Financial Performance - The company recorded revenue of approximately HKD 225.8 million for the year, a decrease of about HKD 32.8 million or 12.7% compared to HKD 258.6 million for the previous year[8]. - The company reported a loss attributable to shareholders of approximately HKD 2.9 million for the year[8]. - For the fiscal year ending March 31, 2020, the company's revenue was approximately HKD 225.8 million, a decrease of about HKD 32.8 million or 12.7% compared to HKD 258.6 million for the previous year[17]. - Gross profit was approximately HKD 151.4 million, down by about HKD 24.3 million or 13.8% from HKD 175.7 million year-on-year, with a gross margin decrease from 67.9% to 67.1%[21]. - The company recorded a loss of approximately HKD 2.9 million for the year ended March 31, 2020, compared to a profit of HKD 0.8 million for the previous year[33]. - Current ratio decreased from 2.3 in 2019 to 1.1 in 2020, and quick ratio also decreased from 2.3 to 1.1, primarily due to the adoption of HKFRS 16 which resulted in lease liabilities of HKD 29.1 million[34]. - Total equity attributable to owners was approximately HKD 43.8 million as of March 31, 2020, down from HKD 61.7 million in 2019[36]. - Cash and cash equivalents were approximately HKD 48.5 million as of March 31, 2020, compared to HKD 65.8 million in 2019[36]. - Operating cash inflow for the year was approximately HKD 41.8 million, significantly up from HKD 2.6 million in the previous year[36]. Operational Challenges - The company has experienced challenges due to the COVID-19 pandemic, which has affected consumer spending and restaurant operations[8]. - The company acknowledges the ongoing uncertainty in the economic environment and its impact on the restaurant industry[11]. - The management team is focused on cost-saving measures and exploring suitable opportunities for restaurant expansion in Hong Kong[11]. Restaurant Operations - The company operates 12 restaurants in Hong Kong, including five under the "Mr. Steak" brand and two under the "Hana" brand[9]. - The company opened a new restaurant named "Hana" in Tung Chung in August 2019, contributing additional revenue[8]. - The company plans to open a new restaurant serving Asian cuisine in Kowloon Bay, with an estimated opening date in August 2020[11]. - The company plans to open a new restaurant in Kowloon Bay by August 2020, following the recent opening of a restaurant in Tung Chung in August 2019[46]. Cost Management - The cost of goods sold was approximately HKD 74.4 million, a decrease of about HKD 8.5 million or 10.3% from HKD 82.9 million in the prior year[18]. - Employee costs decreased to approximately HKD 71.7 million, down by about HKD 6.5 million or 8.3% from HKD 78.2 million in the prior year[23]. - Rental and related expenses significantly decreased to approximately HKD 14.9 million, a reduction of about HKD 38.9 million or 72.3% from HKD 53.8 million in the previous year[26]. - Depreciation expenses increased to approximately HKD 42.6 million, up by about HKD 37.4 million from HKD 5.2 million in the prior year due to the adoption of new accounting standards[24]. - Financing costs rose to approximately HKD 3.6 million, an increase of about HKD 2.8 million from HKD 0.8 million in the previous year, mainly due to the recognition of lease liabilities[29]. Corporate Governance - The board of directors emphasizes the importance of good corporate governance to enhance shareholder value[63]. - The company has adopted all applicable corporate governance code provisions as of March 31, 2020, except for one specific provision[65]. - The board is responsible for overseeing the company's business affairs and overall performance, ensuring adequate financial and human resources support[69]. - The company has a clear delegation of authority to executive directors and senior management for daily operations and business management[67]. - The company has established audit and remuneration committees to monitor operational and financial performance[69]. - The company has a commitment to maintaining compliance with securities trading standards as per GEM listing rules[66]. - The board consists of six directors, with independent non-executive directors making up 50% of the board, exceeding GEM listing rules requirements[70]. - All independent non-executive directors confirmed their independence according to GEM listing rules, ensuring compliance with regulations[74]. - The company held six board meetings during the year, with all directors attending 100% of the meetings[78]. - The company adopted a board diversity policy in March 2018, focusing on measurable objectives for