Financial Performance - For the three months ended September 30, 2021, the group reported revenue of HKD 64,085,000, an increase from HKD 40,039,000 in the same period of 2020, representing a growth of 60.1%[6] - The gross profit for the three months ended September 30, 2021, was HKD 41,123,000, compared to HKD 27,024,000 in the same period of 2020, reflecting a gross margin improvement[6] - For the nine months ended September 30, 2021, the total revenue was HKD 175,038,000, up from HKD 146,081,000 in the same period of 2020, marking a year-on-year increase of 19.8%[6] - The net loss for the nine months ended September 30, 2021, was HKD 19,316,000, compared to a loss of HKD 16,245,000 in the same period of 2020, showing an increase in losses[6] - The basic and diluted loss per share for the three months ended September 30, 2021, was HKD 0.72, compared to HKD 0.30 for the same period in 2020[6] - The total comprehensive loss for the nine months ended September 30, 2021, was HKD 19,002,000, compared to HKD 16,048,000 in the same period of 2020[8] - The company’s other income and net gains for the nine months ended September 30, 2021, totaled HKD 9,328,000, down from HKD 17,853,000 in the same period of 2020[22] - Employee costs increased significantly by approximately HKD 9.4 million or about 15.1%, totaling approximately HKD 71.6 million for the nine months ended September 30, 2021, compared to HKD 62.2 million for the same period in 2020[47] Equity and Losses - The group incurred a loss attributable to owners of the company of HKD 10,533,000 for the three months ended September 30, 2021, compared to a loss of HKD 4,332,000 in the same period of 2020, indicating a deterioration in performance[6] - The group’s total equity as of September 30, 2021, was HKD 57,003,000, down from HKD 18,197,000 at the beginning of the year, reflecting a significant decline in equity[10] - Loss attributable to owners of the company increased to approximately HKD 19.3 million for the nine months ended September 30, 2021, compared to approximately HKD 16.2 million for the same period in 2020[52] Revenue Sources - For the nine months ended September 30, 2021, the company reported revenue from customer contracts in restaurant operations of HKD 175,038,000, an increase of 19.8% compared to HKD 146,081,000 for the same period in 2020[18] - Revenue from restaurant operations for the three months ended September 30, 2021, was HKD 64,085,000, up 60.1% from HKD 40,039,000 in the same quarter of 2020[18] - Revenue from the "Dragon Emperor" brand increased by approximately HKD 17.9 million or about 19.7%, reaching approximately HKD 108.8 million for the nine months ended September 30, 2021[39] - Revenue from the "Dragon Seal" brand increased significantly by approximately HKD 8.5 million or about 47.3%, totaling approximately HKD 26.3 million for the nine months ended September 30, 2021[41] - Revenue from the "Dragon Robe" brand increased by approximately HKD 5.0 million or about 36.7%, reaching approximately HKD 18.6 million for the nine months ended September 30, 2021[42] - Revenue from the "Emperor Seal" brand slightly increased by approximately HKD 0.6 million or about 2.9%, totaling approximately HKD 21.4 million for the nine months ended September 30, 2021[43] Operational Challenges - The company closed several restaurants due to the impact of COVID-19 and changing consumer behavior, including locations in Kwai Chung, Macau, and Shanghai[35] - Rental and related expenses increased by approximately HKD 6.0 million or about 47.6% to approximately HKD 18.5 million for the nine months ended September 30, 2021, compared to approximately HKD 12.6 million for the same period in 2020[50] - Other operating expenses rose by approximately HKD 4.9 million or about 19% to approximately HKD 31.1 million for the nine months ended September 30, 2021, from approximately HKD 26.2 million for the same period in 2020[51] Corporate Governance and Compliance - The board believes that good corporate governance is key to managing the group's business and affairs, and has complied with the corporate governance code as of September 30, 2021[67] - Following the resignation of Ms. Leung Kai-ki as an independent non-executive director on November 9, 2021, the number of independent non-executive directors and audit committee members fell below three, necessitating the search for suitable candidates[68] - The audit committee was established in accordance with GEM listing rules, but currently does not meet the minimum requirement of three members following the recent resignation[70] - The consolidated performance for the nine months ended September 30, 2021, has not been audited by the company's auditor[70] Future Strategies - The company plans to establish an online sales platform to promote packaged food products to mitigate operational and financial risks due to COVID-19 and new consumer patterns[55] - The company is negotiating rent reductions with landlords as a significant portion of costs remains high, including employee and food costs[55] - The company will continue to adjust its business strategies to respond to the changing economic and restaurant industry conditions[55] Miscellaneous - The company recognized rental concessions of approximately HKD 4,550,000 for the nine months ended September 30, 2021, of which about HKD 1,373,000 was related to COVID-19[23] - The company is currently evaluating the impact of new and revised standards issued but not yet effective, although no significant financial impact has been identified at this time[14] - The company’s financial statements for the nine months ended September 30, 2021, were prepared based on historical cost convention and presented in thousands of HKD[16] - The company’s tax expenses for the nine months ended September 30, 2021, were calculated based on a two-tiered profit tax rate system, with the first HKD 2,000,000 of profits taxed at 8.25%[26] - As of September 30, 2021, there were no share options granted, exercised, expired, or lapsed under the share option scheme[64] - Some bank accounts of the group have been frozen due to an investigation, but certain accounts have been restored for daily restaurant operations[66]
龙皇集团(08493) - 2021 Q4 - 季度财报