Financial Performance - The group recorded unaudited revenue of approximately HKD 44.4 million for the three months ended March 31, 2022, a significant decrease of approximately 45.4% compared to HKD 81.3 million for the same period in 2021[5]. - The group reported an unaudited adjusted loss before tax and government subsidies of approximately HKD 19.4 million for the three months ended March 31, 2022, compared to a loss of HKD 4.5 million in 2021[5]. - The unaudited loss attributable to owners of the company was approximately HKD 14.9 million for the three months ended March 31, 2022, compared to a loss of HKD 0.3 million in 2021[5]. - The operating loss for the group was approximately HKD 16.3 million for the first quarter of 2022, compared to an operating profit of HKD 1.0 million in the same period of 2021[10]. - The loss before tax for the group was approximately HKD 17.2 million for the three months ended March 31, 2022, compared to a loss of HKD 0.044 million in 2021[10]. - The total comprehensive loss for the period was approximately HKD 17.1 million for the three months ended March 31, 2022, compared to a loss of HKD 0.106 million in 2021[13]. Revenue Breakdown - Total revenue from restaurants in Hong Kong for the three months ended March 31, 2022, was HKD 44.0 million, down from HKD 80.4 million in the same period of 2021[50]. - Revenue from Shanghai-style restaurants decreased by approximately 35.9% to HKD 14.3 million for the three months ended March 31, 2022, from HKD 22.3 million in the same period of 2021[53]. - Revenue from Japanese restaurants fell by approximately 49.8% to HKD 11.2 million for the three months ended March 31, 2022, from HKD 22.3 million in the same period of 2021[54]. - Revenue from Thai restaurants decreased by approximately 44.9% to HKD 8.1 million for the three months ended March 31, 2022, from HKD 14.7 million in the same period of 2021[55]. - Revenue from Vietnamese restaurants dropped by approximately 57.4% to HKD 4.6 million for the three months ended March 31, 2022, from HKD 10.8 million in the same period of 2021[56]. - Revenue from Italian restaurants decreased by approximately 44.2% to HKD 5.8 million for the three months ended March 31, 2022, from HKD 10.4 million in the same period of 2021[57]. Government Support - The group received government subsidies of approximately HKD 2.2 million in 2022, down from HKD 4.4 million in 2021[5]. - The loss was partially offset by government subsidies received during the review period, amounting to approximately HKD 2.2 million, compared to HKD 4.4 million in 2021[72]. Operational Challenges - The restaurant operations faced significant pressure due to COVID-19 restrictions, particularly from January 7 to February 23, 2022, when dine-in services were banned[41]. - The future outlook largely depends on the evolution of the COVID-19 pandemic, with the company closely monitoring developments[42]. Shareholder Information - As of March 31, 2022, major shareholders include Mr. Kai Wong with a beneficial interest of 75,268,800 shares (19.60%) and Mr. Chi Po Kwok with 16,406,400 shares (4.27%)[80]. - The company reported a total of 75,268,800 shares held by Guan Huiling, representing 19.60% ownership[88]. - 1957 Co. holds 96,408,800 shares, accounting for 25.11% of the total shares[88]. - Sino Explorer Limited has 73,728,800 shares, which is 19.20% of the total shares[88]. Future Plans - The group aims to expand its restaurant network by developing its own brand restaurants and diversifying existing brands into sub-brands and/or premium brands[75]. - A new restaurant named "Home Shanghai" offering Huaiyang and Shanghai cuisine will be opened in Tseung Kwan O East, with a lease agreement effective from April 19, 2022, for a term of four years[75]. - The company is in advanced discussions with several landlords regarding leasing units for restaurant operations, considering upgrading existing restaurants and opening new concepts with lower capital expenditure[75]. - The company will continue to review the operations and performance of existing restaurants and develop appropriate strategies to maximize returns for investors[76]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[98]. - The audit committee reviewed the financial results for the first quarter ending March 31, 2022, and found them to be in compliance with applicable accounting standards[102]. Miscellaneous - The company did not recommend any dividends for the three months ending March 31, 2022[105]. - There were no significant acquisitions or disposals of subsidiaries or associates during the three months ending March 31, 2022[106]. - The company has not granted any share options under the share option scheme as of March 31, 2022[95]. - No significant events requiring disclosure occurred after March 31, 2022, up to the report date[104].

