Financial Performance and Liabilities - The company's net loss attributable to owners for the year ended December 31, 2022, was approximately HKD 5.3 million[31] - As of December 31, 2022, the company's current liabilities exceeded its current assets by approximately HKD 136.0 million[31] - The company's net liabilities as of December 31, 2022, were approximately HKD 107.2 million[31] - The company's total current interest-bearing borrowings as of December 31, 2022, were approximately HKD 60.8 million[31] - The company's cash and cash equivalents as of December 31, 2022, were approximately HKD 4.9 million[31] - The company recorded a net loss attributable to owners of approximately HK$5,295,000 for the year ended December 31, 2022, with current liabilities exceeding current assets by approximately HK$135,994,000[118] - The company's total interest-bearing borrowings as of December 31, 2022, were approximately HK$60,771,000, with cash and cash equivalents of only HK$4,881,000[118] - The company's operating cash flow before working capital changes was a negative HKD 10.845 million in 2022, compared to a positive HKD 223 thousand in 2021[129] - The company's net cash used in operating activities was HKD 4.283 million in 2022, down from HKD 29.063 million generated in 2021[129] - Net cash from investing activities was HKD 2.316 million in 2022, slightly higher than HKD 1.969 million in 2021[129] - Net cash from financing activities was HKD 516 thousand in 2022, a significant improvement from a negative HKD 36.371 million in 2021[130] - The company's cash and cash equivalents decreased by HKD 1.451 million in 2022, less than the HKD 5.339 million decrease in 2021[130] - Total revenue for the reporting period was HKD 79,469,000, a significant decrease from HKD 224,193,000 in 2021[180] Audit and Internal Controls - The company's external auditor provided audit services costing HKD 1,500 and non-audit services costing HKD 340 during the year[31] - The company's audit committee reviewed the consolidated financial statements for the year ended December 31, 2022, and found them to comply with applicable accounting standards and GEM Listing Rules[21] - The company has not yet established an internal audit function as of December 31, 2022, but the audit committee and board of directors have reviewed the internal control review report prepared by an independent consulting firm and communicated with the external auditor regarding any significant control deficiencies identified during the financial statement audit process[36] - The company has a policy to provide guidance to directors, employees, and relevant staff to ensure appropriate safeguards are in place to prevent violations of statutory disclosure requirements, including internal controls and reporting systems to identify and assess potential insider information[37] Corporate Governance and Board Composition - The company's remuneration committee reviewed the remuneration of directors and senior management for the year ended December 31, 2022, and deemed it fair and reasonable[18] - The company's board of directors includes a balance of skills and experience, considering the nature of the group's business[11] - The company's nomination committee will disclose the board composition annually and monitor the implementation of the board diversity policy[25] Business Operations and Awards - The company operates five full-service Cantonese restaurants under its own brand in Hong Kong, focusing on providing high-quality dishes, services, and a comfortable dining environment[42] - The company has diversified its business and revenue sources over the years and has received multiple awards, including being listed in the "Michelin Guide - Hong Kong • Macau" and winning the "Best of the Best Culinary Awards"[42] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to maintaining high standards in environmental protection, social responsibility, and governance, and discloses its sustainability performance transparently and publicly[67] - The company's Environmental, Social, and Governance (ESG) report reflects its performance in environmental management and social responsibility from January 1, 2022, to December 31, 2022, and is published annually to enhance transparency and accountability[68] - The company's total greenhouse gas emissions for the reporting period were 1,855 tons, with Scope 1 emissions at 14.47 tons and Scope 2 emissions at 1,802.52 tons[85] - The company implemented measures to reduce vehicle emissions, including avoiding peak traffic hours, encouraging public transport, and carpooling among employees[82] - The company's greenhouse gas emissions per unit of restaurant floor area were 0.51 tons, showing a decrease from the previous period's 0.45 tons[85] - The company has established a dedicated team to manage environmental, social, and governance (ESG) issues across its business units[93] - The company engages with stakeholders through various channels, including annual reports, meetings, and customer surveys, to address concerns and improve performance[97] - The company's ESG report includes data on emissions from vehicle use and business operations, with a focus on reducing environmental impact[80] - The company's ESG strategy includes measures to minimize environmental impact, with the board responsible for ensuring policy effectiveness[70] - The company's ESG report follows the principles of materiality, quantification, balance, and consistency as outlined by the Hong Kong Stock Exchange[71] - The company's ESG initiatives include reducing emissions from energy use, waste management, and business travel, with a focus on sustainability[84] - The company significantly reduced vehicle usage in 2022, leading to an 84% decrease in NOx emissions, a 67% decrease in SOx emissions, and a 70% decrease in PM emissions compared to the previous fiscal year[105] - The company has implemented various environmental policies and energy-saving measures in its restaurants and headquarters to mitigate climate change risks[100] - The company has established a comprehensive data collection system to strictly control greenhouse gas emissions, monitoring monthly vehicle usage for optimal efficiency[108] - The company's greenhouse gas emissions primarily come from vehicle usage, electricity consumption, gas usage, and employee business air travel[107] - The company has not violated any environmental laws or regulations in its operating regions and has not incurred significant fines, non-monetary penalties, or litigation related to environmental protection[104] - The company is focusing on reducing emissions from its operations, engaging suppliers to reduce emissions in the supply chain, and advocating for collective action to enhance business resilience[102] - The company's paper, fresh water, and sewage usage decreased by approximately 26% in 2022 compared to 2021 due to strict COVID-19 measures[140] - The company aims to reduce greenhouse gas emissions by 10% and electricity consumption by 10% by 2026/2027, using 2022/2023 as the baseline[142] - The company has implemented energy-saving measures, including regular maintenance of refrigerator insulation systems and prioritizing energy-efficient equipment in procurement[142] - The company's water consumption per unit area of restaurant property decreased from approximately 21.17 cubic meters to 20.59 cubic meters compared to the previous fiscal year[147] - The company aims to reduce water consumption by 5% by 2031/32, based on the 2022/23 benchmark[148] - Total water consumption in 2022 was 74,237 cubic meters, a significant decrease from 120,939 cubic meters in 2021[161] - The company's electricity and non-renewable fuel consumption decreased by approximately 52% in 2022 compared to the previous fiscal year[164] - The company collected a total of 468 barrels of waste cooking oil during the reporting period[159] - The company plans to implement a comprehensive data collection mechanism for food waste disposal in the future[158] - The company continues to upgrade equipment, such as purchasing energy-efficient appliances and LED lighting, to improve energy efficiency[148] - The company promotes water conservation through signage and reminders in kitchens, restrooms, and offices[160] - The company's goal is to improve energy efficiency and integrate low-carbon processes throughout its operations[145] - The company has established a waste management system to classify and recycle non-hazardous waste, such as paper and packaging materials[143] - The company achieved a 10% reduction in greenhouse gas emissions compared to the previous period through optimized production processes[165] - Total packaging material consumption decreased from 3.98 tons in 2021 to 2.00 tons in 2022, with plastic bag usage dropping from 1.52 tons to 0.18 tons[180] - Energy consumption decreased significantly from 6,953,983 kWh in 2021 to 3,315,597 kWh in 2022, with non-renewable fuel consumption dropping from 2,092,006 kWh to 777,552 kWh[178] - Water consumption density per restaurant property floor area decreased from 1,217.51 kWh to 919.52 kWh[178] - The company implemented various energy-saving measures, including upgrading energy-efficient electrical equipment and promoting double-sided printing[166] Employee Relations and Safety - The company employed 121 full-time employees from Hong Kong, with 94 employees leaving subsidiaries due to restructuring and personal reasons[173] - No fatal or serious injury accidents were recorded in the past three years, with no compensation paid for such incidents[177] - The company focuses on providing a safe working environment and comprehensive employee development, adhering to labor laws and offering competitive compensation packages[185] - The company has established internal procedures