Financial Performance - The Group's revenue for the three months ended August 31, 2021, was approximately HK$17.8 million, representing an increase of approximately 230.7% compared to the corresponding period in 2020[16][17] - The Group recorded a loss and total comprehensive income of approximately HK$1.9 million for the three months ended August 31, 2021, compared to a profit of approximately HK$2.0 million for the same period in 2020[17][18] - Revenue for the three months ended 31 August 2021 was HK$17,820,000, a decrease from HK$5,389,000 in the same period of 2020, representing a decline of approximately 66.9%[27] - The company reported a loss before income tax expenses of HK$1,932,000 for the period, compared to a profit of HK$2,022,000 in the previous year[27] - Total comprehensive loss for the period attributable to owners of the Company was HK$1,978,000, compared to a profit of HK$2,116,000 in the same period of 2020[27] - Basic and diluted loss per share attributable to owners of the Company was HK$0.20, a decrease from a profit of HK$0.26 per share in the previous year[27] - The Group reported a loss attributable to owners of the Company of HK$1,978,000 for the three months ended 31 August 2021, compared to a profit of HK$2,116,000 in the same period of 2020[76] - Profit before income tax turned from approximately HK$2.0 million for the three months ended August 31, 2020, to a loss of approximately HK$1.9 million for the three months ended August 31, 2021[122] - Total comprehensive income shifted from approximately HK$2.0 million for the three months ended August 31, 2020, to a loss of approximately HK$1.9 million for the three months ended August 31, 2021, due to the cessation of government subsidies and rent concessions[123] Dividends - The Board did not recommend payment of any dividend for the three months ended August 31, 2021[19] - No dividends were paid, declared, or proposed during the three months ended 31 August 2021 and 2020[71] - No dividends were paid or declared by the Company for the three months ended August 31, 2020, and 2021[148] Financial Position - The balance of accumulated losses as of 31 August 2021 was HK$123,264,000, an increase from HK$121,286,000 as of 1 June 2021[29] - The total equity attributable to owners of the Company as of 31 August 2021 was HK$8,988,000, a decrease from HK$9,988,000 as of 1 June 2021[29] - The Group reported net liabilities of approximately HK$7,327,000 as of August 31, 2021, but has secured an undrawn loan facility of HK$16,089,000 from a former shareholder to support liquidity needs[44] - A loan facility agreement was entered into with a licensed money lender in Hong Kong for HK$25 million for 18 months, aimed at improving working capital and cash flows[48] Revenue Breakdown - Revenue from club and entertainment operations included food and beverage sales of HK$16,157,000, entrance fees of HK$31,000, entertainment income of HK$1,043,000, sponsorship income of HK$3,000, and other income of HK$586,000[61] - The restaurant operation generated revenue of HK$17,820,000, a substantial increase from HK$4,397,000 in the previous year[61] - The revenue breakdown for the three months ended 31 August 2021 showed that club and entertainment operations accounted for 100% of total revenue, while restaurant operations contributed 18.4% in the previous year[101] - The total revenue for the three months ended 31 August 2021 was approximately HK$17.8 million, with club and entertainment operations accounting for 100% of this revenue[101] Cost and Expenses - The company had a finance cost of HK$53,000 for the period, compared to HK$417,000 in the same period of 2020, indicating a reduction in financing expenses[27] - Finance costs for the period were HK$348,000, a decrease from HK$417,000 in the same period of the previous year[63] - Other income decreased by approximately HK$8.4 million compared to the corresponding period in 2020, as no government subsidies or rent concessions were received during the reporting period[108] - Advertising and marketing expenses increased by approximately HK$2.1 million or 374.7% from approximately HK$0.6 million for the three months ended August 31, 2020, to approximately HK$2.7 million for the three months ended August 31, 2021, due to increased public relations and marketing services[111] - Employee benefits expenses rose by approximately HK$1.2 million or 50.2% from approximately HK$2.6 million for the three months ended August 31, 2020, to approximately HK$3.8 million for the three months ended August 31, 2021, attributed to increased wageable hours[112] - Depreciation decreased by approximately HK$3.1 million or 54.4% from approximately HK$5.7 million for the three months ended August 31, 2020, to approximately HK$2.6 million for the three months ended August 31, 2021, due to prior full impairment recognition[117] - Other expenses increased by approximately HK$3.6 million or 166% from approximately HK$2.1 million for the three months ended August 31, 2020, to approximately HK$5.7 million for the three months ended August 31, 2021, mainly due to extended operating hours[119] Operational Overview - The Group's principal activities include clubbing, entertainment, and restaurant operations in Hong Kong, with no individual customer exceeding 10% of total revenue during the review period[55][59] - The Group operated three night clubs and a sports-themed bar during the reporting period, covering different segments of the club and entertainment market[86] - The Group has been actively adopting cost control measures to improve liquidity and adjust business strategies in response to the COVID-19 pandemic[90] - The entertainment studio, Maximus Studio, aims to provide a lifestyle designed by customers, contributing to the Group's diverse offerings[86] - The company plans to expand its outlet network by establishing more sports-themed bars and restaurants in Hong Kong, facing various operational risks[128] - The company plans to open more sports-themed bars and restaurants in Hong Kong to expand and diversify its store network, facing significant risks and uncertainties in this competitive market[129] Compliance and Governance - The financial statements were prepared on a going concern basis, with the Directors confident in the Group's ability to meet financial obligations in the foreseeable future[50] - The Group has not adopted any new or revised HKFRSs that are relevant but not yet effective in the preparation of the financial results[51] - The Company has complied with the Corporate Governance Code except for a deviation regarding the roles of chairman and chief executive officer[171] - The Audit Committee comprises three independent non-executive Directors, with Mr. Pong Chun Yu as chairman[177] - The Company has adopted GEM Listing Rules as its code of conduct regarding Directors' securities transactions[165] - The Company will continue to review its operation to seek compliance with the Corporate Governance Code in the future[172] - The Audit Committee reviewed the unaudited financial statements for the three months ended August 31, 2021, and confirmed compliance with applicable accounting standards and GEM Listing Rules[179] - Adequate disclosures were made regarding the financial results for the period[179] - The financial performance for the three months ended August 31, 2021, was deemed satisfactory by the management and the Audit Committee[179] - The company is committed to adhering to legal requirements in its financial reporting[179] - The management's review process included a thorough examination of the financial statements[179] - The Audit Committee's findings support the integrity of the financial reporting process[179] - There were no indications of discrepancies or issues raised during the review[179] - The company continues to prioritize transparency in its financial disclosures[179] - The financial statements are part of the ongoing compliance with regulatory standards[179] Market Risks - The company faces risks related to fluctuations in the commercial real estate market, which could affect its lease liabilities and operational costs[130] - Any non-renewal or termination of leases could lead to sales drops and financial strain due to potential relocation costs[131] - The company’s largest supplier accounted for approximately 49.0% and 52.5% of total purchases for the years ended August 31, 2020, and 2021, respectively, posing a risk if supply is interrupted[134] - The outbreak of COVID-19 has led to a significant expected decrease in sales, adversely impacting the company's financial performance for 2021[138] - The company is closely monitoring the COVID-19 situation and implementing cost control measures to mitigate its impact on operations and financial position[138]
新爱德集团(08412) - 2022 Q1 - 季度财报