倩碧控股有限公司 Simplicity Holding Limited (於開曼群島註冊成立之有限公司) 股份代號 : 8367 第 三 季 度 報 告 2020 香港聯合交易所有限公司（「聯交所」）GEM 之特色 GEM乃為較其他於聯交所上市之公司帶有較高投資風險之中小型公司提供一個上市之市場。 有意投資者應了解投資於該等公司之潛在風險，並應經過審慎周詳考慮後方作出投資決定。 由於GEM 上市公司普遍為中小型公司，在GEM 買賣的證券可能會較於主板買賣之證券承 受較大的市場波動風險，同時無法保證在GEM 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 本報告載有遵照聯交所GEM 證券上市規則（「GEM 上市規則」）所提供有關倩碧控股有限 公司（「本公司」，連同其附屬公司統稱「本集團」或「我們」）之資料詳情，本公司各董事（「董 事」）就本報告共同及個別承擔全部責任。董事在作出一切合理查詢後確認，就彼等所深知 及確信，本報告所載資料在所有 ...

Financial Performance - For the three months ended September 30, 2020, the Group reported revenue of HKD 26,214,000, a decrease of 3.7% compared to HKD 27,223,000 for the same period in 2019[24]. - For the six months ended September 30, 2020, the Group's revenue was HKD 54,708,000, down 7.2% from HKD 59,130,000 in the prior year[24]. - The Group recorded a loss before tax of HKD 1,590,000 for the three months ended September 30, 2020, compared to a loss of HKD 8,403,000 for the same period in 2019, indicating a significant improvement[24]. - The total comprehensive loss for the six months ended September 30, 2020, was HKD 2,135,000, a reduction from HKD 23,167,000 in the previous year[24]. - The company reported a net cash inflow from operating activities of HKD 12,721,000 for the six months ended September 30, 2020, compared to HKD 1,721,000 for the same period in 2019, reflecting a significant increase of approximately 640%[34]. - The company recorded a total comprehensive loss of HKD 23,075,000 for the six months ended September 30, 2020, compared to a total comprehensive loss of HKD 23,167,000 for the same period in 2019, showing a slight improvement[30]. - The company recorded a loss attributable to owners of approximately HKD 2.2 million for the six months ended September 30, 2020, a significant decrease from a loss of approximately HKD 23.1 million for the same period in 2019[100]. - The reduction in loss was primarily due to the absence of share of losses from associates, a decrease in employee costs by approximately HKD 5.5 million, and a reduction in losses from the sale of fixed assets by approximately HKD 4.2 million[100]. Assets and Liabilities - The Group's non-current assets decreased to HKD 96,579,000 as of September 30, 2020, from HKD 113,272,000 as of March 31, 2020[26]. - Current assets increased to HKD 10,950,000 as of September 30, 2020, compared to HKD 8,905,000 as of March 31, 2020[26]. - The Group's total liabilities decreased to HKD 50,237,000 as of September 30, 2020, from HKD 55,088,000 as of March 31, 2020[26]. - The company’s total liabilities decreased to HKD 37,530,000 as of September 30, 2020, down from HKD 45,191,000 as of March 31, 2020, indicating a reduction of about 17%[28]. - The total assets as of September 30, 2020, amounted to HKD 107,529,000, while total liabilities were HKD 87,767,000, resulting in a net asset position[55]. - The company’s current liabilities were approximately HKD 50.2 million, a decrease from approximately HKD 55.1 million as of March 31, 2020[113]. - The capital debt ratio as of September 30, 2020, was 75.9%, down from 95.2% as of March 31, 2020[113]. - The company’s accumulated losses increased to HKD 61,261,000 as of September 30, 2020, from HKD 59,106,000 as of March 31, 2020, reflecting an increase of approximately 3.6%[30]. Employee Costs and Operations - The Group's employee costs for the six months ended September 30, 2020, were HKD 22,290,000, down 19.7% from HKD 27,785,000 in the previous year[24]. - Employee costs decreased to HKD 10,496,000 for the three months ended September 30, 2020, down 14.3% from HKD 12,246,000 in 2019[62]. - The company plans to reduce restaurant staff usage to minimize employee costs in response to ongoing challenges from the COVID-19 pandemic[81]. - Employee costs for the same period were approximately HKD 22.3 million, a decrease of about 19.8% from approximately HKD 27.8 million in the previous year, mainly due to a reduction in the number of restaurants and tighter cost control[93]. Revenue by Segment - The Chinese cuisine segment generated revenue of HKD 16,794, down from HKD 21,654 in the previous year, reflecting a decrease of about 22.6%[50]. - The Thai cuisine segment reported revenue of HKD 16,181, a slight decrease from HKD 21,317, indicating a decline of approximately 24.0%[50]. - The Malaysian cuisine segment achieved revenue of HKD 18,649, down from HKD 15,350 in the previous year, showing an increase of about 21.5%[50]. - For the six months ended September 30, 2020, "麻酸樂╱嫲孫樂" recorded revenue of approximately HKD 16.8 million, accounting for 30.7% of total revenue, representing a decrease of 22.4% compared to the same period last year due to the impact of COVID-19[84]. - For the same period, "泰巷" generated revenue of approximately HKD 16.2 million, making up 29.6% of total revenue, with a decline of 24.1% attributed to a reduction in the number of restaurants and the adverse effects of COVID-19[84]. - "峇峇娘惹" achieved revenue of approximately HKD 18.7 million, which accounted for 34.1% of total revenue, showing an increase of 21.5% year-on-year due to the opening of a new restaurant in November 2019[86]. Cash Flow and Financing - The company’s financing activities resulted in a net cash outflow of HKD 15,038,000 for the six months ended September 30, 2020, compared to a net cash outflow of HKD 2,357,000 for the same period in 2019, indicating a significant increase in cash used for financing[34]. - The group’s financing costs remained stable at approximately HKD 1.3 million for the six months ended September 30, 2020, compared to