to ensure compliance with labor standards, including strict recruitment processes to avoid child or forced labor[186] - The company maintains a low employee turnover rate and fosters harmonious labor relations to enhance productivity[186] - The company operates a robust occupational health and safety management system, ensuring high safety standards in its restaurants[189] - The company conducts regular risk assessments and operational checks to identify and mitigate risks, maintaining a low accident and injury rate[190] Supply Chain and Quality Control - The company sources food from 12 approved suppliers in Hong Kong, ensuring stable and high-quality raw material supply[196] - The company implements a quality control system emphasizing food safety, hygiene, and restaurant cleanliness[199] - The company provides ongoing training to kitchen staff on food preparation, hygiene, and quality control procedures[200] - The company maintained a diverse supplier base to mitigate risks from extreme weather events that could disrupt the supply chain[169] Shareholder Communication and Investor Relations - The company communicates with shareholders through various channels, including annual general meetings and special general meetings, providing a platform for shareholders to express opinions and exchange views with directors and senior management[39] - The company promotes investor relations and enhances communication with existing shareholders and potential investors, welcoming feedback from investors, stakeholders, and the public[65] - The company has adopted a shareholder communication policy to ensure timely and unbiased access to company information[87] Compliance and Risk Management - The company maintains an effective internal control and risk management system, including clear organizational arrangements and comprehensive monitoring procedures to protect shareholder investments and company assets[58] - The company has established an insider information disclosure policy, detailing procedures and internal controls for handling and disseminating insider information[62] - The company strictly adhered to Hong Kong's noise control regulations and implemented noise reduction measures for air conditioning and ventilation systems[182] - The company maintains low greenhouse gas emissions and minimal energy consumption, reducing transition risks related to regulatory changes and customer preferences[185] - The company has a dedicated team to identify climate-related risks and opportunities, ensuring compliance with regulations and minimizing operational impacts[185] Accounting Standards and Financial Reporting - The company's board of directors expects that the application of new and revised Hong Kong Financial Reporting Standards will not have a significant impact on the company's performance and financial position[112]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 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公告全部或任何 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。 Dragon King Group Holdings Limited 龍 皇 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8493） 截至二零二二年十二月三十一日止年度之 年度業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交 所上市的公司帶有較高投資風險。有意投資人士應了解投資於該等公司的潛在風險， 並應經過審慎周詳的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聯交所主 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。 ...

Financial Performance - For the three months ended September 30, 2022, the company reported revenue of HKD 20,875,000, a decrease of 67.4% compared to HKD 64,085,000 in the same period last year[6]. - The gross profit for the same period was HKD 14,099,000, down 65.7% from HKD 41,123,000 year-on-year[6]. - The company incurred a loss before tax of HKD 4,935,000 for the three months ended September 30, 2022, compared to a loss of HKD 10,533,000 in the previous year, representing a 53.2% improvement[6]. - For the nine months ended September 30, 2022, total revenue was HKD 56,770,000, a decline of 67.6% from HKD 175,038,000 in the same period last year[6]. - The net loss attributable to owners of the company for the nine months was HKD 8,046,000, compared to HKD 19,316,000 in the previous year, indicating a 58.3% reduction in losses[6]. - The basic and diluted loss per share for the three months was HKD (2.86), compared to HKD 7.21 in the same period last year[6]. - Basic loss per share for the nine months ended September 30, 2022, was HKD (4.66), an improvement from HKD (13.35) for the same period in 2021[31]. Revenue Breakdown - Revenue from Chinese restaurants for the nine months ended September 30, 2022, was HKD 56,770,000, a decrease of 67.6% compared to HKD 175,038,000 for the same period in 2021[18]. - Revenue from Hong Kong and Macau for the three months ended September 30, 2022, was HKD 20,875,000, compared to HKD 58,213,000 for the same period in 2021, representing a decline of 64.1%[18]. - Revenue from the "Dragon Emperor" brand decreased by approximately HKD 67.4 million or about 62.0% to approximately HKD 41.3 million for the nine months ended September 30, 2022, primarily due to stricter pandemic measures[43]. - Revenue from the "Dragon Seal" brand dropped by approximately HKD 25.1 million or about 95.7% to approximately HKD 1.1 million, mainly due to the closure of the Global Trade Square branch[44]. - Revenue from the "Dragon Robe" brand decreased by approximately HKD 3.9 million or about 21.2% to approximately HKD 14.6 million, attributed to stricter pandemic measures affecting the dining industry[45]. Cost Management - Employee costs for the three months were HKD 10,545,000, down 59.0% from HKD 25,764,000 year-on-year[6]. - The group’s employee benefits expenses (excluding directors and CEO remuneration) for the nine months ended September 30, 2022, were HKD 27,314,000, down 57.3% from HKD 63,594,000 for the same period in 2021[25]. - Employee costs for the nine months ended September 30, 2022, were approximately HKD 29.7 million, a significant decrease of about HKD 41.9 million or approximately 59.5% compared to HKD 71.6 million for the same period in 2021[51]. - Rental and related expenses decreased by approximately HKD 9.3 million or about 50.3% to approximately HKD 9.2 million for the nine months ended September 30, 2022, due to a reduction in the number of restaurants operated[54]. - Other operating expenses decreased by approximately HKD 16.2 million or about 52% to approximately HKD 14.9 million for the nine months ended September 30, 2022, also due to a reduction in the number of restaurants operated[55]. Government Support - The group recognized government subsidies related to COVID-19 amounting to HKD 6,353,000 for the nine months ended September 30, 2022, compared to HKD 4,200,000 for the same period in 2021, an increase of 51.2%[23]. Operational Challenges - The group closed the New Peking branch in July 2022, further impacting its operational capacity[38]. - The group is adopting a conservative approach to operations due to the economic downturn in Hong Kong and ongoing COVID-19 challenges[57]. - Employee costs and food costs remain relatively high, putting pressure on the group to balance cost control with food and service quality[59]. - The group is negotiating rent reductions with landlords due to restrictions on restaurant operations, but landlords are unwilling to offer substantial rent discounts[59]. - The group is implementing a series of cost-saving measures and emergency plans to cope with the adverse operating environment caused by COVID-19[59]. Compliance and Governance - The company failed to comply with GEM Listing Rules regarding the number of independent non-executive directors after the resignation of two directors on October 31, 2022[95]. - The company is actively seeking suitable candidates to fill the vacancies to comply with GEM Listing Rules[95]. - All directors confirmed compliance with the trading standards as per GEM Listing Rules during the nine months ending September 30, 2022[98]. - The company has complied with the corporate governance code as of September 30, 2022, except for the combined roles of Chairman and CEO held by Mr. Chan since July 13, 2021[99]. - The audit committee, established on December 15, 2017, is chaired by independent non-executive director Mr. Wong, ensuring compliance with GEM Listing Rules[101]. - The unaudited consolidated financial statements for the nine months ended September 30, 2022, have been reviewed and deemed compliant with applicable accounting standards and GEM Listing Rules[103]. Legal Matters - The company is required to repay a total of HKD 366,000 along with interest and legal fees as per the final judgment on February 8, 2022[80]. - Long Wong Restaurant Group Limited must repay HKD 334,000 plus interest and legal fees as per the final judgment on May 11, 2022[81]. - The company’s subsidiary, Dongfang E-commerce Limited, is ordered to repay HKD 2,000,000 along with interest and legal fees as per the final judgment on May 11, 2022[83]. - The company and its subsidiary, Qigang Limited, are facing a claim for HKD 2,117,469.59 for unpaid principal and default interest as per the summons received on May 11, 2022[84]. - Qigang is facing a claim for HKD 177,996 plus interest and legal fees as per the summons received on July 26, 2022[86]. - The company has filed a defense in response to the summons related to the claims mentioned above[85][89]. Investment Activity - The company has not made any significant investments, acquisitions, or disposals of subsidiaries or associated companies as of September 30, 2022[62]. - The company has not purchased, sold, or redeemed any of its listed securities in the nine months ending September 30, 2022[94]. Future Outlook - The group is preparing to leverage future growth opportunities while maintaining a strong and stable liquidity position[65].

