Financial Performance - The Group's revenue for the three months ended March 31, 2021, was HKD 49,149,000, a decrease of 14.8% compared to HKD 57,652,000 for the same period in 2020[6] - Gross profit for the same period was HKD 32,736,000, down 18.6% from HKD 40,264,000 in 2020[6] - The Group reported a loss before tax of HKD 5,008,000, an improvement from a loss of HKD 9,132,000 in the same quarter of 2020, representing a 45.5% reduction in losses[6] - Basic and diluted loss per share was HKD 0.35, compared to HKD 0.63 for the same period in 2020, indicating a 44.4% improvement[6] - Total comprehensive loss for the period was HKD 5,115,000, compared to HKD 9,034,000 in the previous year, reflecting a 43.5% decrease[8] - The company recorded a loss attributable to owners of approximately HKD 5.0 million for the three months ended March 31, 2021, a decrease from a loss of HKD 9.1 million in the same period in 2020[53] Income and Gains - Other income and net gains increased significantly to HKD 7,476,000, compared to HKD 1,595,000 in the previous year, marking a growth of 367.4%[6] - The group recorded other income and net gains of HKD 4,200,000 from government subsidies, significantly up from HKD 1,400,000 in the previous year[22] - Other income and net gains increased significantly by approximately HKD 5.9 million or 368.75% to about HKD 7.5 million, mainly due to a one-time subsidy of HKD 4.2 million from the Food and Environmental Hygiene Department[47] Employee Costs - The Group's employee costs were HKD 22,561,000, down from HKD 24,149,000 in the previous year, a reduction of 6.6%[6] - Employee costs decreased by approximately HKD 1.5 million or 6.2% to about HKD 22.6 million, as all directors and employees agreed to unpaid leave as a cost control measure[49] Depreciation and Assets - Depreciation of property, plant, and equipment was HKD 1,768,000, significantly lower than HKD 3,232,000 in 2020, a decrease of 45.3%[6] - The Group's total assets and liabilities have not been disclosed in the provided documents, indicating a need for further financial details in future reports[12] Business Environment - The group faced a challenging business environment due to COVID-19, particularly in Hong Kong, impacting customer numbers and visit frequency[35] - The group’s financial performance was adversely affected by ongoing COVID-19 outbreaks and related preventive measures[35] - The group’s restaurant operations in Shanghai showed improvement due to effective control of COVID-19, contrasting with the situation in Hong Kong[34] Revenue Breakdown - Revenue from customer contracts in restaurant operations was HKD 49,149,000 for the three months ended March 31, 2021, compared to HKD 57,652,000 in 2020[3] - Revenue from the Dragon Emperor brand decreased by approximately HKD 8.6 million or 22.0% to about HKD 30.5 million due to COVID-19 restrictions impacting restaurant operations[41] - Revenue from the Dragon Seal brand decreased by approximately HKD 0.3 million or 4.9% to about HKD 5.8 million, also affected by COVID-19 measures[43] - Revenue from the Dragon Robe brand decreased by approximately HKD 0.9 million or 17.3% to about HKD 4.3 million, primarily due to the pandemic[44] - Revenue from the Emperor brand increased significantly by approximately HKD 4.2 million or 97.7% to about HKD 8.5 million, as the COVID-19 situation in China improved[45] Corporate Governance - The board believes that good corporate governance is essential for managing the company's business and affairs, and it has complied with the corporate governance code during the reporting period[71] - The audit committee was established on December 15, 2017, and is chaired by independent non-executive director Ms. Leung Hoi Kei, with other members including independent non-executive directors Mr. Lam Chi Sang and Mr. Lee Yiu Keung[73] - The audit committee's main responsibilities include reviewing financial information, internal control procedures, and risk management systems, ensuring compliance with GEM listing rules[73] - The group’s unaudited consolidated financial statements for the three months ended March 31, 2021, have been reviewed by the audit committee, confirming compliance with applicable accounting standards and GEM listing rules[74] Shareholding and Dividends - The group did not recommend any dividend distribution for the three months ended March 31, 2021, consistent with the previous year[29] - As of March 31, 2021, Ms. Li Jingnong and Mr. Huang Yongzhi each hold 578,880,000 shares, representing a 40.20% ownership stake in the company[60] - Mr. Huang Yongkang holds 10,800,000 shares, which accounts for 0.75% of the company's total shares[60] - The total number of shares held by major shareholders, including Wanli Development Limited, is 578,880,000, equivalent to 40.20% of the company's shares[64] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the three months ending March 31, 2021[67] - The company has adopted the trading standards outlined in GEM Listing Rules for directors' securities transactions, confirming compliance with these standards[68] - No stock options were granted, exercised, expired, or lapsed during the three months ending March 31, 2021, and there are no unexercised stock options under the stock option plan[69] Future Plans - The company plans to expand its online sales platform for packaged foods and sauces to mitigate operational and financial risks associated with the pandemic[57]
龙皇集团(08493) - 2021 Q1 - 季度财报