diversity in skills, experience, and perspectives[82]. Risk Management - The company has established policies and procedures for risk management and internal control, with the board responsible for monitoring their effectiveness at least annually[111]. - An independent internal control consultant was engaged to assess the group's internal control system, concluding that there were no significant deficiencies[112]. - The company has adopted various internal guidelines and written policies to monitor and mitigate risks associated with its business operations[111]. Shareholder Information - No dividends were declared or proposed for the year ended March 31, 2020, compared to HKD 0.015 per share in 2019[53]. - The board does not recommend the payment of a final dividend for the year ended March 31, 2020, compared to a dividend of HKD 0.015 per share in 2019[134]. - The company has established a dividend policy that requires the board to consider various factors, including actual and expected business performance and future expansion plans[126]. - Shareholders do not have the right to propose resolutions at the annual general meeting but can call a special general meeting to make suggestions[118]. Supplier Relationships - The group reported that the total procurement amount from the top five suppliers accounted for approximately 62.1% of the total procurement for the year ended March 31, 2020, compared to 67.3% in 2019[132]. - The largest supplier accounted for approximately 45.8% of the total procurement for the year ended March 31, 2020, up from 41.4% in 2019[132]. - The group maintains good working relationships with its customers and suppliers, continuously communicating through various channels to gather feedback[132]. Environmental and Social Responsibility - The company has implemented various green measures to promote environmental and social sustainability, complying with local environmental laws[164]. - The total charitable donations made by the group for the year ended March 31, 2020, amounted to HKD 36,000, unchanged from 2019[138].

MS CONCEPT LIMITED 股份代號 : 8447 (於開曼群島註冊成立的有限公司) 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部份內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告的資料乃遵照GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關 MS Concept Limited（「本公司」）的資料。本公司的董事（「董事」）願就本報告的資料 共同及個別地承擔全部責任。各董事在作出一切合理查詢後，確認就其所深知及 確信，本報告所載資料在各重要方面均屬準確完備，並無誤導或欺詐成分，亦無 遺漏任何其他事項，足以令本報告或其所載任何陳述產生誤導。 MS CONCEPT LIMITED 第三季度報告2019 1 第三季度報告 Stock Code: 8447 (Incorporated in the Cayman Islands with limited liability) MS CONCEPT LIMITED 香港聯合交易所有限公司GEM（分別為（「聯交所」及「GEM」）的特色 GEM的定位， ...

Financial Performance - Revenue for the six months ended September 30, 2019, was approximately HKD 121.6 million, a decrease of about HKD 11.8 million or 8.8% compared to HKD 133.4 million for the same period in 2018[7] - The company recorded a net profit of approximately HKD 1.0 million, compared to a net loss of approximately HKD 1.7 million for the six months ended September 30, 2018[7] - Operating profit decreased by approximately HKD 4.5 million or 81.8% to about HKD 1.2 million, excluding non-recurring listing expenses from the previous period[7] - Gross profit for the six months was approximately HKD 81.4 million, down from HKD 89.6 million in the same period last year[8] - Basic and diluted earnings per share for the six months was HKD 0.10, compared to a loss per share of HKD 0.18 for the same period in 2018[8] - Total comprehensive income for the period attributable to owners of the company was approximately HKD 1.0 million, compared to a loss of HKD 1.7 million in the previous year[8] - The company reported a total comprehensive income of HKD 1,018,000 for the six months ended September 30, 2019, compared to a loss of HKD 1,740,000 in the previous period[10] - The company reported a pre-tax loss of HKD 1.9 million for the six months ended September 30, 2019, compared to a profit in the same period of 2018[52] - The profit for the same period was approximately HKD 1 million, a decrease of about HKD 4.5 million or 81.8% compared to approximately HKD 5.5 million for the six months ended September 30, 2018, after excluding non-recurring listing expenses[69] Expenses and Costs - The company reported a decrease in employee costs to approximately HKD 37.8 million from HKD 38.1 million in the previous period[8] - Depreciation of property, plant, and equipment increased significantly to approximately HKD 21.6 million from HKD 2.7 million in the previous year[8] - The company incurred financing costs of approximately HKD 1.9 million, up from HKD 0.4 million in the same period last year[8] - The