Financial Performance - For the three months ended September 30, 2020, the group reported a revenue of HKD 40,039,000, a decrease of 58.3% compared to HKD 96,055,000 for the same period in 2019[6] - The gross profit for the three months ended September 30, 2020, was HKD 27,024,000, down 58.9% from HKD 65,794,000 in the previous year[6] - The net loss attributable to owners of the company for the three months ended September 30, 2020, was HKD 4,332,000, compared to a loss of HKD 13,865,000 in the same period of 2019, representing a 68.7% improvement[6] - For the nine months ended September 30, 2020, the group reported a total revenue of HKD 146,081,000, a decrease of 53.1% from HKD 311,727,000 in the same period of 2019[6] - The net loss attributable to owners for the nine months ended September 30, 2020, was HKD 16,245,000, compared to a loss of HKD 23,365,000 in the same period of 2019, indicating a 30.4% improvement[6] - The group recorded total revenue of approximately HKD 146.1 million for the nine months ended September 30, 2020, a significant decrease of approximately HKD 165.6 million or 53.1% compared to HKD 311.7 million for the same period in 2019[35] - The group's gross profit for the nine months ended September 30, 2020, was approximately HKD 101.8 million, a decrease of approximately HKD 111.9 million or 52.4% compared to HKD 213.7 million for the same period in 2019[44] Revenue Breakdown - Revenue from customer contracts in the restaurant operation for the three months ended September 30, 2020, was HKD 40,039 thousand, a decrease of 58% compared to HKD 96,055 thousand for the same period in 2019[17] - For the nine months ended September 30, 2020, revenue from customer contracts was HKD 146,081 thousand, down 53% from HKD 311,727 thousand in 2019[17] - Revenue from the "Dragon Emperor" brand decreased by approximately HKD 88.1 million or 49.2% to approximately HKD 90.9 million for the nine months ended September 30, 2020[38] - Revenue from the "Dragon Seal" brand decreased by approximately HKD 27.6 million or 60.8% to approximately HKD 17.8 million for the nine months ended September 30, 2020[39] - Revenue from the "Dragon Robe" brand decreased by approximately HKD 8.0 million or 37.0% to approximately HKD 13.6 million for the nine months ended September 30, 2020[40] - Revenue from the "Emperor's Seal" brand decreased by approximately HKD 7.7 million or 27.0% to approximately HKD 20.8 million for the nine months ended September 30, 2020[41] - Revenue from the "Dragon Banquet" brand decreased by approximately HKD 34.3 million or 92.2% to approximately HKD 2.9 million for the nine months ended September 30, 2020, primarily due to the sale of the "Sheung Shui" branch[42] Other Income and Costs - Other income and net gains for the three months ended September 30, 2020, totaled HKD 7,974 thousand, compared to HKD 304 thousand in 2019[21] - Other income and net gains increased significantly to approximately HKD 17.9 million for the nine months ended September 30, 2020, from approximately HKD 1.2 million for the same period in 2019, mainly due to government subsidies[45] - Employee costs decreased by approximately HKD 51.0 million or 45.1% to approximately HKD 62.2 million for the nine months ended September 30, 2020, due to cost control measures[46] Operational Challenges - The company is adopting a conservative approach to operations due to the economic downturn caused by COVID-19, which has led to weakened consumer sentiment and reduced tourist numbers[53] - The restaurant industry is facing severe challenges, including a slowdown in Hong Kong's economic growth and government-imposed restrictions on dining establishments[53] - Employee and food costs remain relatively high, putting pressure on the company to balance cost control with food and service quality[53] - The company is negotiating rent reductions with landlords due to the inability of some restaurants to operate amid COVID-19 restrictions[53] - A series of cost-saving measures and contingency plans are being implemented to overcome current business difficulties[54] - The company aims to balance the expansion of its restaurants with the closure of underperforming locations in response to market conditions[54] Shareholder Information - As of September 30, 2020, the company’s major shareholders include individuals and entities holding significant stakes, with the largest being 578,880,000 shares, representing approximately 40.20%[56] - Good Vision Limited and its controlling entities also hold 237,600,000 shares, accounting for 16.50% of the company[60] Compliance and Governance - The company has maintained compliance with the corporate governance code as per GEM Listing Rules during the reporting period[76] - The company has confirmed that there are no interests held by its compliance advisor that require disclosure under GEM Listing Rules[75] - The audit committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2020, ensuring compliance with applicable accounting standards and GEM Listing Rules[79] - The company has adopted the trading standards as per GEM Listing Rules, confirming that all directors complied with these standards during the reporting period[66] - The company’s board includes independent non-executive directors, ensuring proper governance and oversight[77] Dividends and Share Options - The company did not recommend any dividend for the nine months ended September 30, 2020, consistent with 2019[30] - No share options were granted under the share option scheme during the nine months ended September 30, 2020[73] - The maximum number of shares that may be issued upon exercise of options under the share option scheme is capped at 10% of the total issued shares, equating to a maximum of 144,000,000 shares[68] - The company’s share option plan is valid for 10 years from December 15, 2017[72] Accounting Policies - The group has maintained its accounting policies consistent with those adopted in the audited annual report for the year ended March 23, 2020, with no significant changes impacting the financial statements[13] - The company’s financial statements for the nine months ended September 30, 2020, were prepared based on historical cost convention and presented in thousands of HKD[15] - The company is currently evaluating the impact of new and revised standards on its financial performance and position, but has not identified any significant financial impact[14]

