Financial Performance - The Group's revenue for the six months ended November 30, 2022, was approximately HK$26.4 million, representing a decrease of approximately 21.3% compared to the same period in 2021[19]. - The Group recorded a loss of approximately HK$3.6 million for the six months ended November 30, 2022, an improvement from a loss of approximately HK$4.6 million for the same period in 2021[19]. - Revenue for the three months ended November 30, 2022, was HK$16,079,000, a 2.3% increase from HK$15,709,000 in the same period of 2021[29]. - Revenue for the six months ended November 30, 2022, decreased by 21.2% to HK$26,396,000 from HK$33,529,000 in the same period of 2021[29]. - Loss attributable to owners of the Company for the six months ended November 30, 2022, was HK$3,704,000, down from HK$4,620,000 in the same period of 2021[29]. - Basic and diluted loss per share attributable to owners of the Company for the six months ended November 30, 2022, was HK$6.22, compared to HK$9.25 in the same period of 2021[29]. - The Company reported a loss of HK$3,704 thousand for the six months ended November 30, 2022, compared to a loss of HK$4,620 thousand for the same period in 2021, indicating a 19.8% improvement in loss[35]. - The total comprehensive loss for the period was HK$3,704 thousand, with non-controlling interests contributing HK$55 thousand[35]. Cash Flow and Liquidity - Cash and cash equivalents increased to HK$2,448,000 as of November 30, 2022, from HK$1,578,000 as of May 31, 2022[30]. - Net cash used in operating activities for the six months ended November 30, 2022, was HK$ (1,173) thousand, a decline from net cash generated of HK$ 878 thousand in the prior year[38]. - The Company generated net cash from financing activities of HK$3,225 thousand for the six months ended November 30, 2022, compared to net cash used of HK$ (16,297) thousand in the same period of 2021[38]. - Cash and cash equivalents at the end of the period were HK$2,448 thousand, down from HK$3,449 thousand at the end of November 30, 2021[38]. - The Group has revolving loan facilities of HK$25,000,000 from a former shareholder and HK$20,000,000 from an independent third party to support liquidity needs[51]. - In August 2022, the Group entered into a loan facility agreement for HK$40 million for 18 months, exclusively available upon request[51]. Assets and Liabilities - Total current liabilities as of November 30, 2022, were HK$37,289,000, a decrease from HK$39,416,000 as of May 31, 2022[30]. - Non-current assets decreased to HK$15,707,000 as of November 30, 2022, from HK$22,788,000 as of May 31, 2022[30]. - Net liabilities improved to HK$11,113,000 as of November 30, 2022, from HK$13,337,000 as of May 31, 2022[33]. - The Company reported a total deficiency in assets of HK$11,113,000 as of November 30, 2022, compared to HK$13,337,000 as of May 31, 2022[33]. - As of November 30, 2022, the total equity attributable to owners of the Company was HK$ (3,833) thousand, a decrease from HK$ (5,809) thousand as of November 30, 2021[35]. - The balance of accumulated losses as of November 30, 2022, was HK$ (133,861) thousand, an increase from HK$ (130,157) thousand as of June 1, 2022[35]. - As of 30 November 2022, the Group had net current liabilities of approximately HK$7,790,000 and net liabilities of approximately HK$11,113,000[49]. Revenue Sources - The Group's principal activities include operating a club and a bar in Hong Kong, with all revenue derived from these operations[59][66]. - Revenue from food and beverage sales decreased to HK$13,824,000 for the three months ended 30 November 2022, down from HK$13,876,000 in 2021, reflecting a decline of 0.4%[69]. - Revenue from club and bar operations decreased by approximately HK$7.1 million, or 21.3%, from approximately HK$33.5 million for the six months ended 30 November 2021 to approximately HK$26.4 million for the six months ended 30 November 2022[127]. - The closure of the Mudita and Maximus venues contributed zero revenue in the current period, compared to approximately HK$5.9 million in the corresponding period in 2021[127]. Cost Management - The Group's management has implemented measures to improve working capital and cash flows, including monitoring administrative expenses and operating costs[56]. - The Group has been implementing cost control measures to improve liquidity in response to the ongoing impact of the COVID-19 pandemic[120]. - Other expenses decreased by approximately HK$3.8 million, or 36.2%, from approximately HK$10.4 million for the six months ended 30 November 2021 to approximately HK$6.6 million for the six months ended 30 November 2022[142]. - Loss before income tax expense decreased from approximately HK$4.6 million for the six months ended 30 November 2021 to approximately HK$3.6 million for the six months ended 30 November 2022, reflecting effective cost control[146]. Employee and Operational Changes - As of November 30, 2022, the Group employed 50 employees, with employee benefits expenses amounting to approximately HK$7.4 million for the six months ended 30 November 2022[166]. - Employee benefits expenses decreased by approximately HK$0.4 million, or 5.6%, from approximately HK$7.8 million for the six months ended 30 November 2021 to approximately HK$7.4 million for the six months ended 30 November 2022[137]. - The Board decided to terminate the operations of Mudita and Maximus Studio by the end of 2022 to reserve financial resources for better-performing operations[117]. - The cessation of Mudita and Maximus Studio is not expected to have a material adverse effect on the Group's financial position[117]. Future Plans and Risks - The Group plans to expand its business model to more lifestyle-oriented clubs, bars, restaurants, and experience stores[156]. - The Group has entered into a lease for a new premises in Lan Kwai Fong, Central, to establish a high-end cigar and alcohol lounge and club[151]. - The Group plans to expand its outlet network by establishing more clubs, bars, and restaurants in Hong Kong, facing risks related to location selection and securing leases[183]. - The Directors will closely monitor the expansion plan and evaluate business objectives to address risks and uncertainties[189]. Market Conditions - The ongoing COVID-19 pandemic has disrupted business operations and economic activities in Hong Kong, prompting the Group to implement cost control measures[198]. - The tourism industry in Hong Kong has been adversely affected by the COVID-19 pandemic, which may impact the Group's revenue as tourists contribute significantly[198].
新爱德集团(08412) - 2023 Q2 - 季度财报