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].

Financial Performance - The group's revenue for the nine months ended September 30, 2019, increased by approximately 23% to about HKD 161,231,000, compared to HKD 131,031,000 in 2018[11]. - The loss attributable to owners of the company for the nine months ended September 30, 2019, was approximately HKD 12,350,000, a significant improvement from a loss of HKD 77,278,000 in 2018[11]. - The basic loss per share for the nine months ended September 30, 2019, was approximately HKD 0.0422, compared to HKD 0.3625 in 2018[11]. - For the three months ended September 30, 2019, the revenue was HKD 62,872,000, up from HKD 50,729,000 in the same period of 2018[12]. - The group reported a net loss before tax of HKD 10,535,000 for the nine months ended September 30, 2019, compared to a loss of HKD 77,096,000 in 2018[12]. - The group reported a net loss of HKD 12,570,000 for the nine months ended September 30, 2019, compared to a loss of HKD 77,431,000 in 2018[12]. - For the three months ended September 30, 2019, the company reported a loss attributable to owners of the company of HKD 5,532,000, compared to a loss of HKD 11,042,000 for the same period in 2018, representing a 50% improvement year-over-year[13]. - For the nine months ended September 30, 2019, the total comprehensive expenses amounted to HKD 13,463,000, a decrease from HKD 79,845,000 in the same period of 2018, indicating a significant reduction in losses[13]. - The total loss before tax for the nine months ended September 30, 2019, was HKD 10,535,000, compared to a loss of HKD 77,096,000 for the same period in 2018, showing an improvement of approximately 86.4%[23][30]. Revenue Breakdown - The food business generated revenue of HKD 91,795,000 in 2019, compared to HKD 93,079,000 in 2018, indicating a slight decrease of about 1.4%[23]. - The investment segment reported a revenue of HKD 1,000,000 in 2019, down from HKD 55,331,000 in 2018, reflecting a significant decline of approximately 98.2%[23]. - The loan segment generated revenue of HKD 1,453,000 in 2019, compared to HKD 6,040,000 in 2018, marking a decrease of about 75.9%[23]. - The wine trading segment achieved revenue of HKD 67,983,000 in 2019, a decrease from HKD 31,883,000 in 2018, which is an increase of approximately 113.1%[23]. - The group's revenue for the period was approximately HKD 161.23 million, representing an increase of about 23.0% compared to the previous year, primarily driven by increased revenue from wine trading[50]. Expenses and Costs - The cost of sales for the nine months ended September 30, 2019, was HKD 54,291,000, compared to HKD 28,723,000 in 2018[12]. - Employee benefit expenses for the nine months ended September 30, 2019, were HKD 33,118,000, slightly down from HKD 33,600,000 in 2018[12]. - The group incurred financial costs of HKD 6,812,000 for the nine months ended September 30, 2019, compared to HKD 597,000 in 2018[12]. - The financial costs for the nine months ended September 30, 2019, amounted to HKD 6,812,000, an increase from HKD 597,000 in 2018, representing a rise of approximately 1031.5%[29]. Equity and Shareholder Information - As of September 30, 2019, the total equity attributable to owners of the company was HKD 400,774,000, an increase from HKD 367,019,000 at the end of the previous year, indicating growth in shareholder equity[14]. - The company issued shares worth HKD 34,301,000 through rights issues during the nine months, contributing to the increase in total equity[14]. - The group raised approximately HKD 33.2 million through a rights issue at HKD 0.0248 per share, intended for redeeming promissory notes and general working capital[59]. Business Segments and Diversification - The company’s main business segments include restaurant services, food production and distribution, investment securities, lending business, and wine trading, indicating a diversified business model[16]. - The group aims to diversify its existing business and expand revenue sources, particularly in the wine trading sector, which showed positive performance in 2019[53]. - The group plans to enhance its wine trading sales capabilities and seek acquisition opportunities to improve operational scale and performance in this segment[53]. Acquisitions and Investments - The group has entered into an agreement to acquire a vineyard for HKD 60 million, which provides winery business and short-term accommodation services[36]. - The company completed the acquisition of Irving Global Limited and its subsidiaries for HKD 9.9 million on February 28, 2019, focusing on wine retail in Hong Kong[69]. - The company also acquired Happy Profit Global Limited and its subsidiaries for HKD 9.9 million, which deals in wine and olive oil products, completed on February 28, 2019[69]. - The group completed the acquisition of 100% of the issued share capital of Bailida Group for HKD 76 million, finalized on January 22, 2019[68]. Employee and Governance - The group has over 260 employees as of September 30, 2019, and offers competitive compensation and training programs to retain talent[66]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements for Q3 2019 and confirmed compliance with applicable accounting standards and GEM listing rules[102]. - The company adhered to the corporate governance code as per GEM listing rules throughout 2019[99]. - The board of directors includes both executive and independent non-executive members, ensuring a balanced governance structure[103]. Stock Options and Shareholder Rights - The share option plan allows for a maximum issuance of shares not exceeding 30% of the total issued shares at any time[74]. - The exercise price for options granted under the share option plan is determined by the board but cannot be lower than the higher of the closing price on the grant date or the average closing price over the preceding five trading days[77]. - 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[85]. - The total expense recognized for stock options granted by the company during 2019 was approximately HKD 2,979,000[87].