Financial Performance - The total revenue for 2021 was HKD 394,185,000, an increase of 23% compared to HKD 320,452,000 in 2020[40] - The pre-tax profit for 2021 was HKD 22,737,000, recovering from a loss of HKD 19,280,000 in 2020[40] - The net profit attributable to the owners of the company for 2021 was HKD 13,165,000, compared to a loss of HKD 12,909,000 in 2020[40] - The total equity increased to HKD 72,867,000 in 2021 from HKD 56,374,000 in 2020, marking a growth of approximately 29%[40] - The company's capital debt ratio as of December 31, 2021, was approximately 18.4%, a decrease from 33.8% in 2020, primarily due to the repayment of bank loans and an increase in total equity from operating activities[144] - The company recorded a profit of approximately HKD 18.9 million for the year ended December 31, 2021, compared to a loss of HKD 17.7 million in 2020, driven by an increase in revenue of about HKD 73.7 million due to improved pandemic conditions[97] Assets and Liabilities - Total assets decreased to HKD 205,980,000 in 2021 from HKD 221,629,000 in 2020, reflecting a decline of approximately 7%[40] - Total liabilities decreased to HKD 133,113,000 in 2021 from HKD 165,255,000 in 2020, a reduction of about 19%[40] - As of December 31, 2021, the total bank borrowings were approximately HKD 5.8 million, down from HKD 11.4 million in 2020, with interest rates ranging from 2.7% to 3.5%[141] Restaurant Operations - The group operated twelve restaurants in Hong Kong, including seven under its own brand and five under franchise or sub-licensing arrangements[51] - The group did not open any new restaurants in Hong Kong during the year, but has signed three lease agreements for existing restaurants[53] - The group plans to cautiously explore opportunities for opening new restaurants with lower capital expenditure and more favorable rental terms[54] - The group aims to continue developing its brand portfolio and expanding its restaurant network through various strategies, including improving existing brands and launching new ones[51] - The group plans to continue opening new restaurants in Hong Kong and may invest up to 25% in holding companies of new restaurants in China[72] Revenue Breakdown - Revenue from the Shanghai-style restaurant increased by approximately 35.4% to about HKD 113.7 million for the year ended December 31, 2021, up from approximately HKD 84.0 million in the previous year[77] - Revenue from the Japanese restaurant rose by approximately 22.8% to about HKD 100.2 million for the year ended December 31, 2021, compared to approximately HKD 81.6 million in 2020[80] - Revenue from the Thai restaurant increased by approximately 30.1% to about HKD 79.5 million for the year ended December 31, 2021, up from approximately HKD 61.1 million in the previous year[81] Economic Environment - The economic environment in Hong Kong showed signs of recovery in 2021, with lower COVID-19 case numbers and relaxed dining restrictions contributing to improved revenue[47] - Future prospects are heavily dependent on the evolution of the COVID-19 pandemic, and the group will continue to monitor developments closely[66] - The company maintained a cautious approach in response to ongoing economic challenges and the impact of the pandemic[46] Employee and Operational Costs - Employee costs rose by approximately 14.3% to about HKD 126.5 million for the year ended December 31, 2021, due to increased labor needs and bonus provisions[85] - Rental expenses for the year ended December 31, 2021, were approximately HKD 8.0 million, an increase of about 2.6% from HKD 7.8 million in 2020, primarily due to increased revenue from Shanghai-style restaurants[92] - The cost of goods sold increased to approximately HKD 115.5 million for the year ended December 31, 2021, representing about 29.4% of total revenue from operating restaurants[84] Strategic Focus and Future Plans - The company is focused on monitoring restaurant performance and implementing strategies to balance financial improvement with providing quality dining experiences[97] - The company is actively considering expansion plans, including opening new restaurants in Hong Kong and China, with ongoing negotiations for leasing several units in shopping