cost of goods sold for the six months ended September 30, 2019, was HKD 40.2 million, compared to HKD 43.8 million in 2018, reflecting a decrease of 8.8%[52] - Employee benefits expenses for the six months ended September 30, 2019, totaled HKD 18.6 million, slightly down from HKD 18.7 million in 2018[52] - Rental and related expenses significantly decreased by approximately HKD 20.8 million or 74.6% to HKD 7.1 million due to the adoption of HKFRS 16[79] - Administrative expenses decreased by approximately HKD 2.0 million or 16.9% to HKD 9.8 million, primarily due to reduced professional fees[82] - Financing costs increased by approximately HKD 1.4 million to HKD 1.9 million, mainly due to the recognition of lease liabilities interest following the adoption of HKFRS 16[83] - Income tax expense decreased by approximately HKD 0.7 million or 77.8% to HKD 0.2 million for the six months ended September 30, 2019[84] Assets and Liabilities - As of September 30, 2019, total assets minus current liabilities amounted to HKD 77,444,000, an increase from HKD 61,701,000 as of March 31, 2019[9] - Cash and cash equivalents decreased to HKD 51,700,000 as of September 30, 2019, down from HKD 65,804,000 at the beginning of the period[12] - Current liabilities totaled HKD 72,310,000 as of September 30, 2019, compared to HKD 35,656,000 as of March 31, 2019, indicating a significant increase in short-term obligations[9] - The company’s equity decreased to HKD 47,719,000 as of September 30, 2019, from HKD 61,701,000 as of March 31, 2019, reflecting a decline in retained earnings[10] - The company incurred a net cash outflow from financing activities of HKD 37,780,000 for the six months ended September 30, 2019, compared to an inflow of HKD 56,126,000 in the same period of 2018[12] - Trade receivables decreased to HKD 2,078,000 as of September 30, 2019, from HKD 3,096,000 as of March 31, 2019, suggesting improved collection efforts[9] - Trade payables as of September 30, 2019, totaled HKD 17,011,000, an increase from HKD 15,170,000 as of March 31, 2019[61] - The company had secured bank borrowings of HKD 14,205,000 as of September 30, 2019, down from HKD 16,879,000 as of March 31, 2019[62] Accounting Standards and Compliance - The group has adopted the new and revised Hong Kong Financial Reporting Standards effective from April 1, 2019, which includes HKFRS 16 on leases[20] - HKFRS 16 replaces HKAS 17 and introduces significant changes in accounting policies related to leases, impacting the recognition of right-of-use assets and lease liabilities[23] - The group applies a short-term lease exemption for leases with a term of 12 months or less, recognizing lease payments as expenses on a straight-line basis[26] - Right-of-use assets are recognized at the commencement date and measured at cost, less accumulated depreciation and impairment losses[27] - Lease liabilities are measured at the present value of unpaid lease payments at the lease commencement date, using the incremental borrowing rate if the implicit rate is not readily determinable[30] - The transition to HKFRS 16 did not have a significant impact on the financial performance and position of the group for the current and prior periods[20] - The group will reassess lease liabilities in case of lease modifications, using the revised discount rate to measure the remeasured lease liability[35] - Deferred tax related to lease transactions will be determined based on whether the tax deductions relate to right-of-use assets or lease liabilities[36] - The group has chosen to apply a practical expedient for contracts previously identified as leases under HKAS 17, without reassessing contracts that were not previously identified as leases[39] - As of April 1, 2019, the company recognized lease liabilities of approximately HKD 61.1 million and right-of-use assets of approximately HKD 62.9 million[41] - The weighted average incremental borrowing rate applied was 5.0%[41] Business Operations and Strategy - The company opened a new restaurant "Hana" in Tung Chung in August 2019, expanding its network to 12 restaurants in Hong Kong[70] - The company continues to evaluate its business objectives and may adjust its business plans in response to changing market conditions[88] - The company plans to allocate approximately 63.5% of the net proceeds, or HKD 25.1 million, for expanding its restaurant network in strategic locations across Hong Kong[86] Corporate Governance - The board of directors has confirmed compliance with the corporate governance code, except for the separation of roles between the chairman and CEO[109][110] - The company has appointed a compliance