Financial Performance - The group's revenue for the six months ended June 30, 2019, increased by approximately 22% to about HKD 98.36 million, compared to HKD 80.30 million in 2018[11]. - The loss attributable to owners of the company for the six months ended June 30, 2019, was approximately HKD 6.82 million, a significant improvement from HKD 66.24 million in 2018[11]. - Basic loss per share for the six months ended June 30, 2019, was approximately HKD 0.25 cents, compared to HKD 3.12 cents in 2018[11]. - The group recorded a net loss before tax of HKD 5.36 million for the six months, a reduction from HKD 66.20 million in the same period last year[12]. - The total comprehensive expenses for the six months ended June 30, 2019, amounted to HKD 7,244,000, a decrease from HKD 66,804,000 in the same period of 2018, indicating a reduction in overall losses[13]. - The company reported a pre-tax loss of HKD 5,363,000 for the first half of 2019, compared to a pre-tax loss of HKD 66,197,000 in the same period of 2018[46]. - The loss attributable to the company's owners improved by approximately 89.7% to about HKD 6.82 million in the mid-year of 2019, primarily due to the investment segment turning from a loss of approximately HKD 44.25 million in 2018 to a profit of about HKD 4.3 million in 2019[112]. Cost Management - Operating expenses decreased to HKD 19.54 million for the six months ended June 30, 2019, down from HKD 26.37 million in 2018, indicating improved cost management[12]. - Financial costs for the six months increased to HKD 3.86 million, compared to HKD 0.21 million in the previous year, reflecting higher borrowing costs[12]. - Employee benefits expenses increased to approximately HKD 22.81 million in the mid-year of 2019 from HKD 21.87 million in 2018, mainly due to salary adjustments to retain experienced staff[115]. Asset and Liability Management - The company's non-current assets totaled HKD 104,215,000 as of June 30, 2019, compared to HKD 83,343,000 as of December 31, 2018, reflecting a growth of approximately 25%[15]. - Current assets increased to HKD 509,507,000 as of June 30, 2019, up from HKD 383,102,000 at the end of 2018, marking a rise of about 33%[15]. - The total liabilities increased to HKD 61,115,000 as of June 30, 2019, compared to HKD 51,369,000 at the end of 2018, representing a rise of about 19%[16]. - The company's equity attributable to owners increased to HKD 374,013,000 as of June 30, 2019, from HKD 348,995,000 at the end of 2018, reflecting an increase of approximately 7%[16]. - The debt-to-equity ratio as of June 30, 2019, was approximately 48%, compared to 21% on December 31, 2018[124]. Cash Flow and Liquidity - For the six months ended June 30, 2019, the net cash flow used in operating activities was (HKD 25,261,000), compared to (HKD 1,035,000) for the same period in 2018, indicating a significant increase in cash outflow[18]. - The net cash flow from investing activities was HKD 15,697,000, a recovery from a cash outflow of (HKD 8,215,000) in the previous year, reflecting improved investment performance[18]. - The total cash and cash equivalents at the end of the period were HKD 29,418,000, down from HKD 36,320,000 at the end of 2018, indicating a decrease in liquidity[18]. - As of June 30, 2019, the group had an unencumbered bank balance and cash of approximately HKD 29.42 million, up from about HKD 7.22 million on December 31, 2018[121]. Business Strategy and Operations - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming quarters[11]. - The group has initiated new product development strategies aimed at increasing customer engagement and market share[11]. - The company is committed to improving operational efficiency and reducing losses in the next financial period[11]. - The group aims to enhance its wine trading sales capabilities and seeks acquisition opportunities to expand its customer base and improve performance in the wine trading segment[116]. - The group plans to actively seek opportunities to expand its lending business and will regularly monitor risks and adjust its investment portfolio as necessary[117]. - The company’s joint venture in China is focusing on expanding its restaurant network through local partners rather than operating its own restaurants due to rising operational costs[111]. Shareholder and Corporate Governance - The company did not recommend the payment of an interim dividend for both the 2019 and 2018 mid-year periods[50]. - The company has adopted a code of conduct for securities transactions in compliance with GEM Listing Rules, and all directors adhered to these standards during the review period[149]. - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15 during the first half of 2019[150]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements for the first half of 2019 and confirmed their compliance with applicable accounting standards and GEM Listing Rules[152]. Investment and Acquisitions - The company acquired the entire