Financial Performance - For the three months ended June 30, 2019, the company's consolidated revenue was approximately HKD 44,800,000, a decrease of about 33.4% compared to approximately HKD 67,300,000 in the same period last year[3] - The loss attributable to the owners of the company decreased from approximately HKD 6,500,000 in the same period last year to approximately HKD 4,100,000[3] - The company reported a loss before tax of HKD 4,431,000 for the three months ended June 30, 2019, compared to a loss of HKD 6,928,000 in the same period last year[4] - The total comprehensive loss for the period was HKD 3,654,000, compared to HKD 6,646,000 in the same period last year[6] - The loss per share for the period was HKD 0.10, compared to HKD 0.16 in the same period last year[4] - The net loss attributable to the company's owners was approximately HKD 4,100,000, a decrease of about HKD 2,400,000 from the previous year's loss of HKD 6,544,000[18] - The group's gross profit margin was approximately 64%, down from 67% in 2018[35] - Total operating expenses decreased by approximately 36.7% to about HKD 32.4 million, consistent with the decline in revenue[35] Accounting Standards - The company’s financial results were prepared in accordance with the Hong Kong Financial Reporting Standards and the GEM Listing Rules[10] - The company adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2019, which did not have a significant financial impact on the unaudited condensed consolidated financial statements[10] - The company has chosen to adopt the Hong Kong Financial Reporting Standard 16 on leases, which eliminates the distinction between operating and finance leases, effective from April 1, 2019[11] - The company has opted not to apply the new accounting treatment for short-term leases and low-value asset leases under the new standard[13] Market Conditions - The company continues to face challenges in revenue generation due to market conditions affecting its operations[3] - The consumer confidence index in Hong Kong dropped by 10.5% to 77.7, the lowest level in five years, impacting the restaurant industry's performance[23] - The Chinese economy recorded a growth rate of 6.2% in the second quarter of 2019, the lowest in 27 years, influenced by the ongoing US-China trade war[22] - The company anticipates that the Chinese government's efforts to boost domestic demand will benefit the retail sector, including the restaurant industry[22] Strategic Initiatives - The group plans to cautiously review all potential expansion plans and strengthen cost control in response to the ongoing political situation in Hong Kong, which is expected to further impact consumer confidence[32] - The group is optimistic about the development potential of the electronic cigarette market in China, anticipating that government regulations will clarify the market and eliminate non-compliant manufacturers[32] - The group aims to enhance its competitiveness in the restaurant industry by improving its menu and providing high-quality food and a pleasant dining experience[32] - The group continues to invest in expanding its electronic cigarette business in China, including establishing a new office in Huizhou and acquiring suitable production lines[29] Shareholder Information - As of June 30, 2019, the total number of shares held by major shareholders is 4,166,175,000, with Hang Po Holdings Limited owning 2,335,586,529 shares, representing 56.06% of the total[39] - Mr. Tang Shengming holds convertible bonds with an outstanding principal amount of HKD 40,000,000, which, if fully converted, would result in the issuance of 571,428,571 shares, equating to approximately 13.72% of the issued share capital as of June 30, 2019[41] - The company has adopted a share option scheme to incentivize employees, allowing for the issuance of options up to 30% of the company's issued share capital[44] - No share options were granted during the reporting period, and there were no unexercised options as of June 30, 2019[45] Governance and Compliance - The board of directors confirmed that the information in the report is accurate and complete, with no misleading or fraudulent elements[2] - The audit committee has reviewed the unaudited financial results for the three months ending June 30, 2019, prior to recommending approval to the board[48] - The company has complied with the corporate governance code as per GEM Listing Rules during the three months ending June 30, 2019[50]
荣晖控股(08213) - 2020 Q1 - 季度财报