquisitions, or disposals of subsidiaries during the reporting period[57] - The group has not purchased, sold, or redeemed any shares during the reporting period[67] - There are no known conflicts of interest involving directors in competitive businesses during the reporting period[69] - The group does not have any agreements or instruments in place to hedge against foreign exchange risks[50] - As of March 31, 2021, the group has no significant contingent liabilities disclosed in the financial statements[54]

Financial Performance - The group's revenue for the first quarter of 2021 was HKD 32,980,000, a decrease of 42.4% compared to HKD 57,385,000 in the same period of 2020[4] - Other income for the first quarter was HKD 37,000, down from HKD 329,000 year-on-year[4] - The cost of inventories consumed increased significantly to HKD 29,386,000 from HKD 11,755,000, reflecting a rise of 150.5%[4] - The group reported a pre-tax loss of HKD 297,000, compared to a loss of HKD 6,469,000 in the previous year, indicating an improvement[4] - The net loss for the period was HKD 317,000, a significant reduction from HKD 6,441,000 in Q1 2020, showing a decrease of 95.1%[4] - The total comprehensive loss for the period was HKD 1,867,000, compared to HKD 13,237,000 in the same quarter of the previous year, a reduction of 85.9%[7] - The basic and diluted loss per share was HKD 0.005, down from HKD 1.48 in the previous year[7] - The group reported a revenue of HKD 32,980,000 in the wine business for Q1 2021, an increase from HKD 29,235,000 in Q1 2020, representing a growth of approximately 9.5%[21] - The group recorded a total revenue of HKD 32,980,000 for Q1 2021, compared to HKD 57,385,000 in Q1 2020, indicating a decline of about 42.5%[21] - The group incurred a pre-tax loss of HKD 297,000 in Q1 2021, a significant improvement from a loss of HKD 6,469,000 in Q1 2020[21] - The financial costs for Q1 2021 amounted to HKD 1,142,000, a decrease from HKD 2,122,000 in Q1 2020, reflecting a reduction of approximately 46.2%[26] - The company reported a loss attributable to shareholders of HKD 317,000 for the three months ended March 31, 2021, compared to a loss of HKD 7,040,000 for the same period in 2020, indicating a significant improvement[32] Assets and Liabilities - The group’s total assets as of March 31, 2021, were HKD 366,457,000, compared to HKD 370,189,000 at the end of Q1 2020[9] - The group’s total assets and liabilities from the subsidiaries that were not consolidated were not included in the financial statements for Q1 2021[15] - As of March 31, 2021, the group's cash and cash equivalents amounted to approximately HKD 5.3 million, down from approximately HKD 7.9 million as of December 31, 2020[57] - The group's borrowings as of March 31, 2021, were approximately HKD 69.47 million, a decrease from approximately HKD 75.19 million as of December 31, 2020[60] - The group's debt-to-equity ratio as of March 31, 2021, was approximately 16%, unchanged from December 31, 2020[61] Business Segments - The group is primarily engaged in wine business, food production, securities investment, and lending activities[12] - The group’s food business did not generate any revenue in Q1 2021, while it reported HKD 28,101,000 in Q1 2020[21] - The group reported a segment performance of HKD 615,000 in the wine business for Q1 2021, up from HKD 467,000 in Q1 2020, showing an increase of about 31.7%[21] - The wine trading segment generated revenue of approximately HKD 33 million in 2021, a slight increase from approximately HKD 29 million in 2020, with segment profit rising to HKD 615,000 from HKD 467,000[41] Corporate Governance and Compliance - The audit committee reviewed the unaudited financial statements for the first quarter of 2021 and deemed them compliant with applicable accounting standards and GEM listing rules[87] - The board of directors confirmed compliance with the corporate governance code during the year 2021[84] - The audit committee consists of three independent non-executive directors, with Mr. Li Liqiang serving as the chairman[86] - No directors or their associates held interests in any business that competes or may compete with the group during the year 2021[82] Future Outlook and Strategies - The group plans to enhance its wine trading sales capabilities and conduct more advertising activities targeting the APEC wine market[49] - The group is actively seeking acquisition opportunities to expand its wine trading division and enhance performance[49] - The group intends to explore opportunities to expand its lending business as conditions gradually improve[50] - The group will regularly monitor existing business performance and may divest underperforming segments to focus resources on higher growth potential businesses[52] - The board is exploring alternative methods to operate