Financial Performance - For the three months ended December 31, 2019, the company's revenue was HKD 23,405,000, a decrease of 30.2% compared to HKD 33,569,000 for the same period in 2018[2]. - For the nine months ended December 31, 2019, the company's revenue was HKD 84,340,000, down 9.4% from HKD 92,747,000 in the same period of 2018[2]. - The company reported a net loss of HKD 6,299,000 for the three months ended December 31, 2019, compared to a loss of HKD 8,572,000 for the same period in 2018, representing a 26.5% improvement[2]. - The net loss for the nine months ended December 31, 2019, was HKD 26,785,000, which is a 12.4% increase from a loss of HKD 23,794,000 in the same period of 2018[2]. - Basic loss per share for the three months ended December 31, 2019, was HKD 0.79, an improvement from HKD 1.07 in the same period of 2018[2]. - Basic loss per share for the nine months ended December 31, 2019, was HKD 3.35, compared to HKD 2.98 for the same period in 2018[2]. - The total comprehensive loss attributable to owners of the company for the nine months ended December 31, 2019, was HKD 26,785,000, compared to HKD 23,836,000 for the same period in 2018[3]. - The company's accumulated losses as of December 31, 2019, reached HKD 90,738,000, reflecting the ongoing financial challenges faced[3]. Revenue and Cost Analysis - The company's food and beverage revenue for the three months ended December 31, 2019, was HKD 23,255,000, down from HKD 33,380,000 in the same period of 2018, representing a decrease of approximately 30.3%[15]. - For the nine months ended December 31, 2019, the company's revenue decreased by approximately HKD 8,400,000, or 9.1%, to HKD 84,300,000 from HKD 92,700,000 for the same period in 2018[19]. - The cost of materials and consumables used decreased to approximately HKD 28,800,000 for the nine months ended December 31, 2019, from HKD 33,400,000 in the same period of 2018, a reduction of about 13.5%[21]. - Employee costs slightly decreased to approximately HKD 38,100,000 for the nine months ended December 31, 2019, compared to HKD 38,400,000 in the same period of 2018[22]. - Depreciation increased significantly to approximately HKD 18,600,000 for the nine months ended December 31, 2019, from HKD 5,900,000 in the same period of 2018, an increase of approximately 214.7%[23]. - Rental and related expenses decreased sharply to approximately HKD 6,200,000 for the nine months ended December 31, 2019, from HKD 22,500,000 in the same period of 2018, a reduction of about 72.5%[24]. Operational Changes and Future Outlook - The decrease in revenue was primarily attributed to recent social events in Hong Kong since June 2019[20]. - The overall economic environment in Hong Kong is expected to remain unstable in the second half of the fiscal year, posing challenges for the group[28]. - Management has intensified control over raw material procurement and other operational costs, with a downward trend in various costs starting to reflect the effectiveness of these measures[28]. - The group has ceased operations of a Japanese restaurant in Central due to intense competition and relocated a vegetarian restaurant to a less competitive area, anticipating improved performance post-relocation[28]. - The group is optimistic about restaurant performance and aims to overcome current obstacles and achieve breakthroughs in the near future[28]. - The group is actively seeking opportunities to expand its restaurant network and geographic coverage[28]. Corporate Governance and Compliance - The company has a share capital of HKD 8,000,000 and a share premium of HKD 60,304,000 as of December 31, 2019[3]. - Major shareholders include JSS Group with 486,720,000 shares (60.84%) and J & W Group with 61,568,000 shares (7.70%) as of December 31, 2019[36]. - The company adopted HKFRS 16 "Leases" effective from April 1, 2019, which impacted the measurement of lease liabilities and right-of-use assets[14]. - As of December 31, 2019, the group did not hold any significant investments or contingent liabilities[31][32]. - No significant events requiring disclosure occurred after December 31, 2019, up to the report date[29]. - The company did not purchase, sell, or redeem any of its listed securities during the nine months ending December 31, 2019[40]. - There are no known interests held by directors or major shareholders that would create a conflict of interest with the group's business as of December 31, 2019[41]. - The company has adopted a code of conduct for directors' securities trading, compliant with GEM Listing Rules, with no non-compliance reported as of December 31, 2019[45]. - The Audit and Risk Management Committee, consisting of three independent non-executive directors, is responsible for monitoring compliance with applicable laws and regulations, reviewing internal control reports, and overseeing financial reporting processes[48]. - The company has confirmed compliance with the corporate governance code, with no deviations reported except for the dual role of the chairman and CEO, which the board believes serves the best interests of the group[47]. - The unaudited third-quarter results for the nine months ending December 31, 2019, were reviewed and confirmed to comply with applicable accounting principles and regulations[50].
TOPSTANDARDCORP(08510) - 2019 Q4 - 季度财报