Financial Performance - CBK Holdings Limited reported its third-quarter financial highlights, with unaudited revenue of HKD 50 million, representing a 20% increase year-over-year[12]. - The company achieved a net profit of HKD 10 million for the third quarter, which is a 15% increase compared to the same period last year[12]. - The Group recorded revenue of approximately HK$7.7 million for the nine months ended December 31, 2020, a decrease of 80.8% compared to approximately HK$40.1 million for the same period in 2019[25]. - Gross profit for the nine months ended December 31, 2020, was approximately HK$3.0 million, down 86.5% from approximately HK$22.5 million in the prior year[25]. - Loss attributable to owners of the Company was approximately HK$4.6 million for the nine months ended December 31, 2020, compared to a loss of approximately HK$13.0 million for the same period in 2019[25]. - The Group reported a loss for the nine months ended 31 December 2020 of HK$13,034,000, compared to a loss of HK$4,666,000 for the same period in 2019[59]. - The comprehensive loss attributable to owners of the Company was approximately HK$4.6 million for the nine months ended December 31, 2020, a decrease from approximately HK$13.0 million for the same period in 2019[87]. User Growth and Market Strategy - User data indicates a growth in active users by 25%, reaching a total of 200,000 users as of the end of the third quarter[12]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of the fiscal year[12]. - The company has outlined a future outlook with a projected revenue growth of 30% for the next quarter, driven by new product launches[12]. Cost Management and Operational Efficiency - The management has indicated a focus on improving operational efficiency, aiming for a 5% reduction in operational costs by the next quarter[12]. - Staff costs for the nine months ended December 31, 2020, were approximately HK$5.2 million, a decrease from HK$12.9 million in the previous year[27]. - Administrative expenses for the nine months ended December 31, 2020, were approximately HK$4.5 million, down from HK$7.3 million in the same period of 2019[27]. - The total cost of inventories sold for the nine months ended December 31, 2020, was HK$17,615,000, down from HK$20,000,000 in the previous year[52]. New Products and Investments - CBK Holdings is investing HKD 5 million in research and development for new technologies aimed at enhancing user experience[12]. - The company has launched a new product line that is expected to contribute an additional HKD 8 million in revenue over the next two quarters[12]. - CBK Holdings is considering strategic acquisitions to enhance its product offerings, with a budget of HKD 15 million allocated for potential mergers[12]. Corporate Governance and Compliance - CBK Holdings has established a new compliance committee to ensure adherence to regulatory standards, enhancing corporate governance[12]. - The audit committee reviewed the unaudited consolidated financial statements for the nine months ended December 31, 2020, and confirmed compliance with applicable accounting standards and GEM Listing Rules[130]. - The company has complied with the Corporate Governance Code provisions for the nine months ended December 31, 2020[121]. Impact of External Factors - The decline in revenue was mainly attributed to the pandemic and the resulting social distancing measures in Hong Kong[71]. - Closures of multiple restaurant locations contributed to decreased customer traffic and revenue[71]. - The Group's operations have been adversely affected by social distancing measures imposed by the Hong Kong Government[68]. Financial Position and Capital Management - The Company received net proceeds of approximately HK$6.8 million from a placing agreement for up to 240,000,000 placing shares at a price of HK$0.029 per share[94]. - The net proceeds from the placing are intended for the general working capital of the Group[94]. - As of 31 December 2020, the Group did not have any material capital commitments[94]. - The Group did not have any mortgage or charge over its assets as of 31 December 2020[95].

CBK Holdings Limited 國茂控股有限公司 (Incorporated in the Cayman Islands with limited liability) | --- | --- | --- | |----------------------------------------------------------------|-------|-------------------------| | | | | | ( 於開曼群島註冊成立之有限公司 ) Stock Code 股份代號 : 8428 | | | | | | | | | | 2020 | | | | Interim Report 中期報告 | CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "GEM" AND THE "STOCK EXCHANGE", RESPECTIVELY) GEM has been positioned as a market designed to accommodate small and mid-siz ...

CBK Holdings Limited 國茂控股有限公司 (Incorporated in the Cayman Islands with limited liability) | --- | --- | --- | |----------------------------------------------------------------|-------|-----------------------------------------| | | | | | ( 於開曼群島註冊成立之有限公司 ) Stock Code 股份代號 : 8428 | | | | | | | | | | | | | | 2020 | | | | First Quarterly Report 第一季度業績報告 | CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE" AND THE "GEM" RESPECTIVELY) GEM has been positioned as a market design ...

