Financial Performance - For the three months ended June 30, 2023, the group recorded an unaudited loss attributable to owners of approximately HKD 4.7 million, compared to a loss of approximately HKD 2.7 million for the same period in 2022, representing an increase of about 74.1%[19] - The group reported unaudited revenue of approximately HKD 6.8 million for the three months ended June 30, 2023, a decrease of approximately 6.9% compared to HKD 7.3 million for the same period in 2022[25] - The total comprehensive loss for the period was approximately HKD 4.8 million, compared to a total comprehensive loss of approximately HKD 2.7 million for the same period in 2022[30] - The operating loss for the period was HKD 4,567,000, compared to an operating loss of HKD 2,302,000 in the same period last year, indicating a significant increase in losses[50] - The net loss attributable to the owners of the company for the three months ended June 30, 2023, was HKD 4,731,000, compared to HKD 2,679,000 in the previous year[50] - Basic and diluted loss per share for the period was HKD 0.18, compared to HKD 0.10 for the same period in 2022, reflecting a worsening financial performance[48] Revenue and Costs - For the three months ended June 30, 2023, the company's revenue was HKD 6,833,000, a decrease of 6.35% compared to HKD 7,295,000 for the same period in 2022[59] - The cost of goods sold for the same period was HKD 1,718,000, up 12.43% from HKD 1,528,000 in the previous year[50] - The gross profit for the three months ended June 30, 2023, was HKD 5,115,000, down 11.29% from HKD 5,767,000 in 2022[50] - The company reported a gross profit margin of 74.9% for the three months ended June 30, 2023, down from 79.1% in the same period of 2022, primarily due to increased food and beverage costs[76] - Total other income decreased significantly from approximately HKD 1.0 million for the three months ended June 30, 2022, to approximately HKD 0.1 million for the same period in 2023, mainly due to a reduction in government subsidies[79] Dividends and Share Options - The board of directors decided not to recommend the payment of an interim dividend for the three months ended June 30, 2023, consistent with the previous year where no dividend was declared[26] - As of June 30, 2023, the number of share options available for grant under the share option scheme was 140,000,000, representing approximately 5.3% of the total issued shares as of that date[17] - The company has not granted, agreed to grant, exercised, canceled, forfeited, or expired any options or awards under the share option scheme[162] - The company has not exercised any share options under the share option scheme as of the report date[182] Operational Overview - The company operates primarily in Hong Kong, focusing on leisure dining services and luxury watch trading[56] - The company operated four restaurants in Hong Kong as of June 30, 2023, compared to three restaurants a year earlier, indicating a slight expansion in operations[68] - The company opened a new restaurant in Mong Kok in January 2023, contributing to its operational growth[71] - The company has opened a new restaurant, "和順記神級雞脾皇," in Central starting July 2023[96] Financial Position - The total borrowings of the company as of June 30, 2023, were approximately HKD 18.8 million, down from HKD 19.8 million a year earlier[113] - The company's capital-to-debt ratio increased to approximately 115.3% as of June 30, 2023, compared to 49.1% a year earlier, primarily due to a decrease in equity attributable to owners[114] - As of June 30, 2023, the group's cash and cash equivalents amounted to approximately HKD 18.5 million, a decrease from HKD 52.6 million as of June 30, 2022, primarily due to operational costs and expenses related to relocating restaurants and opening new ones[137] Strategic Outlook - The company plans to adopt conservative business strategies to navigate economic uncertainties in Hong Kong's restaurant industry[93] - The company aims to consolidate its position in the Hong Kong dining sector and strategically seek opportunities to introduce popular restaurant brands through franchising or other collaborations[169] - The group plans to continue monitoring business trends and seek market opportunities to improve financial performance while managing expenses prudently[147] - The group maintains a conservative and cautious outlook on profitability for the upcoming months due to prevailing market conditions[147] Governance and Compliance - The company’s ultimate holding company is Fortune Round Limited, which is wholly owned by the chairman and CEO, Mr. Wong Man Wai[31] - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules[183] - The audit committee has reviewed the quarterly financial statements for the three months ended June 30, 2023, although these statements have not yet been audited or reviewed by the external auditor[184] - The company has established an audit committee in accordance with GEM listing rules, responsible for overseeing financial reporting and internal control effectiveness[186] - The executive directors include Mr. Wong Man Wai, Mr. Chan Chak To, and Ms. Lam Wai Kwan, with independent non-executive directors also serving on the board[187] Market Conditions - The company’s shares are listed on the GEM of the Hong Kong Stock Exchange, which is characterized by higher investment risks compared to larger companies listed on the main board[2] - The minimum wage in Hong Kong has increased from HKD 37.5 to HKD 40.0 per hour, effective May 1, 2023, which may further impact future employee costs[168] - The group is focusing on maintaining sufficient working capital to support daily operations amid uncertainties in the restaurant business due to low tourist numbers in Hong Kong[147] - The group has obtained licenses or leases for all properties operated in urban areas of Hong Kong as of June 30, 2023, facing risks related to commercial real estate leasing, including potential high rental costs[146]
皇玺集团(08300) - 2024 Q1 - 季度财报