Financial Performance - For the six months ended June 30, 2020, the Group reported revenue of HKD 106,042,000, a decrease of 50.8% compared to HKD 215,672,000 for the same period in 2019[11] - The gross profit for the six months ended June 30, 2020, was HKD 74,741,000, down 49.6% from HKD 147,931,000 in the previous year[11] - The Group recorded a loss attributable to owners of the company of HKD 11,913,000 for the six months ended June 30, 2020, compared to a loss of HKD 9,500,000 for the same period in 2019, representing a 25.5% increase in loss[11] - Basic and diluted loss per share for the six months ended June 30, 2020, was HKD 0.83, compared to HKD 0.66 for the same period in 2019[11] - The Group's total comprehensive loss for the six months ended June 30, 2020, was HKD 11,766,000, compared to HKD 9,760,000 for the same period in 2019, indicating a 20.5% increase in total comprehensive loss[13] - The Group's net loss before tax for the three months ended June 30, 2020, was HKD 2,781,000, compared to a loss of HKD 9,858,000 in the same period of 2019, showing a 71.8% improvement[11] Revenue Breakdown - Revenue from restaurant operations for the six months ended June 30, 2020, was HKD 106,042, a decrease of 50.9% from HKD 215,672 in 2019[36] - Revenue from the Hong Kong and Macau market for the six months ended June 30, 2020, was HKD 94,822, down 51.6% from HKD 195,920 in 2019[36] - Revenue from Long Wang decreased by approximately HKD 54.5 million or 44.1% to about HKD 69.2 million for the six months ended June 30, 2020, compared to HKD 123.7 million for the same period in 2019[65] - Long Xi's revenue fell by approximately HKD 20.3 million or 61.5% to about HKD 12.7 million, primarily due to pandemic-related measures[67] - Long Pao's revenue decreased by approximately HKD 5.4 million or 35.1% to about HKD 10.0 million, attributed to the pandemic and related restrictions[68] - Revenue from Huang Xi dropped by approximately HKD 8.6 million or 43.4% to about HKD 11.2 million, mainly due to temporary closure during the pandemic[69] - Long Yan's revenue plummeted by approximately HKD 21.0 million or 87.9% to about HKD 2.9 million, following the sale of a branch in mid-January 2020[70] Expenses and Cost Management - The Group's operating expenses included employee costs of HKD 20,443,000 for the three months ended June 30, 2020, compared to HKD 34,665,000 in the same period of 2019, reflecting a decrease of 41%[11] - The Group's financing costs for the six months ended June 30, 2020, were HKD 8,124,000, down from HKD 18,267,000 in the same period of 2019, a reduction of 55.5%[11] - Employee costs decreased by approximately HKD 30.0 million or 40.2% to about HKD 44.6 million, due to unpaid leave measures[73] - Management has implemented a seven-day unpaid leave for all directors, senior management, and employees starting from February 2020 to save costs[26] Assets and Liabilities - As of June 30, 2020, total non-current assets decreased to HKD 130,118 thousand from HKD 174,437 thousand, representing a decline of approximately 25.4%[15] - Current assets totaled HKD 79,333 thousand, a slight decrease from HKD 82,475 thousand, reflecting a reduction of about 3.1%[15] - Total liabilities decreased from HKD 238,715 thousand as of December 31, 2019, to HKD 203,020 thousand, indicating a reduction of approximately 15.0%[17] - The net asset value dropped significantly to HKD 6,431 thousand from HKD 18,197 thousand, a decline of about 64.7%[17] - Cash and cash equivalents at the end of the period were HKD 10,086 thousand, down from HKD 14,227 thousand, a decrease of approximately 29.0%[15] - The total current liabilities amounted to HKD 157,775 thousand, slightly down from HKD 159,495 thousand, a decrease of about 1.1%[15] Financing and Cash Flow - The company reported a net cash outflow from financing activities of HKD 17,236 thousand for the six months ended June 30, 2020, compared to an inflow of HKD 4,065 thousand in the same period of 2019[20] - The group’s total liabilities include approximately HKD 43,670,000 in bank borrowings, with HKD 21,073,000 due within the next twelve months[26] - The company has repaid four outstanding bank loans totaling HKD 3.0 million ahead of schedule[81] Corporate Governance and Compliance - The company has confirmed compliance with the GEM Listing Rules regarding securities trading by directors, with no non-compliance incidents reported during the period[127] - The board believes that good corporate governance is essential for managing the company's business and has complied with the corporate governance code during the reporting period[135] - The audit committee was established on December 15, 2017, and is chaired by independent non-executive director Mr. Kwan Ping Man[136] - The audit committee confirmed that the financial statements comply with applicable accounting standards and GEM listing rules, ensuring adequate disclosure[138] Future Plans and Strategies - The group plans to delay the opening of new branches and close underperforming ones as part of cost control measures[26] - The company plans to enhance promotional efforts and introduce new seasonal dishes to maintain competitiveness amid economic challenges[78] - The company plans to delay the opening of new restaurants until the overall economic and political environment is deemed suitable, expected by the end of 2021[100] Shareholder Information - Major shareholders include Wanli Development Limited and Good Vision Limited, each holding approximately 40.20% and 16.50% of the shares, respectively[118] - The company’s major shareholders include individuals and entities with significant voting rights, such as Mr. Chen and Ms. Qu, who control over 33.70% of the voting rights in Tang Palace (China) Holdings Limited[120]