advisor, Tong Ren Financing Limited, with no interests in the company as of September 30, 2019[114] - The company has adopted trading standards for directors in compliance with GEM listing rules[115] - The audit committee has been established in accordance with GEM listing rules and corporate governance codes, consisting of independent non-executive directors[118] - The committee reviewed the unaudited consolidated financial results for the six months ended September 30, 2019, and confirmed compliance with applicable accounting standards and GEM listing rules[118] Shareholder Information - As of September 30, 2019, Future More holds 750,000,000 shares, representing 75% of the issued shares of MS Concept Limited[106] - The total issued shares of MS Concept Limited as of September 30, 2019, is 1,000,000,000 shares[106] - The ownership percentages of Future More are distributed as follows: Mr. Kwan 14%, Ms. Kwan 18%, Mr. Kwan 18%, Mr. Kwan 25%, and Ms. Kwan 25%[104] - No stock options have been granted under the stock option plan since its adoption on March 23, 2018[107] - The company has maintained the public float required by GEM listing rules as of the report date[112]

Financial Performance - Revenue for the three months ended June 30, 2019, was approximately HKD 59.8 million, a decrease of about HKD 6.8 million or 10.2% compared to HKD 66.6 million for the same period in 2018[10] - Net profit for the same period was approximately HKD 0.6 million, a decrease of about HKD 1.3 million or 68.4% compared to a net profit of HKD 1.9 million after excluding non-recurring IPO-related expenses in 2018[10] - Gross profit for the three months ended June 30, 2019, was HKD 40.5 million, down from HKD 44.6 million in the previous year[11] - The company recorded a pre-tax profit of HKD 0.7 million, compared to a loss of HKD 5.2 million in the same period last year[11] - Basic and diluted earnings per share for the period were HKD 0.06, compared to a loss of HKD 0.56 per share in the previous year[11] - The company reported a total revenue of HKD 59,835,000 for the three months ended June 30, 2019, compared to HKD 66,627,000 in the same period of 2018, marking a decline of 10.3%[22] - The profit for the same period was approximately HKD 0.6 million, down about 68.4% from HKD 1.9 million after excluding non-recurring IPO-related expenses in 2018[27] - The overall gross margin increased to approximately 67.7% for the three months ended June 30, 2019, compared to 67.0% in the same period of 2018[32] Costs and Expenses - The cost of goods sold for the same period was HKD 19,363,000, down from HKD 22,071,000 in 2018, reflecting a decrease of 12.3%[23] - Employee costs for the period were HKD 18.9 million, slightly down from HKD 19.4 million in the same period last year[11] - Employee benefits expenses, including salaries and other allowances, totaled HKD 18,906,000 for the three months ended June 30, 2019, slightly down from HKD 19,401,000 in the same period of 2018[23] - Administrative expenses decreased by approximately HKD 1.4 million or 21.5% to about HKD 5.1 million for the three months ended June 30, 2019, primarily due to a reduction in professional expenses[40] - Financing costs increased by approximately HKD 0.7 million to about HKD 0.9 million for the three months ended June 30, 2019, mainly due to the adoption of HKFRS 16[41] - The company incurred financing costs of HKD 0.9 million, up from HKD 0.2 million in the previous year[11] - Rental and related expenses decreased by approximately 76.3% to HKD 3.3 million from HKD 13.9 million in the previous year[37] - The company recognized a tax expense of HKD 111,000 for the three months ended June 30, 2019, compared to HKD 181,000 in 2018, indicating a decrease of 38.7%[24] Assets and Equity - Total equity as of June 30, 2019, was HKD 62.3 million, an increase from HKD 61.7 million at the beginning of the period[12] - The adoption of HKFRS 16 resulted in the recognition of right-of-use assets and corresponding liabilities of approximately HKD 62,900,000 and HKD 61,100,000, respectively, for leases previously classified as operating leases[19] - The depreciation expense for property, plant, and equipment increased to HKD 10,496,000 in 2019 from HKD 1,439,000 in 2018, reflecting a significant rise due to the new accounting standard[23] - As of June 30, 2019, the group had pledged bank deposits of approximately HKD 2.0 million[44] Corporate Actions and Plans - The board of directors decided not to declare any dividends for the period[9] - The company plans to open a new restaurant under the "Hana" brand in Tung Chung in August 2019, aiming