Financial Performance - During the nine months ended December 31, 2022, the Group generated revenue of HK$2.6 million and gross profit of HK$1.6 million from its Cinema Business, a decrease from HK$6.1 million and HK$3.5 million in the corresponding period of 2021[18]. - The overall box office performance in the PRC was unsatisfactory during the period, contributing to the significant decrease in revenue compared to the previous year[18]. - The Group recorded a total turnover of approximately HK$2.6 million for the period, a decrease of approximately HK$3.5 million compared to HK$6.1 million in the corresponding period[43]. - The loss for the period was approximately HK$9.2 million, which is a decrease of approximately HK$1.7 million from the loss of HK$10.9 million in the corresponding period[43]. - For the three months ended December 31, 2022, the turnover was HK$831,000, a decrease of 69.1% compared to HK$2,697,000 for the same period in 2021[66]. - The gross profit for the three months ended December 31, 2022, was HK$510,000, down 67.9% from HK$1,589,000 in the previous year[66]. - The loss attributable to owners of the Company for the nine months ended December 31, 2022, was HK$9,139,000, compared to HK$10,170,000 for the same period in 2021, showing a reduction of 10.2%[56]. - The total comprehensive loss for the period was HK$3,688,000 for the three months ended December 31, 2022, compared to HK$2,892,000 in the same period of 2021, indicating a 27.6% increase[57]. Impact of COVID-19 - The decline in revenue and gross profit from the Cinema Business is attributed to the impact of COVID-19, which led to temporary closures of cinemas in Shanghai and Hangzhou[18]. - The Group's cinemas in Shanghai were closed from early March 2022 to late July 2022, while the Hangzhou cinema was suspended for one week in April 2022 due to COVID-19 outbreaks[18]. - The Group's cinema in Shanghai was closed for nearly four months due to COVID-19, while the Hangzhou cinema was closed for approximately one week[44]. - The Group has fully repaid the remaining loan of RMB13 million (approximately HK$14.6 million) during the Period, while maintaining a cautious investment approach due to the impact of COVID-19 on the VR and MR business environment[24][26]. Strategic Focus and Future Plans - The Group continues to focus on Filmed Entertainment, New Media Exploitations, Licensing Businesses, and Cinema Business as its primary operational segments[16]. - The Company is actively exploring new strategies for market expansion and potential new product offerings in the entertainment sector[16]. - The Company aims to leverage its existing assets and capabilities to drive growth in the coming quarters[16]. - The Group plans to launch the movie-themed tourbillon watches business in 2023, collaborating with partners to develop, design, market, and sell these products[50]. - The Company aims to leverage its film production and licensing experience to explore new business areas that could enhance shareholder returns[36][38]. - The Group is focusing on identifying other business opportunities, including online game development, intellectual property licensing, and investments in the Chinese cultural industry[49]. Joint Ventures and Investments - Bingo Movie Development Limited has entered into a joint venture with Lechuang Holdings, owning 49% and 51% respectively, to invest and develop VR and MR projects, with a loan agreement of HK$25 million to HK$35 million[24][26]. - A joint venture for augmented reality digital live action role-playing game (LARP) projects was established with Guangzhou Jiu De Cultural and Technology Company Limited, with the Company holding a 51% stake[29][33]. - The joint venture with Jiu De was established in May 2022, but business operations have not yet commenced[35][39]. - High Art Limited entered into a joint venture to develop movie-themed tourbillon watches, with a total share capital of HKD2,000,000[36]. - The equity interest in the joint venture for movie-themed watches will be owned as to 60% by High Art, 20% by Memorigin, and 20% by Topping Mark[37]. Administrative and Financial Management - The Group's performance is closely monitored to adapt to market changes and optimize operational efficiency[16]. - Administrative expenses decreased from approximately HK$12.2 million in the corresponding period to approximately HK$10.7 million for the period[43]. - The finance costs for the nine months ended December 31, 2022, were HK$1,405,000, down 25.2% from HK$1,878,000 in the previous year[56]. - The total finance costs for the three months ended December 31, 2022, were HK$474,000, a decrease from HK$646,000 in the same period of 2021[82]. - The company aims to improve cash flow and reduce administrative costs through the termination of the share award scheme[79]. Share Capital and Options - The principal amount of the 2022 convertible bonds issued is HK$19,000,000, with a conversion price of HK$0.275[72]. - The Company has a share option scheme with a total of 231,120,000 options granted across different years[74]. - The adjusted exercise prices for the share options are HK$1.68, HK$0.74, and HK$0.84 for the respective grants[74]. - The maturity date for the 2022 convertible bonds is December 31, 2025[72]. - As of December 31, 2022, a total of 1,278,000 awarded shares were granted to employees, with 854,000 shares lapsed and 424,000 shares cancelled[79]. - The company terminated the share award scheme effective August 14, 2022, resulting in no awarded shares vesting and the cancellation of previous awards without compensation[79]. - For the nine months ended December 31, 2022, no share-based payments were recognized, compared to HK$1,218,000 in the same period of 2021[80]. Compliance and Governance - The Directors confirm that the information in the report is accurate and complete in all material respects, ensuring transparency for investors[5]. - The Group's unaudited results for the nine months ended December 31, 2022, have been reviewed and comply with applicable accounting standards and GEM Listing Rules[136]. - The audit committee comprises three independent non-executive directors, ensuring oversight of financial reporting and risk management[139]. - All directors have complied with the required standards of dealings regarding securities transactions throughout the nine months ended December 31, 2022[140].
比高集团(08220) - 2023 Q3 - 季度财报