Financial Performance - Revenue for the three months ended March 31, 2023, was HKD 31,143,000, representing a significant increase of 131.9% compared to HKD 13,447,000 for the same period in 2022[5] - Gross profit for the same period was HKD 23,017,000, up 167.5% from HKD 8,618,000 year-on-year[5] - The company reported a profit before tax of HKD 5,531,000, a decrease of 13.0% from HKD 6,355,000 in the previous year[5] - Basic and diluted earnings per share for the period were HKD 3.20, down from HKD 3.68 in the same quarter of 2022[5] - The company's profit attributable to owners for the three months ended March 31, 2023, was HKD 5,531,000, a decrease of approximately 13.0% compared to HKD 6,355,000 for the same period in 2022[33] - The overall comprehensive income for the three months ended March 31, 2023, was HKD 5,388,000, a decrease of approximately 18.7% from HKD 6,628,000 in the same period of 2022[39] - The company reported a foreign exchange loss of HKD 143,000 for the first quarter of 2023, compared to no such loss in the same period of 2022[39] Employee Costs - Employee costs increased to HKD 9,761,000, compared to HKD 8,523,000 in the prior year, reflecting a rise of 14.5%[5] - Employee costs rose to approximately HKD 9.8 million in Q1 2023, an increase of about 15.3% from HKD 8.5 million in Q1 2022, due to the full operation of the company's three restaurants[90] - Employee costs for the three months ended March 31, 2023, amounted to approximately HKD 9.8 million, with a total of 112 employees[125] Operating Expenses - The total operating expenses, including financial costs, amounted to HKD 4,276,000, compared to HKD 4,019,000 in the previous year[5] - Operating expenses increased slightly by approximately 7.5% to about HKD 4,300,000 in the first quarter of 2023, compared to approximately HKD 4,000,000 in the first quarter of 2022, driven by higher operational costs from three restaurants[72] - Rental and related expenses increased by approximately HKD 0.4 million or 20.0% to about HKD 2.4 million in Q1 2023, due to the absence of rental concessions and government subsidies[115] Government Grants and Subsidies - The company did not recognize any government grants in the current period, compared to HKD 1,800,000 received in the same period last year related to COVID-19 subsidies[29] - Other income and net gains decreased significantly by approximately 99.8% to about HKD 3,000 for the first quarter of 2023, down from approximately HKD 1,800,000 in the first quarter of 2022, primarily due to the absence of government subsidies[70] Strategic Focus and Operations - The company continues to focus on its core business of operating and managing restaurants, with no new product launches or significant market expansions reported in this quarter[9] - The company’s strategic focus remains on enhancing customer experience and expanding its restaurant operations in prime locations[56] - The company has launched a series of dining promotions and discounts to attract customers, anticipating an improvement in the outlook for its existing restaurants[83] - The company has implemented cost control measures and improved operational performance in its restaurants, contributing to the positive financial results[92] Dividends - The company did not recommend any dividend for the three months ended March 31, 2023, consistent with no dividend declared in the same period of 2022[52] - The board of directors did not recommend any dividend payment for the three months ended March 31, 2023[99] Compliance and Governance - The company has confirmed compliance with the corporate governance code during the three months ended March 31, 2023[146] - The company has made necessary adjustments to its corporate governance practices to align with GEM Listing Rules after recent board changes[165] - The audit committee was established on December 15, 2017, and its current chairman is independent non-executive director Mr. Cui Zhiren[146] - The company has adopted the trading standards outlined in GEM Listing Rules sections 5.48 to 5.67 as a code of conduct for securities transactions by directors[146] Legal Matters - The company has received claims totaling HKD 453,200 from Blooming (HK) Business Limited for unpaid contractual amounts[151] - The company has also received a claim of HKD 1,500,000 from Fubi Capital Limited for unpaid contractual amounts[152] - The company is currently involved in litigation with Chen Fung Wu Law Firm, seeking HKD 366,000 for unpaid contractual amounts[153] - The company will make further disclosures as necessary regarding ongoing legal matters[160] Future Outlook - The group remains optimistic about the overall economic and business environment in Hong Kong for the second half of 2023, despite restaurant closures in 2022[118] - The group plans to continue maintaining prudent cost control measures and is actively seeking alternative investment opportunities to diversify its restaurant portfolio[118] - The company continues to manage its cash reserves prudently to prepare for future growth opportunities[96] Accounting Standards - The company has not applied any new accounting standards that have been issued but not yet effective, and is currently assessing their potential impact[24] - The unaudited condensed consolidated financial statements for the three months ended March 31, 2023, have been reviewed by the audit committee and are deemed to comply with applicable accounting standards and GEM Listing Rules[148] Capital Structure - The group has no major changes in its capital structure since its listing on the GEM[119] - The group has no significant plans for major investments or capital assets as of March 31, 2023[121] Currency Risks - The company has not experienced significant risks related to currency fluctuations, as most income and expenses are denominated in HKD and RMB[122]
龙皇集团(08493) - 2023 Q1 - 季度财报