approximately HKD 1.2 million for the same period in 2019[99]. - The company received HKD 6,104 in subsidy income for the six months ended September 30, 2020, compared to no subsidy income in the previous year[59]. - The company received government subsidies and rental concessions during the period, which were not present in the previous year[100]. Strategic Initiatives - The company aims to negotiate rent concessions with landlords to alleviate financial pressure during the pandemic[81]. - The company is expanding its takeaway product range and increasing marketing efforts to stimulate sales[81]. - The group launched a new business segment to sell ingredients to a restaurant group, generating revenue of approximately HKD 3.1 million, which accounted for 5.6% of total revenue, with no comparative figures from the previous year as it is a newly established business[86]. - The group is optimistic about the prospects of its joint venture in the frozen warehouse business, despite a slowdown in growth due to COVID-19 and social unrest, and is collaborating with multiple partners to develop an online shopping platform[86]. Shareholder and Governance - Major shareholder MJL held 540,000,000 shares, representing 67.5% of the company's equity as of September 30, 2020[131]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2020, confirming compliance with applicable accounting standards and GEM listing rules[146]. - The company did not recommend any dividend payment for the six months ended September 30, 2020, consistent with the previous year[66]. - The company has no outstanding capital commitments as of September 30, 2020[116]. - The company had no major investment or capital asset plans as of September 30, 2020[119].

倩碧控股有限公司 Simplicity Holding Limited (於開曼群島註冊成立之有限公司) 股份代號 : 8367 第 － 季 度 報 告 2020 香港聯合交易所有限公司（「聯交所」）GEM 之特色 GEM乃為較其他於聯交所上市之公司帶有較高投資風險之中小型公司提供一個上市之市場。 有意投資者應了解投資於該等公司之潛在風險，並應經過審慎周詳考慮後方作出投資決定。 由於GEM 上市公司普遍為中小型公司，在GEM 買賣的證券可能會較於主板買賣之證券承 受較大的市場波動風險，同時無法保證在GEM 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 本報告載有遵照聯交所GEM 證券上市規則（「GEM 上市規則」）所提供有關倩碧控股有限 公司（「本公司」，連同其附屬公司統稱「本集團」或「我們」）之資料詳情，本公司各董事（「董 事」）就本報告共同及個別承擔全部責任。 董事在作出一切合理查詢後確認，就彼等所深知及確信，本報告所載資料在所有 ...

Financial Performance - Total revenue for the year ended March 31, 2020, was approximately HKD 116.4 million, a decrease from HKD 142.4 million in the previous year, representing a decline of about 18.4%[13] - The loss attributable to owners for the year was approximately HKD 44.5 million, compared to a loss of HKD 16.1 million in the previous year, indicating an increase in loss of approximately 176.4%[13] - The decline in revenue was primarily attributed to the impact of social unrest and the COVID-19 pandemic, which led to a reduction in the number of restaurants and significant economic downturn[13] - The total number of customers visiting the restaurants decreased by 465,336 or 18.4% to 2,069,127 compared to the previous year[18] - Total revenue for the year was 116,425 thousand HKD, down from 142,407 thousand HKD in the previous year, representing a decline of approximately 18.2%[25] - The company reported a pre-tax loss of 44,710 thousand HKD for the year, compared to a loss of 15,032 thousand HKD in the previous year[25] Restaurant Operations - The company operated a total of 13 restaurants as of March 31, 2020, down from 14 restaurants in the previous year, reflecting a closure of three restaurants during the year[16] - The company opened one new restaurant during the year, located in Kowloon Bay, which has performed satisfactorily due to limited competition in the area[14] - The company has entered into a franchise agreement to operate a new restaurant under the brand "Baba Nyonya" in Tin Shui Wai, which opened in June 2020[19] - The average revenue per day for the "Thai Lane" brand was 34.2 thousand HKD, while "Baba Nyonya" reported 26.7 thousand HKD[18] - "麻酸樂╱嫲孫樂" generated revenue of approximately HKD 43.3 million, accounting for 37.2% of total revenue, with a year-on-year decrease of 5.3%[35] - "泰巷" reported revenue of approximately HKD 38.7 million, representing 33.3% of total revenue, with a significant decline of 36.2% due to a reduction in the number of restaurants[37] - "峇峇娘惹" saw a remarkable increase in revenue to approximately HKD 32.6 million, up 645.5% year-on-year, due to an expansion from one to four restaurants[37] Cost Management - Employee costs remained high despite the decrease in revenue, contributing to the overall loss for the year[13] - The company plans to closely monitor its cost structure and reduce expenses to enhance revenue and create more value for shareholders[22] - Employee costs decreased by approximately 8.4% from HKD 59.5 million to HKD 54.4 million, mainly due to a reduction in the number of restaurants and tighter cost control[46] - Depreciation expenses rose significantly from approximately HKD 9.5 million to HKD 29.3 million due to the adoption of HKFRS 16, which requires the recognition of right-of-use assets[47] - Rental expenses decreased by approximately 84.4% from HKD 28.6 million to HKD 4.5 million, attributed to the reclassification of rental expenses under HKFRS 16[48] - Financing costs surged by approximately 592.8% from HKD 0.4 million to HKD 3.1 million, mainly due to interest on lease liabilities under HKFRS 16[52] Strategic Initiatives - The company has rebranded and renovated existing restaurants to attract new customers, including the transformation of a restaurant in Tseung Kwan O into a new brand[14] - The company plans to continue exploring opportunities for expansion