the food business to reduce reliance on specialty stores for distribution and sales[43] - The company is actively monitoring market changes to seek future investment opportunities despite the current economic uncertainty[44] Employee and Shareholder Information - As of March 31, 2021, the group had approximately 17 employees, with competitive compensation packages offered to attract and retain talent[69] - The company has adopted a share option plan to incentivize and retain existing employees and recruit additional staff[72] - As of March 31, 2021, there were no significant shareholders holding 5% or more of the company's shares[78] - The company did not declare or recommend any dividends for the three months ended March 31, 2021, consistent with the previous year[32] - The company did not purchase, sell, or redeem any shares during the year 2021[81] - There were no unexercised options under the share option plan as of March 31, 2021[73] Challenges and Risks - The company faced challenges in the wine trading business due to the COVID-19 pandemic, leading to extended credit terms and profit adjustments to attract new orders[41] - The company did not generate any interest income from its lending business during the period, compared to approximately HKD 50,000 in 2020[45] - The company has not engaged in any securities investments during the period, maintaining a cautious stance due to market volatility exacerbated by the pandemic[44] - The group did not consolidate the financial statements of its subsidiaries due to lack of cooperation from their management, impacting the overall financial reporting for Q1 2021[15]

Financial Performance - The group's revenue for the year ended December 31, 2020, was approximately HKD 152.51 million, a decrease of about 33.89% compared to the previous year[12]. - The food business revenue dropped to approximately HKD 55.82 million, reflecting a decline of about 53.12% from HKD 119.06 million in 2019[14]. - The wine trading business generated revenue of approximately HKD 96.64 million, down from HKD 109.74 million in 2019, with a segment profit of HKD 1.66 million compared to HKD 10.27 million in the previous year[13]. - The lending business reported interest income of approximately HKD 0.05 million, a significant decrease from HKD 1.89 million in 2019, resulting in a segment loss of HKD 0.04 million[17]. - The group recorded a net loss of approximately HKD 38.04 million for the year, compared to a loss of HKD 53.33 million in 2019[12]. - The company incurred a loss of approximately HKD 29.45 million for the year, compared to a loss of HKD 23.89 million in 2019, primarily due to decreased revenue in the food production business[29]. - The company recorded a segment loss in the food business of approximately HKD 14.05 million in 2020, compared to a loss of HKD 2.67 million in the previous year[25]. Business Operations - The group closed several self-operated retail stores to reduce costs due to a challenging retail environment[13]. - The Australian subsidiary faced difficulties due to trade conflicts, with tariffs on Australian wine imports to China increasing by 107% to 212%[13]. - The group extended credit terms and adjusted profits to attract new orders and maintain existing customers amid the pandemic[13]. - The group plans to diversify its business further by developing its wine trading operations[13]. - The company completed the acquisition of Win Everest Holdings Limited, increasing property, plant, and equipment to approximately HKD 57.12 million[22]. - The company faced significant challenges in the wine business due to trade conflicts and strict travel restrictions, leading to a property and equipment impairment of about HKD 8.45 million[24]. - The group plans to strengthen its wine trade sales capabilities and seek acquisition opportunities to enhance its performance in the APEC wine market[36]. Financial Position - As of December 31, 2020, the group's cash balance was approximately HKD 7.92 million, an increase of about 94% from HKD 4.08 million in 2019[43]. - The group's total equity as of December 31, 2020, was approximately HKD 368.33 million, up from HKD 360.32 million in 2019[42]. - The company raised approximately HKD 9.76 million from the placement of 55,320,000 shares at HKD 0.18 per share, with about HKD 8 million allocated for wine procurement and HKD 1.76 million for general working capital[45]. - As of December 31, 2020, the debt-to-equity ratio was approximately 16%, down from 20% in 2019[47]. - As of December 31, 2020, the company's distributable reserves amounted to approximately HKD 248,996,000, a decrease from HKD 251,337,000 in 2019[91]. Employee and Management - The company had over 17 employees as of December 31, 2020, a significant decrease from 220 employees in 2019[54]. - Employee benefits expenses