Financial Performance - The group's revenue for the three months ended March 31, 2020, was HKD 57,652,000, a decrease of 50.8% compared to HKD 117,027,000 in the same period of 2019[5] - Gross profit for the same period was HKD 40,264,000, down 49.8% from HKD 80,029,000 year-on-year[5] - The group reported a loss before tax of HKD 9,132,000, compared to a profit of HKD 1,183,000 in the previous year[5] - The loss attributable to owners of the company for the period was HKD 9,132,000, compared to a profit of HKD 523,000 in the same period last year[5] - Basic and diluted loss per share was HKD (0.63), compared to earnings of HKD 0.04 per share in the previous year[5] - The overall comprehensive loss for the period was HKD 9,034,000, compared to a comprehensive income of HKD 430,000 in the previous year[7] - Revenue for Long Wong decreased from approximately HKD 70.0 million for the three months ended March 31, 2019, to approximately HKD 39.1 million for the same period in 2020, a decline of about HKD 30.9 million or approximately 44.1%[36] - Long Xi's revenue fell from approximately HKD 17.3 million to approximately HKD 6.1 million, a decrease of about HKD 11.2 million or approximately 64.7%[37] - Long Pao's revenue decreased from approximately HKD 8.0 million to approximately HKD 5.2 million, a decline of about HKD 2.8 million or approximately 35.0%[39] - Overall gross profit for the group was approximately HKD 40.3 million, down from approximately HKD 80.0 million, a decrease of about HKD 39.7 million or approximately 49.6%[42] Other Income and Expenses - Other income and net gains for the period were HKD 1,595,000, an increase from HKD 409,000 in the same period of 2019[5] - The company reported other income and net gains of HKD 1.6 million for the three months ended March 31, 2020, compared to HKD 0.4 million in 2019[21] - Employee costs decreased to HKD 24,149,000 from HKD 39,912,000, reflecting a reduction of 39.7%[5] - Employee benefit expenses (excluding directors and CEO remuneration) were HKD 21.6 million for the three months ended March 31, 2020, down from HKD 35.5 million in 2019[23] - Depreciation of property, plant, and equipment was HKD 3,232,000, down from HKD 4,505,000, indicating a decrease of 28.3%[5] - Rental and related expenses decreased from approximately HKD 9.1 million to approximately HKD 5.4 million, a decline of about HKD 3.7 million or approximately 40.7%[46] Impact of COVID-19 - The company’s financial performance was impacted by the COVID-19 pandemic, leading to a significant decline in revenue[33] - The company will adopt a conservative approach to operations due to the economic downturn and will increase promotional efforts to maintain competitiveness[50] - The group plans to continuously adjust its business strategies to respond to the changing economic and restaurant industry conditions[51] Shareholder Information - As of March 31, 2020, Wanli Development Limited holds 578,880,000 shares, representing 40.20% of the company's equity[56] - Good Vision Limited and its controlled entities collectively own 237,600,000 shares, accounting for 16.50% of the company's equity[56] - Wise Alliance Limited holds 108,000,000 shares, which is 7.50% of the company's equity[58] Corporate Governance - The company confirmed compliance with the GEM Listing Rules regarding securities trading by directors, with no non-compliance incidents reported[65] - The company has adopted a share option plan allowing the issuance of options to directors, employees, and stakeholders to incentivize and retain talent, with a maximum of 144,000,000 shares available for issuance under this plan, representing 10% of the total issued shares[67] - No share options were granted under the company's share option plan for the three months ending March 31, 2020[72] - The company’s audit committee, established on December 15, 2017, is responsible for reviewing financial information, internal controls, and risk management systems[75] - The company has complied with GEM Listing Rules regarding the audit committee, which must include at least one independent non-executive director with appropriate professional qualifications or accounting expertise[77] - The company’s unaudited condensed consolidated financial statements for the three months ending March 31, 2020, were reviewed by the audit committee and deemed to comply with applicable accounting standards and GEM Listing Rules[77] Dividends - The company did not recommend any dividend for the three months ended March 31, 2020, consistent with no dividend in 2019[27] Business Operations - The company operates ten full-service restaurants under four owned brands, primarily located in Hong Kong, Macau, and Shanghai[32] - The company sold the "Dragon Banquet" restaurant in Sheung Shui on January 17, 2020, due to poor financial performance in recent years[32]