Financial Performance - For the six months ended June 30, 2022, the company reported total revenue of HK$35,895, a decrease of 67.6% compared to HK$110,953 for the same period in 2021[6] - The gross profit for the same period was HK$24,556, down 67.2% from HK$74,757 in 2021[6] - The company incurred a loss attributable to owners of HK$3,111 for the six months ended June 30, 2022, compared to a loss of HK$8,783 in the same period of 2021[6] - The total comprehensive loss for the six months was HK$8,484, compared to HK$2,838 in 2021, indicating a significant increase in losses[8] - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 4,880,000, a decrease of 75.1% compared to HKD 19,429,000 for the same period in 2021[15] - The group recorded a loss attributable to owners of the company of HKD 3,111,000 due to significant adverse impacts from the COVID-19 pandemic[22] - The group reported a net loss attributable to shareholders of HKD 9,466,000 for the three months ended June 30, 2022, compared to a loss of HKD 3,775,000 in the same period of 2021[42] - The group’s total other income and net gains for the six months ended June 30, 2022, amounted to HKD 4,826,000, a decrease of 45.5% compared to HKD 8,852,000 for the same period in 2021[33] - The group’s employee benefits expenses (excluding directors and key management personnel) for the six months ended June 30, 2022, were HKD 17,604,000, down from HKD 40,628,000 in the same period of 2021, a decrease of 56.6%[36] - Employee costs for the group were approximately HKD 19.2 million, a decrease of about HKD 26.6 million or 58.2% compared to HKD 45.8 million for the same period in 2021[82] Assets and Liabilities - As of June 30, 2022, the company's non-current assets totaled HK$32,843, a decrease from HK$34,227 as of December 31, 2021[10] - Current assets decreased to HK$24,547 from HK$30,861 at the end of 2021, reflecting a decline in liquidity[10] - The company's total liabilities amounted to HK$153,693, down from HK$161,088 at the end of 2021, indicating a reduction in financial obligations[10] - The company reported a net asset deficit of HK$104,986 as of June 30, 2022, compared to HK$102,148 at the end of 2021[11] - As of June 30, 2022, the group's current liabilities exceeded current assets by approximately HKD 129,146,000, with total current borrowings of about HKD 56,672,000 and cash and cash equivalents of approximately HKD 8,208,000[22] - Trade receivables as of June 30, 2022, were HKD 1,575,000, a decrease from HKD 3,739,000 as of December 31, 2021, indicating a decline of 57.8%[45] - Trade payables as of June 30, 2022, amounted to HKD 36,055,000, an increase from HKD 30,534,000 as of December 31, 2021[13] - As of June 30, 2022, the group's debt was approximately HKD 56.7 million, down from HKD 60.6 million as of December 31, 2021[91] - The capital debt ratio as of June 30, 2022, was approximately 315.4%, an increase from 274.8% as of December 31, 2021[92] Business Operations - The company continues to explore new strategies for market expansion and product development to improve future performance[6] - The company faced a challenging business environment due to the fifth wave of COVID-19 in Hong Kong, which led to stricter dine-in restrictions and social distancing measures[65] - The company closed its Global Trade Square branch due to lease expiration and decided not to renew the lease for the Causeway Bay branch, focusing resources on remaining restaurants[67] - The company closed its San Po Kong branch in July 2022 due to poor performance, currently operating only the Wanchai, Kwun Tong, and Whampoa branches[107] - The group plans to delay the opening of new branches or close underperforming ones as part of cost control measures to improve operational performance and cash flow[23] - Management is actively negotiating with banks for new financing arrangements to ensure sufficient funds for operational and financial needs[23] - The group will continue to negotiate rent concessions with landlords due to a decrease in customer numbers caused by the pandemic[23] Revenue Breakdown - Revenue from Chinese restaurants for the six months ended June 30, 2022, was HKD 110,953,000, a decrease of 36.5% compared to HKD 174,848,000 for the same period in 2021[29] - Total revenue for the three months ended June 30, 2022, was HKD 22,448,000, down from HKD 61,804,000 in the same period of 2021, representing a decline of 63.7%[29] - Revenue for the Dragon Emperor brand decreased by approximately HKD 42.3 million or 61.3% to about HKD 26.6 million for the six months ended June 30, 2022, compared to HKD 68.9 million for the same period in 2021[73] - Revenue for the Dragon Seal brand dropped by approximately HKD 14.0 million or 93.1% to about HKD 1.0 million for the six months ended June 30, 2022, primarily due to the closure of a store in Global Trade Square[75] - Revenue for the Dragon Robe brand decreased by approximately HKD 3.4 million or 28.7% to about HKD 8.2 million for the six months ended June 30, 2022, attributed to stricter pandemic measures affecting the restaurant business[76] - Total revenue for the group was HKD 35.9 million for the six months ended June 30, 2022, down from HKD 110.9 million in the same period of 2021[72] - Gross profit for the group was approximately HKD 24.6 million, a decrease of about HKD 50.2 million or 67.2% compared to HKD 74.8 million for the same period in 2021[79] Legal and Compliance - The company has faced several legal claims, including a total of HKD 1,500,000 sought by Fu Bi Capital Limited and HKD 2,000,000 by Eastern Electronic Commerce Limited, with final judgments requiring repayment[112][116] - The company has entered into non-binding memoranda of understanding regarding potential acquisitions, but no formal agreements have been established as of the report date[108] - The company maintains a prudent treasury policy to manage cash reserves and ensure readiness for future growth opportunities[98] - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[41] - The board did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[101] - The company has not applied any new or revised standards that have been issued but not yet effective, and is currently assessing their potential impact[20] - The company completed a share placement on July 28, 2021, issuing 28,800,000 shares at HKD 0.208 per share, resulting in net proceeds of HKD 5,735,000 after transaction costs[50] - The company’s directors and key executives received total compensation of HKD 399,000 for the three months ended June 30, 2022, compared to HKD 1,788,000 for the same period in 2021[61] - The company did not purchase any property, plant, and equipment for the six months ended June 30, 2022, compared to approximately HKD 1,000,000 in the same period of 2021[44] - The group has no significant foreign exchange risk, with most income and expenses denominated in Hong Kong dollars and Renminbi, and no financial instruments were used for hedging purposes during the six months ended June 30, 2022[97] - The group has not reported any significant contingent liabilities or commitments as of June 30, 2022[99][100] Governance - The company’s management discussed the impact of COVID-19 on financial performance, highlighting a significant revenue decline due to ongoing pandemic-related restrictions[64] - The company’s capital increased by HKD 2,880,000 following the share placement, with a share premium of HKD 2,855,000[50] - The company’s management is committed to ensuring compliance with GEM listing rules and has taken steps to address previous violations[128] - The audit committee chairman is an independent non-executive director, ensuring compliance with GEM listing rules[132] - The company has complied with GEM listing rule 5.28, with audit committee members possessing appropriate professional qualifications[134] - The company’s directors and key executives have no equity interests or short positions in the company’s shares as of June 30, 2022[125]

