Financial Performance - The group's revenue for the three months ended March 31, 2020, was HKD 57,652,000, a decrease of 50.8% compared to HKD 117,027,000 in the same period of 2019[5] - Gross profit for the same period was HKD 40,264,000, down 49.8% from HKD 80,029,000 year-on-year[5] - The group reported a loss before tax of HKD 9,132,000, compared to a profit of HKD 1,183,000 in the previous year[5] - The loss attributable to owners of the company for the period was HKD 9,132,000, compared to a profit of HKD 523,000 in the same period last year[5] - Basic and diluted loss per share was HKD (0.63), compared to earnings of HKD 0.04 per share in the previous year[5] - The overall comprehensive loss for the period was HKD 9,034,000, compared to a comprehensive income of HKD 430,000 in the previous year[7] - Revenue for Long Wong decreased from approximately HKD 70.0 million for the three months ended March 31, 2019, to approximately HKD 39.1 million for the same period in 2020, a decline of about HKD 30.9 million or approximately 44.1%[36] - Long Xi's revenue fell from approximately HKD 17.3 million to approximately HKD 6.1 million, a decrease of about HKD 11.2 million or approximately 64.7%[37] - Long Pao's revenue decreased from approximately HKD 8.0 million to approximately HKD 5.2 million, a decline of about HKD 2.8 million or approximately 35.0%[39] - Overall gross profit for the group was approximately HKD 40.3 million, down from approximately HKD 80.0 million, a decrease of about HKD 39.7 million or approximately 49.6%[42] Other Income and Expenses - Other income and net gains for the period were HKD 1,595,000, an increase from HKD 409,000 in the same period of 2019[5] - The company reported other income and net gains of HKD 1.6 million for the three months ended March 31, 2020, compared to HKD 0.4 million in 2019[21] - Employee costs decreased to HKD 24,149,000 from HKD 39,912,000, reflecting a reduction of 39.7%[5] - Employee benefit expenses (excluding directors and CEO remuneration) were HKD 21.6 million for the three months ended March 31, 2020, down from HKD 35.5 million in 2019[23] - Depreciation of property, plant, and equipment was HKD 3,232,000, down from HKD 4,505,000, indicating a decrease of 28.3%[5] - Rental and related expenses decreased from approximately HKD 9.1 million to approximately HKD 5.4 million, a decline of about HKD 3.7 million or approximately 40.7%[46] Impact of COVID-19 - The company’s financial performance was impacted by the COVID-19 pandemic, leading to a significant decline in revenue[33] - The company will adopt a conservative approach to operations due to the economic downturn and will increase promotional efforts to maintain competitiveness[50] - The group plans to continuously adjust its business strategies to respond to the changing economic and restaurant industry conditions[51] Shareholder Information - As of March 31, 2020, Wanli Development Limited holds 578,880,000 shares, representing 40.20% of the company's equity[56] - Good Vision Limited and its controlled entities collectively own 237,600,000 shares, accounting for 16.50% of the company's equity[56] - Wise Alliance Limited holds 108,000,000 shares, which is 7.50% of the company's equity[58] Corporate Governance - The company confirmed compliance with the GEM Listing Rules regarding securities trading by directors, with no non-compliance incidents reported[65] - The company has adopted a share option plan allowing the issuance of options to directors, employees, and stakeholders to incentivize and retain talent, with a maximum of 144,000,000 shares available for issuance under this plan, representing 10% of the total issued shares[67] - No share options were granted under the company's share option plan for the three months ending March 31, 2020[72] - The company’s audit committee, established on December 15, 2017, is responsible for reviewing financial information, internal controls, and risk management systems[75] - The company has complied with GEM Listing Rules regarding the audit committee, which must include at least one independent non-executive director with appropriate professional qualifications or accounting expertise[77] - The company’s unaudited condensed consolidated financial statements for the three months ending March 31, 2020, were reviewed by the audit committee and deemed to comply with applicable accounting standards and GEM Listing Rules[77] Dividends - The company did not recommend any dividend for the three months ended March 31, 2020, consistent with no dividend in 2019[27] Business Operations - The company operates ten full-service restaurants under four owned brands, primarily located in Hong Kong, Macau, and Shanghai[32] - The company sold the "Dragon Banquet" restaurant in Sheung Shui on January 17, 2020, due to poor financial performance in recent years[32]
龙皇集团(08493) - 2020 Q1 - 季度财报