Revenue Performance - Revenue for Q3 2023 reached HKD 23,124,000, a 34.5% increase from HKD 17,176,000 in Q3 2022[3] - Total revenue for the nine months ended September 30, 2023, was HKD 70,409,000, up 83.5% from HKD 38,371,000 in the same period of 2022[3] - For the three months ended September 30, 2023, the company reported revenue of HKD 23,124,000, a 35.5% increase from HKD 17,092,000 in the same period of 2022[17] - For the nine months ended September 30, 2023, the company achieved revenue of HKD 70,409,000, representing an 84.5% increase compared to HKD 38,115,000 in the same period of 2022[17] - Sales of food and other products for the nine months ended September 30, 2023, amounted to HKD 64,240,000, up 89.9% from HKD 33,811,000 in the previous year[17] - Total revenue increased by 83.3% from approximately HKD 38.4 million in the first three quarters of 2022 to approximately HKD 70.4 million in the same period of 2023, attributed to the recovery of restaurant sales post-cross-border travel resumption[34] Income and Loss - The company reported a loss before tax of HKD 72,000 for Q3 2023, a significant improvement compared to a loss of HKD 28,140,000 in Q3 2022[3] - The net loss for the nine months ended September 30, 2023, was HKD 3,171,000, compared to a loss of HKD 57,379,000 in the same period of 2022, indicating a reduction in losses[4] - Basic earnings per share for Q3 2023 was HKD 0.02, compared to a loss per share of HKD 9.02 in Q3 2022[4] - The company experienced a total comprehensive loss of HKD 264,000 in Q3 2023, a significant reduction from HKD 26,346,000 in Q3 2022[4] - The total comprehensive loss for the nine months ended September 30, 2023, was HKD 1,794,000, down from HKD 55,737,000 in the same period of 2022[4] - The company reported a net loss attributable to owners of approximately HKD 3.7 million for the first three quarters of 2023, a significant improvement from a net loss of approximately HKD 41.7 million in the same period of 2022[38] Expenses and Costs - The cost of goods sold for Q3 2023 was HKD 6,653,000, an increase from HKD 5,152,000 in Q3 2022, reflecting a rise of 29.1%[3] - Cost of goods sold rose by 61.7% from approximately HKD 12.0 million in the first three quarters of 2022 to approximately HKD 19.4 million in 2023, consistent with revenue growth[36] - Employee costs increased by 14.9% from approximately HKD 23.5 million in the first three quarters of 2022 to approximately HKD 27.0 million in 2023, reflecting a return to normal levels as sales revenue rebounded[36] - Other operating expenses decreased by 44.9% from approximately HKD 18.7 million in the first three quarters of 2022 to approximately HKD 10.3 million in 2023, primarily due to the absence of certain write-off expenses recorded in the previous year[37] - Advertising and marketing expenses increased by 71.5% from approximately HKD 130,000 in the first three quarters of 2022 to approximately HKD 223,000 in 2023, driven by the recovery in sales revenue[36] - Property rental and related expenses decreased by 25.7% from approximately HKD 7.4 million in the first three quarters of 2022 to approximately HKD 5.5 million in 2023, due to the cessation of operations of CUBIC SPACE+[36] - Depreciation and amortization expenses decreased by 50.3% from approximately HKD 19.9 million in the first three quarters of 2022 to approximately HKD 9.9 million in 2023, mainly due to the termination of CUBIC SPACE+ operations[37] Financing and Fundraising - The company raised approximately HKD 6.9 million from a share placement completed on March 17, 2023, which was fully utilized to repay part of the outstanding convertible notes and loans[13] - The company plans to raise approximately HKD 40.9 million through a rights issue, with around HKD 20.4 million allocated to settle remaining debts from convertible notes and loans issued in June and July 2019[14] - A rights issue was conducted to raise up to approximately HKD 43.9 million, with net proceeds of approximately HKD 40.9 million allocated for various financial obligations and operational funding[40] - The company is actively exploring fundraising activities and negotiating with banks to renew financing arrangements, believing that existing bank financing will be renewed upon maturity[13] Current Liabilities and Going Concern - As of September 30, 2023, the company reported net current liabilities of approximately HKD 69,209,000 and total liabilities of approximately HKD 61,808,000, indicating significant uncertainty regarding its ability to continue as a going concern[12] Shareholder Information - As of September 30, 2023, major shareholders, including Welmen Investment Co. Ltd and Yui Tak Investment Limited, each hold approximately 19.95% of the company's ordinary shares[52] - Perfect Succeed Limited holds 19.95% of the company's shares, totaling 109,350,000 shares[54] - Restoran Oversea (CST) Sdn Bhd owns 29.18% of the company's shares, amounting to 159,988,000 shares[54] Corporate Governance and Management Changes - The audit committee consists of three independent non-executive directors, overseeing financial reporting and internal controls[65] - The company has no known conflicts of interest involving its directors or controlling shareholders during the nine months ending September 30, 2023[63] - Mr. Mai Guokun appointed as independent non-executive director and member of the audit, remuneration, and nomination committees effective from September 4, 2023[66] - Ms. Wu Wenhung appointed as independent non-executive director and member of the audit, remuneration, and nomination committees effective from September 4, 2023[66] - Mr. Huang Songwei resigned as independent non-executive director and from all committee memberships effective from September 4, 2023[66] - Mr. Cai Yihan resigned as executive director and chairman of the board effective from October 3, 2023[67] - Mr. Ou Jiawei resigned as non-executive director and from committee memberships effective from October 3, 2023[67] - Mr. Ye Kaifan resigned as independent non-executive director and from committee memberships effective from October 3, 2023[67] - Mr. Patrick Ting appointed as member of the nomination committee effective from October 3, 2023[68] - Current board includes executive directors Mr. Cai Shaojie and Mr. Patrick Ting, and independent non-executive directors Ms. Xie Meiling, Mr. Mai Guokun, and Ms. Wu Wenhung[69] Business Outlook - The restaurant business in Hong Kong is expected to improve in the second half of 2023 due to the government's consumption voucher scheme, providing eligible individuals with HKD 2,000 or HKD 1,000[45] - Despite the end of COVID-19, the business environment remains challenging due to economic slowdown, weak consumer spending, and higher funding costs resulting from US Federal Reserve interest rate hikes[45] - The company remains optimistic about its operations and will continue to monitor costs while maximizing revenue through top-notch customer service[46] - The company is exploring other business opportunities to expand revenue sources to offset the adverse effects of economic difficulties[46] Regulatory and Compliance - The company has not recognized any significant impact from the adoption of new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, on its financial statements for the nine months ended September 30, 2023[12] - The company did not declare any dividends for the nine months ended September 30, 2023, consistent with the previous year[27] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending September 30, 2023[59] - The company maintains a clear boundary between its operations and the restaurant business owned by its controlling shareholder in Macau, ensuring no direct competition[60] Legal Matters - The company is currently seeking legal advice regarding ongoing litigation involving claims of approximately HKD 8,346,000 related to rental and management fees[28][29]
陆庆娱乐(08052) - 2023 Q3 - 季度财报