Financial Performance - For the nine months ended December 31, 2021, the group recorded unaudited revenue of approximately HKD 32,000,000, a decrease of about 3.0% compared to HKD 33,000,000 for the same period in 2020[7]. - The group reported an unaudited loss attributable to owners of approximately HKD 3,400,000 for the nine months ended December 31, 2021, compared to a loss of approximately HKD 1,200,000 for the same period in 2020[7]. - Basic and diluted loss per share attributable to owners was HKD 0.13 for the nine months ended December 31, 2021, compared to HKD 0.04 for the same period in 2020[7]. - Gross profit for the nine months ended December 31, 2021, was HKD 25,142,000, down from HKD 26,140,000 for the same period in 2020[11]. - Operating loss for the nine months ended December 31, 2021, was HKD 1,718,000, compared to an operating profit of HKD 578,000 for the same period in 2020[11]. - Total comprehensive loss for the nine months ended December 31, 2021, was HKD 3,440,000, compared to a total comprehensive loss of HKD 565,000 for the same period in 2020[11]. - The group incurred employee costs of HKD 14,865,000 for the nine months ended December 31, 2021, compared to HKD 15,627,000 for the same period in 2020[11]. - Other income for the nine months ended December 31, 2021, was HKD 6,450,000, down from HKD 9,865,000 for the same period in 2020[11]. - The group reported a pre-tax loss of HKD 6,813,000 for the nine months ended December 31, 2021, compared to a loss of HKD 6,899,000 for the same period in 2020, indicating a slight improvement[32]. - The income tax expense for the nine months ended December 31, 2021, was HKD 1,028,000, compared to HKD 371,000 for the same period in 2020, representing a significant increase[34]. Dividend and Shareholder Information - The board of directors decided not to declare an interim dividend for the nine months ended December 31, 2021[8]. - The company did not declare or pay any dividends for the nine months ended December 31, 2021, consistent with the same period in 2020[39]. - As of December 31, 2021, the major shareholder, Fortune Round Limited, holds 1,500,000,000 shares, representing 56.7% of the total equity[99]. - Both Lin Huijun and Chen Zetao hold 20,000,000 shares each, accounting for 0.76% of the total equity[96]. - Li Chi Keung and Wong Hoi Ping each hold 317,280,000 shares through Keenfull Investments Limited, representing 12.0% of the total equity[99]. Operational Changes - As of December 31, 2021, the company operated three restaurants, down from five restaurants as of December 31, 2020[44]. - The company has adopted cost control measures and is regularly evaluating its business strategies in response to the ongoing impact of the COVID-19 pandemic[43]. - The company plans to adopt a conservative and prudent business strategy to support daily operations amid economic uncertainties[43]. - The group aims to strengthen its position in the Hong Kong dining sector and explore opportunities for introducing popular restaurant brands through franchising or partnerships[89]. - Due to economic recession and the pandemic, the group has adopted a conservative business strategy to support daily operations and manage economic uncertainties[90]. Financial Position and Commitments - The group’s accumulated losses increased to HKD 93,159,000 as of December 31, 2021, from HKD 89,719,000 as of April 1, 2021[13]. - Cash and cash equivalents increased by approximately 103.8% from HKD 32,000,000 in 2020 to HKD 65,200,000 in 2021, mainly due to net proceeds from property sales[74]. - As of December 31, 2021, the total borrowings of the group amounted to approximately HKD 19,800,000, an increase from HKD 13,400,000 as of December 31, 2020[76]. - The capital-to-debt ratio as of December 31, 2021, was approximately 39.7%, up from 23.7% as of December 31, 2020, primarily due to increased bank borrowings[79]. - The group had approximately HKD 15,500,000 in outstanding bank financing commitments as of December 31, 2021, compared to none as of December 31, 2020[76]. - The group has no significant capital commitments or contingent liabilities as of December 31, 2021[80][81]. Expenses and Cost Management - Employee benefits expenses, including salaries and allowances, totaled HKD 14,379,000 for the nine months ended December 31, 2021, down from HKD 15,072,000 in the previous year, showing a reduction of 4.6%[32]. - Total other income decreased by approximately 34.3% from HKD 9,900,000 in 2020 to HKD 6,450,000 in 2021, primarily due to a reduction in government subsidies[56]. - Employee costs decreased by approximately 4.5% from HKD 15,600,000 in 2020 to HKD 14,900,000 in 2021, attributed to cost control measures[57]. - Depreciation expenses decreased by approximately 9.3% from HKD 3,200,000 in 2020 to HKD 2,900,000 in 2021, due to a reduction in the number of operating restaurants[58]. - Fuel and utility expenses increased by approximately 16.7% from HKD 1,200,000 in 2020 to HKD 1,400,000 in 2021, driven by increased usage in several restaurants[60]. - Administrative expenses decreased by approximately 7.1% from HKD 14,100,000 in 2020 to HKD 13,100,000 in 2021, mainly due to reductions in travel, legal, and marketing expenses[61]. Compliance and Governance - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM listing rules[105]. - The company established an audit committee in accordance with GEM Listing Rules, consisting of three independent non-executive directors[107]. - The audit committee is responsible for reviewing the financial statements and overseeing the effectiveness of internal control procedures[107]. - The financial statements for the nine months ending December 31, 2021, have been reviewed by the audit committee[107]. - The company has confirmed that all directors complied with the trading standards during the nine-month period ending December 31, 2021[105]. Risks and Market Conditions - The group faces risks related to seasonal fluctuations in revenue from its restaurants in Hong Kong and potential impacts from external events such as natural disasters or economic downturns[85]. - The minimum wage in Hong Kong has increased from HKD 34.5 to HKD 37.5 per hour, which may further impact future employee costs[87]. - The group has no significant foreign exchange risk as most transactions are settled in HKD and RMB, with minimal exposure to other currencies[82]. - The group will continue to monitor business trends and seek market opportunities to improve financial performance while managing expenses prudently[90].
皇玺集团(08300) - 2022 Q3 - 季度财报