Business Impact and Financial Performance - The Group closed multiple restaurants in response to decreased customer traffic and operating losses, including locations in Yau Ma Tei, Wan Chai, Causeway Bay, Kwai Chung, and Prince Edward[15]. - The restaurant located in Tsim Sha Tsui experienced a significant decline in customers due to reduced tourist numbers, leading to its closure in March 2020[16]. - The outbreak of the novel coronavirus in January 2020 further impacted the Group's business, resulting in the suspension of operations at the Tsim Sha Tsui location[16]. - Revenue decreased from approximately HK$92.1 million for the year ended 31 March 2019 by approximately HK$49.1 million, or 53.3%, to approximately HK$43.0 million for the year ended 31 March 2020[22]. - Loss for the year increased from approximately HK$20.6 million for the year ended 31 March 2019 to approximately HK$32.9 million for the year ended 31 March 2020[22]. - The catering business was significantly impacted by the epidemic, with a notable decrease in customer traffic due to social distancing measures[23]. - The Group's restaurants in Jordan and Tuen Mun were temporarily closed in February 2020 due to low customer traffic and continued to experience minimal business after reopening[20]. - The decision to close the Tsim Sha Tsui restaurant was made in March 2020 due to the ongoing impact of the epidemic and reduced customer visits[18]. - Revenue for the year ended March 31, 2020, decreased by approximately HK$49.1 million to HK$43.0 million, compared to approximately HK$92.1 million in 2019[37]. - Loss before tax for the year was HK$32.9 million, compared to a loss of HK$18.8 million in 2019[33]. - Gross profit decreased by approximately HK$32.6 million to HK$24.0 million, with a gross profit margin decreasing by approximately 5.7% to 55.8%[42]. - Total assets as of March 31, 2020, were HK$48.3 million, down from HK$66.9 million in 2019[33]. - Equity attributable to owners of the Company decreased to HK$27.6 million from HK$60.4 million in 2019[33]. - Other revenue and other income increased by approximately HK$1.5 million to HK$2.8 million, primarily due to rent concessions and government subsidies[43]. - Staff costs decreased by approximately HK$13.0 million to HK$15.3 million, down from HK$28.3 million in 2019[44]. - Fuel and utility expenses decreased by approximately HK$1.5 million to HK$2.0 million, compared to HK$3.5 million in 2019[49]. - The Group recognized impairment losses on right-of-use assets of approximately HK$8.9 million for the year ended 31 March 2020[50]. - The Group reported a loss attributable to owners of approximately HK$32.9 million for the year ended 31 March 2020, compared to a loss of approximately HK$20.6 million in 2019[51]. - Total liabilities increased by approximately HK$14.3 million to HK$20.8 million as of 31 March 2020, primarily due to lease liabilities recognized upon the adoption of HKFRS 16[55]. - Equity attributable to owners decreased by approximately HK$32.8 million to HK$27.6 million as of 31 March 2020, mainly due to operational losses during the year[56]. Management and Governance - The management service agreement with Shanghai ShunFeng Restaurant Group aims to provide additional income and expand operations in the PRC, including hotpot catering[26]. - The management continues to explore appropriate development opportunities to maximize shareholder returns despite the challenging operating environment[26]. - The management is committed to maintaining stable development under the epidemic by seeking and studying appropriate business opportunities[30]. - The company has appointed independent non-executive directors with diverse backgrounds in banking, legal, and restaurant operations to enhance governance and strategic oversight[87][91]. - The management team includes individuals with extensive experience in both local and international markets, contributing to the company's growth strategy[79][90]. - The company is focused on expanding its operations in China, leveraging the expertise of its management team to navigate the local market[78]. - The company has a strong emphasis on compliance and governance, with multiple committees in place to oversee legal and financial matters[87]. - The company has fully complied with all applicable provisions of the Corporate Governance Code for the year ended March 31, 2020[125]. - The Board's primary responsibilities include overseeing management, formulating long-term corporate strategy, and evaluating performance against targets[125]. - The company will continue to enhance its corporate governance practices to align with statutory requirements and the latest developments[125]. - The company has established Board Committees to delegate various responsibilities for effective governance[125]. - The company has implemented policies to ensure compliance with the Corporate Governance Code[125]. - The company is committed to reviewing its corporate governance practices periodically[125]. - The company has a structured approach to risk management and internal control systems[125]. - The Company has received annual confirmations of independence from all Independent Non-Executive Directors (INEDs) in accordance with Rule 5.09 of the GEM Listing Rules, confirming their independence[132]. - The Board Diversity Policy has been adopted since the date of Listing, and the Group achieved its objectives under this policy for the year ended 31 March 2020[130]. - The roles of the chairman and chief