Financial Performance - The Group's revenue for the Reporting Period was approximately HK$12,368,000, representing a decrease of approximately 77% compared to the Corresponding Period[14]. - The Group recorded a loss of approximately HK$9,141,000 for the Reporting Period, while there was a profit of approximately HK$463,000 for the Corresponding Period[14]. - Revenue for the six months ended November 30, 2024, decreased to HK$12,368,000 from HK$54,125,000 in the same period of 2023, representing a decline of approximately 77%[26]. - The company reported a loss before income tax of HK$9,141,000 compared to a profit of HK$463,000 in the previous year[26]. - Total comprehensive loss for the period attributable to owners of the Company was HK$9,123,000, compared to a profit of HK$568,000 in the previous year[34]. - The company reported a loss attributable to owners of HK$9,123,000 for the six months ended 30 November 2024, compared to a profit of HK$568,000 in the same period last year[75]. - The loss and total comprehensive expense for the reporting period was approximately HK$9,141,000 compared to a profit and total comprehensive income of approximately HK$463,000 for the corresponding period[138]. Dividends - The Board did not recommend payment of any dividend for the Reporting Period[14]. - The Group did not pay, declare, or propose any dividends during the reporting period and the corresponding period[71]. - No dividends have been paid or declared by the Company or any of its subsidiaries for the Reporting Period[176]. - The company did not declare or pay any dividends during the reporting period and the same period last year[179]. Assets and Liabilities - Total current liabilities decreased to HK$37,491,000 from HK$47,552,000, a reduction of approximately 21%[28]. - Non-current assets decreased from HK$18,169,000 to HK$11,417,000, reflecting a decline of about 37%[28]. - The company's cash and cash equivalents slightly decreased to HK$1,716,000 from HK$1,816,000[28]. - The company had net current liabilities of HK$11,360,000, an improvement from HK$15,248,000[30]. - As of 30 November 2024, the Group had net current liabilities of approximately HK$11,360,000 and net liabilities of HK$864,000[45]. - The total cash and cash equivalents at the end of the period decreased to HK$1,716,000 from HK$2,880,000, reflecting a decline of 40.5%[35]. - As of November 30, 2024, the Group's total cash and bank balances were approximately HK$1,716,000, with current ratios of approximately 0.70 times[146]. - The gearing ratio of the Group was nil as of November 30, 2024, and May 31, 2024[146]. Revenue Sources - Revenue from sales of tobacco, food, and beverage was HK$7,302,000, down from HK$31,127,000 in the previous year[61]. - Entertainment income decreased to HK$716,000 from HK$845,000, while event income dropped significantly to HK$4,229,000 from HK$21,279,000[61]. - Revenue from the club and entertainment business decreased by approximately HK$41,757,000, or approximately 77%, from approximately HK$54,125,000 for the Corresponding Period to approximately HK$12,368,000 for the Reporting Period[108]. - All revenue was derived from operations in Hong Kong, with no single customer accounting for 10% or more of total revenue[57]. Operational Changes - The company has undergone changes in its executive directors, with new appointments and resignations noted[18]. - The nightclub "FAYE" ceased operations on August 4, 2024, due to the expiration of its lease, which significantly impacted revenue[109]. - The Group operated 1 nightclub, 2 lounges, and 1 shop during the Reporting Period, covering different segments of the entertainment market[108]. - The company is actively seeking suitable venues to maintain and expand its club, restaurant, and cigar lounge businesses following the closure of "FAYE"[109]. Cash Flow and Financing - For the six months ended 30 November 2024, net cash used in operating activities was HK$8,465,000, a decrease of 11.7% compared to HK$9,591,000 in the same period of 2023[35]. - The company generated HK$2,205,000 from investing activities, compared to a cash outflow of HK$321,000 in the previous year[35]. - Net cash generated from financing activities was HK$6,160,000, an increase of 179.5% from HK$2,203,000 in the prior period[35]. - A subscription agreement was entered into on September 24, 2024, to raise approximately HK$3,100,000 for loan repayment and general administrative expenses[182]. - The net proceeds from the subscription amounted to approximately HK$9,250,000, fully utilized for loan repayment and general working capital[185]. Employee and Operational Costs - The company employed 52 employees, a decrease from 89 employees as of November 30, 2023[152]. - Employee benefit expenses for the Reporting Period amounted to approximately HK$6,020,000, down from approximately HK$11,890,000 in the Corresponding Period, representing a decrease of about 49%[152]. - Advertising and marketing expenses decreased by approximately HK$4,970,000 or about 75% from approximately HK$6,664,000 for the corresponding period to approximately HK$1,694,000 for the reporting period[126]. - Other expenses decreased by approximately HK$4,852,000 or about 54% from approximately HK$9,058,000 for the corresponding period to approximately HK$4,206,000 for the reporting period[133]. Compliance and Governance - The unaudited condensed consolidated financial statements were announced for the Reporting Period, along with comparative figures for the Corresponding Period[7]. - The Directors confirmed that the information contained in the report is accurate and complete in all material respects[6]. - The report includes particulars given in compliance with the GEM Listing Rules[6]. - The financial statements have been reviewed by the Audit Committee but not audited by the Auditor[51]. Market Position and Risks - The Group is positioned in the GEM market, which accommodates small and mid-sized companies with higher investment risks[2]. - Securities traded on GEM may be more susceptible to high market volatility compared to those on the Main Board[2]. - The Group's largest supplier accounted for over 60% of total purchases for both the Reporting Period and the Corresponding Period, posing a risk to operations if supply is interrupted[174]. - The largest supplier accounted for over 60% of total procurement during the reporting period and the same period last year, posing a significant supply risk[177].
新爱德集团(08412) - 2025 - 中期财报