Company Overview - BCI Group Holdings Limited is positioned as a market for small and mid-sized companies, which may carry higher investment risks compared to other companies listed on the Stock Exchange[1]. - The company’s registered office is located in the Cayman Islands, with its principal place of business in Hong Kong[14][16]. - The Group operates three nightclubs and a sports-themed bar, namely Mudita, Faye, and Paper Street, along with one entertainment studio, Maximus Studio[22]. Financial Performance - For the financial year ended 31 May 2021, the Group recorded revenue of approximately HK$24.4 million, a decrease of approximately 51.5% from HK$50.4 million for the year ended 31 May 2020[20]. - The Group reported a net loss of approximately HK$39.5 million for the year ended 31 May 2021, compared to a net loss of approximately HK$36.5 million for the year ended 31 May 2020[20]. - The loss was primarily attributed to the impact of COVID-19 on the operating environment for the bar and club, entertainment, and catering businesses in Hong Kong[20]. - Revenue for the year ended 31 May 2021 was approximately HK$24.4 million, a decrease of approximately 51.5% from approximately HK$50.5 million for the year ended 31 May 2020[45]. - The Group recorded a loss of approximately HK$39.5 million for the year ended 31 May 2021, compared to a loss of approximately HK$36.5 million for the year ended 31 May 2020, indicating a deterioration in financial performance[43]. - Adjusted profit and total comprehensive income for the year ended 31 May 2021 was approximately HK$0.6 million, an improvement from an adjusted loss of approximately HK$18.8 million for the year ended 31 May 2020[45]. - The Group's financial condition and operating performance have been adversely affected by the COVID-19 pandemic, leading to a continuous downturn in performance noted after 31 May 2021[58]. Revenue Breakdown - Revenue from the operation of club and entertainment business decreased by approximately HK$24.0 million, or approximately 54.2%, from approximately HK$44.2 million for the year ended 31 May 2020 to approximately HK$20.2 million for the year ended 31 May 2021[49]. - Revenue from the catering business decreased by approximately HK$2.0 million, or approximately 32.5%, from approximately HK$6.2 million for the year ended 31 May 2020 to approximately HK$4.2 million for the year ended 31 May 2021[57]. - The Group closed down the Tiger San restaurant in mid-May 2021 due to unsatisfactory performance attributed to the COVID-19 outbreak[57]. - The Group operated four night clubs and a sports-themed bar, with Volar closing in March 2021 due to adverse effects from government restrictions related to COVID-19[49]. Cost Management and Operational Adjustments - Management has decided to slow down business development to better utilize resources and prepare for economic recovery[31]. - The management has implemented cost control measures and is closely monitoring market conditions to adjust business strategies in response to the ongoing impact of COVID-19[58]. - Employee benefits expenses decreased by approximately HK$5.5 million, or approximately 32.9%, from approximately HK$16.9 million in 2020 to approximately HK$11.4 million in 2021[78]. - Depreciation of property, plant and equipment decreased by approximately HK$4.6 million, or approximately 21.1%, from approximately HK$21.5 million in 2020 to approximately HK$16.9 million in 2021[79]. - Other expenses decreased by approximately HK$1.5 million, or approximately 9.3%, from approximately HK$15.7 million in 2020 to approximately HK$14.2 million in 2021[80]. Governance and Compliance - The directors of BCI Group Holdings Limited confirm that the information in the report is accurate and complete in all material respects[4]. - The report complies with the GEM Listing Rules and aims to provide relevant information about BCI Group Holdings Limited[6]. - The Company has complied with the Corporate Governance Code throughout the year, ensuring transparency and accountability[179]. - The Board is responsible for formulating strategies and managing risks, supported by three committees: audit, remuneration, and nomination[180]. - The Company emphasizes high standards of corporate governance to protect shareholder interests and enhance long-term value[178]. - The Board consists of independent non-executive directors who enhance governance and oversight functions[171]. Future Outlook and Strategic Plans - The Group is exploring opportunities for ancillary businesses to support its operations and identify new growth avenues[31]. - The Group plans to strengthen its market position by upgrading club facilities, refining business strategies, and enhancing operational efficiency[159]. - The Group expects to fully utilize the remaining net proceeds by May 31, 2023, as per the revised intended use[120]. - The Company plans to establish more sports-themed bars and restaurants in Hong Kong to expand and diversify its outlet network, facing significant competition in the food and beverage and entertainment industry[127][128]. - The Group anticipates that revenue will improve if COVID-19 is contained and prevention measures are relieved[149]. Employee and Management Changes - The company has undergone changes in its board of directors, with several resignations and appointments in 2021[9][10][11]. - Mr. Wong Chi Yung was appointed as executive Director and CEO on July 12, 2021, bringing extensive experience in accounting and corporate finance[166]. - Mr. Ng Shing Chun Ray has over 12 years of experience in the food and beverage and entertainment industries, having managed related companies since June 2008[167]. - The Group employed 41 employees as of 31 May 2021, a decrease from 62 employees in the previous year, with employee benefit expenses amounting to approximately HK$11.4 million for the year ended 31 May 2021, down from approximately HK$16.9 million[148].
新爱德集团(08412) - 2021 - 年度财报