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].

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].