executive are separated, with Ms. Wong Wai Fong serving as chairman and Mr. Kwok Yiu Chung and Mr. Zhang Chi as chief executive officers[131]. - All Directors participated in continuous professional development during the year ended March 31, 2020, ensuring their contributions to the Board remain informed and relevant[141]. - The Company has arranged proper insurance coverage for legal actions against the Directors[132]. - The Nomination Committee will monitor the implementation of the Board Diversity Policy and recommend changes as necessary[129]. - The INEDs contribute to the formulation of the Group's development strategies and ensure compliance with financial reporting standards[132]. - Board papers with complete and reliable information are sent to Directors at least 3 days before meetings to facilitate informed decision-making[145]. - The Company Secretary is responsible for keeping minutes of all Board and committee meetings, ensuring transparency and accountability[147]. - Any material transaction involving a conflict of interest for substantial shareholders or directors will be addressed at a duly convened Board meeting[148]. - The company held four board meetings and one annual general meeting during the year ended March 31, 2020, with all executive directors attending all meetings[151]. - The audit committee conducted five meetings to review the Group's financial results for the year ended March 31, 2020, and there was no disagreement regarding the selection of external auditors[159]. - The audit committee recommended HLB Hodgson Impey Cheng Limited for re-appointment as the Company's auditor at the upcoming AGM[159]. - The remuneration committee consists of four members, including one executive director and three independent non-executive directors, with Mr. Chung Wing Yin serving as chairman[163]. - The company established four board committees: audit, remuneration, nomination, and legal compliance, to oversee various aspects of its affairs[153]. - The audit committee is responsible for reviewing the integrity of financial statements and monitoring the effectiveness of internal controls[156]. - The attendance record for the audit committee shows that all members attended all five meetings held[160]. - The company ensures compliance with legal and regulatory requirements through its corporate governance policies and practices[158]. - The board committees are provided with sufficient resources to fulfill their duties effectively[153]. - The company has established a policy for engaging external auditors to supply non-audit services[156]. - The remuneration committee held one meeting during the year ended March 31, 2020, to review and recommend the remuneration package for directors and senior management[169]. - The remuneration committee consists of four members, including executive director Ms. Wong Wai Fong and independent non-executive directors Mr. Chan Hoi Kuen Matthew, Mr. Chung Wing Yin, and Mr. Law Yui Lun[165]. - The committee is responsible for formulating remuneration policy for the Board's approval and reviewing management's remuneration proposals[169]. - The nomination committee also held one meeting during the year to assess the structure, size, and composition of the Board, as well as the independence of INEDs[181]. - The nomination committee is composed of the same four members as the remuneration committee, with Mr. Chan Hoi Kuen Matthew serving as chairman[173]. - The legal compliance committee has been established to oversee compliance with laws and regulations relevant to the company's operations[185]. - The attendance record for the remuneration committee meeting shows full attendance by all members[170]. - The remuneration committee is tasked with reviewing compensation arrangements for executive directors and senior management in case of termination or misconduct[171]. - The nomination committee made recommendations on the appointment or re-appointment of directors and succession planning[181]. - The remuneration committee is required to report its decisions or recommendations to the Board[169]. - The legal compliance committee was established to oversee compliance with laws and regulations related to the company's operations[186]. - The committee held one meeting during the year ended March 31, 2020, to review compliance policies and training for directors and senior management[192]. - The independent external auditors, HLB, received a total remuneration of approximately HK$400,000 for audit services during the year ended March 31, 2020[197]. - The board conducted a review of the effectiveness of the internal control and risk management systems once during the year, covering various functions[199]. - The group does not currently have an internal audit function but will consider establishing one if deemed necessary[199]. - An external professional consultant was engaged to conduct an independent internal control review for the year ended March 31, 2020, which has been completed[200]. - The legal compliance committee is composed of the chairman, the financial director, and three independent non-executive directors[188]. - The committee's responsibilities include assessing the adequacy of resources and training programs related to regulatory compliance functions[189]. - The board acknowledges its responsibility for the effectiveness of the internal control and risk management systems[199]. - The committee is tasked with handling any actual or suspected non-compliance matters reported by employees[190].