and brand development in the future[14] - The group is negotiating rent reductions with landlords to mitigate the impact of the economic downturn and high operational costs[40] - The group plans to enhance promotional efforts, including seasonal products, to maintain competitiveness amid weak consumer sentiment[40] - The group has established a new business agreement with a restaurant chain to provide procurement and logistics services, expected to yield positive returns[40] - The company aims to expand its market presence through new product development and operational enhancements[70] Corporate Governance - The company emphasizes transparency, accountability, and fairness in corporate governance, adhering to the GEM Listing Rules[72] - The board consists of eight members, including three independent non-executive directors, ensuring a balance of skills and experience[73] - The company has adopted a board diversity policy since December 31, 2018, focusing on various criteria such as gender, age, and professional experience[76] - Independent non-executive directors play a crucial role in providing strategic advice and ensuring high standards of financial reporting[77] - The board has established three committees: the remuneration committee, nomination committee, and audit committee, each with defined powers to oversee different aspects of the company[107] - The company has implemented measures to monitor compliance with the non-competition agreement, including annual reviews by independent non-executive directors[82] Financial Position - The total assets increased to 122,177 thousand HKD from 97,693 thousand HKD, while total liabilities rose to 100,279 thousand HKD from 30,804 thousand HKD[25] - As of March 31, 2020, current assets were approximately HKD 8.9 million, a decrease from HKD 31.8 million as of March 31, 2019[157] - Cash and bank balances were approximately HKD 3.0 million, down from HKD 21.8 million in the previous year[157] - Current liabilities increased to approximately HKD 55.1 million from HKD 13.1 million as of March 31, 2019[157] - The current ratio and quick ratio were 0.2 and 0.1, respectively, compared to 2.4 for both ratios in the previous year[157] - The debt-to-equity ratio rose significantly to 95.2% from 22.4% as of March 31, 2019[157] Shareholder Relations - The company has established a shareholder communication policy to enhance relationships with shareholders[104] - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[128] - The company has established multiple channels for communication with shareholders, including financial reports and annual general meetings[130] - The company welcomes suggestions from investors and shareholders to improve investor relations[130] Future Outlook - The company is optimistic about the future of its joint venture in the frozen warehouse business, despite current challenges, due to limited competition in Hong Kong[38] - The company has no significant future investment or capital asset plans beyond those disclosed in the IPO prospectus and annual report[158] - The company has a strong leadership team with nearly 50 years of experience in the restaurant industry, led by Chairwoman and Executive Director Ms. Wong Suet-king[63]

Financial Performance - The Group reported revenue of HKD 30,439,000 for the three months ended December 31, 2019, compared to HKD 89,569,000 for the same period in 2018, representing a decrease of approximately 66%[6] - For the nine months ended December 31, 2019, the Group's revenue was HKD 89,569,000, down from HKD 110,515,000 in the previous year, indicating a decline of about 19%[6] - The total comprehensive loss for the nine months ended December 31, 2019, was HKD 29,587,000, compared to HKD 8,388,000 for the same period in 2018, marking an increase in losses of about 253%[6] - Basic loss per share for the three months ended December 31, 2019, was HKD 0.80, compared to HKD 0.52 for the same period in 2018, representing a deterioration of approximately 54%[6] - The Group's loss attributable to owners for the three months ended December 31, 2019, was HKD 6,395,000, compared to HKD 4,147,000 for the same period in 2018, representing an increase of approximately 54%[6] - For the nine months ended December 31, 2019, the company reported a revenue of approximately HKD 89.5 million, with a loss attributable to shareholders of HKD 29.47 million, resulting in a basic loss per share of HKD 3.68[35] - The company recorded a loss attributable to owners of approximately HKD 29.5 million for the nine months ended December 31, 2019, compared to a loss of HKD 8.5 million for the same period in 2018[55] Revenue Breakdown by Segment - The Chinese cuisine segment generated revenue of HKD 33.61 million for the nine months ended December 31, 2019, slightly down from HKD 33.89 million in the previous year[24] - The Thai cuisine segment reported a revenue of HKD 33.44 million for the nine months ended December 31, 2019, a significant decline from HKD 47.89 million in the same period of 2018, reflecting a decrease of approximately 30%[24] - The Malaysian cuisine segment achieved revenue of HKD 21.70 million for the nine months ended December 31, 2019, compared to HKD 7.78 million in the previous year, indicating a substantial increase of approximately 179%[24] - The revenue from the "麻酸樂╱嫲孫樂" brand was approximately HKD 33.6 million, accounting for 37.5% of total revenue, reflecting a decrease of 0.8% compared to the same period last year[38] - The "泰巷" brand generated approximately HKD 33.4 million in revenue, representing 