Financial Performance - The group's revenue decreased by 3.1% from HKD 415.0 million in 2018 to approximately HKD 402.3 million in 2019, primarily due to social instability in Hong Kong starting June 2019[12] - The group recorded a loss attributable to owners of approximately HKD 35.5 million, mainly due to reduced revenue caused by the economic situation and social unrest in Hong Kong[12] - The group's total revenue for the year ended December 31, 2019, was approximately HKD 402.3 million, a decrease of about HKD 12.7 million or approximately 3.1% compared to HKD 415.0 million for the year ended December 31, 2018[20] - Revenue from the "Dragon Emperor" brand decreased by approximately HKD 22.1 million or about 8.8% to approximately HKD 229.6 million, primarily due to the closure of the old Wan Chai restaurant[28] - Revenue from the "Dragon Robe" brand increased by approximately HKD 21.0 million to approximately HKD 28.4 million, attributed to full-year operations compared to only five months in the previous year[30] - The overall gross profit for the year was approximately HKD 277.7 million, a decrease of about HKD 2.7 million or approximately 1.0% from HKD 280.4 million in the previous year[34] - The overall gross profit margin slightly increased from approximately 67.6% to approximately 69.0%, mainly due to tighter control over food costs[34] - The group recorded a loss attributable to owners of the company of approximately HKD 35.5 million, a decrease from HKD 58.1 million in the previous year[46] - The reduction in loss was mainly due to overall cost-saving measures implemented in restaurant operations during the year[47] Operational Challenges - The group faces significant challenges in the restaurant industry, including reduced consumer sentiment and decreased tourist numbers affecting overall consumption[13] - The group plans to adopt a conservative approach to operations in light of the economic downturn and the impact of the COVID-19 pandemic[13] - The group is negotiating rent reductions with landlords due to the inability of some restaurants to operate amid ongoing protests and the pandemic[13] - The company is experiencing high employee and food costs, impacting its ability to balance cost control with food quality[48] Cost Management and Efficiency - The group will continue to monitor its cost structure and reduce expenses to improve efficiency and create more value for shareholders[14] - Employee costs remained stable at approximately HKD 150.0 million, compared to HKD 150.1 million in the previous year[36] - The group's rental and related expenses decreased by approximately HKD 44.5 million or about 58.2% to approximately HKD 31.9 million, primarily due to reclassification under HKFRS 16[41] - Other operating expenses decreased by approximately HKD 9.2 million or about 12.5% to approximately HKD 64.2 million, mainly due to tighter cost control[42] Future Plans and Strategies - The company plans to delay the opening of new restaurants until the overall economic and political environment is deemed suitable for expansion[60] - The company aims to enhance brand awareness through increased marketing efforts across traditional media and online platforms[54] - The company continues to renovate existing restaurant facilities to attract new and returning customers[54] - The company is exploring potential acquisitions to diversify its portfolio, with a budget of up to HKD 300 million allocated for this purpose[95] - A new marketing strategy is being implemented, expected to increase brand awareness by 30% within the next six months[95] Corporate Governance - The company is committed to maintaining high levels of corporate governance, which is crucial for gaining and maintaining shareholder trust[109] - The board has confirmed compliance with all applicable corporate governance codes for the year ending December 31, 2019[110] - The board of directors includes three independent non-executive directors, exceeding the GEM listing rules requirement of at least one-third[115] - The independent non-executive directors have confirmed their independence according to GEM listing rules, ensuring unbiased opinions on strategy and performance[117] - The company has established three board committees: remuneration, nomination, and audit, each with clear written terms of reference[122] Shareholder Returns - The company did not recommend the payment of a final dividend for the year ended December 31, 2019[72] - The board has approved a dividend payout of HKD 0.10 per share, maintaining a consistent return to shareholders[95] - The company reserves the right to review and amend its dividend policy at any time[168] - The company has no obligations to declare any specific amount of dividends at any time[168] Employee Management - The total employee cost for the years ended December 31, 2019, and 2018 was approximately HKD 150.0 million and HKD 150.1 million, respectively, with a workforce of 590 employees as of December 31, 2019[74] - The company's senior management compensation ranges from HKD 1,000,000 and below for 2 individuals, with no one earning between HKD 1,000,001 and HKD 2,000,000, and none earning above HKD 2,000,000[196] - The compensation policy includes fixed components (base salary) and variable components (discretionary bonuses and other rewards), considering experience, responsibilities, individual performance, group profit performance, and overall market conditions[197] Environmental Initiatives - The group has implemented various green initiatives to reduce resource consumption and carbon emissions, ensuring compliance with local environmental laws and regulations[81]