Financial Performance - The Group recorded revenue of approximately HK$40.1 million for the nine months ended 31 December 2019, a decrease of 44.4% compared to approximately HK$72.1 million for the same period in 2018[15]. - The Group's gross profit for the nine months ended 31 December 2019 was approximately HK$22.5 million, down 49.3% from approximately HK$44.4 million in the corresponding period of 2018[15]. - Loss attributable to owners of the Company was approximately HK$13.0 million for the nine months ended 31 December 2019, compared to a loss of approximately HK$8.5 million for the same period in 2018, representing a 52.9% increase in loss[16]. - Basic and diluted loss per share was approximately 1.09 HK cents for the nine months ended 31 December 2019, compared to approximately 0.71 HK cents for the same period in 2018[16]. - Revenue for the three months ended December 31, 2019, was HK$10,065,000, a decrease of 56% compared to HK$22,814,000 for the same period in 2018[21]. - Gross profit for the three months ended December 31, 2019, was HK$5,530,000, down from HK$14,360,000 in the same period of 2018, representing a decline of 61%[21]. - Loss before tax for the three months ended December 31, 2019, was HK$4,660,000, compared to a loss of HK$1,038,000 for the same period in 2018, indicating a significant increase in losses[21]. - Total comprehensive loss attributable to owners of the Company for the period was HK$13,034,000, compared to HK$1,761,000 for the same period in 2018, reflecting a substantial increase in losses[21]. - The total comprehensive loss attributable to owners of the Company was approximately HK$13.0 million for the nine months ended 31 December 2019, compared to approximately HK$8.5 million for the same period in 2018, primarily due to decreased revenue[81]. Revenue and Costs - Revenue for the nine months ended 31 December 2019 decreased by approximately HK$32.0 million to HK$40.1 million, compared to approximately HK$72.1 million for the same period in 2018[68]. - Cost of inventories sold for the nine months ended 31 December 2019 decreased by approximately HK$10.1 million to HK$17.6 million, while the cost of inventories sold as a percentage of revenue increased by approximately 5.5% to approximately 44.0%[69]. - Gross profit decreased by approximately HK$21.9 million to HK$22.5 million for the nine months ended 31 December 2019, with a gross margin decline of about 5.5% to 56.0%[73]. - Staff costs for the three months ended December 31, 2019, amounted to HK$3,358,000, which is an increase from HK$6,744,000 in the same period of 2018[21]. - Employee benefit expenses for the three months ended December 31, 2019, amounted to approximately HK$3.4 million, a decrease from HK$6.7 million in the same period of 2018[38]. - Property rentals and related expenses decreased by approximately HK$17.6 million to HK$1.4 million for the nine months ended 31 December 2019, attributed to branch closures and the adoption of HKFRS 16[77]. - Finance costs were approximately HK$0.9 million for the nine months ended 31 December 2019, compared to HK$Nil for the same period in 2018, due to the recognition of interest on lease liabilities[81]. Strategic Initiatives - The Company has been focusing on expanding its catering services in Hong Kong, which remains its principal activity[30]. - The Group's strategic remodeling of the hotpot dining concept includes the introduction of new brands and dining experiences to appeal to a wider customer base[65]. - The company has implemented "happy hour" and "late night" discounts to attract customers to its restaurants[97]. - The Group plans to balance between expanding restaurants and closing underperforming ones while considering launching more new brands to enhance customer dining experiences[95]. Governance and Compliance - The Audit Committee reviewed the unaudited consolidated financial statements for the nine months ended December 31, 2019, confirming compliance with applicable accounting standards and GEM Listing Rules[143]. - The company has complied with the Corporate Governance Code for the nine months ended December 31, 2019[135]. - There were no competing businesses or conflicts of interest reported among directors or substantial shareholders during the nine months ended December 31, 2019[134]. - The company has maintained adequate disclosures as required by the GEM Listing Rules and other legal requirements[143]. Shareholding and Interests - As of December 31, 2019, Ms. Wong holds 843,952,000 shares, representing approximately 83.4% of Sure Wonder Investments Limited[100]. - Mr. Kwok, the chief executive officer, is deemed to be interested in the same 843,952,000 shares held by Ms. Wong due to their family relationship[100]. - Mr. Chan Lap Ping holds a family interest in 18 shares, representing approximately 1.8% of Sure Wonder[112]. - No other directors or chief executives had interests or short positions in any shares or debentures of the company or its associated corporations as of December 31, 2019[120]. - No substantial shareholders other than those disclosed had interests or short positions in the shares as of December 31, 2019[130]. - The company has not purchased, sold, or redeemed any listed securities since its listing on February 15, 2017, up to December 31, 2019[135]. - The company has adopted a share option scheme since January 20, 2017, but no share options have been granted or are outstanding as of December 31, 2019[139]. Market Conditions - The Group's financial results were negatively impacted by severe market competition, a weakening local economy, and rising costs of raw materials, labor, and rental[63]. - The Group anticipates that severe market competition and a weakening local economy will continue to adversely affect the food and beverage industry and its performance[95]. - No provision for Hong Kong Profits Tax has been made as the Group has no assessable profits arising in Hong Kong for the current period[47]. - The Group is eligible for a one-off reduction of profits tax by 100%, subject to a ceiling of HK$20,000[49].

