Financial Performance - The Group's revenue increased by approximately 55.2% from approximately HK$50,257,000 for the Corresponding Period to approximately HK$77,981,000 for the Reporting Period[18]. - The Group recorded a net profit of approximately HK$5,880,000 for the Reporting Period, compared to a net loss of approximately HK$7,942,000 for the Corresponding Period[18]. - The Group's revenue for the Reporting Period was approximately HK$77,981,000, representing an increase of approximately 55.2% compared to HK$50,257,000 for the Corresponding Period[31][34][49]. - The Group recorded a profit and total comprehensive income of approximately HK$5,880,000, a turnaround from a loss of approximately HK$7,942,000 in the Corresponding Period[32][34]. - The increase in revenue was primarily driven by strong sales in the 4th quarter due to the relaxation of pandemic restrictions, including the lifting of cross-border travel restrictions[32][34]. - Profit before income tax recorded at approximately HK$6,239,000 compared to a loss of approximately HK$9,734,000 for the same period last year[63]. - Profit and total comprehensive income for the Reporting Period was approximately HK$5,880,000 compared to a loss of approximately HK$7,942,000 for the same period last year[70]. Business Operations - Strong sales in the 4th quarter were attributed to the relaxation of pandemic restrictions, including the lifting of cross-border travel restrictions and mask-wearing requirements[18]. - The Group launched a new cigar lounge in Lan Kwai Fong during the Reporting Period, expanding its product mix offered to customers[19]. - The Group operates a night club (Faye), a sports-themed bar (Paper Street), and two lounges (LKF Lounge and Amante House)[23]. - The product mix offered to customers was increased with the opening of a cigar lounge at Lan Kwai Fong during the Reporting Period[32][34]. - The Group's operations were significantly impacted by the social distancing restrictions imposed by the Hong Kong government in 2022, leading to the termination of some operations[40][43]. - The Group has launched new cigar lounges in Lan Kwai Fong and Wan Chai, diversifying its business offerings[130]. Financial Management - The Group did not recommend any dividend payment for the Reporting Period, consistent with the previous year[33][35]. - As of May 31, 2023, total cash and bank balances were approximately HK$10,589,000, up from approximately HK$1,578,000 in 2022[72]. - The gearing ratio was 90.0% as of May 31, 2023, compared to zero in 2022, reflecting the completion of placing and rights issue[72]. - The company raised approximately HK$5,800,000 in net proceeds from the placing of up to 199,760,000 ordinary shares at a price of HK$0.03 per share, completed on 8 June 2022[78][81]. - A rights issue raised approximately HK$12,000,000 in net proceeds from the issuance of 29,964,000 ordinary shares at a price of HK$0.42 per share, completed on 27 February 2023[92][87]. - The allocation of the net proceeds from the rights issue includes HK$4.0 million for renovation costs of the new lounge at Lan Kwai Fong, HK$1.8 million for rent payments, and HK$6.2 million for general working capital[93]. - The gross proceeds from the rights issue were approximately HK$12,500,000, with HK$10.8 million already utilized as of the report date[92]. - The company completed a placing of up to 11,985,600 shares at a price of HK$0.50 per share, raising approximately HK$5,800,000 net proceeds, which have been fully utilized for various purposes including HK$1,000,000 for setting up Amante House and HK$4,000,000 for inventory purchasing[95][98][99]. Employee and Operational Costs - Employee benefits expenses increased by approximately HK$3,406,000 or 25.9% to approximately HK$16,569,000 due to relaxed business hour restrictions[60]. - Employee benefit expenses for the Reporting Period amounted to approximately HK$16,569,000, compared to approximately HK$13,163,000 in 2022, reflecting an increase of about 25.5%[128]. - Advertising and marketing expenses rose by approximately HK$1,510,000 or 17.6% to approximately HK$10,104,000 due to increased business hours[55]. - Total depreciation increased by approximately HK$1,781,000 or 16.9% to approximately HK$12,350,000[61]. Corporate Governance - The company emphasizes high standards of corporate governance, focusing on transparency, independence, accountability, responsibilities, and fairness[156]. - The Board has three committees: audit committee, remuneration committee, and nomination committee, to assist in supervising senior management functions[165]. - The company has complied with the Corporate Governance Code except for the deviation regarding the roles of Chairman and CEO being held by the same individual[158]. - The Board of Directors consists of six members, including three Independent Non-Executive Directors (INEDs) and three Executive Directors[170]. - The Company has established measurable objectives to implement the Board Diversity Policy and will review these objectives periodically[195]. - The Remuneration Committee oversees the remuneration policy for all Directors and senior management, ensuring no Director participates in deciding their own remuneration[198]. - The Board is responsible for developing and reviewing corporate governance policies and practices[192]. Future Plans and Risks - The management is confident that the Group's financial performance will continue to improve as cross-border economic activities resume[24][26]. - The company plans to expand its outlet network by establishing more bars and restaurants in Hong Kong, facing risks such as securing suitable locations and managing operational costs[105][106]. - The management plans to allocate dedicated resources to revenue-generating operations to maintain a competitive edge and enhance diversification[131]. - Purchases from the largest supplier accounted for approximately 30.3% and 38.2% of total purchases in the corresponding period and reporting period, respectively, posing a risk if supply is interrupted[109][106].
新爱德集团(08412) - 2023 - 年度财报