Financial Performance - Revenue for the three months ended March 31, 2022, was HKD 13,447,000, a decrease of 72.6% compared to HKD 49,149,000 for the same period in 2021[7] - Gross profit for the same period was HKD 8,618,000, down from HKD 32,736,000 in 2021, reflecting a significant decline in profitability[7] - The company reported a profit before tax of HKD 6,355,000, compared to a loss of HKD 5,008,000 in the previous year, indicating a turnaround in financial performance[7] - Basic and diluted earnings per share for the period were HKD 3.68, compared to a loss per share of HKD 3.48 in the same quarter of 2021[7] - Total comprehensive income for the period was HKD 6,628,000, compared to a loss of HKD 5,115,000 in the prior year, showing improved overall financial health[10] - The company reported a net profit attributable to shareholders of HKD 6,355,000 for the three months ended March 31, 2022, compared to a loss of HKD 5,008,000 in the same period of 2021[35] Revenue and Income Sources - Revenue from customer contracts for the three months ended March 31, 2022, was HKD 13,447,000, a decrease from HKD 49,149,000 in the same period of 2021, representing a decline of approximately 72.6%[20] - Other income and net gains for the three months ended March 31, 2022, included government subsidies of HKD 1,800,000, down from HKD 4,200,000 in the same period of 2021, reflecting a decrease of 57.1%[26] - Other income and net gains decreased by approximately HKD 5.7 million or about 75.5% to approximately HKD 1.8 million, mainly due to reduced government subsidies and the absence of rental concessions[72] Cost Management - The cost of goods sold was HKD 4,829,000, significantly lower than HKD 16,413,000 in the previous year, contributing to improved gross margins[7] - Employee costs for the quarter were HKD 8,523,000, an increase from HKD 7,476,000 in the same period last year, reflecting rising operational costs[7] - Employee benefit expenses (excluding directors and CEO remuneration) were HKD 8,140,000 for the three months ended March 31, 2022, compared to HKD 20,958,000 in the same period of 2021, indicating a reduction of approximately 61.1%[28] - Employee costs for the three months ended March 31, 2022, were approximately HKD 8.5 million, a decrease of about HKD 14.1 million or approximately 62.2% compared to HKD 22.6 million for the same period in 2021[73] Operational Challenges - The group continues to focus on managing its restaurant operations effectively amidst market challenges[14] - The group has temporarily suspended operations of its restaurants in February and March 2022 due to the ongoing COVID-19 situation[59] - The restaurant industry faces severe business conditions, including a slowdown in economic growth and weakened consumer sentiment due to COVID-19[80] - Employee and food costs remain relatively high, putting pressure on the group to balance cost control with food and service quality[80] - The group is negotiating rent reductions with landlords due to operational restrictions, but landlords are unwilling to offer significant discounts[80] - A series of cost-saving measures and contingency plans have been implemented to cope with the adverse operating environment caused by COVID-19[80] Strategic Decisions - The company has sold its subsidiary, Longxi Shanghai, and no longer operates in China, which may impact future revenue streams[21] - The group closed its Global Trade Square branch due to lease expiration and decided not to renew the Causeway Bay branch lease, focusing resources on remaining restaurants[59] - The group plans to continuously assess the overall market situation and balance the expansion of restaurants with the closure of underperforming locations[80] - The group closed the New Pung Keng branch in July 2022 due to poor performance, currently operating only in Wan Chai, Kwun Tong, and Whampoa[86] Compliance and Governance - The company did not incur any income tax expenses for the period, maintaining a tax-efficient structure[7] - The company’s tax expenses for the reporting periods were calculated based on the two-tiered profits tax rate system, with the first HKD 2,000,000 of profits taxed at 8.25%[29] - The company confirmed compliance with all conditions related to COVID-19 related government subsidies for the reporting period[26] - The company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2022, have been reviewed by the audit committee and comply with applicable accounting standards and GEM listing rules[108] Shareholder Information - The company did not recommend any dividend for the three months ended March 31, 2022, consistent with the previous year[34] - The weighted average number of shares for the three months ended March 31, 2022, was 172,800,000 shares, an increase from 144,000,000 shares in the same period of 2021[35] - No stock options were granted, exercised, or expired during the three months ending March 31, 2022[85] - The group has not purchased, sold, or redeemed any listed securities during the three months ending March 31, 2022[82] - The trading of the company's shares has been suspended since November 11, 2021, pending compliance with the relevant guidelines for resumption of trading[110] Future Outlook - The company is currently evaluating the impact of new accounting standards but has not identified any significant financial effects on its operations[16] - The group adopts a conservative approach to operations due to the economic downturn in Hong Kong and ongoing COVID-19 challenges[80] - The group is in discussions regarding potential acquisitions but has not entered into any formal agreements as of the report date[88] - The group decided not to declare any dividends for the three months ended March 31, 2022[79] - The group is negotiating rent reductions with landlords due to operational restrictions, but landlords are unwilling to offer significant discounts[80]

Financial Performance - For the fiscal year ending December 31, 2021, the group recorded an increase in revenue of approximately HKD 28.2 million or about 14.3%[8] - The group's total revenue for the year ended December 31 was approximately HKD 224.2 million, an increase of about HKD 28.2 million or approximately 14.3% compared to HKD 196.0 million for the previous year[24] - The gross profit for the year ended December 31 was approximately HKD 152.0 million, an increase of about HKD 17.0 million or approximately 12.6% from HKD 135.0 million the previous year[36] - Revenue from the "Long Wong" brand increased from approximately HKD 122.2 million to approximately HKD 139.0 million, a rise of about HKD 16.8 million or approximately 13.7%[28] - Revenue from the "Long Xi" brand surged from approximately HKD 24.1 million to approximately HKD 37.4 million, an increase of about HKD 13.3 million or approximately 55.3%[29] - Revenue from the "Long Pao" brand rose from approximately HKD 17.8 million to approximately HKD 25.7 million, an increase of about HKD 7.9 million or approximately 44.5%[30] - Revenue from the "Huang Xi" brand decreased from approximately HKD 29.4 million to approximately HKD 22.0 million, a decline of about HKD 7.3 million or approximately 24.9% due to the closure of the restaurant[31] - Other income and net gains decreased significantly from approximately HKD 33.5 million to approximately HKD 12.1 million, a reduction of about HKD 21.4 million[38] - The loss