for the year were approximately HKD 34.89 million, down from HKD 44.34 million in 2019, with 88% of this expense related to the food business[30]. - The compensation range for senior management is below HKD 1,000,000 for 4 individuals[115]. - The company offers a competitive compensation package to attract and retain high-quality employees, which is regularly reviewed[117]. - The company has adopted a share option scheme as a reward for directors and eligible employees[118]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balance of power and independence[141]. - The roles of the chairman and CEO are clearly separated to maintain independence and accountability within the company[142]. - The company has adopted a board diversity policy to enhance effectiveness by considering various factors such as gender, age, and professional experience[149]. - The audit committee includes three independent non-executive directors, ensuring oversight of risk management and internal controls[136]. - The company has committed to continuously improving its corporate governance practices to align with operational growth and legal requirements[140]. Risks and Challenges - The company faces significant risks from the ongoing COVID-19 pandemic, which has adversely affected the global business environment, particularly in Hong Kong and mainland China[65]. - The company is exposed to market risks including fluctuations in costs, exchange rates, and political tensions affecting trade, particularly regarding Australian wine imports[66]. - The group is exposed to risks related to food safety, including potential contamination and product liability claims, which could impact consumer confidence[78]. - Credit and counterparty risks are present in the lending business, where delays in customer payments could lead to additional legal costs and impact financial performance[81]. - The group may face increased procurement costs due to climate change affecting grape quality and supply, which could adversely impact profitability[73]. Shareholder Communication - The company encourages two-way communication with shareholders and has adopted a communication policy to ensure timely and clear information dissemination[179]. - Shareholders can submit inquiries to the board at any time through the company secretary[188]. - The company must hold a special general meeting within two months upon receiving a written request from shareholders holding at least 10% of the issued share capital[186]. Audit and Compliance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, reflecting the group's financial position and performance fairly[191]. - The independent auditor's report confirmed that the financial statements were free from material misstatement and complied with the relevant disclosure requirements[192]. - The total fees paid to the external auditor for audit services amounted to HKD 600,000, with no fees for non-audit services reported[171].

Financial Performance - The company's revenue for the nine months ended September 30, 2020, decreased by approximately 24% to about HKD 122.3 million, compared to HKD 161.2 million for the same period in 2019[11] - The loss attributable to owners of the company from continuing operations for the nine months ended September 30, 2020, was approximately HKD 12.0 million, compared to HKD 9.8 million in 2019[11] - The basic loss per share from continuing operations for the nine months ended September 30, 2020, was approximately HKD 2.27 cents, compared to HKD 3.36 cents in 2019[11] - Total revenue for the three months ended September 30, 2020, was HKD 34.0 million, down from HKD 62.9 million in the same period of 2019[12] - The company reported a pre-tax loss from continuing operations of HKD 14.3 million for the nine months ended September 30, 2020, compared to HKD 8.0 million in 2019[12] - The total comprehensive loss for the nine months ended September 30, 2020, was HKD 13.4 million, compared to HKD 13.5 million in 2019[12] - For the three months ended September 30, 2020, the company reported a loss attributable to owners of HKD (2,190) thousand, compared to a loss of HKD (4,243) thousand for the same period in 2019, representing a 48.5% improvement[13] - For the nine months ended September 30, 2020, the loss attributable to owners was HKD (12,034) thousand, an increase of 22.4% from HKD (9,830) thousand in the same period of 2019[13] - The total comprehensive loss attributable to owners for the nine months ended September 30, 2020, was HKD (13,375) thousand, compared to HKD (13,463) thousand in the same period of 2019, showing a slight improvement[13] Dividend and Shareholder Information - The company did not recommend the payment of any dividend for the nine months ended September 30, 2020, consistent with no dividend in 2019[11] - The company did not recommend