Financial Performance - The Group recorded revenue of approximately HK$30.0 million for the six months ended 30 September 2019, a decrease of 39% compared to approximately HK$49.3 million for the same period in 2018[36]. - The Group's gross profit for the six months ended 30 September 2019 was approximately HK$16.9 million, down from approximately HK$30.0 million in the previous year, representing a decline of 43%[36]. - Loss attributable to owners of the Company for the six months ended 30 September 2019 was approximately HK$8.4 million, compared to a loss of approximately HK$6.7 million for the same period in 2018, indicating an increase in loss of about 25%[37]. - Basic and diluted loss per share was approximately 0.70 HK cents for the six months ended 30 September 2019, compared to approximately 0.56 HK cents for the same period in 2018, reflecting a 25% increase in loss per share[37]. - Revenue for the three months ended September 30, 2019, was HK$12,737,000, a decrease of 44.6% compared to HK$23,019,000 for the same period in 2018[42]. - Loss before tax for the six months ended September 30, 2019, was HK$8,374,000, compared to a loss of HK$2,929,000 for the same period in 2018, indicating a significant increase in losses[42]. - Revenue from restaurant operations for the six months ended 30 September 2019 is HK$30,010,000, compared to HK$49,302,000 for the same period in 2018[139]. - Loss before tax for the three months ended 30 September 2019 is HK$5,524,000, compared to HK$8,600,000 for the same period in 2018[142]. Cash Flow and Assets - Cash and cash equivalents at the end of the reporting period were HK$36,354,000, a decrease from HK$45,466,000 at the beginning of the period, representing a decline of 20%[50]. - The company reported a net cash used in operating activities of HK$797,000 for the six months ended September 30, 2019, compared to HK$6,872,000 for the same period in 2018, showing an improvement in cash flow[50]. - Total assets less current liabilities as of September 30, 2019, amounted to HK$65,595,000, an increase from HK$60,447,000 as of March 31, 2019[43]. - Net current assets as of September 30, 2019, were HK$34,271,000, down from HK$46,279,000 as of March 31, 2019, reflecting a decrease of 26%[43]. - Trade receivables as at 30 September 2019 were HK$137,000, down from HK$506,000 as at 31 March 2019, indicating improved collection[165]. - Trade payables as at 30 September 2019 were HK$1,524,000, compared to HK$1,991,000 as at 31 March 2019, reflecting a decrease in outstanding obligations[170]. Equity and Dividends - Total equity as of September 30, 2019, was HK$52,073,000, down from HK$60,447,000 as of March 31, 2019, indicating a decrease of 13.8%[44]. - The Board does not recommend the payment of an interim dividend for the six months ended 30 September 2019[37]. - No dividend was recommended for the six months ended 30 September 2019, consistent with the previous year where no dividend was paid[154]. Cost Management - Staff costs for the six months ended September 30, 2019, were HK$9,591,000, compared to HK$14,767,000 for the same period in 2018, reflecting a reduction of 35.1%[42]. - Cost of inventories sold decreased by approximately HK$6.2 million to HK$13.1 million, with the cost as a percentage of revenue increasing by approximately 4.5% to 43.6%[189]. - Gross profit for the six months ended September 30, 2019, decreased by approximately HK$13.1 million to HK$16.9 million, with the gross profit margin decreasing by approximately 4.5% to 56.4%[193]. - Property rentals and related expenses decreased by approximately HK$11.9 million to HK$1.0 million, attributed to restaurant closures and the adoption of HKFRS 16[197]. - Employee benefit expenses for the six months ended 30 September 2019 total HK$9,591,000, down from HK$14,767,000 in 2018[142]. Accounting Policies and Standards - The unaudited condensed consolidated financial statements for the six months ended 30 September 2019 have been prepared in accordance with HKAS 34 Interim Financial Reporting[57]. - The Group has applied HKFRS 16 for the first time, which supersedes HKAS 17 Leases[68]. - The accounting policies used in the preparation of the financial statements are consistent with those adopted in the annual financial statements for the year ended 31 March 2019[58]. - The financial performance and position for the current or prior periods have not been materially affected by the application of new and revised HKFRSs, except for HKFRS 16[61]. - The Group has not applied new and revised standards that have been issued but are not yet effective[62]. Lease Accounting - The Group recognized lease liabilities of HK$24,034,000 and right-of-use assets of HK$24,034,000 as of April 1, 2019[99]. - Right-of-use assets are recognized at the commencement date of the lease and measured at cost, less accumulated depreciation and impairment losses[82]. - Lease liabilities are recognized at the present value of unpaid lease payments at the commencement date, using the incremental borrowing rate if the implicit interest rate is not determinable[87]. - The Group applies the short-term lease recognition exemption for leases of machinery and equipment with a term of 12 months or less, which do not contain a purchase option[81]. - The Group's adjustments upon application of HKFRS 16 included recognizing lease liabilities and right-of-use assets at the same amount[99]. Business Operations - The Group's principal activity is the provision of catering services in Hong Kong[56]. - The Group closed two underperforming restaurants in May 2019 to consolidate operations and focus on new brands[186]. - The introduction of the "3H Island Fusion Pot" brand aims to attract a wider customer base with a modern dining experience[187]. - The Group's financial performance was impacted by severe market competition and rising costs of raw materials, labor, and rental[185].