attributable to owners of the company was approximately HKD 50.8 million for the year ended December 31, 2021, compared to a loss of HKD 74.8 million in 2020, attributed to improved revenue as COVID-19 was effectively controlled[47] Operational Challenges - The group is facing significant challenges due to the ongoing COVID-19 pandemic, including weakened consumer sentiment and government-imposed restrictions on dining establishments[9] - The group operates six full-service restaurants in Hong Kong, but due to low customer traffic, it was necessary to close locations in Hong Kong and Macau[8] - The group closed its restaurant in Macau in early October 2021 and the Shanghai restaurant at the end of September 2021, as part of a strategic decision to manage operational funds[20] - The company is adopting a conservative approach in its operations due to the ongoing economic downturn and challenges posed by COVID-19, including reduced consumer sentiment and government restrictions[50] - The company has decided to delay the opening of new restaurants and will reallocate unutilized funds for general working capital due to the unfavorable market conditions[52] - The company is focusing on consolidating its resources and operations in response to changing consumer trends and the ongoing COVID-19 pandemic[182] Cost Management - Employee and food costs remain relatively high, putting pressure on the group to balance cost control with food and service quality[9] - The group is negotiating rent reductions with landlords, as some restaurants are unable to operate normally due to restrictions[9] - A series of cost-saving measures and contingency plans have been implemented to overcome the current business environment challenges[12] - The group will continue to monitor its cost structure and reduce expenses to enhance efficiency and ultimately create more value for shareholders[13] - Employee costs for the year were approximately HKD 91.2 million, a slight increase of about HKD 3.7 million or approximately 4.2% compared to HKD 87.5 million the previous year[39] - Rental and related expenses decreased by approximately HKD 10.4 million or 41.8% to about HKD 14.5 million for the year ended December 31, 2021, primarily due to rent waivers from landlords[44] - Other operating expenses slightly increased by approximately HKD 5 million or 11% to about HKD 50.4 million for the year ended December 31, 2021, mainly due to increased revenue[45] - Financial costs decreased by approximately HKD 1.7 million or 31.4% to about HKD 3.8 million for the year ended December 31, 2021, primarily due to reduced interest on lease liabilities[46] Legal and Compliance Issues - The company has been involved in multiple legal cases, including a claim for approximately HKD 1,500,000 from 富比資本有限公司 and a claim for HKD 2,000,000 from 東方電子商貿有限公司[187][193] - The company’s bank accounts were partially frozen due to an investigation related to money laundering, but some accounts have since been restored for daily operations[179] - The company has received court judgments requiring it to repay a total of approximately HKD 453,200, HKD 1,500,000, and HKD 366,000 in various legal cases[186][189] - The company is facing a claim for HKD 2,117,469.59 related to an unpaid loan from 交通銀行[194] - The company has submitted a defense statement regarding the lawsuits DCCJ1225/2022, DCCJ838/2022, and HCA457/2022[200] Human Resources - The company had 240 employees as of December 31, 2021, a decrease from 390 employees in 2020[167] - The total employee cost for the year ended December 31, 2021, was approximately HKD 91.2 million, an increase from HKD 87.5 million in 2020[167] Financial Position - As of December 31, 2021, the company's borrowings amounted to approximately HKD 60.6 million, a decrease from HKD 76.4 million in 2020[155] - The company's cash and cash equivalents were approximately HKD 6.3 million as of December 31, 2021, down from HKD 11.7 million in 2020[155] - The capital debt ratio as of December 31, 2021, was approximately 274.8%, compared to 145.0% in 2020[156] - The company did not recommend a final dividend for the year ended December 31, 2021, consistent with no dividends in 2020[166] - The net proceeds from the share placement amounted to approximately HKD 5,788,400 after deducting commissions and related expenses[153] - The company had no significant investments, acquisitions, or disposals of subsidiaries or associated companies during the year ended December 31, 2021[161] Environmental Initiatives - The company has implemented various green initiatives to reduce environmental impact, including energy-saving projects and waste management[174] Strategic Decisions - The company closed its Global Trade Square branch in early January 2022 due to lease expiration and decided not to renew the Causeway Bay branch lease, focusing resources on remaining restaurants[182] - The company further closed the New Peking branch in July 2022 due to poor performance, currently operating only the Wanchai, Kwun Tong, and Whampoa branches[184] - The total unutilized proceeds from the IPO have been fully utilized by December 31, 2021, with the board believing that the reallocation of these funds is in the best interest of the company and its shareholders[53] - The company maintains a prudent policy to manage cash reserves and ensure a strong liquidity position for future growth opportunities[163] - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2021[176]

Financial Performance - For the three months ended September 30, 2021, the group reported revenue of HKD 64,085,000, an increase from HKD 40,039,000 in the same period of 2020, representing a growth of 60.1%[6] - The gross profit for the three months ended September 30, 2021, was HKD 41,123,000, compared to HKD 27,024,000 in the same period of 2020, reflecting a gross margin improvement[6] - For the nine months ended September 30, 2021, the total revenue was HKD 175,038,000, up from HKD 146,081,000 in the same period of 2020, marking a year-on-year increase of 19.8%[6] - The net loss for the nine months ended September 30, 2021, was HKD 19,316,000, compared to a loss of HKD 16,245,000 in the same period of 2020, showing an increase in losses[6] - The basic and diluted loss per share for the three months ended September 30, 2021, was HKD 0.72, compared to HKD 0.30 for the same period in 2020[6] - The total comprehensive loss for the nine months ended September 30, 2021, was HKD 19,002,000, compared to HKD 16,048,000 in the same period of 2020[8] - The company’s other income and net gains for the nine months ended September 30, 2021, totaled HKD 9,328,000, down from HKD 17,853,000 in the same period of 2020[22] - Employee costs increased significantly by approximately HKD 9.4 million or about 15.1%, totaling approximately HKD 71.6 million for the nine months ended September 30, 2021, compared to HKD 62.2 million for the same period in 2020[47] Equity and Losses - The group incurred a loss attributable to owners of the company of HKD 10,533,000 for the three months ended September 30, 2021, compared to a loss of HKD 4,332,000 in the same period of 2020, indicating a deterioration in performance[6] - The group’s total equity as of September 30, 2021, was HKD 57,003,000, down from HKD 18,197,000 at the beginning of the year, reflecting a significant decline in equity[10] - Loss attributable to owners of the company increased to approximately HKD 19.3 million for the nine months ended September 30, 2021, compared to approximately HKD 16.2 million for the same period in 2020[52] Revenue Sources - For the nine months ended September 30, 2021, the company reported revenue from customer contracts in restaurant