Financial Performance - For the three months ended September 30, 2019, the group's revenue was HKD 96,055 thousand, a decrease of 4% from HKD 100,229 thousand in the same period of 2018[6]. - For the nine months ended September 30, 2019, the group's revenue increased slightly to HKD 311,727 thousand, compared to HKD 308,624 thousand in the same period of 2018, reflecting a growth of 1%[6]. - The group reported a loss attributable to owners of the company of HKD 13,865 thousand for the three months ended September 30, 2019, compared to a profit of HKD 301 thousand in the same period of 2018[6]. - The loss attributable to owners for the nine months ended September 30, 2019, was HKD 23,365 thousand, compared to a loss of HKD 21,762 thousand in the same period of 2018[6]. - The basic and diluted loss per share for the three months ended September 30, 2019, was HKD (0.96), compared to earnings of HKD 0.02 per share in the same period of 2018[6]. - The total comprehensive loss for the three months ended September 30, 2019, was HKD 13,908 thousand, compared to a comprehensive income of HKD 359 thousand in the same period of 2018[8]. - The group recorded a loss attributable to owners of the company of approximately HKD 23.4 million for the nine months ended September 30, 2019, compared to a loss of approximately HKD 21.8 million for the same period in 2018[62]. - The basic loss per share for the nine months ended September 30, 2019, was HKD (1.62), compared to HKD (1.53) for the same period in 2018[39]. Revenue Breakdown - For the three months ended September 30, 2019, the revenue from customer contracts was HKD 96,055 thousand, a decrease from HKD 100,229 thousand in the same period of 2018, representing a decline of approximately 2.2%[25]. - For the nine months ended September 30, 2019, the total revenue from customer contracts was HKD 311,727 thousand, slightly up from HKD 308,624 thousand in the same period of 2018, indicating a growth of about 0.7%[25]. - The revenue from customer contracts in Hong Kong and Macau for the nine months ended September 30, 2019, was HKD 283,191 thousand, compared to HKD 277,225 thousand in 2018, reflecting an increase of approximately 2.9%[25]. - Revenue from the "Dragon Emperor" brand decreased by approximately HKD 10.0 million or about 5.3% to approximately HKD 179.0 million for the nine months ended September 30, 2019, primarily due to reduced revenue from the old restaurant in Wan Chai[47]. - Revenue from the "Dragon Seal" brand increased by approximately HKD 3.0 million or about 7.1% to approximately HKD 45.4 million for the nine months ended September 30, 2019, mainly due to an increase in the number of banquets[49]. - Revenue for Long Pao increased from approximately HKD 1.8 million for the nine months ended September 30, 2018, to approximately HKD 21.6 million for the same period in 2019, a rise of about HKD 19.8 million[50]. - Revenue for Huang Xi decreased from approximately HKD 31.3 million for the nine months ended September 30, 2018, to approximately HKD 28.5 million for the same period in 2019, a decline of about HKD 2.8 million or approximately 8.9%[51]. - Revenue for Long Yan decreased from approximately HKD 44.1 million for the nine months ended September 30, 2018, to approximately HKD 37.2 million for the same period in 2019, a drop of about HKD 6.9 million or approximately 15.6%[52]. Expenses and Costs - Employee costs increased to approximately HKD 113.2 million for the nine months ended September 30, 2019, up about 9.0% from approximately HKD 103.9 million for the same period in 2018[55]. - Other operating expenses rose to approximately HKD 49.6 million for the nine months ended September 30, 2019, an increase of about HKD 2.8 million or approximately 6.0% from approximately HKD 46.8 million for the same period in 2018[60]. - The group’s total tax expense for the nine months ended September 30, 2019, was HKD 825,000, compared to HKD 1.2 million for the same period in 2018[35]. Corporate Governance and Management - The board believes that good corporate governance is a key element in managing the group's business and affairs, and has complied with the corporate governance code during the reporting period[96]. - The audit committee of the company was established on December 15, 2017, and is chaired by independent non-executive director Mr. Kwan Ping Man[97]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2019, ensuring compliance with applicable accounting standards and GEM listing rules[99]. - The board of directors includes three executive directors and three independent non-executive directors as of the report date[99]. Future Plans and Market Strategy - The company plans to enhance brand awareness and expand its business through a multi-brand strategy in Hong Kong, focusing on new promotional menus and seasonal dishes[65]. - The company plans to utilize the net proceeds according to the prospectus, but may revise its plans based on changing market conditions to achieve sustainable business growth[73]. - The company has decided to postpone the opening of new restaurants until deemed appropriate by the board due to the current economic situation and social instability in Hong Kong[73]. Shareholder Information - Major shareholders include Wan Li Development Limited and Good Vision Limited, each holding 40.2% and 16.5% of the shares respectively[79]. - The board and senior management hold significant interests in the company, with Ms. Li Jingnong and Mr. Huang Yongzhi each holding 578,880,000 shares, representing 40.2%[75]. - The company has a total of 237,600,000 shares held by Good Vision Limited, which is controlled by Hong Kong Tang Palace Catering Group Limited[79]. Financial Reporting and Standards - The adoption of the new and revised Hong Kong Financial Reporting Standards did not have any significant financial impact on the unaudited condensed consolidated financial statements[18]. - The Group estimated the recognition of right-of-use assets and lease liabilities at HKD 126.0 million upon the adoption of HKFRS 16 on January 1, 2019[19]. - The unaudited condensed consolidated financial statements are presented in thousands of Hong Kong dollars (HKD thousand) and are based on historical cost convention[21]. - The company has not applied any new or revised standards that have been issued but are not yet effective, and is currently assessing their potential impact[21]. - No share options were granted, exercised, lapsed, or expired under the share option scheme during the nine months ended September 30, 2019[93].

