Financial Performance - The group recorded unaudited revenue of approximately HKD 243.6 million for the nine months ended September 30, 2022, a decrease of about 15.5% compared to HKD 288.2 million for the same period in 2021[5]. - The group reported an unaudited adjusted loss before tax and government subsidies of approximately HKD 12.1 million for the nine months ended September 30, 2022, compared to an adjusted profit of HKD 8.3 million for the same period in 2021[5]. - For the three months ended September 30, 2022, the group recorded unaudited revenue of approximately HKD 107.3 million, an increase of 5.6% from HKD 101.6 million in the same period of 2021[5]. - The group reported an unaudited profit attributable to owners of the company of approximately HKD 6.5 million for the three months ended September 30, 2022, compared to HKD 2.3 million in the same period of 2021[5]. - The group recorded an unaudited loss attributable to owners of the company of approximately HKD 1.7 million for the nine months ended September 30, 2022, compared to a profit of HKD 9.5 million for the same period in 2021[5]. - The total comprehensive income for the three months ended September 30, 2022, was HKD 7.2 million, compared to HKD 2.5 million for the same period in 2021[11]. - The group’s total comprehensive loss for the nine months ended September 30, 2022, was HKD 1.7 million, compared to a total comprehensive income of HKD 11.9 million for the same period in 2021[11]. - The overall comprehensive income for the nine months ended September 30, 2022, was HKD (1,685,000), reflecting ongoing challenges in the market[26]. - The company reported a loss of HKD (1,712,000) for the nine months ended September 30, 2022, compared to a profit of HKD 9,452,000 in the same period of 2021[26]. - Total revenue for the nine months ended September 30, 2022, decreased by approximately 15.5% to HKD 243.6 million from HKD 288.2 million in the same period of 2021, primarily due to the impact of COVID-19 restrictions[52]. Government Support - The group received government subsidies of approximately HKD 11.2 million for the nine months ended September 30, 2022, compared to HKD 5.1 million in the same period of 2021[5]. - Government grants received amounted to HKD 11,244,000 for the nine months ended September 30, 2022, compared to HKD 5,125,000 in the same period of 2021, reflecting a significant increase[27]. Revenue Breakdown - Revenue from restaurant operations for the nine months ended September 30, 2022, was HKD 242,152,000, a decrease of 15.1% from HKD 285,362,000 in the same period of 2021[26]. - Revenue from Shanghai cuisine accounted for 31.9% of total revenue, while Japanese cuisine contributed 23.3%, and Thai cuisine represented 20.3% for the nine months ended September 30, 2022[55]. - Revenue from Shanghai-style restaurants decreased by approximately HKD 1.4 million or about 1.8% to approximately HKD 77.2 million for the nine months ended September 30, 2022[56]. - Revenue from Japanese restaurants decreased by approximately HKD 19.1 million or about 25.3% to approximately HKD 56.4 million for the nine months ended September 30, 2022[57]. - Revenue from Thai restaurants decreased by approximately HKD 9.2 million or about 15.8% to approximately HKD 49.1 million for the nine months ended September 30, 2022[58]. - Revenue from Vietnamese restaurants decreased by approximately HKD 9.0 million or about 22.8% to approximately HKD 30.5 million for the nine months ended September 30, 2022[59]. - Revenue from Italian restaurants decreased by approximately HKD 4.7 million or about 14.0% to approximately HKD 28.8 million for the nine months ended September 30, 2022[62]. Operating Expenses - Total operating expenses for the three months ended September 30, 2022, were HKD 13,058,000, up from HKD 10,275,000 in the same period of 2021, representing a 27.5% increase[31]. - Employee costs increased by approximately 7.0% to approximately HKD 96.8 million for the nine months ended September 30, 2022, compared to HKD 90.5 million for the same period in 2021[64]. - Cost of goods sold was approximately HKD 70.7 million and HKD 84.6 million for the nine months ended September 30, 2022, and 2021, respectively, accounting for about 29.2% and 29.6% of total revenue[63]. Future Plans and Strategy - The company continues to focus on expanding its restaurant operations and enhancing its consulting services in the hospitality sector[18]. - The company plans to open a new Japanese restaurant in December 2022 as part of its strategy to expand its restaurant network in Hong Kong[77]. - The company has signed a lease agreement for a property in Tsim Sha Tsui for a new Japanese restaurant under the brand name "權八," with a lease term of four years starting from January 20, 2023, and an option to extend for an additional two years[78]. - The company is considering upgrading some restaurants and introducing new concepts with lower capital expenditure and/or more favorable rental terms due to rising vacancy rates in shopping malls and changing consumer spending patterns[78]. - The company is actively engaging in discussions with several landlords regarding leasing units in shopping malls for restaurant operations, indicating a cautious approach to expansion plans[78]. - The future outlook is heavily dependent on the local COVID-19 situation and government policies regarding social distancing measures[44]. - The company plans to continue monitoring developments closely and will operate cautiously in expanding its business in China[51]. Shareholder Information - As of September 30, 2022, the company’s major shareholder, 蔡偉科, holds 274,350,000 shares, representing 71.45% of the total shares[92]. - Real Hero holds 274,350,000 shares, representing 71.45% of the company's total issued shares[104]. - The acquisition agreement involved the sale of 188,084,000 shares, accounting for approximately 48.98% of the total issued shares, for a total consideration of HKD 100,455,664.4, equivalent to HKD 0.5341 per share[104]. - Following the offer, Real Hero received valid acceptances for 86,266,000 shares, representing about 22.47% of the total issued shares[105]. - The company did not declare any dividends for the nine months ended September 30, 2022, consistent with the previous year[37]. - The company has no plans to declare dividends for the nine months ending September 30, 2022, consistent with the previous year[121]. Corporate Governance - The board of directors underwent changes on August 19, 2022, with several resignations and new appointments, reflecting a shift in the company's governance structure[86][87]. - The company has adopted corporate governance codes to ensure compliance and enhance shareholder value[114]. - The audit committee reviewed the financial results for the nine months ending September 30, 2022, confirming compliance with applicable accounting standards[118]. - The stock option plan approved on November 6, 2017, remains valid for ten years, with approximately five years remaining[111]. - No stock options have been granted under the stock option plan as of September 30, 2022[112]. - The third quarter earnings report is available on the Hong Kong Stock Exchange website and the company's website[126]. - The report is presented by the CEO and Executive Director, Guo Zhibo, along with other executive directors[126]. - The company is committed to transparency and providing detailed financial information to stakeholders[126].
1957 & CO.(08495) - 2022 Q3 - 季度财报