to expand its restaurant network in Hong Kong[27] - The company aims to explore market expansion opportunities and enhance product offerings in the upcoming quarters[10] - The company currently operates 11 restaurants in Hong Kong, offering a variety of cuisines[28] Governance and Compliance - The board of directors believes that the dual role of the chairman and CEO held by Mr. Kwan is in the best interest of the company due to his long-term management experience since 2000[62] - The audit committee has reviewed the unaudited consolidated results for the three months ending June 30, 2019, and believes that the financial statements are prepared in accordance with applicable accounting standards[67] - The company maintains the public float required by GEM listing rules as of the report date[63] Other Information - There were no significant investments, acquisitions, or disposals of subsidiaries and associates during the three months ended June 30, 2019[45] - The group had no significant foreign exchange risks and did not execute any foreign currency hedging policies as of June 30, 2019[46] - There were no significant contingent liabilities as of June 30, 2019[48] - The company has not granted any stock options under the stock option plan since its adoption, resulting in no unexercised options as of June 30, 2019[57] - There were no arrangements made for directors to profit from acquiring shares or debt securities of the company or any other entity during the three months ending June 30, 2019[58] - The company did not redeem any of its listed securities nor did it purchase or sell any related securities during the reporting period[59] - As of June 30, 2019, the company had a total of 1,000,000,000 shares issued, with major shareholders holding 75% of the shares[54] - As of June 30, 2019, Future More is owned by five individuals with a total of 75% of issued shares, equating to 750,000,000 shares out of 1,000,000,000 shares[56]

Financial Performance - The company recorded revenue of approximately HKD 258.6 million for the fiscal year, a decrease of about HKD 4.2 million or 1.6% compared to the previous year[11]. - Profit attributable to owners of the company was approximately HKD 0.8 million, a decrease of about HKD 4.8 million or 85.7% from HKD 5.6 million in the previous year[11]. - The decrease in profit was primarily due to increased director remuneration and professional fees following the IPO[11]. - The company experienced closures of two restaurants during the year, impacting overall revenue[11]. - For the fiscal year ending March 31, 2019, the company's revenue was approximately HKD 258.6 million, a decrease of about HKD 4.2 million or 1.6% compared to HKD 262.8 million for the previous year[21]. - Gross profit for the fiscal year was approximately HKD 175.7 million, down by about HKD 2.6 million or 1.5% from HKD 178.3 million the previous year[23]. - The overall gross margin remained stable at approximately 67.8% and 67.9% for the years ending March 31, 2018, and March 31, 2019, respectively[24]. - Employee costs rose by approximately HKD 5.0 million or 6.8% to HKD 78.2 million, representing about 30.2% of revenue for the fiscal year ending March 31, 2019[28]. - Administrative expenses increased by approximately HKD 2.9 million or 14.4% to HKD 23.0 million, driven by increased professional fees post-IPO[34]. - The net profit for the fiscal year was approximately HKD 0.8 million, a decrease of about HKD 4.8 million or 85.7% from HKD 5.6 million the previous year[37]. Dividend and Shareholder Information - The company proposed a final dividend of HKD 0.015 per share, totaling HKD 15 million, subject to approval at the annual general meeting[13]. - The proposed final dividend is HKD 0.015 per share, totaling HKD 15 million, subject to shareholder approval[56]. - The board will continue to review the dividend policy and retains the discretion to update or modify it at any time[144]. - The total distributable reserves available to the company’s equity shareholders as of March 31, 2019, amounted to approximately HKD 26.8 million, compared to none in 2018[159]. Restaurant Operations and Expansion - The company plans to open a new restaurant under the "Hana" brand in Tung Chung, expected to commence operations in Q3 2019[14]. - The company aims to expand its restaurant network in Hong Kong by identifying strategically suitable locations[14]. - The company has a total of 11 restaurants operating as of the report date, including five "Mr. Steak" restaurants[10]. Financial Position and Cash Flow - The net proceeds from the IPO were approximately HKD 39.6 million, providing additional