Financial Performance - The Group's revenue for the six months ended 30 November 2022 was approximately HK$26.4 million, representing a decrease of approximately 21.3% compared to the same period in 2021[14]. - The Group recorded a loss of approximately HK$3.6 million for the six months ended 30 November 2022, an improvement from a loss of approximately HK$4.6 million for the same period in 2021[14]. - Revenue for the three months ended November 30, 2022, was HK$16,079,000, a 2.35% increase from HK$15,709,000 in the same period of 2021[24]. - Revenue for the six months ended November 30, 2022, decreased by 21.2% to HK$26,396,000 from HK$33,529,000 in the same period of 2021[24]. - Loss attributable to owners of the Company for the six months ended November 30, 2022, was HK$3,704,000, down from HK$4,620,000 in the same period of 2021[24]. - The Company reported a basic and diluted loss per share of HK$1.69 for the three months ended November 30, 2022, compared to HK$5.29 in the same period of 2021[24]. - The Company reported a loss of HK$3,704 thousand for the six months ended November 30, 2022, compared to a loss of HK$4,620 thousand for the same period in 2021, indicating a 19.8% improvement in loss[30]. - The Group's total comprehensive loss decreased from approximately HK$4.6 million for the six months ended 30 November 2021 to approximately HK$3.6 million for the six months ended 30 November 2022, mainly due to effective cost control[144]. Dividends and Share Capital - The Board did not recommend payment of any dividend for the six months ended 30 November 2022[15]. - No dividends were paid, declared, or proposed by the Company during the six months ended 30 November 2022 and 2021[74]. - The total number of issued and fully paid ordinary shares as of 30 November 2022 was 59,928,000 shares[108]. - The authorized share capital of the Company as of November 30, 2022, was HK$100 million, divided into 500 million shares of HK$0.20 each, with 59,928,000 shares issued and fully paid up[195]. - The company completed a share consolidation on 16 November 2022, consolidating every twenty shares of HK$0.01 each into one share of HK$0.20 each[109]. - The company issued 199,760,000 new ordinary shares at a price of HK$0.03 per share, generating a premium of approximately HK$3.9 million after deducting related costs[109]. Cash Flow and Liquidity - Net cash used in operating activities for the six months ended November 30, 2022, was HK$ (1,173) thousand, a decline from HK$ 878 thousand generated in the same period of 2021[33]. - Cash and cash equivalents at the end of the period on November 30, 2022, were HK$ 2,448 thousand, down from HK$ 3,449 thousand at the end of the same period in 2021[33]. - The net cash generated from financing activities was HK$ 3,225 thousand for the six months ended November 30, 2022, contrasting with a net cash used of HK$ (16,297) thousand in the same period of 2021[33]. - The Group's total cash and bank balances increased to approximately HK$2.4 million as at 30 November 2022, up from approximately HK$1.6 million as at 31 May 2022[153]. - The current ratio improved to approximately 0.37 times as at 30 November 2022, compared to 0.22 times as at 31 May 2022[153]. Assets and Liabilities - Total current liabilities as of November 30, 2022, were HK$37,289,000, a decrease from HK$39,416,000 as of May 31, 2022[25]. - Net liabilities decreased to HK$11,113,000 as of November 30, 2022, from HK$13,337,000 as of May 31, 2022[28]. - The balance of accumulated losses increased to HK$ (133,861) thousand as of November 30, 2022, from HK$ (130,157) thousand as of June 1, 2022[30]. - The Group had no significant capital commitments as of November 30, 2022, except for lease commitments of HK$5,310,000 for leases not yet commenced[169]. Operational Performance - The Group's principal activities include operating a club and a bar in Hong Kong, with all revenue derived from these operations[54][61]. - Revenue from food and beverage sales decreased to HK$13,824,000 for the three months ended 30 November 2022, down 0.4% from HK$13,876,000 in 2021[64]. - For the six months ended 30 November 2022, the revenue from club and entertainment operations decreased by approximately HK$7.1 million, or approximately 21.3%, from HK$33.5 million to HK$26.4 million[111]. - The closure of the Mudita and Maximus venues contributed zero revenue in the current period, compared to approximately HK$5.9 million in the corresponding period in 2021[122]. - The Group's management has implemented measures to improve working capital and cash flows, including monitoring administrative expenses and operating costs[51]. Cost Management - The Group has been actively implementing cost control measures to improve liquidity in response to the ongoing impact of the COVID-19 pandemic[115]. - Advertising and marketing expenses decreased by approximately HK$2 million, or 35.2%, from approximately HK$5.6 million for the six months ended 30 November 2021 to approximately HK$3.7 million for the six months ended 30 November 2022[131]. - Employee benefits expenses decreased by approximately HK$0.4 million, or 5.6%, from approximately HK$7.8 million for the six months ended 30 November 2021 to approximately HK$7.4 million for the six months ended 30 November 2022[132]. - Other expenses decreased by approximately HK$3.8 million, or 36.2%, from approximately HK$10.4 million for the six months ended 30 November 2021 to approximately HK$6.6 million for the six months ended 30 November 2022[137]. Future Plans and Risks - The Group plans to expand its business model to more lifestyle-oriented clubs, bars, restaurants, and experience stores[151]. - The Group plans to expand its outlet network by establishing more clubs, bars, and restaurants in Hong Kong, facing risks related to location selection, lease agreements, and market competition[178]. - The Directors will monitor the expansion plan closely to ensure profitability and address potential risks and uncertainties[184]. - The ongoing COVID-19 pandemic has disrupted business operations and posed risks to the tourism industry in Hong Kong, which significantly impacts revenue[193]. - The Group's substantial lease liabilities expose it to risks from fluctuations in the commercial real estate market, which could impact financial stability[182].
新爱德集团(08412) - 2023 - 中期财报