Financial Performance - For the six months ended June 30, 2019, the group reported a revenue of HKD 215,672,000, an increase from HKD 208,395,000 in the same period of 2018, representing a growth of approximately 3.1%[10] - The gross profit for the six months ended June 30, 2019, was HKD 147,931,000, compared to HKD 141,914,000 in 2018, reflecting a growth of about 4.3%[10] - The net loss attributable to equity holders for the three months ended June 30, 2019, was HKD 10,023,000, an improvement from a loss of HKD 14,152,000 in the same period of 2018, indicating a reduction in loss of approximately 29.8%[10] - The company reported a loss before tax of HKD 9,858,000 for the three months ended June 30, 2019, which is an improvement from a loss of HKD 14,015,000 in the same period of 2018, representing a decrease in loss of approximately 29.0%[10] - The total comprehensive loss for the six months ended June 30, 2019, was HKD 9,760,000, compared to HKD 21,581,000 in 2018, indicating a significant improvement of approximately 54.8%[20] - The group reported a loss attributable to equity holders of the company of HKD 9,500,000 for the six months ended June 30, 2019, compared to a loss of HKD 22,063,000 for the same period in 2018, representing a 57.0% improvement[65] Revenue and Market Performance - For the three months ended June 30, 2019, the operating revenue was HKD 98,645,000, an increase of 5.3% compared to HKD 93,155,000 for the same period in 2018[50] - Revenue from the Hong Kong and Macau market for the six months ended June 30, 2019, was HKD 195,920,000, representing an increase of 5.7% from HKD 186,567,000 in 2018[50] - Revenue from the "Dragon Emperor" brand decreased by approximately HKD 5.7 million or about 4.4% to approximately HKD 123.7 million, primarily due to the closure of an old restaurant and social unrest affecting consumer confidence[93] - Revenue from the "Dragon Seal" brand increased by approximately HKD 6.9 million or about 26.4% to approximately HKD 33.0 million, driven by an increase in the number of banquets[95] Expenses and Costs - The group incurred total operating expenses of HKD 74,577,000 for the six months ended June 30, 2019, compared to HKD 72,838,000 in 2018, showing an increase of about 2.4%[10] - The group’s employee costs for the six months ended June 30, 2019, were HKD 74,577,000, an increase from HKD 72,838,000 in 2018, representing a rise of about 2.4%[10] - The group’s employee benefits expenses, excluding directors and key management personnel, totaled HKD 33,159,000 for the six months ended June 30, 2019, compared to HKD 29,621,000 in 2018, marking a 11.5% increase[56] - Other operating expenses slightly increased by approximately HKD 0.5 million or about 1.5% to approximately HKD 33.4 million, primarily due to increased marketing and promotional expenses[105] Assets and Liabilities - Non-current assets increased significantly to HKD 193,474,000 as of June 30, 2019, compared to HKD 97,123,000 as of December 31, 2018, reflecting a growth of 99%[21] - Current assets totaled HKD 103,713,000, a slight increase from HKD 100,537,000 in the previous period, indicating a growth of 2.2%[21] - Total liabilities increased to HKD 162,340,000 from HKD 140,921,000, representing a rise of 15.2%[21] - The group’s current liabilities exceeded current assets by approximately HKD 58,627,000 as of June 30, 2019, primarily due to interest-bearing bank borrowings of about HKD 46,882,000[40] - The total equity decreased to HKD 43,463,000 from HKD 53,223,000, reflecting a decline of 18.3%[23] - Non-current liabilities surged to HKD 91,384,000 from HKD 3,516,000, indicating a substantial increase of 2,594%[23] Cash Flow and Financing - The net cash generated from operating activities was HKD 10,892,000, a significant improvement from a cash outflow of HKD 32,703,000 in the previous year[28] - The company reported a net cash inflow from investing activities of HKD 10,246,000, compared to a cash outflow of HKD 14,788,000 in the previous year[28] - Financing activities resulted in a net cash outflow of HKD 4,065,000, a decrease from a net inflow of HKD 79,504,000 in the previous year[28] - As of June 30, 2019, the group had cash and cash equivalents of approximately HKD 34.9 million, an increase from approximately HKD 18.0 million as of December 31, 2018, reflecting improved liquidity[122] - The group’s debt as of June 30, 2019, was approximately HKD 46.9 million, down from approximately HKD 50.5 million as of December 31, 2018, indicating a reduction in leverage[122] Corporate Governance and Compliance - The board believes that good corporate governance is a key element in managing the company's business and affairs, and it has complied with the corporate governance code during the reporting period[155] - The company has adopted the GEM Listing Rules regarding securities trading standards for its directors, confirming full compliance during the reporting period[151] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2019, and found them to comply with applicable accounting standards and GEM Listing Rules[159] - The audit committee's main responsibilities include reviewing financial information, internal control procedures, and risk management systems[157] Future Plans and Strategies - The group plans to utilize approximately HKD 20.6 million of the net proceeds for multi-brand expansion in Hong Kong, with HKD 3.0 million remaining unutilized as of June 30, 2019[118] - The group aims to balance the expansion of new outlets with the closure of underperforming locations in response to market conditions[109] - The group will increase promotional activities and seasonal menu offerings to maintain competitiveness amid challenging market conditions[109] - The group has committed to refurbishing existing restaurant facilities to attract new and returning customers[115]