operations of HKD 175,038,000, an increase of 19.8% compared to HKD 146,081,000 for the same period in 2020[18] - Revenue from restaurant operations for the three months ended September 30, 2021, was HKD 64,085,000, up 60.1% from HKD 40,039,000 in the same quarter of 2020[18] - Revenue from the "Dragon Emperor" brand increased by approximately HKD 17.9 million or about 19.7%, reaching approximately HKD 108.8 million for the nine months ended September 30, 2021[39] - Revenue from the "Dragon Seal" brand increased significantly by approximately HKD 8.5 million or about 47.3%, totaling approximately HKD 26.3 million for the nine months ended September 30, 2021[41] - Revenue from the "Dragon Robe" brand increased by approximately HKD 5.0 million or about 36.7%, reaching approximately HKD 18.6 million for the nine months ended September 30, 2021[42] - Revenue from the "Emperor Seal" brand slightly increased by approximately HKD 0.6 million or about 2.9%, totaling approximately HKD 21.4 million for the nine months ended September 30, 2021[43] Operational Challenges - The company closed several restaurants due to the impact of COVID-19 and changing consumer behavior, including locations in Kwai Chung, Macau, and Shanghai[35] - Rental and related expenses increased by approximately HKD 6.0 million or about 47.6% to approximately HKD 18.5 million for the nine months ended September 30, 2021, compared to approximately HKD 12.6 million for the same period in 2020[50] - Other operating expenses rose by approximately HKD 4.9 million or about 19% to approximately HKD 31.1 million for the nine months ended September 30, 2021, from approximately HKD 26.2 million for the same period in 2020[51] Corporate Governance and Compliance - The board believes that good corporate governance is key to managing the group's business and affairs, and has complied with the corporate governance code as of September 30, 2021[67] - Following the resignation of Ms. Leung Kai-ki as an independent non-executive director on November 9, 2021, the number of independent non-executive directors and audit committee members fell below three, necessitating the search for suitable candidates[68] - The audit committee was established in accordance with GEM listing rules, but currently does not meet the minimum requirement of three members following the recent resignation[70] - The consolidated performance for the nine months ended September 30, 2021, has not been audited by the company's auditor[70] Future Strategies - The company plans to establish an online sales platform to promote packaged food products to mitigate operational and financial risks due to COVID-19 and new consumer patterns[55] - The company is negotiating rent reductions with landlords as a significant portion of costs remains high, including employee and food costs[55] - The company will continue to adjust its business strategies to respond to the changing economic and restaurant industry conditions[55] Miscellaneous - The company recognized rental concessions of approximately HKD 4,550,000 for the nine months ended September 30, 2021, of which about HKD 1,373,000 was related to COVID-19[23] - The company is currently evaluating the impact of new and revised standards issued but not yet effective, although no significant financial impact has been identified at this time[14] - The company’s financial statements for the nine months ended September 30, 2021, were prepared based on historical cost convention and presented in thousands of HKD[16] - The company’s tax expenses for the nine months ended September 30, 2021, were calculated based on a two-tiered profit tax rate system, with the first HKD 2,000,000 of profits taxed at 8.25%[26] - As of September 30, 2021, there were no share options granted, exercised, expired, or lapsed under the share option scheme[64] - Some bank accounts of the group have been frozen due to an investigation, but certain accounts have been restored for daily restaurant operations[66]

Financial Performance - For the six months ended June 30, 2021, the group's revenue was HKD 110,953,000, a slight increase of 3.5% compared to HKD 106,042,000 in the same period of 2020[6]. - The gross profit for the same period was HKD 74,757,000, remaining relatively stable compared to HKD 74,741,000 in 2020, indicating a consistent gross margin[6]. - The group reported a loss before tax of HKD 8,783,000 for the six months ended June 30, 2021, an improvement from a loss of HKD 11,913,000 in the same period of 2020, reflecting a 26.5% reduction in losses[6]. - Total comprehensive loss for the six months was HKD 8,484,000, compared to HKD 11,766,000 in the previous year, showing a 28.5% decrease[8]. - The loss per share for the six months was HKD 0.72, an improvement from HKD 0.83 in the same period of 2020[6]. - The company reported a loss attributable to owners of HKD 3,775,000 for the three months ended June 30, 2021, compared to a loss of HKD 2,781,000 in the same period of 2020[54]. - The loss attributable to owners of the company decreased to approximately HKD 8.8 million for the six months ended June 30, 2021, from approximately HKD 11.9 million for the same period in 2020, primarily due to increased revenue and reduced depreciation[94]. Assets and Liabilities - Non-current assets decreased to HKD 70,108,000 as of June 30, 2021, down from HKD 86,602,000 at the end of 2020, indicating a reduction of 19.0%[10]. - Current assets totaled HKD 47,072,000, a decrease from HKD 52,922,000 at the end of 2020, representing a decline of 11.1%[10]. - Current liabilities were HKD 174,843,000, slightly down from HKD 177,250,000 at the end of 2020, showing a decrease of 2.4%[10]. - The group reported a net asset deficit of HKD 65,487,000 as of June 30, 2021, compared to a deficit of HKD 57,003,000 at the end of 2020, indicating a worsening position[12]. - The total current liabilities exceeded current assets by approximately HKD 127,771,000 as of June 30, 2021, compared to HKD 124,328,000 at the end of 2020, indicating a slight increase in the liquidity gap[21]. - As of June 30, 2021, the company's cash and cash equivalents decreased to HKD 8,356,000 from HKD 11,692,000 at the end of 2020, a decline of 29.9%[21]. - The company's total bank borrowings amounted to approximately HKD 71,513,000 as of June 30, 2021, down from HKD 76,448,000 at the end of 2020, a decrease of 6.1%[21]. - The capital-to-debt ratio was approximately 156.4% as of June 30, 2021, compared to 145.0% as of December 31, 2020[125]. Revenue Breakdown - Revenue from restaurant operations for the six months ended June 30, 2021, was HKD 110,953,000, up from HKD 106,042,000 in the same period of 2020, reflecting a growth of 2.8%[32]. - Revenue for the three months ended June 30, 2021, was HKD 61,804,000, an increase of 28% compared to HKD 48,390,000 for the same period in 2020[33]. - Revenue for the six months ended June 30, 2021, was HKD 110,953,000, up 4% from HKD 106,042,000 in the prior year[33]. - Revenue from the "Dragon Emperor" brand decreased slightly to approximately HKD 68.9 million, a decline of about HKD 0.3 million or approximately 0.4% from HKD 69.2 million in the previous year[81]. - Revenue from the "Dragon Seal" brand increased by approximately HKD 2.3 million or approximately 18.1% to about HKD 15.0 million, attributed to effective COVID-19 control in Hong Kong[83]. - Revenue from the "Dragon Robe" brand rose by approximately HKD 1.6 million or approximately 16.0% to about HKD 11.6 million, also due to effective COVID-19 control measures[84]. - Revenue from the "Emperor Seal" brand significantly increased by approximately HKD 4.4 million or approximately 39.3% to about HKD 15.6 million, driven