37.3% of total revenue, with a significant decrease of 30.2% due to a reduction in the number of restaurants[38] - The "峇峇娘惹" brand saw a revenue increase of 785.8% to approximately HKD 20.7 million, as the number of restaurants expanded from one to four[39] - The "牛布拉" brand reported a revenue of approximately HKD 0.8 million, a decrease of 86.2% due to the closure of all its restaurants[39] - The "緣蝦壹麵" brand recorded revenue of approximately HKD 1.0 million, down 80.8% as a result of the closure of all its restaurants[41] Operational Challenges - The group has ceased operations for the Western and Japanese cuisine segments as of March 18, 2019, and June 30, 2019, respectively, impacting overall revenue generation[23] - The company faced challenges due to the closure of four restaurants and the impact of social unrest on consumer sentiment, which significantly affected total sales[47] - The company is actively negotiating with landlords for rent concessions to mitigate operational costs amid ongoing social unrest[55] Cost Management - The Group's employee costs for the three months ended December 31, 2019, were HKD 13,770,000, down from HKD 15,884,000 in the same period of 2018, showing a reduction of about 13%[6] - Employee costs for the nine months ended December 31, 2019, were approximately HKD 41.6 million, a decrease of about 6.2% from HKD 44.3 million for the same period in 2018[49] - Rent expenses for the nine months ended December 31, 2019, were approximately HKD 3.2 million, a significant decrease of about 84.7% from HKD 21.1 million for the same period in 2018[52] Future Plans and Strategies - The group plans to continue evaluating its operational strategies and may consider market expansion opportunities in the future[20] - The company plans to enhance promotional efforts to maintain competitiveness, including seasonal food sales and collaboration with suppliers for household items[44] - The company will continuously adjust its business strategy based on the changing economic and restaurant industry conditions[45] - The company aims to monitor and evaluate the performance of each restaurant closely and implement cost control measures to minimize adverse impacts from underperforming locations[45] Compliance and Governance - The audit committee has reviewed the unaudited condensed consolidated financial statements for the nine months ended December 31, 2019, and believes they comply with applicable accounting standards and GEM listing rules[85] - The company has adopted the GEM Listing Rules as its corporate governance code and has complied with the applicable provisions during the reporting period[82] - The company has established an audit committee to oversee the appointment and remuneration of external auditors and to review the effectiveness of the audit process[84] - All directors confirmed compliance with the trading standards and the code of conduct for securities trading during the nine months ended December 31, 2019[79] Capital and Investments - The total capital raised from the IPO was HKD 32,600,000, with HKD 30,353,000 already utilized and HKD 2,247,000 remaining[60] - As of December 31, 2019, the company had unspent capital commitments of approximately HKD 0.4 million related to fixed asset acquisitions for new restaurants[64] - The company has registered as a rice merchant, allowing it to store rice for customers, creating an additional revenue source due to high demand in Hong Kong[42] Miscellaneous - The company has established a joint venture for frozen warehouse operations, which began in late April 2019, but growth has slowed due to social unrest affecting consumer sentiment and tourist numbers[41] - The company opened a new restaurant in November 2019, which has performed well due to a lack of similar offerings in the area[38] - The company has not granted, exercised, expired, or failed any stock options under the stock option plan as of December 31, 2019, and there are no unexercised stock options under the plan[81] - There were no significant matters that require disclosure occurring after December 31, 2019, up to the report date[83] - No directors or their associates have engaged in any business that competes directly or indirectly with the company during the nine months ended December 31, 2019[77] - The company has not entered into any significant transactions, arrangements, or contracts with directors or their associates during the reporting period[76] - The company has implemented a stock option plan aimed at attracting, retaining, and motivating participants for future development and expansion[81] - The company has appointed a compliance advisor in accordance with GEM Listing Rules, with no interests in the company's equity[78]

Financial Performance - The Group's revenue for the six months ended September 30, 2019, was HKD 59,130,000, a decrease of 19.2% compared to HKD 73,163,000 for the same period in 2018[17] - The Group reported a loss before tax of HKD 23,167,000 for the six months ended September 30, 2019, compared to a loss of HKD 3,371,000 for the same period in 2018[17] - Basic loss per share for the six months ended September 30, 2019, was HKD 2.88, compared to HKD 0.55 for the same period in 2018[17] - The company reported a loss attributable to owners of approximately HKD 23.1 million for the six months ended September 30, 2019, compared to a loss of HKD 4.4 million for the same period in 2018[103] - The group reported a loss of HKD 4.225 million for the six months ended September 30, 2019, with significant losses in the Japanese and Malaysian