Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 95,747,000, a significant increase from HKD 58,590,000 for the year ended December 31, 2022, representing a growth of approximately 63.3%[11] - The net profit for the year was HKD 15,907,000, compared to a net loss of HKD 48,935,000 in the previous year, indicating a turnaround in financial performance[13] - The total comprehensive income for the year was HKD 18,288,000, compared to a comprehensive loss of HKD 46,801,000 in the previous year[13] - Basic earnings per share for the year were HKD 4.06, a significant recovery from a loss of HKD 14.01 per share in the previous year[13] - The company's profit before tax for the year ended December 31, 2023, was HKD 14,899,000, compared to a loss of HKD 32,093,000 for the year ended December 31, 2022[51] - The group generated other income of HKD 6,046,000 for the year ended December 31, 2023, compared to HKD 4,596,000 in 2022, representing an increase of about 31.5%[42] - The company recorded a profit attributable to owners of approximately HKD 14.9 million in 2023, a significant increase from a loss of approximately HKD 32.1 million in 2022[82] Operational Developments - The company operates two restaurants in Hong Kong, "HEXA" and "SIXA," which have returned to pre-pandemic levels following the lifting of COVID-19 restrictions[6] - The restaurant business has seen a recovery in sales, returning to pre-pandemic revenue levels due to increased local consumption and tourist numbers[73] - The company has ceased operations at CUBIC SPACE+ due to disputes with property owners, impacting revenue streams[66] - The management is exploring investment opportunities in the restaurant and/or new business sectors to expand revenue sources[7] - The company continues to operate primarily in the food and entertainment sectors, with no major changes in business nature during the year[19] Financial Position and Assets - The company's total assets decreased to HKD 22,949,000 from HKD 41,602,000, indicating a need for strategic asset management[15] - As of December 31, 2023, the company's non-current liabilities decreased to 1,840 thousand HKD from 16,258 thousand HKD in 2022, primarily due to a reduction in payable non-controlling interests[16] - The company's total equity as of December 31, 2023, was (22,042) thousand HKD, a significant improvement from (107,718) thousand HKD in 2022, indicating a recovery in financial health[16] - Non-current assets located in Hong Kong decreased from HKD 30,581,000 in 2022 to HKD 14,541,000 in 2023, a decline of approximately 52%[36] - The total liabilities decreased significantly to HKD 19,316,000 in 2023 from HKD 101,352,000 in 2022, a reduction of about 81%[57] Capital Management - The company completed a share consolidation and rights issue during the year to enhance its working capital and improve its financial position[7] - The company's share capital increased to 54,826 thousand HKD in 2023 from 22,904 thousand HKD in 2022, reflecting a positive trend in capital raising efforts[16] - The company plans to raise up to approximately HKD 43.9 million through a rights issue based on a subscription ratio of 1 share for every 1 consolidated share[74] - The actual net proceeds from the rights issue completed on August 18, 2023, amounted to approximately HKD 40.9 million, fully utilized for the intended purposes by December 31, 2023[102] - The company successfully raised approximately HKD 6.9 million from the placement of 450,880,000 new shares on March 17, 2023[74] Challenges and Risks - The group reported a current liability exceeding current assets by approximately HKD 34,743,000 and total liabilities exceeding total assets by about HKD 22,042,000, indicating significant uncertainty regarding the ability to continue as a going concern[32] - Cash and cash equivalents were reported at approximately HKD 846,000, indicating liquidity challenges[69] - The independent auditor's report expressed significant uncertainty regarding the company's ability to continue as a going concern[68] - The company faces a legal claim from COD Resorts Limited for approximately HKD 85,982,000 due to alleged unpaid rent and related expenses[62] - Management is implementing tighter measures to improve operational cash flow and closely monitor other operating expenses[34] Governance and Compliance - The company has adopted and complied with the corporate governance code as per GEM listing rules, with some deviations noted[107] - The audit committee has critically reviewed the auditor's basis for a disclaimer of opinion and supports management's view on the group's ability to continue as a going concern[105] - The group’s consolidated financial statements for the year ended December 31, 2023, have been verified by the auditor, confirming consistency with the audited financial reports[111] Future Outlook - The company plans to maintain its focus on market expansion in Macau and Hong Kong, leveraging its established venues[115] - The company aims to strengthen its market position through potential mergers and acquisitions in the hospitality sector[115] - The management is exploring new product offerings and technological advancements to enhance customer experience in its venues[115]
陆庆娱乐(08052) - 2023 - 年度业绩