Financial Performance - The Group recorded revenue of approximately HK$40.1 million for the nine months ended 31 December 2019, a decrease of 44.4% compared to approximately HK$72.1 million for the same period in 2018[15]. - The Group's gross profit for the nine months ended 31 December 2019 was approximately HK$22.5 million, down 49.3% from approximately HK$44.4 million in the corresponding period of 2018[15]. - Loss attributable to owners of the Company was approximately HK$13.0 million for the nine months ended 31 December 2019, compared to a loss of approximately HK$8.5 million for the same period in 2018, representing a 52.9% increase in loss[16]. - Basic and diluted loss per share was approximately 1.09 HK cents for the nine months ended 31 December 2019, compared to approximately 0.71 HK cents for the same period in 2018[16]. - Revenue for the three months ended December 31, 2019, was HK$10,065,000, a decrease of 56% compared to HK$22,814,000 for the same period in 2018[21]. - Gross profit for the three months ended December 31, 2019, was HK$5,530,000, down from HK$14,360,000 in the same period of 2018, representing a decline of 61%[21]. - Loss before tax for the three months ended December 31, 2019, was HK$4,660,000, compared to a loss of HK$1,038,000 for the same period in 2018, indicating a significant increase in losses[21]. - Total comprehensive loss attributable to owners of the Company for the period was HK$13,034,000, compared to HK$1,761,000 for the same period in 2018, reflecting a substantial increase in losses[21]. - The total comprehensive loss attributable to owners of the Company was approximately HK$13.0 million for the nine months ended 31 December 2019, compared to approximately HK$8.5 million for the same period in 2018, primarily due to decreased revenue[81]. Revenue and Costs - Revenue for the nine months ended 31 December 2019 decreased by approximately HK$32.0 million to HK$40.1 million, compared to approximately HK$72.1 million for the same period in 2018[68]. - Cost of inventories sold for the nine months ended 31 December 2019 decreased by approximately HK$10.1 million to HK$17.6 million, while the cost of inventories sold as a percentage of revenue increased by approximately 5.5% to approximately 44.0%[69]. - Gross profit decreased by approximately HK$21.9 million to HK$22.5 million for the nine months ended 31 December 2019, with a gross margin decline of about 5.5% to 56.0%[73]. - Staff costs for the three months ended December 31, 2019, amounted to HK$3,358,000, which is an increase from HK$6,744,000 in the same period of 2018[21]. - Employee benefit expenses for the three months ended December 31, 2019, amounted to approximately HK$3.4 million, a decrease from HK$6.7 million in the same period of 2018[38]. - Property rentals and related expenses decreased by approximately HK$17.6 million to HK$1.4 million for the nine months ended 31 December 2019, attributed to branch closures and the adoption of HKFRS 16[77]. - Finance costs were approximately HK$0.9 million for the nine months ended 31 December 2019, compared to HK$Nil for the same period in 2018, due to the recognition of interest on lease liabilities[81]. Strategic Initiatives - The Company has been focusing on expanding its catering services in Hong Kong, which remains its principal activity[30]. - The Group's strategic remodeling of the hotpot dining concept includes the introduction of new brands and dining experiences to appeal to a wider customer base[65]. - The company has implemented "happy hour" and "late night" discounts to attract customers to its restaurants[97]. - The Group plans to balance between expanding restaurants and closing underperforming ones while considering launching more new brands to enhance customer dining experiences[95]. Governance and Compliance - The Audit Committee reviewed the unaudited consolidated financial statements for the nine months ended December 31, 2019, confirming compliance with applicable accounting standards and GEM Listing Rules[143]. - The company has complied with the Corporate Governance Code for the nine months ended December 31, 2019[135]. - There were no competing businesses or conflicts of interest reported among directors or substantial shareholders during the nine months ended December 31, 2019[134]. - The company has maintained adequate disclosures as required by the GEM Listing Rules and other legal requirements[143]. Shareholding and Interests - As of December 31, 2019, Ms. Wong holds 843,952,000 shares, representing approximately 83.4% of Sure Wonder Investments Limited[100]. - Mr. Kwok, the chief executive officer, is deemed to be interested in the same 843,952,000 shares held by Ms. Wong due to their family relationship[100]. - Mr. Chan Lap Ping holds a family interest in 18 shares, representing approximately 1.8% of Sure Wonder[112]. - No other directors or chief executives had interests or short positions in any shares or debentures of the company or its associated corporations as of December 31, 2019[120]. - No substantial shareholders other than those disclosed had interests or short positions in the shares as of December 31, 2019[130]. - The company has not purchased, sold, or redeemed any listed securities since its listing on February 15, 2017, up to December 31, 2019[135]. - The company has adopted a share option scheme since January 20, 2017, but no share options have been granted or are outstanding as of December 31, 2019[139]. Market Conditions - The Group's financial results were negatively impacted by severe market competition, a weakening local economy, and rising costs of raw materials, labor, and rental[63]. - The Group anticipates that severe market competition and a weakening local economy will continue to adversely affect the food and beverage industry and its performance[95]. - No provision for Hong Kong Profits Tax has been made as the Group has no assessable profits arising in Hong Kong for the current period[47]. - The Group is eligible for a one-off reduction of profits tax by 100%, subject to a ceiling of HK$20,000[49].
国茂控股(08428) - 2020 Q3 - 季度财报