Financial Performance - The Group's revenue for the six months ended 30 November 2021 was approximately HK$33.5 million, representing an increase of approximately 181.7% compared to the corresponding period in 2020[20]. - The Group recorded a loss of approximately HK$4.6 million for the six months ended 30 November 2021, compared to a loss of approximately HK$4.2 million for the same period in 2020[21]. - Revenue for the six months ended 30 November 2021 was HK$33,529,000, a significant increase from HK$11,903,000 for the same period in 2020, representing a growth of 182%[33]. - The company reported a loss for the period attributable to owners of the Company of HK$4,620,000, compared to a loss of HK$4,094,000 in the previous year, indicating a deterioration in performance[33]. - Basic and diluted loss per share for the period was HK$0.46, compared to HK$0.26 for the same period last year, reflecting increased losses on a per-share basis[33]. - For the six months ended November 30, 2021, the loss attributable to owners of the Company was HK$4,620,000, compared to a loss of HK$4,094,000 for the same period in 2020, representing an increase of 12.9%[95]. - Loss before income tax increased from approximately HK$4.2 million for the six months ended 30 November 2020 to approximately HK$4.6 million for the six months ended 30 November 2021[191]. - Loss and total comprehensive income increased from approximately HK$4.2 million for the six months ended 30 November 2020 to approximately HK$4.6 million for the six months ended 30 November 2021, primarily due to the cessation of government subsidies and rent concessions[194]. Revenue Sources - Revenue from clubbing and entertainment operations for the six months ended November 30, 2021, reached HK$33.5 million, compared to HK$11.9 million in the same period of 2020, indicating a growth of about 182%[79]. - The revenue from the club and entertainment business increased by approximately HK$24.0 million, or approximately 250.4%, from approximately HK$9.6 million for the six months ended 30 November 2020 to approximately HK$33.5 million for the six months ended 30 November 2021[159]. - The Group's catering business had no revenue during the reporting period, contrasting with the previous period's revenue generation[175]. - No revenue was generated from the catering business during the reporting period due to the closure of the restaurant Tiger San in mid-May 2021, which had previously generated approximately HK$2.3 million for the six months ended 30 November 2020[175]. Cash Flow and Liquidity - For the six months ended 30 November 2021, net cash generated from operating activities was HK$878,000, compared to a cash outflow of HK$10,604,000 for the same period in 2020[45]. - The cash and cash equivalents at the beginning of the period were HK$2,504,000, increasing to HK$3,449,000 at the end of the period, compared to HK$3,877,000 at the end of the previous year[45]. - As of 30 November 2021, the Group had net liabilities of approximately HK$10,003,000, but has a revolving loan facility of HK$25,000,000 to support liquidity needs[59]. - The Group entered into a loan facility agreement in August 2021 for HK$25 million for 18 months, aimed at improving working capital and cash flows[63]. - The Group's total cash and bank balances were approximately HK$3.4 million, down from approximately HK$20.4 million as of 31 May 2021[199]. - The current ratio of the Group was approximately 0.4 times as at 30 November 2021, down from 0.6 times as at 31 May 2021[199]. - The Group's directors are confident in the financial resources available to meet obligations, indicating no material uncertainties regarding the Group's ability to continue as a going concern[66]. Expenses and Cost Management - The company reported finance costs of HK$41,000 for the period, a decrease from HK$503,000 in the previous year, indicating improved cost management[33]. - Employee benefits expenses increased by approximately HK$2.1 million, or approximately 38.3%, from approximately HK$5.7 million for the six months ended 30 November 2020 to approximately HK$7.8 million for the six months ended 30 November 2021[183]. - Advertising and marketing expenses increased by approximately HK$4.2 million, or approximately 311.1%, from approximately HK$1.4 million for the six months ended 30 November 2020 to approximately HK$5.6 million for the six months ended 30 November 2021[182]. - Other expenses increased by approximately HK$5.2 million, or approximately 101.2%, from approximately HK$5.2 million for the six months ended 30 November 2020 to approximately HK$10.4 million for the six months ended 30 November 2021[189]. - The increase in other expenses was mainly due to extended operating hours of entertainment outlets resulting from the relief of business hours restriction[189]. - The increase in employee benefits expenses was primarily due to the increase in wageable hours resulting from the relief of business hours restrictions[183]. Asset Management - Current liabilities decreased to HK$37,487,000 as of 30 November 2021, down from HK$58,218,000 as of 31 May 2021, reflecting improved liquidity management[35]. - Non-current assets, including property, plant, and equipment, totaled HK$9,236,000 as of 30 November 2021, a decrease from HK$9,879,000 as of 31 May 2021[35]. - Total assets less current liabilities were HK$1,651,000 as of 30 November 2021, a decrease from HK$6,461,000 as of 31 May 2021, suggesting a decline in overall asset value[38]. - The total deficiency in assets was HK$10,003,000 as of 30 November 2021, compared to HK$10,995,000 as of 31 May 2021, showing a slight improvement in the company's financial position[38]. - The Group's trade receivables impairment losses are recorded using an allowance account unless recovery is deemed remote, indicating a cautious approach to credit risk management[109]. Business Strategy and Future Outlook - The company plans to focus on market expansion and new product development to drive future growth, although specific figures were not disclosed during the call[34]. - The Group's directors are implementing measures to closely monitor administrative expenses and operating costs to improve cash flow[63]. - The impact of the COVID-19 pandemic on cash flow forecasts remains a consideration for the Group's future planning[64]. - The strong performance of new outlets partially offset the negative impact of the cessation of government support during the reporting period[194]. - The company aims to enhance its liquidity position by closely monitoring market conditions and re-prioritizing work plans[165]. Shareholder Information - The Board did not recommend payment of any dividend for the six months ended 30 November 2021[22]. - No dividends were paid, declared, or proposed by the Company during the six months ended November 30, 2021, and 2020[89]. - The company issued 160,000,000 new ordinary shares at a price of HK$0.13 per share, generating a premium of approximately HK$18,734,000 after deducting related transaction costs[148]. - A total of 38,800,000 share options were exercised, bringing in cash inflows of approximately HK$14,938,000 to the company[149]. - As of 30 November 2021, the total issued and fully paid shares amounted to 998,800,000[144].
新爱德集团(08412) - 2022 - 中期财报