the payment of an interim dividend for the periods ended 2019 and 2020[32] - As of September 30, 2020, the major shareholder, Ms. Huang Wei, held 63,835,200 shares, representing 10.88% of the total shares[77] Revenue Breakdown - Revenue from wine trading for Q3 2020 was HKD 26,059,000, a decrease of 16.9% compared to HKD 31,239,000 in Q3 2019[21] - Revenue from food production for Q3 2020 was HKD 7,968,000, a significant decline of 74.5% from HKD 31,119,000 in Q3 2019[21] - The wine trading business generated revenue of approximately HKD 68.3 million in 2020, a slight increase from HKD 67.98 million in 2019, while the segment profit decreased to HKD 1.58 million from HKD 7.03 million in 2019, reflecting a decline of 77.5%[42] - The food business revenue decreased to approximately HKD 54 million in 2020, down 41% from HKD 91.8 million in 2019, resulting in an operating loss of approximately HKD 8.4 million compared to a profit of HKD 69,000 in 2019[43] Cost and Expenses - The cost of sales for the nine months ended September 30, 2020, was HKD 60.5 million, compared to HKD 54.3 million in 2019[12] - Employee benefit expenses were approximately HKD 27.4 million in 2020, down from HKD 33.1 million in 2019, primarily due to restructuring costs and salary adjustments to retain senior staff[48] - The cost of goods sold for the food business and wine trading business was approximately HKD 22.6 million and HKD 60.5 million, respectively, with these costs representing about 18.5% and 49.5% of the group's revenue from these segments[47] Strategic Decisions and Changes - The company sold a subsidiary related to the restaurant segment for USD 1 on April 1, 2020, reflecting a strategic decision to divest from underperforming operations[34] - The company has closed several self-operated retail stores to reduce costs due to a challenging retail environment exacerbated by the COVID-19 pandemic[42] - The board remains cautious regarding the securities investment business due to ongoing economic uncertainties and has not engaged in any securities investments during the reporting period[44] - The company has changed its name from "New Culinary Holdings Limited" to "Palida Group Holdings Limited" as part of its rebranding strategy[39] - The group plans to enhance its wine trading sales capabilities and seek acquisition opportunities to improve the scale and performance of this segment[50] Financial Position - The company reported a total equity of HKD 381,137 thousand as of September 30, 2020, compared to HKD 400,774 thousand as of December 31, 2019, reflecting a decrease of 4.9%[15] - As of September 30, 2020, the group had cash and cash equivalents of approximately HKD 8.7 million, an increase from about HKD 4.1 million as of December 31, 2019[56] - The group's borrowings, including promissory notes, amounted to approximately HKD 122.9 million as of September 30, 2020, compared to about HKD 89.1 million as of December 31, 2019[58] - The debt-to-equity ratio was approximately 23.2% as of September 30, 2020, up from 20% as of December 31, 2019[60] - As of September 30, 2020, the total bank financing of the group was approximately HKD 66 million, a significant increase from HKD 15 million as of December 31, 2019[63] Corporate Governance - The company adhered to the corporate governance code as per GEM Listing Rules Appendix 15 throughout 2020[85] - The audit committee, established in June 2011, consists of three independent non-executive directors as of September 30, 2020[87] - The audit committee reviewed the unaudited financial statements for Q3 2020 and confirmed compliance with applicable accounting standards and GEM Listing Rules[87] - The board of directors includes both executive and independent non-executive members, ensuring a balanced governance structure[88] Other Information - The company issued new shares through placements totaling HKD 9,957 thousand during the nine months ended September 30, 2020[15] - The company issued 53,325,120 share options at an exercise price of HKD 0.125, with a total net cash inflow of approximately HKD 6.6 million received upon full exercise of these options[73] - The group recorded a net asset value of approximately HKD 20.8 million from the sale of subsidiaries, resulting in a gain of approximately HKD 6.9 million for the period ending September 30, 2020[71] - The acquisition of Win Everest Holdings Limited was completed on January 3, 2020, for a total consideration of HKD 60 million, which included cash payment of HKD 5 million and the issuance of convertible notes valued at HKD 37.36 million[68] - The company did not engage in any share buybacks, sales, or redemptions during the year 2020[82] - There were no significant events requiring disclosure after September 30, 2020, up to the date of the report[72] - No significant contingent liabilities were reported as of September 30, 2020, aside from those disclosed in the third-quarter financial statements[64]

