Financial Performance - For the nine months ended December 31, 2022, the group recorded unaudited revenue of approximately HKD 20,900,000, a decrease of about 34.7% compared to HKD 32,000,000 for the same period in 2021[7]. - The group reported an unaudited loss attributable to owners of the company of approximately HKD 13,400,000 for the nine months ended December 31, 2022, compared to a loss of HKD 3,400,000 for the same period in 2021[7]. - Basic and diluted loss per share attributable to owners of the company was HKD 0.51 for the nine months ended December 31, 2022, compared to HKD 0.13 for the same period in 2021[7]. - The gross profit for the nine months ended December 31, 2022, was HKD 15,779,000, down from HKD 25,142,000 for the same period in 2021, reflecting a significant decline in profitability[8]. - Operating loss for the nine months ended December 31, 2022, was HKD 12,689,000, compared to an operating loss of HKD 1,718,000 for the same period in 2021[8]. - The total comprehensive loss for the nine months ended December 31, 2022, was HKD 13,511,000, compared to HKD 3,440,000 for the same period in 2021[8]. - Revenue for the three months ended December 31, 2022, was HKD 6,812,000, a decrease of 26% compared to HKD 9,206,000 for the same period in 2021[19]. - Revenue for the nine months ended December 31, 2022, was HKD 20,945,000, down 34% from HKD 31,955,000 in the previous year[19]. - The group recorded a loss of approximately HKD 13,500,000 for the nine months ended December 31, 2022, compared to a loss of approximately HKD 3,400,000 for the same period in 2021, primarily due to a significant decline in revenue attributed to the COVID-19 pandemic and the closure of certain restaurants[55]. Dividends and Equity - The board of directors decided not to recommend the payment of an interim dividend for the nine months ended December 31, 2022, consistent with the previous year[7]. - The group did not declare or pay any dividends for the nine months ended December 31, 2022, consistent with the previous year[31]. - The total equity attributable to owners of the company decreased to HKD 29,627,000 as of December 31, 2022, from HKD 49,785,000 as of December 31, 2021[10]. Costs and Expenses - The group incurred finance costs of HKD 682,000 for the nine months ended December 31, 2022, slightly down from HKD 693,000 for the same period in 2021[8]. - The cost of goods sold for the three months ended December 31, 2022, was HKD 1,893,000, compared to HKD 1,915,000 for the same period in 2021[22]. - The cost of goods sold decreased by approximately 23.5% from HKD 6,800,000 to HKD 5,200,000 during the same periods[41]. - Employee costs decreased by approximately 12.8% from HKD 14,900,000 to HKD 13,000,000, with the number of employees reduced from 75 to 70[45]. - Depreciation expenses increased from approximately HKD 2,900,000 to HKD 4,600,000 over the same periods[48]. - Administrative expenses decreased by approximately 18.3% from HKD 13,100,000 to HKD 10,700,000, due to reductions in marketing, cleaning, and maintenance costs[51]. Government Support and Income - The company received government subsidies amounting to HKD 1,580,000 for the nine months ended December 31, 2022, compared to HKD 100,000 in the previous year[44]. - The company confirmed interest income from receivable loans of approximately HKD 200,000 for the nine months ended December 31, 2022, compared to none in the previous year[39]. - Other income decreased by approximately 70.8% from HKD 6,450,000 to HKD 1,880,000, primarily due to a significant reduction in one-time gains from property sales and COVID-19 related rent concessions[44]. Cash Flow and Borrowings - The group's cash and cash equivalents amounted to approximately HKD 34,400,000 as of December 31, 2022, a decrease of approximately 47.2% from HKD 65,200,000 as of December 31, 2021, mainly due to increased support for daily operations affected by the pandemic[63]. - The total borrowings of the group as of December 31, 2022, were approximately HKD 24,000,000, an increase from HKD 19,800,000 as of December 31, 2021[65]. - The group had approximately HKD 11,900,000 in outstanding bank financing commitments as of December 31, 2022, down from HKD 15,500,000 as of December 31, 2021[65]. Market and Operational Strategy - The company primarily engages in providing leisure dining services in Hong Kong, with its financial statements presented in Hong Kong dollars (HKD) for the nine months ended December 31, 2022[13]. - The group plans to maintain sufficient working capital to support daily operations amid economic uncertainties and will continue to monitor business trends for potential expansion opportunities[77]. - The group aims to consolidate its position in the Hong Kong restaurant market and explore opportunities for introducing popular restaurant brands through franchising or partnerships[77]. - The group experienced a decline in revenue due to the outbreak of the COVID-19 pandemic, which has significantly affected its operations[74]. Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[97]. - The company has confirmed compliance with the trading standards for directors as of December 31, 2022[94]. - The company’s financial statements for the quarter have been reviewed by the audit committee, although not audited by external auditors[98]. Shareholding Structure - Fortune Round Limited holds 1,500,000,000 shares, representing 56.7% of the company's equity[89]. - Li Ying Yan holds 1,662,120,000 shares, representing 62.9% of the company's equity, as a spouse interest[89]. - Keenfull Investments Limited and Li Chi Keung both hold 317,280,000 shares, each representing 12.0% of the company's equity[89]. Employee and Wage Considerations - The minimum wage in Hong Kong will increase from HKD 37.5 to HKD 40.0 per hour effective May 1, 2023, which may further impact future employee costs[80]. - The group has not engaged in any significant related party transactions during the nine months ended December 31, 2022, apart from those disclosed[32].
皇玺集团(08300) - 2023 Q3 - 季度财报