Financial Performance - Revenue for the three months ended June 30, 2020, was HKD 27,454,000, a decrease of 29% compared to HKD 38,878,000 for the same period in 2019[6] - Other income increased significantly to HKD 12,715,000 from HKD 204,000 year-on-year[6] - The gross profit margin improved, with a pre-tax profit of HKD 5,375,000, up 73% from HKD 3,096,000 in the previous year[6] - Net profit attributable to owners of the company was HKD 4,863,000, compared to HKD 2,145,000 in the same quarter of 2019, representing a 127% increase[6] - Basic and diluted earnings per share increased to HKD 0.57 from HKD 0.25 year-on-year[6] - The company reported a total comprehensive income of HKD 5,352,000 for the quarter, compared to HKD 2,525,000 in the same period last year[6] - Revenue decreased from approximately HKD 38.9 million in the previous period to about HKD 27.4 million, a decline of approximately 29.6%[38] - Gross profit for the period was HKD 20.6 million, down 30.2% from HKD 29.5 million in the previous period, with a stable gross margin of approximately 74.9%[38] - The group recorded a profit of approximately HKD 5.4 million for the period, up from approximately HKD 2.5 million in the previous period, reflecting an increase of about 53.7%[48] Revenue Breakdown - Revenue from bar operations was HKD 27,366,000, down 29.5% from HKD 38,878,000 in the previous year[24] - The company recognized revenue at a point in time, confirming that the revenue from bar operations is recognized when the goods and services are transferred to customers[26] Expenses and Costs - Interest expenses for the period totaled HKD 805,000, an increase from HKD 589,000 in the same period last year[28] - Employee costs slightly decreased from approximately HKD 10.7 million to about HKD 10.6 million, reflecting a balance between reduced costs during the closure period and increased headcount[40] - Depreciation of property, plant, and equipment rose from approximately HKD 2.1 million to about HKD 2.3 million, an increase of approximately 9.5% due to the opening of three new stores[41] - Depreciation of right-of-use assets increased by approximately 8.5% from HKD 7.1 million to HKD 7.7 million, attributed to new lease agreements[43] - Property rental and related expenses increased from approximately HKD 692,000 to about HKD 709,000, a rise of approximately 2.5%[44] - Other operating expenses rose from approximately HKD 5.3 million to about HKD 5.7 million, an increase of approximately 7.5% due to the growth in the number of stores[45] - Financing costs increased from approximately HKD 0.6 million to about HKD 0.8 million, representing a growth of 33.3% due to bank loan interest of approximately HKD 225,000[46] - Tax expenses decreased from approximately HKD 0.6 million to about HKD 23,000, a reduction of approximately 96.2%, primarily due to a decrease in operating profit after deducting non-taxable government subsidies of HKD 12.6 million[47] Government Support - Government grants received amounted to HKD 12,587,000, contributing significantly to the overall income for the period[27] - Other income surged from approximately HKD 0.2 million to about HKD 12.7 million, an increase of approximately 6250%, primarily due to government subsidies[39] Corporate Governance - The company has adopted and complies with all applicable provisions of the corporate governance code as per GEM Listing Rules Appendix 15, except for the roles of the Chairperson and CEO not being separated[59] - The board has established a diversity policy with measurable targets to enhance board composition, considering factors such as gender, age, cultural background, and professional qualifications[60] - The company emphasizes the importance of effective leadership and transparency in its operations, as stated in its corporate governance practices[59] Future Strategies - The company continues to focus on expanding its bar chain under the "Pacific" brand in Hong Kong[12] - Future strategies include enhancing operational efficiency and exploring new investment opportunities in the hospitality sector[12] - The company plans to expand its network and upgrade existing store facilities, with new leases signed for locations in Yuen Long and Sheung Shui expected to open in Q3 2020[34] Shareholder Information - Moment to Moment holds 431,543,700 shares, representing approximately 50.18% of the company's issued share capital[55] - The major shareholder, Moment to Moment, is a trust with Harneys as the trustee, and the beneficiaries include the CEO and her daughter[57] - The board has resolved not to declare any interim dividend for the three months ended June 30, 2020 (previous period: none)[49] - The board will continue to review the dividend policy and does not guarantee the payment of any specific amount of dividends in any given period[63] - The board will consider various factors, including financial performance and capital requirements, when deciding on dividend payments[65] Segment Information - The company has one reportable segment, which is bar operations, and has recently opened a new reportable segment for property investment following the acquisition of Jun Tin Development Limited[19] - The company has not identified any individual customer transactions exceeding 10% of total revenue, indicating a diversified customer base[23] Compliance and Audit - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the period and confirmed compliance with applicable accounting standards and GEM Listing Rules[71] - The company plans to apply new or revised Hong Kong Financial Reporting Standards upon their effective date, with no significant impact expected on the financial statements[18] Risk Management - As of June 30, 2020, the group had no significant contingent liabilities[50] - The group operates solely in Hong Kong, and transactions are denominated in HKD, thus foreign exchange risk is considered not significant[51] - There are no known direct or indirect competitive businesses or interests that could pose a conflict with the group's operations as of June 30, 2020[58]
太平洋酒吧(08432) - 2021 Q1 - 季度财报