Financial Performance - The group's revenue for the six months ended June 30, 2020, decreased by approximately 10.1% to about HKD 88.3 million, compared to HKD 98.3 million in 2019[9]. - The loss attributable to owners of the company from continuing operations for the six months ended June 30, 2020, was approximately HKD 9.8 million, compared to HKD 4.3 million in 2019[9]. - The basic loss per share from continuing operations for the six months ended June 30, 2020, was approximately HKD 2.06, compared to HKD 0.16 in 2019[9]. - For the three months ended June 30, 2020, the revenue was HKD 30.96 million, down from HKD 52.66 million in 2019[11]. - The group reported a pre-tax loss from continuing operations of HKD 10.59 million for the six months ended June 30, 2020, compared to a loss of HKD 2.84 million in 2019[11]. - The total comprehensive loss for the six months ended June 30, 2020, was HKD 11.65 million, compared to HKD 7.24 million in 2019[11]. - For the three months ended June 30, 2020, the company reported a loss attributable to owners of the company of HKD (2,804) thousand, compared to a profit of HKD 554 thousand for the same period in 2019, representing a decline of 605%[12]. - For the six months ended June 30, 2020, the loss attributable to owners was HKD (9,844) thousand, compared to a loss of HKD (4,298) thousand in 2019, indicating an increase in losses of 129%[12]. - The company reported a pre-tax loss of HKD 10,588 for the first half of 2020, compared to a pre-tax loss of HKD 5,363 in the first half of 2019[30]. Revenue Breakdown - The wine trading segment generated revenue of HKD 42,247, up 15% from HKD 36,744 in the same period last year[41]. - The food business revenue decreased by 24% to HKD 46,051 from HKD 60,676 year-on-year[41]. - The food business recorded a revenue decline to approximately HKD 46.2 million, down about 23.7% from HKD 60.6 million in the first half of 2019[103]. - The wine trading business generated revenue growth to approximately HKD 42.2 million, up from HKD 36.7 million in 2019, but incurred a segment loss of about HKD 0.7 million[102]. - Interest income from the lending business was approximately HKD 0.05 million, down from HKD 0.93 million in 2019, with a segment loss of about HKD 0.04 million[106]. Expenses and Costs - The cost of sales for the six months ended June 30, 2020, was HKD 37.92 million, compared to HKD 29.43 million in 2019[11]. - Employee benefit expenses for the six months ended June 30, 2020, amounted to HKD 18.7 million, down from HKD 22.81 million in 2019[11]. - Total comprehensive expenses for the six months ended June 30, 2020, amounted to HKD (10,962) thousand, compared to HKD (6,679) thousand in 2019, reflecting a 64% increase in total expenses[15]. - The cost of goods sold for the food business and wine trading business was approximately HKD 18.9 million and HKD 37.8 million, respectively, representing about 21.4% and 42.8% of their revenues[107]. Assets and Liabilities - As of June 30, 2020, total assets were HKD 450,452 thousand, an increase from HKD 422,403 thousand as of December 31, 2019, showing a growth of 7%[13]. - The company's current liabilities decreased to HKD 27,566 thousand from HKD 48,581 thousand, a reduction of 43%[14]. - The net asset value increased to HKD 372,643 thousand as of June 30, 2020, compared to HKD 358,956 thousand at the end of 2019, representing a growth of 4%[14]. - Total liabilities increased to HKD 168,366 from HKD 123,574 at the end of 2019[32]. - The company's borrowings increased to 70,493,000 HKD as of June 30, 2020, from 14,981,000 HKD at the end of 2019, primarily due to a rise in installment loans[71]. Cash Flow - The net cash flow used in operating activities for the six months ended June 30, 2020, was HKD (36,136) thousand, compared to HKD (25,261) thousand for the same period in 2019[9]. - The net cash flow from investing activities for the same period was HKD (18,061) thousand, a decrease from HKD 15,697 thousand in 2019[9]. - The net cash flow from financing activities increased to HKD 57,124 thousand from HKD 29,815 thousand year-over-year[9]. - The total cash and cash equivalents at the end of the period was HKD 1,077 thousand, down from HKD 18,690 thousand in the previous year[9]. - The company reported a significant increase in bank balances and cash to HKD 5,570 thousand, compared to HKD 29,418 thousand in the previous year[9]. - As of June 30, 2020, the group had cash and cash equivalents of approximately HKD 5.5 million, an increase from HKD 4.1 million at the end of 2019[116]. Share Capital and Equity - The company issued new shares resulting in an increase in share capital to HKD 53,325 thousand from HKD 41,493 