Revenue and Profitability - Revenue for the first quarter of 2023 was HKD 3,691,000, a significant increase from HKD 619,000 in the same period of 2022, representing a growth of 495%[5] - Other income increased to HKD 313,000 from HKD 154,000 year-over-year, marking a growth of 103.9%[5] - The net profit for the period, including discontinued operations, was HKD 11,518,000, a turnaround from a loss of HKD 936,000 in the same quarter of 2022[5] - The total comprehensive income for the period was HKD 11,445,000, compared to a comprehensive loss of HKD 936,000 in the same quarter of 2022[5] - For the three months ended March 31, 2023, the company recorded revenue of approximately HKD 3,700,000, a significant increase from HKD 600,000 for the same period in 2022, primarily due to improved bar performance and revenue from new restaurants "Sushi Miao (Hong Kong)" and "Sushi Miao (Singapore)"[33] - The total profit and comprehensive income for the three months ended March 31, 2023, was approximately HKD 11,500,000, compared to a loss of approximately HKD 900,000 for the same period in 2022[44] Losses and Expenses - The group reported a loss before tax of HKD 14,884,000, compared to a loss of HKD 935,000 in the previous year, indicating a deterioration in performance[5] - The company incurred a loss from continuing operations of HKD 14,884,000 for the three months ended March 31, 2023, compared to a loss of HKD 845,000 for the same period in 2022[27] - The group incurred total expenses of HKD 1,526,000 in other expenses, up from HKD 455,000 in the prior year, reflecting increased operational costs[5] - Employee costs increased to approximately HKD 1,800,000 for the three months ended March 31, 2023, up from HKD 800,000 for the same period in 2022, mainly due to new hires at the new restaurants[38] - The company reported a net other loss of approximately HKD 13,300,000 for the three months ended March 31, 2023, attributed to the write-off of receivables from the subsidiary Jun Kai[36] Financial Position and Liquidity - As of March 31, 2023, the company's current liabilities exceeded its current assets by HKD 8,022,000, indicating a deterioration in liquidity compared to HKD 18,542,000 as of December 31, 2022[18] - The total liabilities of the company exceeded its total assets by HKD 3,828,000 as of March 31, 2023, compared to HKD 15,773,000 as of December 31, 2022[18] - The company had cash and cash equivalents of HKD 251,000 as of March 31, 2023, a decrease from HKD 1,179,000 as of December 31, 2022, insufficient to cover all current liabilities[18] - The company has taken measures to alleviate liquidity pressure, including restructuring its business and seeking alternative financing solutions[21] Dividends and Shareholder Information - The company did not declare or recommend any dividends for the three months ended March 31, 2023, consistent with the same period in 2022[26] - The company has not declared or proposed any dividends for the three months ended March 31, 2023, consistent with the same period in 2022[48] - The group’s major shareholder, Mr. Zhu Jia Hui, holds approximately 33.41% of the company's shares[58] - Axis Motion Limited and Focus Dynamics Group Berhad hold 16.67% and 13.89% of the shares, respectively[63] Legal and Operational Challenges - The company is actively working with legal counsel to resolve claims related to unpaid rent and salaries, which may significantly impact its ability to continue operations[21] - The company has been involved in several claims related to overdue rent and salaries, with management and legal advisors working to resolve these cases[29] - The subsidiary Jun Kai was granted a winding-up order on March 22, 2023, and its assets and liabilities were removed from the group's consolidated financial statements as of March 31, 2023[51] - The winding-up order for Jun Kai has no significant impact on the core business operations and financial condition of the group[53] - The group has received multiple lawsuits related to overdue rent and salaries, which have been recognized in other payables and accrued expenses[56] Corporate Governance and Compliance - The company has adopted a code of conduct for directors' securities trading, with no non-compliance reported for the three months ending March 31, 2023[68] - The audit and risk management committee consists of three independent non-executive directors, ensuring compliance with applicable laws and regulations[72] - The company has adhered to the corporate governance code, with the chairman also serving as the CEO, which the board believes is in the best interest of the group[70] - The financial reporting for the three months ending March 31, 2023, was reviewed and confirmed to comply with applicable accounting principles and regulations[72] - The company plans to maintain its corporate governance practices in line with GEM listing rules and will review its structure as necessary[70] - The board consists of individuals with diverse professional backgrounds, including three independent non-executive directors, ensuring a balance of power and authority[70] Future Outlook - The company continues to focus on restaurant operations and online wine sales, indicating a strategic emphasis on these business segments moving forward[11] - The management believes that the restaurant business will recover as COVID-19 is being managed appropriately, and is focused on reducing the financial burden of underperforming subsidiaries[21] - The group remains optimistic about the recovery of the entire restaurant business as Hong Kong and the world return to normal life post-COVID-19[50] Audit and Reporting - The audit and risk management committee is responsible for reviewing the financial reporting process and internal control systems[72] - The company will publish its financial report on the HKEX website and its own website for at least seven days from the publication date[73] - The company has not engaged in any activities subject to continuous disclosure requirements under GEM listing rules[67]
TOPSTANDARDCORP(08510) - 2023 Q1 - 季度财报