Financial Performance - The Group recorded revenue of approximately HK$17.3 million for the three months ended June 30, 2019, a decrease of 34.0% compared to approximately HK$26.3 million for the same period in 2018[14]. - The Group's gross profit for the three months ended June 30, 2019, was approximately HK$9.7 million, down 37.9% from approximately HK$15.6 million in the prior year[14]. - Loss attributable to owners of the Company was approximately HK$4.5 million for the three months ended June 30, 2019, compared to a loss of approximately HK$4.1 million for the same period in 2018, representing an increase of 9.8%[15]. - Basic and diluted loss per share was approximately 0.38 HK cents for the three months ended June 30, 2019, compared to approximately 0.34 HK cents for the same period in 2018, indicating an 11.8% increase in loss per share[15]. - Revenue for the three months ended June 30, 2019, was HK$17,273,000, a decrease of 34.3% compared to HK$26,283,000 in the same period of 2018[19]. - Gross profit for the same period was HK$9,717,000, down 37.9% from HK$15,595,000 year-over-year[19]. - Loss before tax for the period was HK$4,503,000, slightly improved from a loss of HK$5,238,000 in the previous year[19]. - Total comprehensive loss for the period attributable to owners of the company was HK$4,503,000, compared to HK$4,101,000 in the same period of 2018[19]. - Basic and diluted loss per share was HK$0.38, compared to HK$0.34 in the previous year[19]. Cost Management - Staff costs decreased to HK$5,562,000 from HK$7,961,000, reflecting a reduction of 30%[19]. - Administrative expenses were reduced to HK$3,084,000 from HK$4,369,000, a decrease of 29.4%[19]. - The company continues to focus on cost management strategies to mitigate losses and improve financial performance moving forward[19]. - Cost of inventories sold for the three months ended June 30, 2019, was HK$7.6 million, down 29.8% from HK$10.7 million in 2018[54]. - Minimum lease payments under operating leases for restaurants and office premises amounted to HK$4.5 million for the three months ended June 30, 2019, compared to HK$6.1 million in 2018[54]. - Employee benefit expenses for the three months ended June 30, 2019, totaled HK$5.6 million, a decrease of 30.1% from HK$8.0 million in 2018[54]. Market Conditions - The Group's financial performance was negatively impacted by severe market competition, a weakening local economy, and rising costs of raw materials, labor, and rent[109]. - The group anticipates that severe market competition and weak local economic conditions will continue to negatively impact the restaurant industry and its performance[128]. - The closures of CWC and CCWB in June 2018 and February 2019, respectively, contributed to the decline in revenue[115]. Strategic Adjustments - The Group closed five restaurants to consolidate operations and focus resources on new brands, which were underperforming and incurred continuous operating losses[109]. - The company plans to adjust its business strategies in response to market conditions, including balancing restaurant expansions and closures[125]. - Future plans include exploring the viability of extending business hours and launching new brands to enhance customer dining experiences[126]. - The group plans to maintain a cautious management approach and adjust its business strategies to balance restaurant expansion and closure of underperforming locations[128]. - Future focus includes exploring the feasibility of extending operating hours and offering discounts for dining customers during "happy hour" and "late-night" services[128]. Shareholder Information - Ms. Wong holds 854,200,000 shares, representing a 71.2% interest in the company, through a controlled corporation[143]. - Mr. Kwok, the chief executive officer, is deemed to be interested in the same 854,200,000 shares due to family interest[147]. - As of June 30, 2019, Sure Wonder holds 854,200,000 shares, representing 71.2% of the company's issued voting shares[157]. - Ms. Wong owns 83.4% of Sure Wonder, while Mr. Kwok owns 9.3%, Mr. Hui Chun Wah owns 5.5%, and Ms. Yang Dongxiang owns 1.8%[159]. - No directors or chief executives had any interests or short positions in the company's shares or debentures as of June 30, 2019[160]. - The company has complied with the Corporate Governance Code provisions for the three months ended June 30, 2019[168]. Compliance and Governance - The Audit Committee has reviewed the unaudited consolidated financial statements for the three months ended June 30, 2019, and confirmed compliance with applicable accounting standards and GEM Listing Rules[176]. - The company has not disclosed any new product developments or market expansions in the provided content[166]. - There are no conflicts of interest reported among directors or controlling shareholders during the three months ended June 30, 2019[164]. - The Company has not purchased, sold, or redeemed any of its listed securities from the listing date until June 30, 2019[170]. - No substantial shareholders were identified with interests of 5% or more in the company's shares as of June 30, 2019[162]. - The company has no competing business interests from its directors or controlling shareholders[164]. - No share options have been granted since the adoption of the share option scheme on January 20, 2017, and there were no outstanding share options as of June 30, 2019[171].