issued share capital of the Palida Group for HKD 76 million, with payment made through the issuance of 425,568,000 new shares at HKD 0.131 per share and HKD 20,250,592 in promissory notes[133]. - The company completed the acquisition of Irving Global Limited and its subsidiaries for HKD 9.9 million, with payment made via promissory notes[134]. - The company also acquired Happy Profit Global Limited and its subsidiaries for HKD 9.9 million, with payment made through promissory notes[134]. - The company sold its entire issued share capital of New Cook Capital Limited for a total cash consideration of HKD 13,380,000, completed on May 31, 2019[136]. Market and Segment Performance - The food business recorded a revenue increase of approximately 1.3% to about HKD 60.68 million compared to HKD 59.91 million in the same period of 2018, but operating loss increased from approximately HKD 0.13 million to about HKD 0.78 million due to rising food and labor costs[104]. - The lending business generated interest income of approximately HKD 0.94 million, down from HKD 4.55 million in 2018, with total loans outstanding at approximately HKD 572.51 million as of June 30, 2019[108]. - The wine trading business achieved revenue of approximately HKD 36.74 million, significantly up from HKD 15.82 million in 2018, with segment profit of approximately HKD 3.41 million compared to HKD 1.92 million in the previous year[109].

Financial Performance - The group's revenue for the three months ended March 31, 2019, increased by approximately 43% to about HKD 45,701,000, compared to HKD 31,923,000 in the same period of 2018[11] - The loss attributable to owners of the company for the three months ended March 31, 2019, was approximately HKD 6,083,000, compared to HKD 28,755,000 in the same period of 2018[11] - The basic loss per share for the three months ended March 31, 2019, was approximately HKD 0.23, compared to HKD 1.36 in the same period of 2018[11] - The total comprehensive loss for the three months ended March 31, 2019, was HKD 5,559,000, compared to HKD 26,520,000 in the same period of 2018[14] - The company reported a loss of HKD 28,755,000 for the same period in the previous year, indicating a significant improvement in performance year-over-year[15] - The pre-tax loss for the first quarter of 2019 was HKD 6.45 million, a significant improvement from a loss of HKD 28.60 million in the first quarter of 2018[30] Revenue Breakdown - The food business recorded revenue of approximately HKD 28.61 million, down about 3% from HKD 29.40 million in the first quarter of 2018[38] - The wine trading business achieved revenue of approximately HKD 16.88 million in Q1 2019, with a segment profit of approximately HKD 1.80 million, marking a significant increase from zero revenue in Q1 2018[46] - The group's total revenue for Q1 2019 was approximately HKD 45.70 million, representing an increase of about 43% compared to the same period last year, primarily driven by the wine trading segment[49] Expenses and Costs - The cost of inventory consumed for the three months ended March 31, 2019, was HKD 10,402,000, compared to HKD 12,275,000 in the same period of 2018[13] - Employee benefit expenses for the three months ended March 31, 2019, were HKD 11,773,000, compared to HKD 10,461,000 in the same period of 2018[13] - The group incurred finance costs of HKD 1,221,000 for the three months ended March 31, 2019, compared to HKD 94,000 in the same period of 2018[13] - The cost of goods sold for the wine trading segment was approximately HKD 13.62 million in Q1 2019, accounting for 81% of the wine trading revenue, with total inventory consumed costing approximately HKD 10.40 million[49] Equity and Assets - The company's total equity attributable to owners increased to HKD 375,507,000 as of March 31, 2019, up from HKD 348,995,000 at the beginning of the year[15] - The company’s capital reserve remained stable at HKD 106,000, while the accumulated losses increased to HKD 288,993,000 as of March 31, 2019[15] - The company’s foreign currency translation reserve showed a loss of HKD 7,715,000, reflecting currency fluctuations impacting overseas operations[15] - As of March 31, 2019, the total accumulated loans amounted to approximately HKD 561.75 million, unchanged from December 31, 2018, with outstanding receivables of approximately HKD 47.33 million, down from HKD 54.06 million[43] Business Operations - The company continues to engage in various business segments, including restaurant services, food production, and investment activities, which are crucial for future growth[22] - The group aims to diversify its existing business and expand revenue sources, particularly in the wine trading sector, which is expected to grow steadily[52] - The group plans to actively seek acquisition opportunities to enhance the operational scale and performance of its wine trading segment[52] Share Options and Employee Incentives - The company has adopted a share option scheme to incentivize