Financial Performance - The Group's revenue for the nine months ended 28 February 2022 was approximately HK$43.8 million, representing an increase of approximately 256.9% compared to the corresponding period in 2021[18]. - The Group recorded a loss and total comprehensive income for the nine months ended 28 February 2022 of approximately HK$7.4 million, compared to a loss of approximately HK$11.3 million in 2021[19]. - Revenue for the nine months ended February 28, 2022, was HK$10,291,000, compared to HK$3,501,000 for the same period in 2021, representing an increase of 194%[31]. - Loss before income tax expense for the period was HK$2,801,000, a significant improvement from a loss of HK$7,105,000 in the previous year, indicating a reduction of 60.6%[31]. - The basic and diluted loss per share for the period was HK$0.32, compared to HK$0.71 for the same period last year, reflecting a decrease of 54.9%[31]. - Total comprehensive loss for the period attributable to owners of the Company was HK$3,192,000, down from HK$6,771,000 in the previous year, a reduction of 52.8%[31]. - For the nine months ended February 28, 2022, the loss attributable to owners of the Company was HK$7,812,000, compared to HK$10,865,000 for the same period in 2021, representing a 28.3% improvement[92]. - Loss before income tax decreased from approximately HK$11.3 million to approximately HK$7.4 million for the nine months ended February 28, 2021, and February 28, 2022[130]. - Total comprehensive loss decreased from approximately HK$11.3 million to approximately HK$7.4 million for the same periods, attributed to strong performance of new outlets despite reduced government subsidies[131]. Revenue Sources - Revenue from club and entertainment operations reached HK$43.82 million, with food and beverage sales contributing HK$37.90 million, while entertainment income was HK$3.01 million[69][71][77]. - The revenue from club and entertainment operations accounted for 100% of total revenue for the nine months ended 28 February 2022, while restaurant operations contributed 20.3% of total revenue for the nine months ended 28 February 2021[110]. - The Group's revenue recognition for club and entertainment operations includes tips, cloakroom fees, and service income from the entertainment studio[107]. - Revenue from club and entertainment operations increased by approximately HK$31.5 million, or approximately 256.9%, from approximately HK$12.3 million for the nine months ended 28 February 2021 to approximately HK$43.8 million for the nine months ended 28 February 2022[98][112]. Operational Changes - The company is focused on expanding its operations in the clubhouse, entertainment, and restaurant sectors in Hong Kong[39]. - The company plans to expand its outlet network by establishing more sports-themed bars and restaurants in Hong Kong, facing various operational risks[139]. - The company plans to open more sports-themed bars and restaurants in Hong Kong, facing significant risks and uncertainties related to location selection, lease agreements, and operational costs[140]. - The Group's operations include club, entertainment, and restaurant businesses in Hong Kong, with a focus on improving working capital and cash flows[57][58]. - The Group operated three nightclubs and one sports-themed bar, along with an entertainment studio during the reporting period[106]. Financial Position - The accumulated loss as of February 28, 2022, was HK$129,098,000, compared to HK$95,278,000 as of February 28, 2021, indicating an increase of 35.5%[35]. - The total equity as of February 28, 2022, was HK$12,804,000, a decrease from HK$13,448,000 as of February 28, 2021[35]. - The Group had net liabilities of approximately HK$12.8 million as of February 28, 2022, but has secured a revolving loan facility of HK$25 million to support liquidity needs[48][49]. - The Group's interest on bank borrowings was HK$0 for the nine months ended February 28, 2022, compared to HK$221,000 in 2021, indicating a significant reduction[80]. Cost Management - Measures will be implemented to closely monitor administrative expenses and operating costs to enhance financial stability[49][50]. - Advertising and marketing expenses rose by approximately HK$5.7 million, or about 319.9%, from approximately HK$1.8 million to approximately HK$7.5 million for the same nine-month periods[120]. - Employee benefits expenses increased by approximately HK$3.0 million, or about 38.7%, from approximately HK$7.8 million to approximately HK$10.9 million for the nine months ended February 28, 2021, and February 28, 2022, respectively[122]. - Other expenses increased by approximately HK$6.2 million, or about 81.6%, from approximately HK$7.5 million to approximately HK$13.7 million for the nine months ended February 28, 2021, and February 28, 2022, respectively[127]. - Depreciation of property, plant, and equipment decreased by approximately HK$11.3 million, or about 58.9%, from approximately HK$19.2 million to approximately HK$7.9 million for the same periods[126]. Compliance and Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[40]. - The audit committee has reviewed the unaudited financial statements for the nine months ended February 28, 2022, and confirmed compliance with applicable accounting standards and GEM Listing Rules[195]. - The unaudited quarterly financial statements for the nine months ended February 28, 2022, were approved and authorized for issue by the Board on April 14, 2022[197]. - The company has adopted the GEM Listing Rules as its code of conduct regarding directors' securities transactions, and all directors confirmed compliance during the reporting period[174][175]. - The company intends to review its corporate governance practices to comply with the code provision regarding the separation of the roles of chairman and chief executive officer[183][187]. Market Conditions - The Group's financial condition and operating performance were adversely affected by the COVID-19 pandemic, prompting the adoption of cost control measures[102][103]. - The ongoing COVID-19 pandemic is expected to result in a significant decrease in sales, adversely impacting the company's financial performance for the years 2021 and 2022[150]. - The Group's business operations, particularly nightclubs and entertainment venues, are expected to face significant disruptions due to tightened social distancing measures implemented by the Hong Kong government starting January 7, 2022, for a period of 14 days[192]. - The Group anticipates that the ongoing social distancing measures will continue to tighten in the near future, adversely impacting its financial results[193]. - The company is adapting its policies and menu to meet the changing demands of both tourists and local customers due to the impact of COVID-19 on the tourism industry[151]. Shareholder Information - The company issued 1,600,000 ordinary shares during the period, raising HK$20,334,000[35]. - As of February 28, 2022, Mr. Jiang Qiaowei, Mr. Hui Wai Hung, and Mr. Pong Chun Yu each hold 400,000 shares, representing 0.04% of the company's shareholding[166][168]. - Mr. Sze Ching Lau holds 359,590,000 shares, which accounts for 36.0% of the company's shareholding[172]. - The company and its subsidiaries did not purchase, sell, or redeem any of the company's listed securities during the nine months ended February 28, 2022[178]. - No dividends have been paid or declared by the company for the nine months period ended February 28, 2021, and 2022[158].
新爱德集团(08412) - 2022 Q3 - 季度财报