malls[107] - The company aims to strengthen existing business development and provide stable returns and growth prospects for shareholders[166] Corporate Governance and Management - The company has a strong commitment to corporate governance, with independent non-executive directors overseeing audit and remuneration committees[180] - The company has a strong management team with over 15 years of experience in financial management and over 20 years in marketing and public relations[198][199] Miscellaneous - The company has not proposed any final dividends for the year ended December 31, 2021, consistent with 2020[151] - The company has not engaged in any significant litigation or arbitration as of December 31, 2021[161] - The company has not issued any stock options under its stock option plan adopted on November 6, 2017[160]

[Financial Summary](index=3&type=section&id=Financial%20Summary) The Group achieved a significant turnaround in Q3 and the first nine months of 2021, with profit attributable to owners of the Company turning positive despite reduced government grants - The Group's performance in Q3 and the first nine months of 2021 significantly improved year-on-year, achieving a turnaround to profit, driven by revenue growth despite a substantial decrease in government grants[7](index=7&type=chunk) Key Financial Indicators for Q3 and First Nine Months of 2021 | Indicator | Nine Months Ended September 30 (2021) | Nine Months Ended September 30 (2020) | Three Months Ended September 30 (2021) | Three Months Ended September 30 (2020) | | :--- | :--- | :--- | :--- | :--- | | Revenue | Approximately HKD 288.2 million | Approximately HKD 229.0 million | Approximately HKD 101.6 million | Approximately HKD 70.6 million | | Government Grants | Approximately HKD 5.1 million | Approximately HKD 15.7 million | HKD 0 | Approximately HKD 10.7 million | | Adjusted Profit/(Loss) Before Tax and Government Grants | Approximately HKD 8.3 million | (Approximately HKD 25.0 million) | Approximately HKD 3.6 million | (Approximately HKD 12.7 million) | | Profit/(Loss) Attributable to Owners of the Company | Approximately HKD 9.5 million | (Approximately HKD 7.8 million) | Approximately HKD 2.3 million | (Approximately HKD 1.3 million) | [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section outlines the company's condensed consolidated financial statements for the first nine months of 2021, reflecting significant performance improvement [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The company achieved a turnaround to a profit of **HKD 9.452 million** attributable to owners in the first nine months of 2021, driven by a **25.9% revenue increase** and effective cost control Summary of Condensed Consolidated Statement of Profit or Loss (Unit: Thousand HKD) | Item | Nine Months Ended September 30 (2021) | Nine Months Ended September 30 (2020) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 288,232 | 229,031 | +25.9% | | Operating Profit/(Loss) | 16,317 | (4,807) | Turnaround to profit | | Profit/(Loss) Before Income Tax | 13,375 | (9,328) | Turnaround to profit | | Profit/(Loss) for the Period | 11,806 | (9,474) | Turnaround to profit | | Profit/(Loss) Attributable to Owners of the Company | 9,452 | (7,770) | Turnaround to profit | | Basic Earnings/(Loss) Per Share (HK cents) | 2.46 | (2.02) | Turnaround to profit | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased to **HKD 68.252 million** by September 30, 2021, primarily due to the **HKD 11.806 million** profit recorded during the period Changes in Total Equity (Unit: Thousand HKD) | Item | Amount | | :--- | :--- | | As at January 1, 2021 | 56,374 | | Total comprehensive income for the period | 11,878 | | Balance as at September 30, 2021 | 68,252 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details key notes to the condensed consolidated financial statements, including revenue composition, other income sources, earnings per share calculation, and dividend policy [Revenue Analysis](index=8&type=section&id=3%20Revenue) Group revenue grew **25.9%** to **HKD 288 million** in the first nine months of 2021, driven by a **25.2% increase** in restaurant operations and over double growth in catering management services Revenue