financial resources for business goals[9]. - As of March 31, 2019, the current ratio and quick ratio both stood at 2.3, significantly improved from 0.6 in 2018[39]. - The debt-to-equity ratio decreased to 27.4% in 2019 from 468.9% in 2018, indicating a stronger capital structure[39]. - Cash and cash equivalents increased to approximately HKD 65.8 million in 2019, up from HKD 15.8 million in 2018[39]. - Operating cash inflow for the year ended March 31, 2019, was approximately HKD 2.6 million, down from HKD 24.0 million in 2018[39]. - Total bank borrowings amounted to approximately HKD 16.9 million as of March 31, 2019, a slight decrease from HKD 18.6 million in 2018[40]. Corporate Governance - The board of directors is responsible for overseeing the management and overall performance of the group, ensuring adequate financial and human resources support to achieve goals[81]. - The board consists of six members, with independent non-executive directors making up 50% of the board, exceeding GEM listing rules requirements[82]. - All directors confirmed compliance with the trading standards set forth in GEM listing rules during the reporting period[78]. - The company has adopted and complied with all applicable provisions of the corporate governance code since its listing date[77]. - The board meets quarterly, with at least four regular meetings scheduled each year[90]. - The company provides training for directors to enhance their knowledge and skills related to their duties[88]. - The board has established committees to monitor operational and financial performance, ensuring appropriate internal controls and risk management measures are in place[81]. - The company has received independent confirmation of the independence of all independent non-executive directors during the reporting period[86]. - The board has authorized executive directors and senior management to implement strategies and manage daily operations[79]. - The company has arranged proper insurance for legal actions against directors' responsibilities[87]. Employee and Social Responsibility - The management team is focused on providing an "affordable luxury" dining experience with quality food and attentive service[14]. - The company has implemented various green measures to promote environmental and social sustainability, ensuring compliance with local environmental laws and regulations in Hong Kong[62]. - The company has a competitive compensation package for employees, including attractive salaries, benefits, and internal promotion opportunities[65]. - The company employed approximately 209 employees as of March 31, 2019, down from 256 employees in 2018, indicating a reduction of about 18.3%[65]. - The group made charitable donations totaling HKD 36,000 for the year ended March 31, 2019, down from HKD 686,000 in 2018[154]. Risk Management - The company faces risks related to rising minimum wage regulations in Hong Kong, which could increase employee costs[48]. - The company is committed to maintaining compliance with relevant laws and regulations that could significantly impact its business and operations[63]. - The company has established policies and procedures for risk management and internal control, with the board overseeing their effectiveness[127]. - An independent internal control consultant was appointed to assess the internal control system, concluding that there are no significant deficiencies[128]. Related Party Transactions - The company has confirmed that all related party transactions comply with GEM listing rules and have been conducted on normal commercial terms[177]. - The independent non-executive directors have reviewed the ongoing related party transactions and confirmed their fairness and reasonableness[174]. Share Option Scheme - The company has adopted a share option scheme approved by shareholders on March 23, 2018, but there were no unexercised options granted as of March 31, 2019[65]. - The total number of shares that can be issued under the share option plan is capped at 10% of the shares issued as of the listing date, which is equivalent to 100,000,000 shares based on 1,000,000,000 shares issued[200]. - The exercise price for any shares under the share option scheme will be determined by the board and must be at least the highest of the closing price on the grant date, the average closing price for the five trading days preceding the grant date, or the nominal value of the shares[198]. - The company may grant options exceeding the plan authorization limit only after obtaining shareholder approval, and such options can only be granted to specifically designated eligible persons[200].