cuisine segments[42] Assets and Liabilities - Non-current assets decreased from HKD 65,901,000 as of March 31, 2019, to HKD 118,240,000 as of September 30, 2019[19] - Current assets decreased from HKD 31,792,000 as of March 31, 2019, to HKD 14,017,000 as of September 30, 2019[19] - The Group's total liabilities increased significantly, with current liabilities amounting to HKD 37,429,000 as of September 30, 2019, compared to HKD 13,076,000 as of March 31, 2019[19] - The company’s total liabilities as of September 30, 2019, amounted to HKD 51,106,000, compared to HKD 17,728,000 as of March 31, 2019, indicating a significant increase in liabilities[21] - The total liabilities were HKD 88,535,000, with Chinese cuisine liabilities at HKD 29,288,000, Thai cuisine at HKD 14,574,000, and Malaysian cuisine at HKD 19,233,000[45] Cash Flow - The net cash generated from operating activities for the six months ended September 30, 2019, was HKD 1,721,000, compared to a net cash outflow of HKD 5,249,000 for the same period in 2018, indicating a significant improvement[26] - The company reported a net cash outflow from investing activities of HKD 17,317,000 for the six months ended September 30, 2019, compared to HKD 9,348,000 in the previous year, reflecting increased investment activities[26] - The company's cash and cash equivalents decreased to HKD 3,878,000 at the end of the reporting period, down from HKD 34,028,000 at the end of the previous year, representing a decline of approximately 88.6%[26] - The company incurred a financing cash outflow of HKD 2,357,000 for the six months ended September 30, 2019, compared to HKD 600,000 in the same period of 2018, indicating increased financing activities[26] Operational Highlights - The company is primarily engaged in restaurant operations in Hong Kong, indicating a focus on the local market for its business activities[29] - The group’s operating segments include Chinese cuisine, Thai cuisine, and Malaysian cuisine, with the Japanese cuisine segment ceasing operations on June 30, 2019[41] - For the six months ended September 30, 2019, the total revenue from the Chinese cuisine segment was HKD 21.654 million, while the Thai cuisine segment generated HKD 21.317 million[42] - The company is negotiating with landlords to reduce rent in response to the challenging business environment, while also reducing part-time staff to save costs[80] - The company aims to introduce new dishes to attract customers and is leveraging social media for promotions to enhance visibility[80] Employee and Cost Management - The Group's employee costs for the six months ended September 30, 2019, were HKD 27,785,000, a slight decrease from HKD 28,441,000 for the same period in 2018[17] - Employee costs amounted to approximately HKD 27.8 million, a decrease of about 2.3% from HKD 28.4 million in the previous year[97] - Other expenses decreased by approximately 12.9% to about HKD 5.2 million, primarily due to reductions in audit, cleaning, insurance, and banking fees[101] Corporate Governance - The company is committed to high levels of corporate governance, adhering to the GEM Listing Rules and applicable governance code provisions[140] - The Audit Committee was established on January 29, 2018, with responsibilities including reviewing the financial reporting principles and risk management policies[143] - The Audit Committee consists of three independent non-executive directors, ensuring oversight of financial statements and external auditor independence[143] Future Outlook - The company is actively seeking opportunities to expand revenue sources and enhance shareholder value amid ongoing market challenges[92] - The company plans to open a new "Baba Nyonya" restaurant in November 2019, marking the fourth location of this brand[91] - A joint venture was established to operate a frozen warehouse business, with plans to expand refrigerated storage capacity expected to be completed in Q1 2020[86]

Financial Performance - The group's revenue for the three months ended June 30, 2019, was HKD 31,897,000, a decrease of 8.5% compared to HKD 34,874,000 in the same period of 2018[6]. - Other income for the same period was HKD 44,000, down from HKD 118,000, reflecting a decline of 62.7%[6]. - The group reported a loss before tax of HKD 14,765,000, compared to a loss of HKD 949,000 in the previous year, indicating a significant increase in losses[6]. - The basic loss per share for the period was HKD 1.84, compared to HKD 0.18 in the same period last year, representing a substantial increase in loss per share[6]. - Total comprehensive loss for the period amounted to HKD 14,765,000, compared to HKD 1,351,000 in the previous year, marking a significant deterioration in overall financial performance[6]. - The group reported a total revenue of HKD 31,897 thousand for the three months ended June 30, 2019, compared to HKD 34,874 thousand for the same period in 2018, representing a decrease of approximately 8.5%[26]. - The group reported a loss attributable to owners of approximately HKD 14.8 million for the three months ended June 30, 2019, compared to a loss of HKD 1.4 million for the same period in 2018[54]. Revenue Breakdown - Revenue from Chinese cuisine was HKD 11,305 thousand, slightly down from HKD 11,310 thousand in the previous year, indicating a stable performance[26]. - Thai cuisine revenue decreased significantly to HKD 11,405 thousand from HKD 16,710 thousand, reflecting a decline of approximately 31.5%[26]. - Revenue from the "麻酸樂/嫲孫樂" brand was approximately HKD 11.3 million, accounting