Financial Performance - Revenue for the first quarter of 2023 reached HKD 23,806,000, a significant increase from HKD 6,571,000 in the same period of 2022, representing a growth of approximately 262%[3] - The cost of goods sold was HKD 6,295,000, up from HKD 1,881,000 in the previous year, indicating a rise of about 234%[3] - The company reported a pre-tax profit of HKD 122,000, a turnaround from a loss of HKD 15,213,000 in Q1 2022[3] - The net profit attributable to the owners of the company was a loss of HKD 430,000, compared to a loss of HKD 9,918,000 in the same quarter last year, showing an improvement[5] - Total comprehensive loss for the period was HKD 771,000, significantly reduced from HKD 15,430,000 in Q1 2022[3] - Basic and diluted loss per share for the first quarter was HKD 0.02, compared to HKD 0.44 in the same period last year[5] - Total revenue increased by 260.6% from approximately HKD 6.6 million in Q1 2022 to approximately HKD 23.8 million in Q1 2023, as restaurant sales recovered to 90% of pre-pandemic levels[34] - The company reported a loss attributable to owners of approximately HKD 0.4 million in Q1 2023, a significant decrease from HKD 9.9 million in the same period of 2022, primarily due to a rebound in restaurant sales and minimized operating expenses after the termination of CUBIC SPACE+ in October 2022[38] Costs and Expenses - The company incurred financing costs of HKD 381,000, down from HKD 1,689,000 in the previous year, reflecting a decrease of approximately 77%[3] - Employee costs increased by 20.5% from approximately HKD 7.3 million in Q1 2022 to approximately HKD 8.8 million in Q1 2023, reflecting a return to normal levels as sales revenue rebounded[35] - Property rental and related expenses decreased by 9.5% from approximately HKD 2.1 million in Q1 2022 to approximately HKD 1.9 million in Q1 2023 due to the termination of CUBIC SPACE+ operations[35] - Advertising and marketing expenses fell by 70.0% from approximately HKD 0.1 million in Q1 2022 to approximately HKD 0.03 million in Q1 2023, attributed to strict cost control measures[35] - Other operating expenses increased by 23.1% from approximately HKD 2.6 million in Q1 2022 to approximately HKD 3.2 million in Q1 2023, driven by higher variable costs due to increased sales revenue[36] - Depreciation and amortization decreased by 50.7% from approximately HKD 6.7 million in Q1 2022 to approximately HKD 3.3 million in Q1 2023, primarily due to the cessation of CUBIC SPACE+ operations[36] Financing and Capital Raising - The group completed a placement of 450,880,000 shares on March 17, 2023, raising net proceeds of approximately HKD 6.9 million, primarily used to repay convertible notes and loans[15] - The group plans to raise approximately HKD 43.9 million through a rights issue, with an estimated net amount of HKD 40.9 million to be used for repaying outstanding debts and operational funding[15] - The company is actively exploring fundraising activities, including a proposed rights issue to raise up to approximately HKD 43.9 million[32] - The board believes that the proposed rights issue in Q2 and Q3 2023 will provide an opportunity to repay major outstanding debts and strengthen the company's financial position while raising additional funds for operations without any interest burden[39] Liquidity and Going Concern - As of March 31, 2023, the group had current liabilities of approximately HKD 112,597,000 and total liabilities of approximately HKD 101,613,000, raising significant doubts about the group's ability to continue as a going concern[13] - The company successfully placed new shares to new investors in March 2023 to repay part of its outstanding debt, although the net debt remains significant, creating uncertainty regarding the company's ability to continue as a going concern[39] - The group is actively exploring financing arrangements to improve liquidity and has engaged in discussions with banks to renew existing financing[17] Operational Focus and Strategy - The company is focused on expanding its operations in the dining and entertainment sectors, with plans for new product offerings and market expansion[9] - The company will continue to closely monitor its costs while striving to maximize revenue by providing first-class service to customers[40] - The company remains optimistic about its business and operations due to the gradual easing of social restrictions in multiple countries, leading to a rebound in domestic activities, reopening of borders, and recovery of international travel[39] Corporate Governance - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and GEM Listing Rules, ensuring compliance and transparency[12] - The audit committee has been established in accordance with GEM Listing Rules and consists of independent non-executive directors, ensuring compliance and effective risk management[61] - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2023[62] - The board of directors includes executive and non-executive members, with recent changes in appointments reflecting ongoing governance adjustments[64] Shareholding Structure - As of March 31, 2023, Welmen and its controlled entities hold a total of 1,093,500,000 shares, representing approximately 39.89% of the company's issued share capital[48] - Kenbridge Limited and its controlled entity hold 121,500,000 shares, accounting for about 4.43% of the company's issued share capital[50] - Trendy Pleasure Limited and its controlled entity also hold 300,000,000 shares, which is approximately 10.94% of the company's issued share capital[50] Other Information - The company did not purchase, sell, or redeem any of its listed securities during the three-month period ending March 31, 2023[55] - No significant events that could materially impact the company's operations or financial performance have occurred after March 31, 2023[54] - The company maintains a clear operational boundary with its controlling shareholder's restaurant business in Macau, which is distinct from its own operations[56] - The controlling shareholder has interests in several restaurant businesses in Hong Kong, which are not part of the company[58] - The company has no knowledge of any conflicts of interest involving its directors or controlling shareholders as of March 31, 2023[60]
陆庆娱乐(08052) - 2023 Q1 - 季度财报