Financial Performance - For the three months ended June 30, 2022, the group recorded unaudited revenue of approximately HKD 7,300,000, a decrease of about 38.1% compared to HKD 11,800,000 for the same period in 2021[11] - The group reported an unaudited loss attributable to owners of the company of approximately HKD 2,700,000, compared to a loss of approximately HKD 1,700,000 for the same period in 2021[11] - Basic and diluted loss per share attributable to owners of the company was HKD 0.10, compared to HKD 0.07 for the same period in 2021[11] - The gross profit for the three months ended June 30, 2022, was HKD 5,767,000, down from HKD 9,337,000 in the same period of 2021[11] - Operating loss for the period was HKD 2,302,000, compared to an operating loss of HKD 1,059,000 for the same period in 2021[11] - Total comprehensive loss for the period was HKD 2,702,000, compared to HKD 1,731,000 for the same period in 2021[11] - The group reported a loss attributable to owners of the company of HKD (2,679,000) for the three months ended June 30, 2022, compared to a loss of HKD (1,731,000) in the prior year, indicating a worsening of 54.7%[34] - The group recorded a loss of approximately HKD 2.7 million for the three months ended June 30, 2022, compared to a loss of HKD 1.7 million in the same period of 2021, primarily due to a decrease in revenue and gross profit[60] Revenue and Costs - Revenue from restaurant operations for the three months ended June 30, 2022, was HKD 7,295,000, a decrease of 38.5% from HKD 11,776,000 in the same period of 2021[23] - The cost of goods sold for the same period was HKD 1,528,000, down from HKD 2,439,000 in 2021, representing a 37.5% reduction[28] - The cost of goods sold decreased by approximately 37.5% from about HKD 2.4 million to about HKD 1.5 million during the same periods[47] - Gross profit for the three months ended June 30, 2022, was approximately HKD 5.8 million, a decrease of about 37.6% from approximately HKD 9.3 million in 2021[48] - The group maintained a stable gross margin of 79.1% in 2022 compared to 79.3% in 2021[48] Expenses - The group’s employee benefit expenses for the three months ended June 30, 2022, were HKD 4,266,000, a decrease of 14.1% from HKD 4,967,000 in the same period of 2021[28] - Depreciation expenses for the three months ended June 30, 2022, were approximately HKD 1.1 million, an increase of about 10.0% compared to HKD 1.0 million for the same period in 2021[53] - Property rental and related expenses decreased by approximately 50.0% to about HKD 0.2 million for the three months ended June 30, 2022, from HKD 0.4 million in the same period of 2021[54] - Administrative expenses decreased by approximately 18.4% to about HKD 3.1 million for the three months ended June 30, 2022, down from HKD 3.8 million in the same period of 2021[56] Dividends and Shareholder Information - The board of directors has resolved not to declare an interim dividend for the three months ended June 30, 2022[12] - The group did not declare or pay any dividends for the three months ended June 30, 2022, consistent with the same period in 2021[35] - Fortune Round Limited holds 1,500,000,000 shares, representing 56.7% ownership[97] - Keenfull Investments Limited owns 317,280,000 shares, accounting for 12.0% of the total shares[97] - The company has a stock option plan that allows for the purchase of 60,000,000 shares at an exercise price of HKD 0.163 per share[101] - As of June 30, 2022, no stock options have been exercised during the reporting period[101] - The company’s major shareholders include Wang Wenwei and his spouse, who collectively hold 56.7% of the shares[98] Operational Challenges and Future Plans - The group faced significant operational challenges due to COVID-19 restrictions, particularly during the fifth wave of the pandemic in early 2022[38] - The group plans to diversify into the luxury watch trading business while continuing to explore suitable locations for new restaurant openings[39] - The group plans to strengthen its position in urban Hong Kong and explore opportunities for introducing popular restaurant brands through franchising or partnerships[86] Financial Position - As of June 30, 2022, the group's cash and cash equivalents were approximately HKD 52.6 million, an increase from HKD 42.7 million as of June 30, 2021[69] - Total borrowings as of June 30, 2022, were approximately HKD 19.8 million, a decrease from HKD 26.4 million as of June 30, 2021[71] - The group's debt-to-equity ratio as of June 30, 2022, was approximately 49.1%, a slight decrease from 51.4% as of June 30, 2021, mainly due to reduced borrowings[73] - The net proceeds from the listing amounted to approximately HKD 41.3 million, fully utilized by March 31, 2022[61] - The group had no significant contingent liabilities as of June 30, 2022[75] Compliance and Governance - The audit committee was established in accordance with GEM Listing Rules and consists of three independent non-executive directors[105] - The audit committee is responsible for recommending the appointment or removal of external auditors and reviewing financial statements[105] - The quarterly financial statements for the three months ended June 30, 2022, have been reviewed by the audit committee[105] - The company has adopted a code of conduct for securities trading, ensuring compliance with GEM listing rules[104] - The board of directors confirmed adherence to the trading standards during the three-month period ending June 30, 2022[104] Market Conditions - All revenue for the three months ending June 30, 2022, was generated from restaurants in urban Hong Kong, making the business susceptible to local economic conditions[83] - The group maintains a cautious outlook on profitability for the coming months due to economic downturns and the impact of the pandemic[86] - The minimum wage in Hong Kong was raised from HKD 34.5 to HKD 37.5 per hour, effective May 1, 2019, which may further increase employee costs[85] - The group has obtained licenses or leases for all properties operated in urban Hong Kong as of June 30, 2022, facing risks related to commercial real estate leasing[85] - The group reported minimal foreign exchange risk due to limited transactions and monetary assets denominated in Renminbi during the periods ending June 30, 2021, and June 30, 2022[79] - The group has no foreign exchange contracts or financial derivatives for hedging purposes as of the reporting periods[79]
皇玺集团(08300) - 2023 Q1 - 季度财报