Financial Performance - For the fiscal year ended March 31, 2019, the Group reported revenue of HK$92,099,000, a decrease of 25% from HK$122,653,000 in 2018[34]. - The Group experienced a loss before tax of HK$18,839,000, compared to a loss of HK$10,482,000 in the previous year[34]. - Total comprehensive loss attributable to owners of the Company was HK$20,561,000, up from HK$9,746,000 in 2018, indicating a significant decline in financial performance[34]. - The Group's total assets decreased to HK$66,920,000 in 2019 from HK$90,045,000 in 2018, reflecting a reduction in both current and non-current assets[34]. - Equity attributable to owners of the Company fell to HK$60,447,000 from HK$81,008,000, showing a decline of approximately 25%[34]. - Revenue for the year ended 31 March 2019 decreased by approximately HK$30.6 million to HK$92.1 million, down from approximately HK$122.7 million in 2018[44]. - Gross profit for the year ended 31 March 2019 decreased by approximately HK$14.2 million to HK$56.6 million, while gross profit margin increased by approximately 3.8% to 61.5%[47]. - Loss attributable to owners of the Company for the year ended 31 March 2019 was approximately HK$20.6 million, compared to approximately HK$9.7 million in 2018[53]. - Total liabilities decreased by approximately HK$2.5 million to HK$6.5 million, down from approximately HK$9.0 million in 2018[53]. Market Challenges - The fiscal year 2018/2019 was the toughest in CBK Holdings Limited's operating history due to weakened local consumption power influenced by the Sino-US trade war[21]. - The food and beverage industry remains challenging with rising costs in raw materials, high rental, and high labor costs, coupled with a shortage of manpower and high turnover rates[22]. - Increased competition in the hotpot market has led to saturation, affecting brand loyalty among customers[23]. - The Group anticipates that severe market competition and weakening local economy will continue to adversely affect its performance[24]. - The Group's management anticipates that ongoing market competition and a weak local economy will continue to adversely affect performance in the near future[37]. - Rising costs of raw materials, labor, and rent have been significant challenges impacting the Group's financial results[37]. Strategic Management - CBK Holdings Limited plans to maintain a prudent management approach, adjusting business strategies to balance restaurant expansion and closure of underperforming locations[24]. - The Group aims to adjust its business model to maintain competitive advantage in the hotpot market sector[24]. - The Group plans to maintain a prudent management approach and adjust its business strategies to adapt to industry changes and enhance competitiveness[37]. - The Group plans to maintain a prudent management approach and continuously adjust its business strategies in response to severe market competition and a weakening local economy[56]. - The Group intends to launch more new brands to meet growing customer expectations on dining experience[56]. Operational Adjustments - The Group closed three underperforming restaurants in 2018 and early 2019 to mitigate ongoing losses and focus resources on new brands[39]. - The introduction of the new brand "3H Island Fusion Pot" aims to enhance customer experience by offering both hotpot and barbeque cuisines in a modern setting[39]. - The Company opened only one new restaurant in Yau Tsim Mong district at a cost of approximately HK$8.9 million, despite plans to open five restaurants[60][62]. - A total of approximately HK$0.8 million was spent on establishing a new central kitchen, with the premises already equipped for food processing[65]. - The enhancement costs for three existing hotpot restaurants were approximately HK$1.4 million, HK$3.7 million, and HK$1.4 million respectively[65]. - Approximately HK$0.6 million was spent on upgrading the information technology system, with plans to utilize big data and mobile payment systems for targeted marketing[65]. - The new head office was relocated at a cost of approximately HK$1.5 million, effectively controlling relocation expenses[65]. Corporate Governance - The Company has fully complied with all applicable provisions of the Corporate Governance Code for the year ended March 31, 2019[122]. - The Board consists of two executive directors and three independent non-executive directors, ensuring compliance with GEM Listing Rules[126]. - The Company received annual confirmations of independence from all independent non-executive directors, affirming their compliance with independence guidelines[131]. - The Board Diversity Policy has been adopted and the Group achieved its objectives for diversity in the year ended March 31, 2019[129]. - The roles of the chairman and chief executive are separated, with Ms. Wong Wai Fong as chairman and Mr. Kwok Yiu Chung and Mr. Zhang Chi as chief executive officers[130]. - Continuous professional development for all directors is arranged to ensure their contributions remain informed and relevant[132]. - The Board will periodically review its corporate governance practices to align with statutory requirements and the latest developments[122]. - The Company has established various Board Committees to delegate responsibilities for day-to-day operations and business strategies[122]. Audit and Compliance - The audit committee held four meetings to review the Group's annual results and discuss corporate governance, internal control, and financial reporting matters[156]. - The audit committee is responsible for monitoring the integrity of financial statements and reviewing significant financial reporting judgments[155]. - The audit committee's comprehensive financial statements for the year ended March 31, 2019, were reviewed and approved[157]. - The audit committee consists of three independent non-executive directors, with Mr. Law Yui Lun serving as the chairman[151]. - The company ensures that all Board papers are sent to Directors at least three days before meetings to facilitate informed decision-making[140]. - The company complies with the Code Provision A.6.5 of the CG Code regarding Directors' training[138]. - The company provides sufficient resources to its Board committees to effectively discharge their duties[150]. - The Group does not currently have an internal audit function, as the Board believes there is no immediate need for one based on the effectiveness review conducted[198]. Management Team - The company has a strong management team with extensive experience in the restaurant and catering industry, including over 20 years for Mr. Chan and Mr. Kwok[105][114]. - Mr. Chan Yu Chi has been the Chief Financial Officer since January 2013, overseeing overall financial accounting and reporting[109]. - Mr. Zhang Chi appointed as Chief Executive Officer (China Business) on April 23, 2019, responsible for strategic development in China[107]. - Mr. Chan Chun Ming has over 20 years of experience in the restaurant industry, currently serving as the Human Resources and Administrative System Management Director since January 1, 2015[114]. - The management team has a diverse educational background, including degrees in business administration and electronic commerce[110][116].