Financial Performance - Revenue for the nine months ended December 31, 2018, reached approximately HKD 198.5 million, an increase of about HKD 0.6 million or 0.3% compared to HKD 197.9 million for the same period in 2017[10] - Net profit for the nine months ended December 31, 2018, was approximately HKD 2.2 million, a decrease of about HKD 13.0 million or 85.5% from HKD 15.2 million for the same period in 2017, primarily due to IPO-related expenses of approximately HKD 7.3 million[10] - Operating profit, excluding non-recurring IPO expenses, was approximately HKD 9.5 million[10] - Gross profit for the nine months was approximately HKD 134.4 million, compared to HKD 133.9 million for the same period in 2017[11] - The company recorded a pre-tax profit of approximately HKD 3.9 million for the nine months, down from HKD 18.2 million in the previous year[11] - Total comprehensive income for the nine months was approximately HKD 2.2 million, compared to HKD 15.2 million for the same period in 2017[11] - Basic and diluted earnings per share for the nine months were HKD 0.22, down from HKD 2.02 in the previous year[11] Revenue and Costs - The cost of goods sold for the nine months was approximately HKD 64.1 million, slightly up from HKD 63.9 million in the previous year[11] - Administrative expenses increased to approximately HKD 17.2 million from HKD 13.3 million in the previous year[11] - The company reported a decrease in revenue from food sales, which was HKD 1,735,000 for the nine months ended December 31, 2018, down from HKD 1,782,000 in the same period of 2017[20] - The cost of goods sold for the nine months ended December 31, 2018, was approximately HKD 64.1 million, an increase of about HKD 0.2 million or 0.3% from HKD 63.9 million for the same period in 2017[33] - Gross profit for the nine months ended December 31, 2018, was approximately HKD 134.4 million, an increase of about HKD 0.4 million or 0.3% compared to HKD 134.0 million for the same period in 2017, maintaining a gross margin of approximately 67.7%[34] Share Issuance and Equity - The company issued 250,000,000 shares at a price of HKD 0.27 per share, raising a total of HKD 67,500,000, with net proceeds of approximately HKD 39,600,000 intended for future plans[13] - As of December 31, 2018, the total equity was HKD 63,084,000, an increase from HKD 13,611,000 as of December 31, 2017[12] - The company’s registered capital was increased from HKD 380,000 to HKD 15,000,000 through the issuance of additional shares[13] - As of December 31, 2018, the company had a total of 1,000,000,000 shares issued[60] - Mr. Kwan and Ms. Kwan each hold 750,000,000 shares, representing 75% ownership in the company[57] - Future More, a related entity, holds 750,000,000 shares, also representing 75% ownership[62] Corporate Governance and Compliance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable regulations[16] - The board has adopted and complied with all applicable corporate governance code provisions since the listing date[66] - The audit committee, composed of independent non-executive directors, has reviewed the unaudited consolidated results for the nine months ended December 31, 2018, and found them to comply with applicable accounting standards and GEM Listing Rules[70] - The company has appointed Tongren Financing Limited as its compliance advisor as per GEM Listing Rule 6A.19[69] Business Operations - The company operates primarily in Hong Kong, focusing on providing dining services through chain restaurants[15] - The company continues to operate 11 restaurants under various brands, including "Mr. Steak" and "Bistro Bloom," after closing two locations in 2018[29] - The company decided not to renew the lease for the "Sky Bar" restaurant in Causeway Bay after its lease expired on November 14, 2018, following a review of its recent business performance[28] - The company has not engaged in any significant acquisitions or disposals during the nine months ended December 31, 2018[46] - The company has not disclosed any new product developments or market expansion strategies in the reporting period[58] Taxation and Expenses - The estimated taxable profit for the three months and nine months ended December 31, 2018, was subject to Hong Kong profits tax rates of 8.25% for profits up to HKD 2 million and 16.5% for profits exceeding that amount[23] - The effective tax rate decreased to approximately 15.2% for the nine months ended December 31, 2018, down from 16.3%[43] - Employee costs increased by approximately HKD 3.9 million or 7.4% from HKD 52.6 million to HKD 56.5 million for the nine months ended December 31, 2018[37] - Rental and related expenses remained stable at approximately HKD 41.2 million and HKD 41.6 million for the nine months ended December 31, 2017 and 2018, respectively[39] - Depreciation of property, plant, and equipment remained stable at approximately HKD 4.3 million and HKD 4.0 million for the nine months ended December 31, 2017 and 2018, respectively[38] - Financing costs remained stable at approximately HKD 0.6 million for both periods ended December 31, 2017 and 2018[42] Future Plans - The net proceeds from the IPO amounted to approximately HKD 39.6 million, with only HKD 1.0 million utilized by December 31, 2018[51] - The company plans to expand its restaurant network in strategic locations across Hong Kong, allocating approximately 63.5% of the IPO proceeds for this purpose[51] Ownership and Control - The company has not granted any stock options under the stock option plan since its adoption on March 23, 2018[63] - No securities were repurchased or sold by the company or its subsidiaries during the reporting period[64] - The company has not identified any competition or conflicts of interest involving its directors or major shareholders[65] - The ownership structure includes Mr. Kwan, Ms. Kwan, and other family members as part of a concert party agreement[60] - The chairman and CEO roles are held by the same individual, Mr. Kwan, since 2000, which the board believes is in the best interest of the company[68] Events and Developments - There were no significant events affecting the group from December 31, 2018, to the report date[55]