Financial Performance - The Group's revenue for the Reporting Period was approximately HK$54,125,000, representing an increase of approximately 105.1% compared to the Corresponding Period[14]. - The Group recorded a profit for the Reporting Period of approximately HK$463,000, while there was a loss of approximately HK$3,649,000 for the Corresponding Period[14]. - The Group's performance reflects strong growth in revenue, indicating effective market strategies[14]. - Revenue for the three months ended November 30, 2023, was HK$32,164,000, representing a 100.5% increase from HK$16,079,000 in the same period of 2022[23]. - For the six months ended November 30, 2023, revenue reached HK$54,125,000, up 104.5% from HK$26,396,000 in the prior year[23]. - Profit before income tax expense for the three months ended November 30, 2023, was HK$2,721,000, compared to a loss of HK$1,353,000 in the same period last year[23]. - The total comprehensive income for the period was HK$568,000, a recovery from a loss of HK$3,704,000 in the previous year[28]. - The profit and total comprehensive income for the Reporting Period was approximately HK$463,000 compared to a loss of approximately HK$3,649,000 for the Corresponding Period[133]. Dividends and Share Capital - The Board did not recommend payment of any dividend for the Reporting Period[14]. - No dividends were paid, declared, or proposed during the reporting period and the corresponding period[63]. - The company's share capital increased to HK$20,375,000 as of November 30, 2023, from HK$17,978,000 as of May 31, 2023[26]. - The authorized share capital of the company as of November 30, 2023, was HK$100,000,000, with 101,877,600 shares issued and fully paid up[176]. - The issued and fully paid shares increased from 89,892,000 to 101,877,600 shares following the placement of 11,985,600 new ordinary shares at a price of HK$0.50 per share[99]. Cash Flow and Assets - The company reported a net cash used in operating activities of HK$9,591,000 for the six months ended 30 November 2023, compared to HK$1,173,000 for the same period in 2022, indicating a significant increase in cash outflow[31]. - The balance of cash and cash equivalents at the end of the period was HK$2,880,000, compared to HK$2,448,000 at the end of the same period in 2022[31]. - The Group's cash and cash equivalents decreased to HK$2,880,000 as of November 30, 2023, from HK$10,589,000 as of May 31, 2023[86]. - Total assets less current liabilities as of November 30, 2023, were HK$21,020,000, an increase from HK$18,211,000 as of May 31, 2023[26]. - Net assets as of November 30, 2023, were HK$16,811,000, up from HK$10,470,000 as of May 31, 2023[26]. Expenses and Liabilities - Employee benefits expenses increased by approximately HK$4,506,000, or approximately 61.0%, from approximately HK$7,384,000 for the Corresponding Period to approximately HK$11,890,000 for the Reporting Period[122]. - Finance costs for the three months ended 30 November 2023 were HK$510,000, compared to HK$67,000 in the same period of 2022, reflecting a substantial increase of 661.2%[56]. - The Group's total trade and other payables increased to HK$28,822,000 as of November 30, 2023, compared to HK$16,659,000 as of May 31, 2023, representing an increase of approximately 73%[90]. - The accumulated loss as of 30 November 2023 was HK$125,940,000, a slight improvement from HK$126,508,000 at the beginning of the period[28]. Operational Overview - The Group's principal activities are focused on club and entertainment business, with all non-current assets located in Hong Kong[48]. - The Group operated 1 night-club, 1 sports-themed bar, and 2 lounges as of August 31, 2023, diversifying its offerings in the entertainment market[103]. - The Group's management has identified its operating segments based on internal financial information reported to executive directors for resource allocation and performance review[47]. - The Group plans to expand its outlet network by establishing more clubs, bars, and restaurants in Hong Kong, facing various operational risks[164]. - The Group's operations are primarily focused on the club and entertainment business in Hong Kong, indicating a strategic focus on this sector[102]. Risks and Future Plans - The Group's management plans to enhance operational efficiency and implement stringent cost control measures to maintain a competitive edge in the market[135]. - The company faces risks related to fluctuations in the commercial real estate market due to leasing all properties for its outlets[168]. - Expansion plans may impose significant pressure on management, operational, and financial resources, affecting overall profitability[169]. - The company will closely monitor the expansion plan's progress to ensure profitability in the expanded network[170]. Share Issues and Capital Management - The company raised HK$5,878,000 through the placing of ordinary shares during the reporting period, slightly up from HK$5,873,000 in the same period last year[31]. - The net proceeds from the Rights Issue amounted to approximately HK$12,000,000, with gross proceeds of approximately HK$12,500,000[183]. - Utilisation of the net proceeds includes HK$4.0 million for renovation and other costs for setting up a lounge, HK$1.8 million for rent payment, and HK$6.2 million for general working capital[184]. - The share premium reduction was implemented to offset the accumulated losses of the Company[192].
新爱德集团(08412) - 2024 - 中期财报