Composition (For the nine months ended September 30, Unit: Thousand HKD) | Business Segment | 2021 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Restaurant Operations | 285,362 | 227,934 | +25.2% | | Catering Management and Consulting Services | 2,870 | 1,097 | +161.6% | | **Total** | **288,232** | **229,031** | **+25.9%** | [Other Income and Net Gains](index=8&type=section&id=4%20Other%20Income%20and%20Net%20Gains) Other income and net gains significantly decreased to **HKD 6.093 million**, primarily due to a sharp reduction in government grants from **HKD 15.654 million** to **HKD 5.125 million** - Government grants, a primary source of other income, decreased significantly by **67.2%** year-on-year in the first nine months of 2021, from **HKD 15.654 million** to **HKD 5.125 million**[27](index=27&type=chunk) [Earnings Per Share](index=10&type=section&id=9%20Earnings%2F(Loss)%20Per%20Share) Basic earnings per share for the first nine months of 2021 was **2.46 HK cents**, a turnaround from a **2.02 HK cents** loss per share in the prior year, with no dilution Calculation of Basic Earnings/(Loss) Per Share | Item | Nine Months Ended September 30 (2021) | Nine Months Ended September 30 (2020) | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Owners of the Company (Thousand HKD) | 9,452 | (7,770) | | Weighted Average Number of Ordinary Shares in Issue (Thousand Shares) | 384,000 | 384,000 | | **Basic Earnings/(Loss) Per Share (HK cents)** | **2.46** | **(2.02)** | [Dividends](index=10&type=section&id=8%20Dividends) The Board did not recommend the payment of any dividends for the nine months ended September 30, 2021 - No dividends were paid or declared by the Company for the nine months ended September 30, 2021[37](index=37&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) This section discusses the Group's industry overview, business review, financial performance, and outlook for the first nine months of 2021, focusing on market recovery and strategic adjustments amid the pandemic [Industry Overview and Business Review](index=11&type=section&id=Industry%20Overview%20and%20Business%20Review) Hong Kong's catering industry recovered in 2021 due to eased restrictions and government vouchers; the Group's Hong Kong operations rebounded but faced tourist absence, while China operations grew steadily - The Hong Kong catering industry showed signs of recovery, benefiting from eased pandemic conditions, relaxed anti-epidemic measures, and the government's consumption voucher scheme[44](index=44&type=chunk) - As of September 30, 2021, the Group operated **12 restaurants** under **8 brands** in Hong Kong and held minority investments in **3 restaurants** in China[45](index=45&type=chunk)[51](index=51&type=chunk) - The continued closure of border checkpoints resulted in a near absence of overseas and mainland tourists, impacting Hong Kong's catering business[46](index=46&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) Group revenue grew **25.9%** to **HKD 288 million** in the first nine months of 2021, driven by Hong Kong restaurant recovery and strong growth in Shanghai and Japanese cuisines, achieving a **HKD 11.8 million** profit turnaround Restaurant Revenue by Cuisine Type (For the nine months ended September 30) | Cuisine | 2021 Revenue (Thousand HKD) | Percentage of Total Revenue (%) | 2020 Revenue (Thousand HKD) | Percentage of Total Revenue (%) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai | 78,585 | 27.5 | 58,199 | 25.5 | +35.1% | | Japanese | 75,494 | 26.5 | 57,625 | 25.3 | +31.1% | | Thai | 58,274 | 20.4 | 44,746 | 19.6 | +30.4% | | Vietnamese | 39,482 | 13.8 | 37,464 | 16.4 | +5.3% | | Italian | 33,527 | 11.8 | 29,900 | 13.2 | +12.0% | | **Total** | **285,362** | **100.0** | **227,934** | **100.0** | **+25.2%** | - Cost of inventories sold as a percentage of total restaurant revenue increased from **28.4%** to **29.6%**, primarily due to increased promotional activities and discounts to stimulate sales[63](index=63&type=chunk) - The Group successfully turned around its performance, recording a profit of approximately **HKD 11.8 million** for the first nine months of 2021, compared to a loss of approximately **HKD 9.5 million** in the prior year, including **HKD 5.1 million** in government grants (2020: **HKD 15.7 million**)[74](index=74&type=chunk) [Outlook](index=16&type=section&id=Outlook) The Group plans to expand its brand portfolio and restaurant network, cautiously considering new openings in Hong Kong while actively pursuing opportunities in China, including catering management consulting services - The Group is more cautious in evaluating expansion plans, potentially considering new restaurants with lower capital expenditure and/or more favorable rental schemes[78](index=78&type=chunk) - Given the improved performance of the China market, the Group will intensify efforts to actively and prudently identify opportunities for opening and managing new restaurants in China[78](index=78&type=chunk) - The Group plans to further develop its pre-opening and management consulting services for restaurants in China, anticipating increased demand as the impact of the COVID-19 pandemic subsides[79](index=79&type=chunk) [Corporate Governance and Other Information](index=17&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section discloses the shareholdings of directors and major shareholders as of September 30, 2021, the status of the share option scheme, and the Audit Committee's review of financial information [Directors' and Major Shareholders' Interests](index=17&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) The report details the shareholdings of directors, chief executives, and major shareholders as of September 30, 2021, with key management holding significant stakes through controlled corporations Major Directors' Shareholdings (As at September 30, 2021) | Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Kwan Wing Kuen | Interest held by controlled corporation/Beneficial owner | 75,268,800 | 19.60% | | Mr. Kwok Chi Po | Interest held by controlled corporation | 16,406,400 | 4.27% | | Mr. Leung Chi Tien | Interest held by controlled corporation | 96,408,800 | 25.11% | | Ms. Chan Siu Wan | Spouse's interest | 96,408,800 | 25.11% | [Share Option Scheme](index=19&type=section&id=Share%20Option%20Scheme) The company adopted a ten-year share option scheme on November 6, 2017, with no options granted under the scheme as of September 30, 2021 - As of September 30, 2021, no share options had been granted under the Share Option Scheme[104](index=104&type=chunk) [Audit Committee and Review of Financial Information](index=20&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Information) The Audit Committee reviewed the quarterly results, confirming compliance with accounting standards and disclosure requirements, though the financial results were not audited or reviewed by the company's auditor - The Audit Committee reviewed the third quarterly results for the nine months ended September 30, 2021, and considered the condensed consolidated financial statements to be adequately disclosed[112](index=112&type=chunk) - The condensed consolidated financial results for the nine months ended September 30, 2021, were unaudited and have not been audited or reviewed by the Company's auditor[113](index=113&type=chunk)

1957 & Co. (Hospitality) Limited (Incorporated in the Cayman Islands with limited liability) Stock Code: 8495 Interim Report 2021 1957 & Co. (Hospitality) Limited （在開曼群島註冊成立之有限公司） 股份代號：8495 中期業績報告 2021 TA KE 价 香港聯合交易所有限公司(「聯交所」) GEM 的特色 GEM 的定位，乃為中小型公司提供一個上市的市場·此等公司相比超其他在聯交所上市的公司帶有較高投資風險・有意投 資的人士應了解投資該等公司的潛在風險,並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM 買賣的證券可能會較於聯交所主板買賣的證券承受較大的市場波動風險，同 時無法保證在 GEM 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及香港聯合交易所有限公司對本報告之內容概不負責・對其準確性或完整性亦不發表任何聲明· 並明確表示概不就因本報告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失 ...

1°57 &CO. 1957 & Co. (Hospitality) Limited (在開曼群島註冊成立之有限公司) 股份代號：8495 季度業績報告 2021 第 TA KE 价 ພອບປິດ SHANGHA 十里洋楼 香港聯合交易所有限公司(「聯交所」) GEM 的特色 GEM 的定位，乃為中小型公司提供一個上市的市場·此等公司相比超其他在聯交所上市的公司帶有較高投資風險・有意投 資的人士應了解投資該等公司的潛在風險,並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM 買賣的證券可能會較於聯交所主板買賣的證券承受較大的市場波動風險，同 時無法保證在 GEM 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責·對其準確性或完整性亦不發表任何聲明·並明確表示概不就 因本報告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告的資料乃邊照《聯交所GEM證券上市規則》(「GEM上市規則）而刊載・旨在提供有關 1957 & Co. (Hospitality) Limited ([ 本公司] 或 [ 1957 & Co ...