Financial Performance - The Group recorded revenue of approximately HK$72.1 million for the nine months ended 31 December 2018, a decrease of 19.7% compared to approximately HK$89.7 million for the same period in 2017[18]. - The Group's gross profit for the nine months ended 31 December 2018 was approximately HK$44.4 million, down 13.5% from approximately HK$51.3 million in the corresponding period of 2017[18]. - Loss attributable to owners of the Company for the nine months ended 31 December 2018 was approximately HK$8.5 million, compared to a loss of approximately HK$7.9 million for the same period in 2017, representing a 7.6% increase in loss[19]. - Basic and diluted loss per share was approximately 0.71 HK cents for the nine months ended 31 December 2018, compared to approximately 0.66 HK cents for the same period in 2017, indicating a 7.6% increase in loss per share[19]. - Revenue for the three months ended December 31, 2018, was HK$22,814, a decrease of 36.4% compared to HK$36,034 for the same period in 2017[24]. - Total comprehensive loss attributable to owners of the Company for the period was HK$8,473, resulting in a loss per share of HK$0.71[24]. - The Group's total revenue for the nine months ended December 31, 2018, was HK$72,116, reflecting a decline in overall performance compared to the previous year[53]. - Revenue for the nine months ended 31 December 2018 decreased by approximately HK$17.6 million to HK$72.1 million compared to HK$89.7 million for the same period in 2017[77]. Expenses and Costs - Staff costs for the nine months ended December 31, 2018, amounted to HK$21,511, a decrease from HK$27,013 in the previous year[24]. - Cost of inventories sold decreased by approximately HK$10.7 million to HK$27.7 million for the nine months ended December 31, 2018, down from approximately HK$38.4 million in 2017[77]. - Employee benefit expenses for the three months ended December 31, 2018, were HK$5,512, a decrease of 12.1% compared to HK$6,269 in the same period of 2017[57]. - Administrative expenses decreased by approximately HK$0.8 million to HK$8.7 million for the nine months ended December 31, 2018, down from approximately HK$9.5 million for the same period in 2017, primarily due to the closure of two branches[87]. - Property rentals and related expenses for the nine months ended December 31, 2018, were HK$19,035, slightly up from HK$18,621 in the previous year[24]. Operational Changes - The decrease in revenue was mainly due to the closure of two restaurants in April and June 2018 and a decrease in customer visits[77]. - The Group plans to continue its prudent site selection strategy to expand its network of hotpot restaurants, focusing on locations with suitable rent rates[104]. - The Group is exploring the commercial viability of extending business hours and has already implemented this measure in one restaurant, offering special discounts during "happy hour" and "late night"[104]. Governance and Compliance - The Company has complied with the Corporate Governance Code for the nine months ended December 31, 2018[157]. - The Company confirms that all directors have complied with the required standard of dealings regarding securities transactions for the nine months ended December 31, 2018[158]. - The Company has not disclosed any substantial shareholders with interests or short positions that require notification under the SFO as of December 31, 2018[152][155]. - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15 for the nine months ended December 31, 2018[162]. - The Audit Committee reviewed the unaudited consolidated financial statements for the nine months ended December 31, 2018, and confirmed compliance with applicable accounting standards and GEM Listing Rules[168]. Shareholding and Directors - As of December 31, 2018, Sure Wonder holds 889,200,000 shares, representing 74.1% of the issued share capital of the Company[149][151]. - Ms. Wong and Mr. Kwok, both executive directors, are deemed to be interested in each other's shares under the SFO due to their marital relationship[135][140]. - Mr. Chan Lap Ping, another executive director, is deemed to be interested in shares held by his spouse, Ms. Yang, under the SFO[140]. - No other directors or the chief executive had any interests or short positions in shares or debentures of the Company or its associated corporations as of December 31, 2018[141][152]. - The aggregate control of shares by Ms. Wong, Mr. Kwok, Mr. Tam, Ms. Yang, and Mr. Hui through Sure Wonder constitutes a group of controlling shareholders[151][153]. - There are no competing business interests among the directors or controlling shareholders that conflict with the Group's business[156]. - No share options have been granted since the adoption of the share option scheme on January 20, 2017, and there were no outstanding share options as of December 31, 2018[162].