Financial Performance - For the three months ended June 30, 2021, the group recorded unaudited revenue of approximately HKD 11,800,000, a decrease of about 2.5% compared to HKD 12,100,000 for the same period in 2020[5]. - The group reported an unaudited loss attributable to owners of the company of approximately HKD 1,700,000, compared to a loss of approximately HKD 800,000 for the same period in 2020[5]. - Basic and diluted loss per share attributable to owners of the company was HKD 0.07, compared to HKD 0.03 for the same period in 2020[5]. - The gross profit for the three months ended June 30, 2021, was HKD 9,337,000, down from HKD 9,619,000 in the same period of 2020[8]. - Operating loss for the period was HKD 1,059,000, compared to an operating profit of HKD 177,000 for the same period in 2020[8]. - Total comprehensive loss for the period was HKD 1,731,000, compared to HKD 554,000 for the same period in 2020[8]. - The group's revenue for the three months ended June 30, 2021, was HKD 11,776,000, a decrease of 2.5% from HKD 12,080,000 in the same period of 2020[18]. - The group reported a pre-tax loss of HKD 1,731,000 for the three months ended June 30, 2021, compared to a loss of HKD 828,000 in the same period of 2020[27]. - The company recorded a loss of approximately HKD 1,700,000 for the three months ended June 30, 2021, compared to a loss of about HKD 600,000 in the same period in 2020[49]. Dividends and Equity - The board of directors does not recommend the payment of an interim dividend for the three months ended June 30, 2021[6]. - The group did not declare or pay any dividends for the three months ended June 30, 2021, consistent with the same period in 2020[29]. - The group’s total equity as of June 30, 2021, was HKD 51,494,000, down from HKD 57,546,000 as of June 30, 2020[10]. Expenses and Costs - The group incurred administrative expenses of HKD 3,811,000, a decrease from HKD 6,355,000 in the same period of 2020[8]. - The cost of goods sold for the same period was HKD 2,439,000, slightly down from HKD 2,461,000 in 2020[22]. - Other income decreased by approximately 95.4% from about HKD 4,300,000 to about HKD 200,000, primarily due to a reduction in government subsidies and COVID-19 related rent concessions[40]. - Employee costs decreased by approximately 9.1% from about HKD 5,500,000 to about HKD 5,000,000, with the number of employees reducing from 111 to 96[41]. - Administrative expenses decreased by approximately 40.6% from about HKD 6,400,000 to about HKD 3,800,000 due to reductions in marketing and professional fees[45]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring transparency and accountability to protect shareholder interests[71]. - The board believes that Mr. Wang's dual role as Chairman and CEO is in the best interest of the company, despite deviating from the governance code[72]. - No conflicts of interest were reported among directors or major shareholders during the review period[73]. - The company maintains a high standard of corporate governance to ensure shareholder protection and transparency[71]. - The company has adopted a code of conduct for directors regarding securities trading, in compliance with GEM Listing Rules[86]. - The Audit Committee, established on July 21, 2016, is responsible for reviewing financial statements and overseeing internal control procedures[87]. - The Audit Committee consists of three independent non-executive directors, with Mr. Ma Yiu Ho as the chairman[87]. - All directors confirmed compliance with the trading standards during the three-month period ending June 30, 2021[86]. - The company regularly reminds directors of the trading restrictions prior to the announcement of financial results[86]. Business Strategy and Operations - The company continues to focus on providing leisure dining services in Hong Kong[13]. - The company continues to focus on casual dining services as its core business[35]. - The company plans to continue consolidating its position in the airport restaurant sector and diversify its business in urban Hong Kong[68]. - Due to economic recession and adverse impacts from the pandemic, the company will adopt a conservative business strategy to support daily operations and manage expenses carefully[69]. - The company aims to strengthen existing business development and provide stable returns and growth prospects for shareholders[70]. Shareholder Information - Mr. Wang Wenwei holds 1,500,000,000 shares, representing 56.7% of the company's equity, through Fortune Round Limited, which he fully owns[74]. - Ms. Lin Huijun and Mr. Chen Zetao each hold 20,000,000 shares, accounting for 0.76% of the company's equity, granted under the share option plan[76]. - Keenfull Investments Limited, owned by Mr. Li Chi Keung, holds 317,280,000 shares, representing 12.0% of the company's equity[79]. - The company has a share option plan adopted on July 21, 2016, allowing the exercise of options for a total of 60,000,000 shares at an exercise price of HKD 0.163 per share[83]. - As of June 30, 2021, the company has not purchased, sold, or redeemed any shares during the review period[74]. - As of June 30, 2021, no other individuals, apart from directors and major executives, were reported to have interests in the company's shares that required disclosure[81]. - As of June 30, 2021, there were no stock options granted during the three-month period[84]. - The total number of unexercised stock options as of June 30, 2021, was 60,000,000[84]. Financial Position - As of June 30, 2021, the group's cash and cash equivalents were approximately HKD 42,700,000, an increase of about 14.2% from HKD 37,400,000 as of June 30, 2020[58]. - The total borrowings as of June 30, 2021, were approximately HKD 26,400,000, a decrease from HKD 28,300,000 as of June 30, 2020[60]. - The capital-to-debt ratio as of June 30, 2021, was approximately 51.4%, up from 35.7% as of June 30, 2020, primarily due to an increase in total borrowings[62]. - The company raised approximately HKD 29,840,000 from the first placement of 202,800,000 shares at a price of HKD 0.15 per share, with a net price of HKD 0.147 per share[52]. - The second placement raised approximately HKD 45,200,000 from 440,560,000 shares at a price of HKD 0.105 per share, with a net price of HKD 0.103 per share[52]. - As of March 31, 2021, the unutilized listing proceeds were planned for use in the fiscal year ending March 31, 2022, with all unutilized balances deposited in a licensed bank in Hong Kong[51]. Other Information - The group applied the new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial statements for the period[17]. - The group has no independent operating segment financial information due to resource concentration[16]. - As of June 30, 2021, the group operated six restaurants, including "Chinese Kitchen," which has been temporarily closed since February 10, 2020[32]. - Bank borrowing interest increased to HKD 109,000 from HKD 11,000 year-on-year, while lease liabilities interest decreased to HKD 167,000 from HKD 283,000[21].
皇玺集团(08300) - 2022 Q1 - 季度财报