1957 & CO.(08495) - 2021 Q3 - 季度财报

Financial Summary 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] 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 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 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 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 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 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 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] Earnings Per Share 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 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] Management Discussion and Analysis 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 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] - 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][51] - The continued closure of border checkpoints resulted in a near absence of overseas and mainland tourists, impacting Hong Kong's catering business[46] Financial Review 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] - 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] 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] - 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] - 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] Corporate Governance and Other Information 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 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 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] Audit Committee and Review of Financial Information 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] - 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]