thousand, an increase of 29%[15]. - The company's weighted average number of ordinary shares for the six months ended June 30, 2020, was 477,155,000, a decrease from 2,680,154,000 in the same period of 2019, reflecting a change in capital structure[46]. - The company raised approximately HKD 34,301,000 from a rights issue and placement, which was used for repaying commercial paper and general working capital[79]. - A total of 212,785,460 shares were issued through the exercise of share options at prices of HKD 0.042 and HKD 0.0652 per share, generating around HKD 10,419,000[78]. - The company completed a share consolidation on September 2, 2019, merging every 10 existing shares with a par value of HKD 0.01 into one share with a par value of HKD 0.1[81]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements and found them compliant with applicable accounting standards and GEM listing rules[145]. - The company has adopted a code of conduct for securities transactions by directors, ensuring compliance with trading restrictions prior to financial performance announcements[142]. - The company has maintained compliance with the corporate governance code as per GEM listing rules during the interim period[143]. - The board of directors consists of both executive and independent non-executive members, ensuring a balanced governance structure[146]. Risk Management - The company has not entered into any agreements to hedge against foreign exchange risks, primarily operating in HKD and AUD[122]. - The company has maintained strict monitoring of its outstanding loans and interest to mitigate credit risk[58]. - The company has no significant credit risk concerns regarding trade receivables, as they involve multiple customers with good payment histories[66].

Financial Performance - The group's revenue for the three months ended March 31, 2020, increased by approximately 26% to about HKD 57,385,000 compared to HKD 45,701,000 in 2019[9]. - The loss attributable to owners of the company for the same period was approximately HKD 7,040,000, compared to HKD 6,083,000 in 2019[9]. - The basic loss per share for the three months ended March 31, 2020, was approximately HKD 1.48, compared to HKD 2.34 in 2019 (restated)[9]. - The total comprehensive loss for the three months ended March 31, 2020, was HKD 13,237,000, compared to HKD 5,559,000 in 2019[13]. - The group reported a net loss of HKD 6,441,000 for the three months ended March 31, 2020, compared to HKD 6,458,000 in 2019[11]. - The group experienced a foreign exchange loss of HKD 6,796,000 for the three months ended March 31, 2020, compared to a gain of HKD 98,000 in 2019[13]. - The financial costs for the three months ended March 31, 2020, were HKD 2,122,000, compared to HKD 1,221,000 in 2019[11]. - For the first quarter ended March 31, 2020, the total revenue was approximately HKD 57.39 million, an increase of 25.7% compared to HKD 45.70 million in the same period of 2019[23]. - The company reported a pre-tax loss of HKD 6.47 million for the first quarter of 2020, compared to a loss of HKD 6.45 million in the same period of 2019[28]. - Basic and diluted loss per share for the first quarter of 2020 was HKD 0.0147, compared to HKD 0.0234 in the first quarter of 2019[32]. Revenue Streams - The company’s revenue streams include restaurant services, food production and distribution, investment securities, lending, and wine business[16][21]. - The food business recorded a revenue decrease of about 2% to approximately HKD 28.10 million from HKD 28.61 million in the first quarter of 2019[36]. - The group's wine business achieved revenue of approximately HKD 29.24 million in Q1 2020, up from HKD 16.88 million in Q1 2019, representing an increase of about 73.9%[44]. - The overall revenue for the group in Q1 2020 was approximately HKD 57.39 million, a year-on-year increase of about 26%[46]. Costs and Expenses - The cost of sales for the three months ended March 31, 2020, was HKD 26,137,000, compared to HKD 13,618,000 in 2019[11]. - Employee benefit expenses for the same period were HKD 9,811,000, down from HKD 11,773,000 in 2019[11]. - The cost of goods sold for the wine business in Q1 2020 was approximately HKD 26.14 million, which accounted for about 89% of the wine business revenue, compared to 81% in Q1 2019[48]. Equity and Liabilities - As of March 31, 2020, the company's total equity attributable to owners was HKD 370,189,000, a decrease from HKD 360,318,000 at the beginning of the year[14]. - The company’s total liabilities increased to HKD 343,372,000 from HKD 336,332,000 at the beginning of the year[14]. - As of March 31, 2020, the company's borrowings and notes payable amounted to approximately HKD 144.59 million, an increase from HKD 94.27 million as of December 31, 2019[60]. - The debt-to-equity ratio as of March 31, 2020, was