Financial Performance - For the three months ended March 31, 2019, the Group reported revenue of HKD 117,027,000, a slight increase of 1.55% compared to HKD 115,240,000 in the same period of 2018[5]. - Gross profit for the same period was HKD 80,029,000, up from HKD 79,027,000, reflecting a gross margin improvement[5]. - The Group's net profit attributable to owners for the period was HKD 523,000, a significant recovery from a loss of HKD 7,911,000 in the previous year[5][8]. - Basic and diluted earnings per share for the period were HKD 0.04, compared to a loss per share of HKD 0.57 in the same quarter of 2018[5]. - The total comprehensive income for the period was HKD 430,000, compared to a loss of HKD 7,863,000 in the previous year[8]. - The total revenue for the three months ended March 31, 2019, was approximately HKD 117.0 million, a slight decrease of about HKD 1.8 million or 1.6% compared to HKD 115.2 million for the same period in 2018[57]. - The gross profit for the three months ended March 31, 2019, was approximately HKD 80.0 million, an increase of about HKD 1.0 million or 1.3% from HKD 79.0 million for the same period in 2018[66]. Cost Management - The Group's employee costs decreased to HKD 39,912,000 from HKD 41,951,000, indicating improved cost management[5]. - Other operating expenses were reduced to HKD 14,470,000 from HKD 17,528,000, contributing to the overall profitability[5]. - The group reported a decrease in employee benefits expenses, totaling HKD 37,385 thousand for the three months ended March 31, 2019, down from HKD 40,385 thousand in 2018, indicating a reduction of 7.4%[34]. - Rental and related expenses decreased from approximately HKD 18.8 million to HKD 9.6 million, a reduction of about 49.0%[71]. - Other operating expenses decreased from approximately HKD 17.5 million to HKD 14.5 million, a reduction of about 17.4%[72]. Financing and Investments - The Group incurred financing costs of HKD 566,000, up from HKD 437,000, reflecting increased borrowing costs[5]. - The Group's depreciation of property, plant, and equipment increased to HKD 4,505,000 from HKD 3,983,000, indicating ongoing investment in assets[5]. - The net proceeds from the share issuance amounted to approximately HKD 37.3 million after deducting underwriting commissions and actual expenses[81]. - As of March 31, 2019, approximately HKD 30.2 million of the net proceeds had been utilized, with the remaining balance held in licensed banks in Hong Kong[83]. Business Strategy and Operations - The Group continues to focus on expanding its restaurant operations in Hong Kong, Macau, and mainland China, aiming for market growth[15]. - The company plans to expand its business through a multi-brand strategy in Hong Kong, having opened new restaurants under the "Dragon King" and "Dragon Feast" brands[79]. - The company aims to enhance brand awareness through increased advertising efforts across traditional and online platforms[79]. - The company will continue to improve existing restaurant facilities to attract new and returning customers[79]. - The company will adjust its business strategies in response to market changes, balancing store expansions with the closure of underperforming locations[77]. Shareholder Information - As of March 31, 2019, Wanli Development Limited holds 578,880,000 shares, representing a 40.2% stake in the company[89]. - Good Vision Limited and its controlled entities collectively own 237,600,000 shares, accounting for 16.5% of the company's shares[89]. - Wise Alliance Limited holds 108,000,000 shares, which is 7.5% of the total shares outstanding[91]. - The total number of shares held by major shareholders indicates a concentrated ownership structure, with the top three shareholders holding over 74% of the shares[89]. - The company reported no significant changes in shareholder equity or major transactions during the quarter[98]. - No other individuals or entities, apart from those disclosed, held or were deemed to hold 10% or more of the company's shares as of March 31, 2019[97]. Compliance and Governance - The company has adopted the trading standards outlined in GEM Listing Rules, confirming full compliance by all directors since the listing date on January 16, 2018[101]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2019, ensuring compliance with applicable accounting standards and listing rules[106]. - The company believes that good corporate governance is a key element in managing its business, and it has complied with the corporate governance code as of March 31, 2019[104]. - The company has not engaged in any business that constitutes competition or potential competition with its group business as of March 31, 2019[99]. Dividends and Share Options - The company did not recommend the distribution of dividends for the three months ended March 31, 2019[39]. - The board does not recommend any dividend payment for the period ending March 31, 2019[76]. - No share options were granted, exercised, expired, or lapsed under the share option scheme as of March 31, 2019, indicating no outstanding unexercised options[102]. Revenue by Brand - The revenue generated by the "Dragon Emperor" brand decreased by approximately HKD 2.7 million or 3.7% to about HKD 69.956 million for the three months ended March 31, 2019[60]. - The revenue from the "Dragon Seal" brand increased by approximately HKD 3.1 million or 22.2% to about HKD 17.315 million for the three months ended March 31, 2019[61]. - The revenue from the "Dragon Robe" brand was approximately HKD 8.0 million for the three months ended March 31, 2019, as it began operations in August 2018[63]. - The revenue from the "Dragon Banquet" brand decreased by approximately HKD 5.7 million or 32.9% to about HKD 11.534 million for the three months ended March 31, 2019[65].