and retain employees, with a maximum issuance limit of 30% of the total issued shares[68] - During the period, 148,949,822 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[79] - The total number of options exercised during the first quarter of 2019 was 212,785,460, resulting in a balance of 63,835,638 options available for exercise[78] Acquisitions and Sales - The company completed the acquisition of the Bailaida Group on January 22, 2019, for a total consideration of HKD 76 million, which included the issuance of new shares and notes payable[64] - The company also completed the acquisition of Irving Global Limited and Happy Profit Global Limited for HKD 9.9 million each, with payment made through notes payable[65] - The group plans to sell its subsidiary, New Cook Capital Limited, for a total cash consideration of HKD 13.38 million[34] Compliance and Governance - The company is committed to adhering to Hong Kong Financial Reporting Standards, ensuring transparency and compliance in financial reporting[18] - The audit committee reviewed the unaudited financial statements for the first quarter and confirmed compliance with applicable accounting standards and GEM listing rules[91] - As of March 31, 2019, there were no interests held by directors or their associates in any business that competes or may compete with the group[90]

Financial Performance - The total amount of loans provided increased by approximately 6%, from HKD 530.45 million as of December 31, 2017, to HKD 560.75 million as of December 31, 2018[13]. - The food business reported a revenue growth of approximately 26%, reaching HKD 124.66 million, compared to HKD 98.74 million in the previous year[14]. - The food business recorded a segment loss of approximately HKD 1.30 million for the year, compared to a segment profit of approximately HKD 0.8 million in the previous year[14]. - The group incurred a loss of approximately HKD 49.86 million from the sale of financial assets measured at fair value through profit or loss during the year[17]. - The dessert business segment recorded a loss of approximately HKD 19.19 million due to slowed progress in opening new stores and franchise operations[18]. - The wine trading business achieved revenue of approximately HKD 52.91 million and a segment profit of about HKD 3.04 million[20]. - The group's revenue for the year reached approximately HKD 184.83 million, an increase of about 66% compared to the previous year, driven by food business revenue of approximately HKD 124.66 million and new wine business revenue of approximately HKD 52.91 million[47]. - The group incurred a loss attributable to owners of approximately HKD 97.37 million, compared to a loss of approximately HKD 79.42 million in the previous year, primarily due to increased realized losses from financial assets and losses from joint ventures[48]. - The cost of goods sold for the year was approximately HKD 53.67 million, a 30% increase from HKD 41.36 million in the previous year, with wine trading sales cost accounting for approximately 92% of its revenue[49]. - Employee benefits expenses increased to approximately HKD 45.58 million, up from HKD 35.80 million in the previous year, due to hiring for the wine trading business and new franchise stores[49]. Market and Economic Conditions - The Hang Seng Index closed at 25,845 points at the end of December 2018, down from 29,919 points at the end of December 2017[17]. - The average daily trading amount for the main board and GEM increased by approximately 22%, from HKD 880 billion in the previous year to HKD 1,070 billion[17]. - The total retail sales value in Hong Kong increased from approximately HKD 446.1 billion in 2017 to about HKD 485.2 billion in 2018, representing a growth of around 9%[19]. - The total import value of wine in Hong Kong reached HKD 11.9 billion in 2018, with Australia becoming the second-largest wine supplier, accounting for 17% of total import value[19]. - Economic uncertainty may lead consumers to adopt a more conservative purchasing attitude, potentially affecting the group's performance in the high-end liquor market[89]. Business Strategy and Operations - The board aims to seek new investment opportunities to diversify the business portfolio and expand revenue sources, enhancing operational and financial performance[23]. - The company plans to establish long-term partnerships with multiple potential suppliers to gain cost advantages and expand its product portfolio[22]. - The wine trading business is expected to benefit from synergies with the existing distribution and restaurant operations[22]. - The group plans to enhance its wine trading sales capabilities and seek acquisition opportunities to expand its customer base and improve performance[51]. - The group plans to expand its restaurant network in China through local business partners due to rising operational costs[40]. - The group will continue to monitor and review the performance of its specialty stores and