for 35.4% of total revenue, remaining relatively stable compared to the previous year[39]. - "泰巷" recorded revenue of approximately HKD 11.4 million, representing a decrease of 31.7% year-on-year, accounting for 35.8% of total revenue[39]. Cost and Expenses - The cost of materials and consumables used was HKD 8,468,000, down from HKD 9,757,000, a decrease of 13.2%[6]. - Employee costs increased to HKD 14,969,000 from HKD 13,307,000, reflecting a rise of 12.5%[6]. - Depreciation expenses surged to HKD 7,225,000 from HKD 1,953,000, indicating a significant increase of 269.5%[6]. - Financing costs rose to HKD 599,000 from HKD 98,000, an increase of 510.2%[6]. - Employee costs, including director remuneration, amounted to HKD 14,330,000, an increase from HKD 12,751,000 in the previous year, reflecting a rise of approximately 12.4%[36]. - Employee costs increased by approximately 12.5% to HKD 15.0 million for the three months ended June 30, 2019, due to a higher number of operating restaurants compared to the previous year[51]. Operational Changes - The closure of three restaurants during the period, including two due to poor performance, contributed to the revenue decline[49]. - The group replaced underperforming brands with a single brand, resulting in a daily sales increase of approximately 30% for the newly branded restaurant[49]. - The company plans to open a new "峇峇娘惹" restaurant in Ngau Tau Kok in October 2019, as part of its expansion strategy[44]. - The company has successfully renewed lease agreements for two restaurants in Tiu Keng Leng, indicating a proactive approach to managing operational costs[44]. - The central kitchen, established in 2007, continues to enhance operational efficiency by supplying raw materials and consumables to the restaurants[40]. - The group has formed a joint venture for frozen warehouse operations, with optimistic expectations for increased customer transactions despite underutilization of some warehouse space[42]. Accounting and Compliance - The group recognized right-of-use assets and lease liabilities of HKD 50.6 million upon the adoption of HKFRS 16, effective from April 1, 2019[19]. - The group has adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant financial impact on the unaudited consolidated financial statements, except for HKFRS 16[16]. - The group plans to continue evaluating the impact of the new accounting standards on its financial reporting and operations moving forward[19]. - The company has adopted GEM Listing Rules as a code of conduct for directors' securities transactions, confirming compliance during the reporting period[78]. - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance with all applicable provisions as of June 30, 2019[81]. Corporate Governance - The Audit Committee was established on January 29, 2018, with responsibilities including recommending the appointment and remuneration of external auditors and reviewing the adequacy of risk management and internal control systems[82]. - The Audit Committee consists of three independent non-executive directors, ensuring independence and objectivity in the audit process[83]. - The unaudited condensed consolidated financial statements for the three months ended June 30, 2019, were reviewed by the Audit Committee and deemed to comply with applicable accounting standards and GEM Listing Rules[83]. - The board of directors includes both executive and independent non-executive members, promoting a balanced governance structure[84]. - The company emphasizes transparency, accountability, fairness, and responsibility in its corporate governance practices[81]. - The financial reporting principles and practices used in preparing financial statements are regularly reviewed by the Audit Committee[83]. - The Audit Committee monitors the integrity of the financial statements and reviews any significant financial reporting issues before submission to the board[83]. - The company is committed to high levels of corporate governance, as evidenced by its adherence to the established code[81]. - The board of directors is composed of a diverse group of individuals, enhancing decision-making and oversight capabilities[84]. Shareholder Information - As of June 30, 2019, MJL holds a beneficial interest of 67.5% in the company's shares, with 540,000,000 shares owned[70]. - Huang Xueqing holds a 31.0% beneficial interest in MJL, while Wang Xiuting holds an 18.7% beneficial interest[72]. - No major shareholders or other individuals have disclosed any interests or positions in the company's shares that require notification under the Securities and Futures Ordinance as of June 30, 2019[73]. - No dividends were recommended for the three months ended June 30, 2019, consistent with the previous year[35]. - No stock options were granted, exercised, expired, or lapsed during the three months ended June 30, 2019, and there are no unexercised stock options under the stock option plan[80]. - The company has not purchased, sold, or redeemed any of its listed securities during the three months ended June 30, 2019[67]. - The company has not engaged in any significant transactions, arrangements, or contracts during the reporting period that would constitute a direct or indirect significant interest for the directors[75]. - No directors or their associates have engaged in any business that competes directly or indirectly with the company during the three months ended June 30, 2019[76]. - The company has appointed Dekean Finance Limited as its compliance advisor, with no interests disclosed in the company's equity[77].