by the recovery from COVID-19 in China[85]. Cash Flow and Financing - For the six months ended June 30, 2021, the company reported a net cash inflow from operating activities of HKD 19,429,000, compared to HKD 10,205,000 for the same period in 2020, representing an increase of 90%[15]. - The company incurred net cash outflow from financing activities of HKD 22,453,000 for the six months ended June 30, 2021, compared to HKD 17,236,000 in the same period of 2020, indicating an increase in cash used for financing[15]. - Approximately HKD 30.5 million of the net proceeds from the share issuance has been utilized as of June 30, 2021, with HKD 6.8 million remaining unutilized[121]. Operational Strategies - Management is implementing various cost control measures to improve operational performance and cash flow, including delaying the opening of new branches or closing underperforming ones[21]. - The company plans to adopt a conservative approach to operations due to the economic downturn in Hong Kong and the ongoing challenges posed by COVID-19, including reduced tourist numbers and government restrictions[95]. - The company established an online sales platform at the end of 2020 to promote packaged foods and sauces, aiming to diversify revenue sources and reduce reliance on restaurant operations[96]. - The company intends to delay the opening of new restaurants until the overall economic and political environment is deemed suitable for expansion, which was initially planned for the end of 2021[121]. - The company is negotiating rent reductions with landlords due to the impact of COVID-19 on restaurant operations and reduced tourist numbers[95]. - The company will continue to evaluate market conditions and adjust its business strategies accordingly to balance the expansion of restaurants with the closure of underperforming locations[98]. Corporate Governance - The company has appointed Mr. Chen Gaozhang as the Compliance Officer and CEO, effective July 13, 2021[149]. - The company has adopted the GEM Listing Rules regarding the trading standards for directors, confirming compliance with no non-compliance incidents reported[155]. - The company has committed to non-competition agreements with its major shareholders to avoid potential conflicts of interest[152]. - The board believes that good corporate governance is essential for managing the company's business and affairs[163]. - The company has acknowledged deviations from the corporate governance code, particularly in providing monthly updates to the board[163]. - The company has only two independent non-executive directors and two audit committee members, which is below the minimum required by GEM Listing Rules[165]. - The audit committee is chaired by Ms. Leung Hoi Kei and includes Mr. Li Yiu Keung, both of whom are independent non-executive directors[166]. Miscellaneous - The company did not declare any interim dividend for the six months ended June 30, 2021, consistent with the previous year[53]. - The company purchased property, plant, and equipment for approximately HKD 0.4 million during the six months ended June 30, 2021, down from HKD 2.3 million in 2020[56]. - The company recognized rental concessions of approximately HKD 4,230,000, with about HKD 1,053,000 related to COVID-19[38]. - Trade receivables as of June 30, 2021, were HKD 1,975,000, a decrease from HKD 2,368,000 as of December 31, 2020[57]. - The company’s tax expense is calculated based on a two-tiered profit tax rate system, with the first HKD 2,000,000 of profits taxed at 8.25%[49]. - The group had no significant investments, acquisitions, or disposals of subsidiaries or associated companies as of June 30, 2021[127]. - The group maintained a prudent treasury policy to manage cash reserves and ensure readiness for future growth opportunities[130]. - The group reported no significant foreign exchange risk, with most revenues and expenses denominated in HKD and RMB[129]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries in the six months ending June 30, 2021[146]. - The group's unaudited consolidated performance for the six months ended June 30, 2021, has not been reviewed by the company's auditors[167].

Financial Performance - The Group's revenue for the three months ended March 31, 2021, was HKD 49,149,000, a decrease of 14.8% compared to HKD 57,652,000 for the same period in 2020[6] - Gross profit for the same period was HKD 32,736,000, down 18.6% from HKD 40,264,000 in 2020[6] - The Group reported a loss before tax of HKD 5,008,000, an improvement from a loss of HKD 9,132,000 in the same quarter of 2020, representing a 45.5% reduction in losses[6] - Basic and diluted loss per share was HKD 0.35, compared to HKD 0.63 for the same period in 2020, indicating a 44.4% improvement[6] - Total comprehensive loss for the period was HKD 5,115,000, compared to HKD 9,034,000 in the previous year, reflecting a 43.5% decrease[8] - The company recorded a loss attributable to owners of approximately HKD 5.0 million for the three months ended March 31, 2021, a decrease from a loss of HKD 9.1 million in the same period in 2020[53] Income and Gains - Other income and net gains increased significantly to HKD 7,476,000, compared to HKD 1,595,000 in the previous year, marking a growth of 367.4%[6] - The group recorded other income and net gains of HKD 4,200,000 from government subsidies, significantly up from HKD 1,400,000 in the previous year[22] - Other income and net gains increased significantly by approximately HKD 5.9 million or 368.75% to about HKD 7.5 million, mainly due to a one-time subsidy of HKD 4.2 million from the Food and Environmental Hygiene Department[47] Employee Costs - The Group's employee costs were HKD 22,561,000, down from HKD 24,149,000 in the previous year, a reduction of 6.6%[6] - Employee costs decreased by approximately HKD 1.5 million or 6.2% to about HKD 22.6 million, as all directors and employees agreed to unpaid leave as a cost control measure[49] Depreciation and Assets - Depreciation of property, plant, and equipment was HKD 1,768,000, significantly lower than HKD 3,232,000 in 2020, a decrease of 45.3%[6] - The Group's total assets and liabilities have not been disclosed in the provided documents, indicating a need for further financial details in future reports[12] Business Environment - The group faced a challenging business environment due to COVID-19, particularly in Hong Kong, impacting customer numbers and visit frequency[35] - The group’s financial performance was adversely affected by ongoing COVID-19 outbreaks and related preventive measures[35] - The group’s restaurant operations in Shanghai showed improvement due to effective control of COVID-19, contrasting with the situation in Hong Kong[34] Revenue Breakdown - Revenue from customer contracts in restaurant operations was HKD 49,149,000 for the three months ended March 31, 2021, compared to HKD 57,652,000 in 2020[3] - Revenue from the Dragon Emperor brand decreased by approximately HKD 8.6 million or 22.0% to about HKD 30.5 million due to COVID-19 restrictions impacting restaurant operations[41] - Revenue from the Dragon Seal brand decreased by approximately HKD 0.3 million or 4.9% to about HKD 5.8 million, also affected by COVID-19 measures[43] - Revenue from the Dragon Robe brand decreased by approximately HKD 0.9 million or 17.3% to about HKD 4.3 million, primarily due to the pandemic[44] - Revenue from the Emperor brand increased significantly by approximately HKD 4.2 million or 97.7% to about HKD 8.5 million, as the COVID-19 situation in China improved[45] Corporate Governance - The board believes that good corporate governance is essential for managing the company's business and