Financial Performance - Total revenue for the third quarter of 2023 was HKD 8,390,000, a decrease of 1.84% compared to HKD 8,547,000 in the same period of 2022[5] - Total revenue for the nine months ended September 30, 2023, was HKD 26,494,000, down 9.09% from HKD 29,154,000 in the same period of 2022[5] - The company reported a pre-tax loss of HKD 1,848,000 for the third quarter of 2023, compared to a loss of HKD 1,672,000 in the same quarter of 2022, representing an increase in loss of 10.54%[5] - The total comprehensive loss attributable to owners of the company for the nine months ended September 30, 2023, was HKD 3,489,000, compared to HKD 4,697,000 for the same period in 2022, indicating a 25.69% improvement[5] - Basic loss per share for the third quarter of 2023 was HKD 8.24, compared to HKD 7.46 in the same quarter of 2022[5] - For the nine months ended September 30, 2023, the company recorded revenue of approximately HKD 26.5 million, a decrease of about 9.1% compared to HKD 29.2 million for the same period in 2022[31] - The company reported a pre-tax loss of HKD 3,489,000 for the nine months ended September 30, 2023, compared to a loss of HKD 4,697,000 for the same period in 2022[24] Equity and Capital Structure - The company’s total equity as of September 30, 2023, was HKD 16,870,000, down from HKD 40,751,000 as of January 1, 2022[7] - The company completed a share consolidation on September 7, 2023, reducing the number of issued shares from 446 million to 22.3 million[27] - The company completed a rights issue on September 30, 2023, issuing 33,450,000 shares at a subscription price of HKD 0.426 per share, raising approximately HKD 12.75 million net of estimated expenses[59] Operational Challenges - The company’s operating environment remains challenging due to rising food costs, rent, and labor expenses, impacting profit margins[29] - The company experienced a significant reduction in government subsidies, reporting HKD 488,000 for the three months ended September 30, 2023, compared to HKD 3,690,000 for the same period in 2022[6] - The company’s interest income decreased to HKD 1,000 for the three months ended September 30, 2023, from HKD 2,000 in the same period of 2022[6] - The decrease in revenue was primarily due to the closure of two "Classified" restaurants, which offset the revenue increase from existing restaurants following the reopening of borders[36] - The company faces risks related to changing dining habits, potential location challenges for new restaurants, and labor shortages in the restaurant industry[36] Strategic Plans - The company plans to expand its takeaway product line and enhance existing restaurant facilities to attract more customers[37] - The company aims to improve cost and expense control as part of its strategy to manage risks and enhance overall operational performance[35] - The company believes that continuous expansion and improvement plans will enhance its market share[35] - The company anticipates that the restaurant industry will gradually recover as COVID-19 restrictions ease and tourist numbers increase, although challenges remain[29] Corporate Governance - The financial statements have not been audited but have been reviewed by the audit committee[12] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2023, and confirmed compliance with applicable accounting standards[54] - The company has maintained high standards of corporate governance and plans to appoint at least one director of a different gender by December 31, 2024, to meet diversity requirements[56] - The company has disclosed that its board composition does not meet gender diversity requirements as per the corporate governance code[56] - The chairman and CEO roles are currently held by the same individual, but the board is considering separating these roles in the future[56] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[53] Management and Operations - The company operates primarily in the leisure restaurant business, which is its main revenue-generating segment[10] - The company has not reported any new product launches or technological advancements during this period[5] - There are no indications of market expansion or acquisitions mentioned in the report[5] - The company has not issued any cash equity securities or engaged in any significant investments or acquisitions during the nine months ended September 30, 2023[41][42] - The company is closely monitoring supplier pricing for raw materials to ensure competitive pricing for food and beverage supplies[37] - The management service agreement between Press Room Group Management Limited and Canton Oriental Limited was terminated effective October 31, 2023[59] - The company has renewed the lease agreement for its "Classified" brand European-style café located in Repulse Bay for two years, effective from October 6, 2023[59] - The company did not declare any dividends during the period, consistent with the previous year[22] - The company incurred financing costs of HKD 158,000 for the nine months ended September 30, 2023, down from HKD 456,000 in the same period of 2022[7]
CLASSIFIED-NEW(08232) - 2023 Q3 - 季度财报