Financial Performance - For the fiscal year ending March 31, 2019, the total revenue of Simplicity Holdings Limited was approximately HKD 142.4 million, an increase from HKD 135.6 million in the previous year, representing a growth of about 6.0%[23] - The net loss attributable to owners for the year was approximately HKD 16.1 million, compared to a loss of HKD 12.2 million in the previous year, indicating an increase in losses of about 31.9%[23] - Total revenue for the year was HKD 142,407,000, compared to HKD 135,624,000 in the previous year, marking an increase of 5.8%[32] - Revenue increased by approximately 5.0% from about HKD 135.6 million for the year ended March 31, 2018, to about HKD 142.4 million for the year ended March 31, 2019, primarily due to the opening of six new restaurants[52] - The total number of customers visiting the restaurants decreased by 80,933 or 3.1% year-over-year, totaling 2,534,463 customers[27] - Average spending per customer increased from HKD 51.9 to HKD 56.2, representing a growth of 5.8%[27] Operational Changes - As of March 31, 2019, the company operated 14 restaurants under five self-owned brands, an increase from 10 restaurants in the previous year, marking a 40% growth in restaurant count[24][25] - During the fiscal year, the company opened six new restaurants, enhancing its brand portfolio and customer base[24] - The company closed one restaurant and rebranded three others after lease expirations, indicating a strategic shift in operations[24] - The restaurant count as of the report date was 13, showing a slight decrease from 14 due to closures and rebranding efforts[25] - The company closed two restaurants during the year due to their adverse financial performance, reallocating resources to other locations[49] Cost Management - Employee costs increased by approximately HKD 10.5 million, contributing to the overall loss[23] - Employee costs rose by approximately 21.5% to about HKD 59.4 million for the year ended March 31, 2019, driven by restaurant expansion and increased labor costs in Hong Kong[55] - Food costs rose from 27.2% to 28.2% of total revenue, reflecting increased operational expenses[23] - The cost of materials and consumables increased from about HKD 36.9 million to about HKD 40.2 million, representing approximately 27.2% and 28.2% of total revenue for the respective periods[54] - Other expenses increased by approximately 44.7% from about HKD 8.1 million to about HKD 11.7 million, mainly due to legal and professional fees related to compliance and the opening of new restaurants[56] Strategic Initiatives - The company aims to diversify its offerings and expand its customer base through new brand developments and restaurant openings[24] - The company introduced new brands, including "牛布拉" (Beef Brunch), "緣蝦壹麵" (Shrimp Noodle), and "峇峇娘惹" (Nyonya Cuisine), to expand its restaurant portfolio and capture more market share[28] - The company is optimistic about the prospects of a joint venture established for operating a frozen warehouse business[28] - The company is diversifying its operations by establishing a joint venture in the frozen warehouse business, with 50% ownership held by its wholly-owned subsidiary[51] - The company is undergoing a brand transformation for "Ma Sun Lok" to attract new customers, with a redesigned menu and restaurant theme[48] Governance and Compliance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied with all applicable provisions throughout the year ending March 31, 2019[76] - The board consists of eight directors, including three independent non-executive directors, ensuring a balance of skills and experience[77] - The company has implemented a board diversity policy to enhance the selection of candidates based on various diversity criteria, including gender and professional experience[80] - The company has received annual confirmations from controlling shareholders regarding compliance with non-competition commitments, with no interests in competing businesses reported for the year ending March 31, 2019[85] - The board has established three committees: the remuneration committee, nomination committee, and audit committee, each with defined responsibilities[102] Financial Position - The total assets decreased from HKD 116,640,000 to HKD 97,693,000, a decline of 16.2%[32] - Total liabilities decreased from HKD 33,069,000 to HKD 30,804,000, a reduction of 6.8%[32] - The net current assets decreased significantly from HKD 42,608,000 to HKD 18,716,000, a drop of 56.1%[32] - The group’s cash and bank balances were approximately HKD 21.8 million, down from HKD 49.2 million in the previous year[149] - The group’s trade and other receivables were approximately HKD 7.6 million, an increase from HKD 6.7 million in the previous year[149] Future Outlook - The company plans to continuously evaluate its business objectives and may revise its plans based on market conditions[177] - The company plans to expand its restaurant network, having signed a letter of intent for a new "Baba Nyonya" restaurant in Ngau Tau Kok, expected to open in October 2019[48] - The company will continue to closely monitor its cost structure and reduce expenses to enhance revenue and create more value for shareholders[29] - The company continues to monitor restaurant performance and aims to balance financial improvement with providing a pleasant dining experience[59] Shareholder Relations - The company encourages shareholder communication policies to improve relations with shareholders[92] - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[119] - The company regularly monitors and reviews its annual general meeting processes to meet shareholder needs effectively[120]