affairs, and it has complied with the corporate governance code during the reporting period[71] - The audit committee was established on December 15, 2017, and is chaired by independent non-executive director Ms. Leung Hoi Kei, with other members including independent non-executive directors Mr. Lam Chi Sang and Mr. Lee Yiu Keung[73] - The audit committee's main responsibilities include reviewing financial information, internal control procedures, and risk management systems, ensuring compliance with GEM listing rules[73] - The group’s unaudited consolidated financial statements for the three months ended March 31, 2021, have been reviewed by the audit committee, confirming compliance with applicable accounting standards and GEM listing rules[74] Shareholding and Dividends - The group did not recommend any dividend distribution for the three months ended March 31, 2021, consistent with the previous year[29] - As of March 31, 2021, Ms. Li Jingnong and Mr. Huang Yongzhi each hold 578,880,000 shares, representing a 40.20% ownership stake in the company[60] - Mr. Huang Yongkang holds 10,800,000 shares, which accounts for 0.75% of the company's total shares[60] - The total number of shares held by major shareholders, including Wanli Development Limited, is 578,880,000, equivalent to 40.20% of the company's shares[64] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the three months ending March 31, 2021[67] - The company has adopted the trading standards outlined in GEM Listing Rules for directors' securities transactions, confirming compliance with these standards[68] - No stock options were granted, exercised, expired, or lapsed during the three months ending March 31, 2021, and there are no unexercised stock options under the stock option plan[69] Future Plans - The company plans to expand its online sales platform for packaged foods and sauces to mitigate operational and financial risks associated with the pandemic[57]

Financial Performance - The group's revenue decreased by approximately 51.3% from HKD 402.3 million in 2019 to about HKD 196.0 million in 2020, primarily due to the impact of COVID-19 and related restrictions[12]. - The group recorded a loss attributable to owners of approximately HKD 74.8 million for the year ended December 31, 2020, significantly influenced by the pandemic and government measures[12]. - The group's total revenue for the year ended December 31, 2020, was approximately HKD 196.0 million, a significant decrease of about HKD 206.3 million or approximately 51.3% compared to HKD 402.3 million for the year ended December 31, 2019[24]. - The group's gross profit for the year ended December 31, 2020, was approximately HKD 135.0 million, a decrease of about HKD 142.7 million or approximately 51.4% compared to HKD 277.7 million for the year ended December 31, 2019[35]. - The group reported a loss attributable to owners of approximately HKD 74.8 million for the year ended December 31, 2020, compared to a loss of HKD 35.5 million in 2019, driven by reduced revenue and impairment losses due to COVID-19[47]. Revenue Breakdown by Brand - The revenue from the "Dragon Emperor" brand decreased by approximately HKD 107.4 million or about 46.8% to approximately HKD 122.2 million for the year ended December 31, 2020, primarily due to the impact of COVID-19[29]. - The "Dragon Seal" brand's revenue fell by approximately HKD 33.8 million or about 58.4% to approximately HKD 24.1 million for the year ended December 31, 2020, also due to COVID-19[30]. - The "Dragon Robe" brand's revenue decreased by approximately HKD 10.6 million or about 37.3% to approximately HKD 17.8 million for the year ended December 31, 2020, attributed to COVID-19[31]. - The "Emperor Seal" brand's revenue declined by approximately HKD 6.8 million or about 18.8% to approximately HKD 29.4 million for the year ended December 31, 2020, mainly due to temporary closure during the pandemic[33]. - The "Dragon Banquet" brand's revenue plummeted by approximately HKD 47.6 million or about 94.8% to approximately HKD 2.6 million for the year ended December 31, 2020, following the sale of a store[34]. Cost Management and Operational Strategies - The group plans to adopt a conservative approach to operations in light of the economic downturn and challenges posed by COVID-19, including high employee and food costs[13]. - Cost-saving measures and emergency plans have been implemented to navigate the adverse business environment caused by the pandemic[15]. - The group will continue to monitor its cost structure closely and reduce expenses to enhance efficiency and create more value for shareholders[17]. - Employee costs for the year ended December 31, 2020, were approximately HKD 87.5 million, a decrease of about HKD 62.5 million or approximately 41.7% compared to HKD 150.0 million in the previous year, due to cost control measures[38]. - Other operating expenses reduced by approximately HKD 18.8 million or 29.3% to about HKD 45.4 million, attributed to improved operational efficiency and cost control measures[44]. Online Sales and Revenue Diversification - The group has established an online sales platform to promote packaged foods and sauces, aiming to diversify revenue sources and reduce reliance on restaurant operations[15]. - The group established an online sales platform by the end of 2020 to promote packaged foods and sauces, aiming to diversify revenue sources amid COVID-19 challenges[49]. Rent Negotiations and Financial Adjustments - The group is negotiating rent reductions with landlords due to the inability of some restaurants to operate during the pandemic[13]. - Rental and related expenses decreased by approximately HKD 7.0 million or 22.0% to about HKD 24.9 million, primarily due to rent waivers from landlords amid COVID-19[43]. Management and Governance - The management team will be strengthened, with a focus on training employees, particularly in environmental awareness and waste recycling[16]. - The company has a strong management team with extensive industry experience, including Mr. Huang Yongkang, who has over 34 years in the restaurant industry and joined the group in 2004[94]. - The company is focused on strategic development and operational management to enhance overall business performance[94]. - The board includes members with diverse expertise, ensuring comprehensive oversight and strategic direction for the company[97]. Corporate Governance and Compliance - The company has maintained compliance with all applicable corporate governance codes as of December 31, 2020[113]. - The board consists of a majority of independent non-executive directors, exceeding the GEM listing rules requirement of at least one-third[119]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, each with clear written terms of reference[126]. - The company encourages directors to participate in ongoing professional development to enhance their governance knowledge[125]. Future Outlook and Growth Plans - The management has provided an optimistic outlook, forecasting a 10% growth in overall revenue for the next fiscal year[105]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of the fiscal year[101]. - New product launches are expected to contribute an additional HKD 100 million in revenue over the next two quarters[102]. - A strategic acquisition is in progress, which is projected to enhance the company's service offerings and increase revenue by 20%[104]. Shareholder Communication and Rights - The company has multiple communication channels with shareholders, including annual reports and special meetings[168]. - Shareholders can propose individual resolutions at the general meeting to safeguard their rights and interests[157].