Financial Performance - The group's revenue for the nine months ended December 31, 2019, was approximately HKD 67.9 million, a decrease of about 17.3% compared to the same period in 2018[3]. - The group recorded a loss of approximately HKD 13.9 million for the nine months ended December 31, 2019[4]. - For the three months ended December 31, 2019, the group's revenue was HKD 21.8 million, down from HKD 29.4 million in the same period of 2018[5]. - The total comprehensive loss for the nine months ended December 31, 2019, was HKD 13.8 million, compared to a loss of HKD 1.1 million in the previous year[5]. - The group reported a loss of HKD 14,494,000 for the nine months ended December 31, 2019, compared to a loss of HKD 13,947,000 in the same period of 2018, indicating a slight increase in losses[20]. - The group recorded a loss of approximately HKD 13.9 million for the nine months ended December 31, 2019, compared to a loss of about HKD 0.5 million for the same period in 2018[67]. Revenue Breakdown - Revenue from restaurant operations in Hong Kong for the three months ended December 31, 2019, was HKD 17,785,000, down 26.0% from HKD 24,021,000 in the same period of 2018[24]. - Revenue from restaurant operations in China for the nine months ended December 31, 2019, was HKD 8,996,000, a decline of 35.5% from HKD 14,041,000 in the same period of 2018[24]. - Revenue from franchise sales of food and related products for the nine months ended December 31, 2019, was HKD 3,296,000, slightly up from HKD 3,269,000 in the same period of 2018[24]. - The group's revenue from Macau for the nine months ended December 31, 2019, was HKD 4,147,000, a marginal increase from HKD 4,103,000 in the same period of 2018[29]. - Revenue from Hong Kong for the nine months ended December 31, 2019, was HKD 54.7 million, down from HKD 63.9 million in the same period of 2018, representing a decline of approximately 14.5%[51]. Costs and Expenses - The cost of inventory for the nine months ended December 31, 2019, was HKD 15.3 million, compared to HKD 17.5 million in 2018[5]. - Employee costs for the nine months ended December 31, 2019, increased to HKD 26.7 million from HKD 23.5 million in the previous year[5]. - Other expenses rose by approximately 51.5% from about HKD 10.8 million for the nine months ended December 31, 2018, to about HKD 16.3 million for the same period in 2019, primarily due to new restaurant openings[61]. - Financing costs for the nine months ended December 31, 2019, totaled HKD 1,399,000, significantly higher than HKD 130,000 in the same period of 2018, primarily due to lease liabilities[31]. - The company incurred depreciation of property and equipment amounting to HKD 6,105,000 for the nine months ended December 31, 2019, compared to HKD 4,261,000 in 2018, reflecting a 43.3% increase[41]. Shareholder Information - The company's total equity as of December 31, 2019, was HKD 77.3 million, reflecting a decrease due to the losses incurred[10]. - As of December 31, 2019, major shareholders, including Brilliant Trade, hold 341,250,000 shares, representing 68.25% of the issued share capital[73]. Corporate Governance - The company has established an audit committee in compliance with GEM Listing Rules, consisting of at least three members, including an independent non-executive director as chairman[85]. - The company emphasizes good corporate governance practices to enhance shareholder value and effective management[84]. - The company has adhered to the corporate governance code as stipulated in the GEM Listing Rules as of December 31, 2019[84]. Strategic Initiatives - The group closed several loss-making restaurants in Hong Kong during 2019 to reduce losses and better allocate resources[71]. - A new restaurant in Tseung Kwan O commenced operations in September 2019, expanding the restaurant network strategically[71]. - The group introduced a new ramen brand from Japan and opened a franchised restaurant in Sha Tin in October 2019[71]. - The management anticipates a more challenging operating environment in 2020 due to the ongoing COVID-19 pandemic and its impact on retail and dining sectors[71]. - The group is actively seeking potential business opportunities and partnerships to expand revenue sources and enhance shareholder returns[71]. - The management is implementing various cost control measures to maintain competitiveness and restore profitability amid a deteriorating business environment[71]. - The group has shifted the operational model of a restaurant in China to a franchise model, focusing on royalty and consultancy fee income[71]. - The group has partnered with several independent online food delivery platforms in China to capitalize on the growing demand for takeout services[71]. Accounting Standards - The company adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2019, with no significant impact on reported amounts[15]. - The company applied HKFRS 16 "Leases" for the first time, which requires recognition of right-of-use assets and corresponding liabilities for all leases[16]. - The company chose to apply the modified retrospective approach for HKFRS 16, recognizing cumulative effects as equity from April 1, 2019[17]. - The group has not applied any new accounting standards that have been issued but not yet effective, and the impact of these standards is still being assessed[21].
赏之味(08096) - 2020 Q3 - 季度财报