Financial Performance - The Group's revenue for the nine months ended February 28, 2023, was approximately HK$44.7 million, representing an increase of approximately 2.1% compared to the corresponding period in 2022[15]. - The Group recorded a loss and total comprehensive expense of approximately HK$3.3 million for the nine months ended February 28, 2023, compared to a loss of HK$7.4 million in 2022[15]. - The Group's financial performance indicates a significant reduction in losses year-over-year, improving by approximately 55.4%[15]. - Revenue for the nine months ended February 28, 2023, increased to HK$44,735,000, up from HK$43,820,000 in the same period last year, representing a growth of 2.1%[26]. - The company reported a loss of HK$3,274,000 for the nine months ended February 28, 2023, compared to a loss of HK$7,409,000 in the previous year, indicating an improvement of 55.8%[26]. - Basic and diluted earnings per share for the nine months ended February 28, 2023, were HK$-5.40, an improvement from HK$-15.25 in the same period last year[26]. - Total comprehensive income attributable to owners of the company for the nine months ended February 28, 2023, was HK$-3,316,000, compared to HK$-7,812,000 in the previous year, reflecting a reduction of 57.5%[28]. Dividends - The Board does not recommend the payment of any dividend for the nine months ended February 28, 2023, consistent with the previous year[16]. - No dividends were paid, declared, or proposed by the Company during the nine months ended February 28, 2023, and 2022[70]. - The company did not declare or pay any dividends during the nine-month period ending February 28, 2023[135]. Operational Focus and Strategy - The Group continues to focus on strategic initiatives to enhance operational efficiency and market presence[15]. - The management discussion highlights ongoing efforts in product development and market expansion strategies[15]. - The Group has been engaged in the operation of clubhouse, entertainment, and restaurant businesses in Hong Kong, indicating a focus on market expansion in these sectors[31]. - The Group plans to open a high-ended cigar and alcohol lounge in Lan Kwai Fong, Central, expected to launch in May 2023[118]. - The Group has entered into a lease for a flagship cigar lounge and headquarters in Wanchai, aligning with its strategic expansion plans[118]. - The Group plans to expand its business model to more lifestyle-oriented clubs, bars, restaurants, and experience stores targeting individuals seeking quality and enjoyment of life[119]. - The Group aims to establish more clubs, bars, and restaurants in Hong Kong, facing risks such as competition in the food and beverage industry and the need for suitable locations[124]. Financial Position and Liquidity - The Group's financial position remains stable, with no significant changes in liabilities reported[15]. - The Group reported net current liabilities of approximately HK$10.5 million and net assets of HK$1.4 million as of February 28, 2023[40]. - The Group has revolving loan facilities of HK$25 million from a former shareholder and HK$20 million from an independent third party to support liquidity needs[40]. - A loan facility agreement was entered into in August 2022 for HK$40 million for 18 months, exclusively available upon request by the Company[48]. - The Directors are confident in the Group's ability to meet financial obligations based on future cash flow estimates[45]. - The Group's substantial lease liabilities expose it to risks from fluctuations in the commercial real estate market, which could impact operations and financial resources[128]. - The Group's expansion plans may place substantial strain on its managerial, operational, and financial resources, affecting overall profitability[124]. Cost Management - The Group has been implementing cost control measures to improve liquidity in response to the ongoing impact of the COVID-19 pandemic[83][86]. - Advertising and marketing expenses increased to HK$6,717,000 for the nine months ended February 28, 2023, down from HK$7,486,000 in the previous year, a decrease of 10.3%[26]. - Employee benefits expenses rose to HK$11,665,000 for the nine months ended February 28, 2023, compared to HK$10,864,000 in the previous year, an increase of 7.4%[26]. - The finance cost decreased significantly to HK$342,000 for the nine months ended February 28, 2023, from HK$909,000 in the previous year, a reduction of 62.4%[26]. - Other expenses decreased by approximately HK$3 million, or about 22.2%, to approximately HK$10.6 million for the nine months ended February 28, 2023[106]. Market Conditions - The increase in revenue was mainly due to the relief of COVID-19 restrictions, resumption of normalcy in Hong Kong, and an increase in tourist visits[90][92]. - The Group's financial position has been strained due to disruptions caused by the COVID-19 pandemic[80][83]. - The management will continue to monitor the developments of the COVID-19 pandemic and respond accordingly[83][86]. Corporate Governance - The company has complied with the Corporate Governance Code throughout the nine months ended February 28, 2023, except for a deviation regarding the separation of roles of chairman and CEO[170]. - The company will continue to review its operations to seek compliance with the Corporate Governance Code regarding the separation of the chairman and CEO roles[171]. - All directors confirmed compliance with the required standard of dealings in securities transactions during the nine months ended February 28, 2023[161]. - The company has adopted the GEM Listing Rules as its code of conduct for directors' securities transactions[161]. Share Capital and Ownership - A share consolidation was completed on November 16, 2022, consolidating every 20 shares of HK$0.01 into one share of HK$0.20, resulting in an issued share capital of 59,928,000 shares[137]. - The company raised approximately HK$12.5 million through a rights issue at a subscription price of HK$0.42 per share, with net proceeds of approximately HK$12.1 million[148]. - As of the report date, HK$7.7 million of the net proceeds from the rights issue has been utilized, with HK$4.4 million remaining unutilized[150]. - The allocation of the net proceeds includes HK$4.0 million for renovation costs at Lan Kwai Fong, HK$1.8 million for rent payments, and HK$6.3 million for general working capital[150]. - The company has no substantial shareholders other than the directors or chief executives as of February 28, 2023[155]. - The directors' interests in shares include Mr. Jiang Qiaowei with 20,000 shares (0.02%) and Mr. Hui Wai Hung with 20,352 shares (0.02%) after adjustments for share consolidation and rights issue[154]. - Mr. Yuan Lin holds 3,888,000 shares, representing 4.33% of the company's shareholding, and has an additional interest of 12,075,000 shares (13.43%) through a controlled corporation[157]. - Mr. Wang Ling is a beneficial owner of 15,261,761 shares, accounting for 16.98% of the company's shareholding[157]. Audit and Compliance - The audit committee reviewed the unaudited financial statements for the nine months ended February 28, 2023, confirming compliance with applicable accounting standards and GEM Listing Rules[182]. - The Board approved the issuance of the unaudited quarterly financial statements for the nine months ended February 28, 2023, on April 14, 2023[185].
新爱德集团(08412) - 2023 Q3 - 季度财报