Financial Performance - The Group's revenue for the three months ended 31 August 2022 was approximately HK$10.3 million, representing a decrease of approximately 42.1% compared to the corresponding period in 2021[14]. - The Group recorded a loss and total comprehensive income of approximately HK$2.6 million for the three months ended 31 August 2022, compared to a loss of approximately HK$1.9 million for the same period in 2021[15]. - Revenue for the three months ended 31 August 2022 was HK$10,316, a decrease of 42.1% compared to HK$17,820 for the same period in 2021[28]. - Loss before income tax expenses for the period was HK$2,556, compared to a loss of HK$1,932 in the previous year, indicating a deterioration in financial performance[28]. - Loss and total comprehensive income for the period attributable to owners of the Company was HK$2,946, compared to HK$1,978 in the same period last year, reflecting an increase of 48.8%[28]. - Basic and diluted loss per share attributable to owners of the Company was HK$0.25, compared to HK$0.20 for the same period in 2021, representing a 25% increase in loss per share[28]. - The Group reported net liabilities of approximately HK$10 million as of 31 August 2022, but the Directors believe the Group can continue as a going concern[45]. - The Group's revenue includes event income, tips, and cloakroom fees, recognized when customers take possession of food and beverages or consume services[52]. - The Group's cash flow forecast considers various possible outcomes of the COVID-19 pandemic and their financial impacts[45]. - The decline in revenue was also attributed to tightened COVID-19 control measures and the relocation of expatriate clientele out of Hong Kong[82]. - The continuation of the COVID-19 pandemic has impeded economic activities in Hong Kong, leading to expected weak sales and challenges in financial performance for the year[119]. Dividends and Shareholder Information - The Board did not recommend payment of any dividend for the three months ended 31 August 2022[17]. - No dividends were paid, declared, or proposed by the Company during the three months ended 31 August 2022, and 2021[60]. - As of August 31, 2022, no share options were granted, exercised, cancelled, or lapsed during the three months ended[129]. - Directors and chief executives hold a total of 1,200,000 shares, representing 0.09% of the Company's shareholding[133]. - Mr. Sze Ching Lau is the largest shareholder with 359,590,000 shares, accounting for 30% of the total shareholding[137]. - The Company has not purchased, sold, or redeemed any of its listed securities during the three months ended August 31, 2022[141]. Operational Changes and Strategy - The Group decided to terminate the operations of Mudita and Maximus by the end of 2022 to reserve financial resources for better-performing operations[70]. - The Directors believe that the cessation of Mudita and Maximus will not have a material adverse effect on the Group's operations and financial position[70]. - The Group is closely monitoring the impact of COVID-19 variants on its operations and is considering re-entering the catering business when conditions allow[73]. - The company is actively reviewing and adjusting its overall direction and strategy to improve performance in light of the challenges posed by COVID-19[108]. - The Group's expansion plans may face significant risks, including securing suitable locations and managing lease liabilities in a competitive market[113]. - The potential for increased rental rates or lease terminations could lead to financial strain and operational disruptions[113]. Cost Management - Employee benefits expenses for the period were HK$3,525, compared to HK$3,832 in the previous year, showing a reduction of 8%[28]. - Advertising and marketing expenses decreased by approximately HK$1.4 million, or 51.9%, from approximately HK$2.7 million for the three months ended 31 August 2021 to approximately HK$1.3 million for the same period in 2022[91]. - Other expenses decreased by approximately HK$2.3 million, or about 41.3%, from approximately HK$5.7 million for the three months ended 31 August 2021 to approximately HK$3.3 million for the three months ended 31 August 2022[98]. - The Group will continue to implement cost control measures to improve its liquidity position amid ongoing challenges from the pandemic[73]. Compliance and Governance - The company has been preparing its financial statements in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[39]. - The Group has not adopted new and revised HKFRSs that are relevant but not yet effective in preparing the financial results[50]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended August 31, 2022, and found them compliant with applicable accounting standards and GEM Listing Rules[154][157]. - The unaudited financial statements were approved and authorized for issue by the Board on October 13, 2022[155][158]. - The Company has complied with the Corporate Governance Code except for a deviation regarding the roles of chairman and chief executive officer being held by the same individual[143]. - The Board believes that the current structure does not impair the balance of power and authority between the Board and management, and will seek to comply with the code provision C.2.1 when appropriate[147][150].
新爱德集团(08412) - 2023 Q1 - 季度财报