close underperforming locations[51]. - The company operates primarily in the food and beverage sector, with additional activities in food production, sales, and distribution to Hong Kong supermarkets[68]. - Over 90% of the group's revenue from the food business comes from specialty stores in Hong Kong's chain supermarkets[79]. - The group operates more than 80 specialty stores in Hong Kong's chain supermarkets as of December 31, 2018[79]. Shareholder and Governance Matters - The company acknowledges the support of shareholders and the contributions of directors and staff during the year[24]. - As of December 31, 2018, the company's equity attributable to owners was approximately HKD 348,995,000, a decrease from HKD 442,085,000 in 2017, representing a decline of about 21%[54]. - The cash and bank balances as of December 31, 2018, were approximately HKD 7,222,000, a significant decrease of approximately 81% from HKD 37,127,000 in 2017[56]. - The company raised approximately HKD 18 million from a rights issue, which has been fully utilized for its intended purposes as of December 31, 2018[57]. - The debt-to-equity ratio as of December 31, 2018, was approximately 21%, indicating the proportion of debt used in the company's capital structure[60]. - The company had no significant investments, acquisitions, or disposals of subsidiaries or associates during the year, maintaining a focus on existing operations[62]. - There were no interim dividends declared or paid during the year, consistent with the previous year[71]. - The board did not recommend the payment of a final dividend for the year, maintaining a conservative approach to capital distribution[73]. - The company has a dividend policy that allows for annual dividends not exceeding 20% of the consolidated annual net profit attributable to shareholders, excluding special items[183]. Risk Management and Compliance - The group faces significant credit risk in its lending business, as customers may default on loan repayments, potentially impacting financial performance[76]. - The value of securities used as collateral for loans may decline, increasing the risk of not recovering loans and negatively affecting profitability[77]. - The group is heavily reliant on the recognition of the "Lucky Dessert" trademark, and any damage to its reputation could significantly impact business performance[83]. - The group operates in a highly competitive dessert shop market, where pricing and quality are critical for maintaining business performance[84]. - The company has not established any agreements or instruments to hedge against foreign exchange risks, which may impact financial performance due to currency fluctuations[61]. - The company has a structured approach to ensure compliance with relevant laws and regulations, enhancing corporate governance awareness among directors[157]. - The audit committee reviewed the financial reports and compliance procedures, ensuring adherence to applicable accounting standards and GEM listing rules[139]. - The company has fully complied with the corporate governance code applicable to GEM listing rules during the year[143]. - The board is responsible for the risk management and internal control systems, which are designed to manage risks rather than eliminate them[174]. - The audit committee assists the board in overseeing the risk management and internal control systems, submitting annual reports for review[176]. Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2018[191]. - Key audit matters identified include the impairment assessment of receivables and interests, which requires significant judgment and complexity[195]. - The audit procedures include evaluating the reasonableness of management's assumptions and methods used in the impairment testing[198]. - The audit team has discussed potential impairment indicators with management and assessed the impairment tests when such indicators are identified[198]. - The audit team compared key input data with third-party sources to evaluate the valuation methods used[198]. - The financial statements disclose the credit risk exposure faced by the group[196]. Corporate Structure and Management - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balance of power and independence[144]. - The company has adopted a board diversity policy to enhance effectiveness by considering various factors such as gender, age, and professional experience[152]. - The roles of the chairman and CEO are clearly separated to ensure independence and accountability[145]. - The company has established a procedure for directors to seek independent professional advice at the company's expense when necessary[157]. - The company emphasizes the importance of gender, age, cultural background, and professional qualifications in the selection of board members[156]. - The remuneration committee held 5 meetings during the year to review compensation policies and determine annual remuneration for directors and senior management[164].