Financial Performance - The group recorded unaudited revenue of approximately HKD 112.7 million for the three months ended March 31, 2023, representing an increase of approximately 153.8% compared to HKD 44.4 million in the same period of 2022[3]. - The group reported an unaudited adjusted loss before tax and government grants of approximately HKD 9.6 million, improved from a loss of HKD 19.4 million in 2022[3]. - The unaudited loss attributable to the owners of the company was approximately HKD 10.6 million, compared to HKD 14.9 million in the same period of 2022[3]. - Operating loss for the three months ended March 31, 2023, was HKD 7.0 million, a significant improvement from HKD 16.3 million in the same period of 2022[4]. - The basic and diluted loss per share attributable to owners of the company was HKD 2.76, compared to HKD 3.89 in the same period of 2022[4]. - Total comprehensive loss for the period was HKD 10.2 million, compared to HKD 17.1 million in the same period of 2022[5]. Revenue Breakdown - Total revenue for the three months ended March 31, 2023, was HKD 112.732 million, a significant increase of approximately 153.8% from HKD 44.032 million in the same period of 2022[17][35]. - The company generated revenue from restaurant operations, with the breakdown by cuisine type showing Shanghai cuisine at HKD 37.054 million (32.9%), Japanese cuisine at HKD 27.356 million (24.3%), and Thai cuisine at HKD 20.339 million (18.0%) for the three months ended March 31, 2023[35]. - Revenue from Thai restaurants increased from approximately HKD 8.1 million to about HKD 20.3 million, representing a growth of approximately 150.6% due to the rebound in sales after the lifting of social distancing measures[39]. - Revenue from Vietnamese restaurants rose from approximately HKD 4.6 million to about HKD 14.2 million, marking an increase of approximately 208.7% attributed to the same factors[40]. - Revenue from Italian restaurants grew from approximately HKD 5.8 million to about HKD 13.7 million, reflecting a growth of approximately 136.2% due to the sales rebound[41]. Expenses and Costs - The group incurred employee benefit expenses of HKD 44.2 million, up from HKD 26.4 million in the previous year[4]. - The cost of inventories sold increased to HKD 31.6 million from HKD 14.3 million in the same period of 2022[4]. - The group reported financing costs of HKD 2.6 million, compared to HKD 0.5 million in the same period of 2022[4]. - Cost of goods sold was approximately HKD 31.6 million and HKD 14.3 million for the respective periods, accounting for about 28.0% and 32.5% of total revenue, with a decrease in percentage due to cost reduction measures[42]. - Employee costs increased from approximately HKD 26.4 million to about HKD 44.2 million, a rise of approximately 67.4%, primarily due to additional labor for new restaurants[43]. - Depreciation and amortization expenses rose from approximately HKD 13.5 million to about HKD 21.5 million, driven by new leases and acquisitions for five new restaurants[45]. - Rental expenses increased from approximately HKD 1.0 million to about HKD 2.1 million, a rise of approximately 110%, due to increased revenue leading to higher turnover rents[47]. - Utilities expenses rose from approximately HKD 2.1 million to about HKD 3.3 million, attributed to an increase in the number of operating restaurants[48]. - Other operating expenses increased from approximately HKD 8.1 million to about HKD 16.8 million, a growth of approximately 107.4%, due to increased sales and the number of restaurants in operation[49]. Investments and Expansion - The company opened one new restaurant in Hong Kong during the review period, increasing the total number of restaurants to 14 as of March 31, 2023, compared to 12 in the previous year[29][34]. - The company has invested in three restaurants in China, holding minority stakes in each, and provided pre-opening consulting and management services[31]. - The company continues to monitor the performance of its minority stake investments in restaurants in China without opening or investing in new restaurants during the review period[32]. - The company established a new non-wholly owned subsidiary, 1957 Food Supply Chain Company Limited, in March 2023, focusing on global procurement of high-quality fresh food, expecting new revenue from wholesale business profits[55]. - A new wholly-owned subsidiary, 1957 & Co. (Overseas) Limited, was also established in March 2023 to provide brand and restaurant management services for new restaurants in Southeast Asia, with anticipated revenue from consulting and management fees[55]. - The company plans to expand the business functions of its wholly-owned subsidiary, 1957 (Shenzhen) Restaurant Management Co., Ltd., into franchise operations in China, expecting new revenue from consulting and management fees[58]. - A new Shanghai cuisine restaurant is expected to open in Sha Tin Wai by the end of July 2023, following the signing of a formal lease agreement during the review period[60]. - The company is actively exploring new management projects and opportunities to franchise its brand in China, aiming to provide stable returns and growth prospects for shareholders[62]. - The company is seeking suitable opportunities to develop food trading businesses in Hong Kong and China, aiming to maximize returns for investors[58]. Shareholder Information - As of March 31, 2023, Real Hero Ventures Limited holds 274,350,000 shares, representing 71.45% of the company's equity[68]. - The company has a stock option plan approved by shareholders on November 6, 2017, to incentivize employees and directors for their contributions[71]. - As of March 31, 2023, no stock options have been granted under the stock option plan[73]. - During the review period, the company did not purchase, sell, or redeem any listed securities[74]. - The company has not engaged in any competitive business activities during the review period[75]. Compliance and Governance - The audit committee has reviewed the group's first-quarter performance and confirmed compliance with applicable accounting standards[80]. - The company decided not to renew leases for two restaurants that recorded net losses, reducing further loss risks[82]. - No dividends were recommended for distribution during the review period[83]. - There were no significant acquisitions or disposals of subsidiaries or associates during the review period[84].
1957 & CO.(08495) - 2023 Q1 - 季度财报