Revenue Performance - Revenue for the three months ended December 31, 2018, was HKD 37,352,000, representing an increase of 5.1% compared to HKD 34,478,000 for the same period in 2017[11]. - Revenue for the nine months ended December 31, 2018, was HKD 110,515,000, up 4.0% from HKD 106,173,000 in the same period of 2017[11]. - The group reported a total revenue of HKD 37,352 thousand for the three months ended December 31, 2018, compared to HKD 34,478 thousand for the same period in 2017, representing an increase of approximately 5.1%[31]. - For the nine months ended December 31, 2018, total revenue reached HKD 110,515 thousand, up from HKD 106,173 thousand in 2017, indicating a growth of about 4.0%[31]. - For the nine months ended December 31, 2018, the revenue from "麻酸樂╱嫲孫樂" was approximately HKD 33.9 million, accounting for 30.7% of total revenue, representing a decrease of 22.2% compared to the same period last year[58]. - "泰巷" recorded revenue of approximately HKD 47.9 million for the nine months ended December 31, 2018, accounting for 43.3% of total revenue, an increase of 27.8% year-on-year[58]. - "娜多歐陸" generated revenue of approximately HKD 15.1 million for the nine months ended December 31, 2018, which is 13.6% of total revenue, reflecting a decrease of 40.0% compared to the previous year[58]. - "牛布拉" and "緣蝦壹麵" both opened in May 2018, generating revenues of approximately HKD 5.9 million (5.3% of total revenue) and HKD 5.5 million (4.9% of total revenue) respectively, with no prior year comparison available[60]. - "峇峇娘惹" opened in August 2018, recording revenue of approximately HKD 2.3 million, accounting for 2.1% of total revenue, with no prior year comparison available[60]. Loss and Financial Performance - The company reported a loss before tax of HKD 4,060,000 for the three months ended December 31, 2018, compared to a loss of HKD 23,000 in the same period of 2017[11]. - The loss attributable to owners of the company for the three months ended December 31, 2018, was HKD 4,147,000, compared to a profit of HKD 515,000 in the same period of 2017[11]. - Basic loss per share for the three months ended December 31, 2018, was HKD 0.52, compared to HKD 0.09 for the same period in 2017[11]. - Total comprehensive loss for the nine months ended December 31, 2018, was HKD 8,388,000, compared to HKD 2,712,000 for the same period in 2017[11]. - The company reported a loss attributable to owners of the company of HKD 8.5 million for the nine months ended December 31, 2018, compared to a loss of HKD 3.6 million in the same period of 2017[54]. - The basic loss per share for the nine months ended December 31, 2018, was HKD (10.61), based on a weighted average of 800,000,000 shares[54]. Costs and Expenses - The company incurred employee costs of HKD 15,884,000 for the three months ended December 31, 2018, an increase from HKD 12,769,000 in the same period of 2017[11]. - The cost of materials and consumables increased from approximately HKD 28.7 million to HKD 31.5 million, accounting for about 27.0% and 28.5% of total revenue for the respective periods[70]. - Employee costs rose by approximately 20.3% to HKD 44.3 million due to the hiring of additional staff for new restaurant openings[71]. - Other expenses increased by approximately 59.0% to HKD 8.7 million, mainly due to legal and professional fees incurred post-IPO and costs associated with expanding central kitchen storage capacity[73]. Business Operations and Strategy - The company plans to expand its existing brand network and is evaluating rental proposals for potential new locations to enhance profitability[62]. - The management acknowledges that the success of the business is highly dependent on food quality, restaurant operating costs, and the economic conditions in Hong Kong[61]. - The increase in revenue was primarily driven by the opening of six new restaurants, including two in Ma On Shan and three in Mong Kok[69]. - The company plans to close unprofitable restaurants in Sha Tin and Tsuen Wan upon lease expiration in early 2019 due to poor financial performance[65]. - The company is expanding its central kitchen to increase storage facilities and accommodate new food processing equipment to support new restaurant openings[67]. - The company has introduced a new HR mobility application to streamline leave requests and has engaged a developer to upgrade its ERP system for better operational efficiency[67]. Compliance and Governance - The company has changed its compliance advisor from Yu Gao Financing Limited to De Jian Financing Limited effective January 15, 2019, for cost considerations[98]. - The company has adopted GEM Listing Rules 5.48 to 5.67 as the code of conduct for directors' securities transactions, confirming compliance for the nine months ending December 31, 2018[100]. - The company has established an audit committee on January 29, 2018, with responsibilities including reviewing the adequacy of risk management and internal control policies[104]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the nine months ending December 31, 2018, confirming compliance with applicable accounting standards and GEM Listing Rules[105]. Shareholder Information - Major shareholders include MJL, holding 540 million shares, representing 67.5% of the issued share capital[92]. - Huang Xueqing, Wang Xiuting, Huang Mufei, and Ma Ruikang each hold controlled corporation interests in MJL, collectively owning 540 million shares[86]. - MJL is beneficially owned by Huang Xueqing (31.0%), Zhou Lifeng (31.0%), Wang Xiuting (18.7%), Huang Xueqin (15.0%), and Ma Ruikang (4.3%)[92]. Financial Position and Commitments - As of December 31, 2018, approximately HKD 17.2 million of the net proceeds from the listing has been utilized[79]. - The company had planned to utilize approximately HKD 4.4 million of the net proceeds to open a new Thai restaurant by September 30, 2018, but suitable locations were not found[81]. - As of December 31, 2018, the company's unspent capital commitments amounted to approximately HKD 0.06 million, primarily related to fixed asset acquisitions for new restaurants[83]. - There were no significant contingent liabilities as of December 31, 2018[84]. - The company has no major foreign exchange risk as significant transactions are denominated in HKD[82].