Financial Performance - The company's revenue for the three months ended September 30, 2022, was HKD 17,176,000, a decrease of 54.5% compared to HKD 37,762,000 in the same period of 2021[3] - The total comprehensive loss for the period was HKD 26,346,000, compared to a loss of HKD 13,519,000 in the same quarter of 2021, representing a 94.5% increase in losses[5] - The basic loss per share for the three months ended September 30, 2022, was HKD 0.90, compared to HKD 0.50 in the same period of 2021[5] - For the nine months ended September 30, 2022, the company reported a total revenue of HKD 38,371,000, down 69.9% from HKD 127,553,000 in the same period of 2021[3] - The company incurred a loss of HKD 57,379,000 for the nine months ended September 30, 2022, compared to a loss of HKD 32,008,000 in the same period of 2021, marking an increase of 79.5% in losses[5] - The company’s total comprehensive loss attributable to owners for the nine months ended September 30, 2022, was HKD 40,273,000, compared to HKD 26,630,000 in the same period of 2021, reflecting a 51.4% increase in losses[5] Revenue Breakdown - Sales of food and other products for the three months ended September 30, 2022, were HKD 15,532,000, a decline of 9.6% from HKD 17,186,000 in 2021[17] - Beverage sales dropped significantly to HKD 1,560,000 for the three months ended September 30, 2022, compared to HKD 20,366,000 in the same period of 2021[17] - Total revenue decreased by 69.9% from approximately HKD 127.6 million in the first three quarters of 2021 to approximately HKD 38.4 million in the same period of 2022, primarily due to the closure of Club Cubic Macau and CUBIC SPACE+[41] Cost and Expenses - The company reported a significant increase in employee costs, totaling HKD 23,450,000 for the nine months ended September 30, 2022, compared to HKD 67,972,000 in the same period of 2021[3] - The cost of goods sold decreased by 63.4% from approximately HKD 32.8 million in the first three quarters of 2021 to approximately HKD 12.0 million in the same period of 2022, consistent with the revenue decline[42] - Employee costs fell by 65.5% from approximately HKD 68.0 million in the first three quarters of 2021 to approximately HKD 23.5 million in the same period of 2022, mainly due to the closure of Club Cubic Macau and CUBIC SPACE+[42] - Other operating expenses decreased by 23.4% from approximately HKD 24.4 million in the first three quarters of 2021 to approximately HKD 18.7 million in the same period of 2022, attributed to the closure of Club Cubic Macau and CUBIC SPACE+[42] Government Support - The group received government subsidies amounting to HKD 2,319,000 for the nine months ended September 30, 2022, compared to HKD 820,000 in the same period of 2021[19] - For the nine months ended September 30, 2022, government subsidies related to COVID-19 amounted to HKD 2,319,000, compared to HKD 820,000 in 2021, with HKD 1,200,000 related to the Hong Kong government's anti-epidemic fund[20] Financial Position and Liabilities - The company’s total assets as of September 30, 2022, were reported at HKD 115,363,000, a decrease from previous periods, indicating potential liquidity challenges[6] - The group has a net current liability of approximately HKD 109,419,000 as of September 30, 2022, indicating significant uncertainty regarding its ability to continue as a going concern[12] Fundraising and Financing - The company is exploring fundraising activities, including rights issues and/or share placements, to meet its repayment obligations[15] - The company is in discussions with banks to renew financing, believing that existing bank financing will be renewed upon expiration[15] - The total financing costs for the nine months ended September 30, 2022, were HKD 4,476,000, down 29% from HKD 6,346,000 in 2021[24] Operational Challenges - The group experienced operational losses due to strict dining restrictions and social distancing measures during the COVID-19 pandemic in early 2022[49] - The company recognized a loss of approximately HKD 11.2 million related to the termination of CUBIC SPACE+, including asset write-offs and lease termination income[37] - The company made a provision of approximately HKD 2.2 million for unpaid rent in the third quarter of 2022 due to legal disputes[44] Management and Governance - The company has established an audit committee to oversee financial reporting, internal controls, and risk management systems[68] - The audit committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2022[69] - The board acknowledges non-compliance with GEM listing rules due to the resignation of an independent non-executive director, resulting in only two independent non-executive directors remaining[70] - The company aims to fill the vacancy within three months from October 13, 2022, to ensure compliance with GEM listing rules[72] Future Outlook - The management anticipates a strong rebound in revenue once social distancing measures are relaxed, supported by loyal customers[49] - The management expresses confidence in the long-term prospects of its restaurant business in Hong Kong as the pandemic situation gradually improves[51] - The group aims to leverage its brand and network to improve financial conditions for shareholders and stakeholders despite a challenging business environment[51]
陆庆娱乐(08052) - 2022 Q3 - 季度财报