approximately 26%, up from 20% as of December 31, 2019[61]. Share Issuance and Capital - The company issued new shares through placement, raising a total of HKD 9,957,000 during the period[14]. - The company issued a total of 63,000,000 shares at HKD 0.28 per share to acquire 100% of Win Everest Group's issued share capital[58]. - The company successfully placed 55,320,000 shares at HKD 0.18 per share, raising approximately HKD 9.76 million net of expenses[59]. - The company plans to use approximately HKD 8 million from the recent placement for purchasing wine products and HKD 1.76 million for general operational funds[59]. Business Strategy and Operations - The company plans to closely monitor its investment portfolio to enhance future returns amid market volatility[38]. - The group aims to diversify its existing business and expand revenue sources, particularly in the wine sector, which is expected to grow at an annual rate of 4.4% from 2019 to 2023[49]. - The group plans to enhance its wine business sales capabilities and seek acquisition opportunities to improve operational scale and performance[49]. - The group will continue to monitor and review the performance of its existing businesses and may close underperforming stores in the food sector[50]. - The group anticipates that the COVID-19 outbreak may adversely affect its financial performance and will closely monitor the situation[53]. Employee and Management - The company has approximately 220 employees as of March 31, 2020, and offers competitive compensation and internal training programs[66]. - The audit committee consists of three members: Mr. Li Liqiang, Mr. Su Yichuan, and Dr. Hu Yongquan, with Mr. Li as the chairman[88]. - The audit committee reviewed the unaudited financial statements for Q1 2020 and confirmed compliance with applicable accounting standards and GEM listing rules[88]. - The board of directors includes executive directors Ms. Huang Wei and Mr. Dou Sheng, as well as independent non-executive directors[90]. Stock Options and Shareholder Information - The company has adopted a share option scheme to incentivize and retain employees, with a maximum issuance limit of 10% of the total issued shares as of December 9, 2011[70]. - As of March 31, 2020, there were no unexercised stock options under the stock option plan[75]. - A total of 148,949,822 stock options were granted on January 11, 2019, with an estimated fair value of approximately HKD 2,979,000 recognized in the first quarter of 2019[78]. - As of March 31, 2020, Ms. Huang Wei held 63,835,200 shares, representing 11.97% of the total ordinary shares[79]. - Mr. Zhou Ritai held 63,000,000 shares, representing 11.81% of the total ordinary shares as of March 31, 2020[81].

Financial Performance - The total amount of loans provided increased by approximately 4% from HKD 560.75 million to HKD 585.07 million[11]. - Revenue from the food business decreased by about 4% to HKD 119.06 million, down from HKD 124.66 million in the previous year[12]. - The food business recorded an increased segment loss of approximately HKD 2.67 million, compared to HKD 1.30 million in the previous year[12]. - The group achieved a gain of approximately HKD 7.77 million from the sale of financial assets measured at fair value through profit or loss[13]. - The wine business recorded revenue of approximately HKD 109.74 million, with a segment profit of about HKD 10.27 million, compared to approximately HKD 52.91 million and HKD 3.04 million in the previous year, representing an increase of 107.5% in revenue and 237.8% in profit[16]. - The group recorded a segment profit reduction to approximately HKD 1.65 million, down from HKD 10.35 million in 2018[32]. - The group's total revenue for the year was approximately HKD 230.69 million, representing a 25% increase compared to the previous year[40]. - The group’s loss attributable to owners improved to approximately HKD 53.42 million from HKD 97.37 million in the previous year[41]. - The company raised approximately HKD 33.2 million through a rights issue, with planned uses including repayment of HKD 30.12 million for notes and HKD 3.08 million for general working capital[50]. Business Segments - The dessert business segment reported a loss of approximately HKD 28.60 million from the group's share of the dessert joint venture[15]. - The food business revenue decreased from approximately HKD 124.66 million to about HKD 119.06 million, reflecting a decline of around 4% due to a reduction in the number of specialty stores and increased operational costs[30]. - The group's share of losses from the dessert business was approximately HKD 28.60 million, compared to HKD 19.19 million in 2018[35]. - The dessert business operated nine restaurants in China as of December 31, 2019, up from six in 2018, through local business