Financial Performance - The group's revenue slightly decreased by 0.8% from HKD 418.5 million in 2017 to approximately HKD 415.0 million in 2018[12]. - The group recorded a significant loss attributable to owners of approximately HKD 58.1 million, primarily due to factors such as decreased consumer sentiment from the US-China trade war and operational losses from newly opened restaurants[12]. - The group recorded total revenue of approximately HKD 415.0 million for the year ended December 31, 2018, a slight decrease of about HKD 3.5 million or approximately 0.8% compared to HKD 418.5 million for the year ended December 31, 2017[27]. - Revenue from the "Dragon Emperor" brand decreased by approximately HKD 4.7 million or about 1.9% to approximately HKD 251.7 million, primarily due to the closure of the Wanchai branch and the relocation of the new Wanchai branch under the "Dragon Robe" brand[30]. - Revenue from the "Dragon Seal" brand increased by approximately HKD 5.2 million or about 9.4% to approximately HKD 60.4 million, mainly due to an increase in the number of banquets[31]. - The overall gross profit was approximately HKD 280.4 million, a decrease of about HKD 6.6 million or approximately 2.3% compared to HKD 287.0 million for the previous year, with the gross profit margin slightly declining from approximately 68.6% to 67.6%[36]. - The group recorded a loss attributable to owners of approximately HKD 58.1 million for the year ended December 31, 2018, compared to a loss of approximately HKD 10.2 million for the year ended December 31, 2017, indicating a significant increase in losses[48]. Operational Changes - The group opened a new "Dragon King" restaurant in Kwai Chung and relocated the "Dragon King" restaurant in Wan Chai to a new location under the "Dragon Robe" brand[11]. - The group plans to enhance its marketing efforts and regularly introduce promotional menus and seasonal dishes to maintain competitive advantage[13]. - The group will continue to monitor its cost structure and reduce expenses to improve efficiency and ultimately create more value for shareholders[18]. - The group aims to strengthen and diversify its own brands, believing that brand recognition along with quality dishes and service is key to operational success[16]. - The group will adjust its business strategies in response to market changes and evaluate overall market conditions for future expansion[13]. - The group faced challenges in the operating environment, including increased rental and labor costs, impacting overall business stability[11]. - The group aims to balance the expansion of new branches with the closure of underperforming ones in response to market conditions[49]. Employee and Management - Employee costs increased by approximately HKD 18.7 million or about 14.2% to approximately HKD 150.1 million, mainly due to one-time discretionary bonuses and wages for the new branches[38]. - The group will enhance its management team and increase training for all employees, particularly in environmental awareness and waste recycling[17]. - The company had 650 employees as of December 31, 2018, an increase from 600 employees in 2017[73]. - The total employee cost for the year ended December 31, 2018, was approximately HKD 150.1 million, compared to HKD 131.4 million in 2017[73]. Financial Position - As of December 31, 2018, the group had bank borrowings of approximately HKD 50.5 million, an increase from approximately HKD 48.5 million in 2017[62]. - The group had cash and cash equivalents of approximately HKD 18.0 million as of December 31, 2018, compared to approximately HKD 15.9 million in 2017[62]. - As of December 31, 2018, the company's debt-to-equity ratio was approximately 70.0%, up from 66.0% in 2017[63]. - The company's operating lease commitments amounted to approximately HKD 157.7 million as of December 31, 2018, down from HKD 175.4 million in 2017[71]. Corporate Governance - The board has emphasized the importance of corporate governance, ensuring compliance with regulations and maintaining stakeholder trust[116]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[121]. - The independent non-executive directors have confirmed their independence, complying with GEM listing rules[123]. - The remuneration committee reviewed the compensation of directors and senior management, deeming it fair and reasonable as of December 31, 2018[132]. - The audit committee held four meetings during the year to review the company's annual and interim results, as well as internal control procedures[135]. - The nomination committee evaluates the composition and independence of the board, considering diversity factors such as gender and industry experience[134]. - The company emphasizes the importance of continuous professional development for directors, ensuring they stay updated on corporate governance practices[130]. - The roles of the chairman and CEO are separated to maintain a balance of power within the board[126]. - The company has established clear written terms of reference for all board committees, which are available on the stock exchange and company websites[131]. - The board is committed to adhering to corporate governance codes and regularly reviews its policies and practices[135]. Environmental and Social Responsibility - The company aims to maintain high standards in environmental protection and social responsibility, with annual disclosures of its performance in these areas[182]. - The environmental, social, and governance report is prepared in accordance with GEM listing rules and summarizes the group's performance during the reporting period from January 1, 2018, to December 31, 2018[183]. - In 2018, the group reported a total indirect CO2 emissions of 4,271 tons from energy use, a decrease of approximately 4% compared to 4,438 tons in 2017[200]. - The group generated NOx emissions of 0.080 tons in 2018, down from 0.090 tons in 2017, indicating a reduction of about 11.1%[195]. - The group has implemented measures to reduce vehicle emissions, including avoiding peak traffic times and encouraging public transport use[194]. - The group has established a comprehensive data collection system to enhance understanding of environmental, social, and governance (ESG) issues[186]. - The group engages with stakeholders through various channels, including annual general meetings and regular communications, to gather feedback on ESG performance[189]. - The group reported a total of 112.30 tons of indirect CO2 emissions from water treatment in 2018, a reduction of approximately 8% from 122.05 tons in 2017[200]. - The group focuses on sustainable operational performance, ensuring compliance with legal requirements and maintaining food safety and quality[190]. - The group aims to continuously improve its ESG reporting principles to better align with stakeholder expectations[192].