partners[35]. - The cost of goods sold for the wine business was approximately HKD 90.25 million, which accounted for 82% of the wine business revenue[42]. Investment and Growth Strategies - The board is actively seeking potential investment opportunities to diversify the business portfolio and expand revenue sources, aiming to improve operational and financial conditions[18]. - The company plans to establish long-term partnerships with multiple potential suppliers to gain cost advantages and expand its product portfolio in the wine business[16]. - The company aims to diversify its existing business and expand revenue sources, particularly in the wine business, which has shown positive performance and growth potential in Hong Kong[44]. - The company is actively seeking acquisition opportunities to enhance its wine business and expand its customer base[44]. - The group completed the acquisition of the Palida Group, enhancing its wine business sales capabilities, with a guaranteed profit of no less than HKD 10 million for the fiscal year ending March 31, 2019[37]. Risk Management - The group faces significant risks from the COVID-19 pandemic, which has adversely affected the business environment, particularly in Hong Kong and mainland China[69]. - The lending business is exposed to credit risk, as clients may default on loans, potentially impacting the group's financial condition and profitability[70]. - The group has established procedures to identify and mitigate significant risks that could adversely affect operations and performance[69]. - The group has not identified any major risks beyond those disclosed in the financial statements, but acknowledges the potential for unknown risks to emerge[69]. - The wine business may experience cost fluctuations due to climate change and extreme weather events affecting grape quality and supply[79]. Corporate Governance - The role of the chairman and CEO is clearly separated to ensure independence and accountability[137]. - The audit committee consists of three independent non-executive directors as of December 31, 2019[132]. - The company has adopted various policies to ensure compliance with the corporate governance code[135]. - The company has undergone several changes in its board of directors during the year, with multiple appointments and resignations[116]. - The company has adopted a board diversity policy in 2013, revised in 2018, to enhance board effectiveness through various factors including gender, age, and professional experience[144]. Compliance and Regulations - The company has maintained compliance with relevant laws and regulations, with no significant violations reported during the year[84]. - The company ensures compliance with the latest developments in GEM listing rules and other applicable regulations[148]. - The independent auditor's report confirmed that the financial statements were free from material misstatement due to fraud or error[198]. - The board of directors is responsible for ensuring the financial statements are prepared in compliance with applicable regulations and internal controls[198]. Employee and Stakeholder Relations - The company has over 220 employees as of December 31, 2019, down from 250 in 2018, and offers competitive compensation and training programs to retain talent[58]. - The company offers a competitive compensation package to attract and retain high-quality employees, with regular reviews based on market conditions and individual qualifications[108]. - The company recognizes the importance of maintaining good relationships with suppliers, customers, and stakeholders for achieving both immediate and long-term goals[85]. - The company encourages two-way communication with shareholders and potential investors, ensuring timely access to relevant information[176]. Financial Position - As of December 31, 2019, the company's equity attributable to owners was approximately HKD 360.32 million, an increase from HKD 348.99 million in 2018[48]. - The company's cash balance as of December 31, 2019, was approximately HKD 4.08 million, a decrease of about 44% from HKD 7.22 million in 2018[49]. - The debt-to-equity ratio as of December 31, 2019, was approximately 20%, a slight decrease from 21% in 2018[52]. - The company's distributable reserves as of December 31, 2019, were approximately HKD 251,337,000, a decrease from HKD 283,051,000 in 2018[90]. Future Outlook - The group is committed to ongoing business expansion and revenue growth strategies as part of its future outlook[195]. - The company plans to close underperforming food retail locations while seeking new high-traffic locations for expansion[44]. - The management will continue to monitor the impact of COVID-19 on business performance and financial conditions, as the pandemic has adversely affected the global business environment[46].