[Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides essential corporate details including board members, committee structures, key senior management, auditors, legal advisors, principal bankers, share registrars, and registered office information [Corporate Basic Information](index=4&type=section&id=Corporate%20Information) This chapter provides the company's basic information, including key contact details for the board of directors, committee composition, key senior management, auditors, legal advisors, principal bankers, share registrar, and registered office - The company's Chairman and Chief Executive Officer is **Mr. Fu Chun Keung**[13](index=13&type=chunk) - The appointment of Ample Capital Limited as the company's compliance advisor concluded on **June 30, 2021**[16](index=16&type=chunk)[17](index=17&type=chunk) [Financial Highlights](index=7&type=section&id=Financial%20Highlights) This section summarizes the first quarter performance, noting a 35.1% revenue increase to HKD 27.1 million but an expanded loss of HKD 0.279 million, with no dividend recommended [First Quarter Performance Summary](index=7&type=section&id=Financial%20Highlights) For the three months ended June 30, 2021, the Group's revenue increased by 35.1% year-on-year to HKD 27.1 million, but the loss expanded from HKD 0.09 million in the prior year to HKD 0.279 million, with the Board not recommending any dividend | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | Approximately **HKD 27.1 million** | Approximately **HKD 20.08 million** | +35.1% | | Loss for the Period | Approximately **HKD 0.279 million** | Approximately **HKD 0.09 million** | Loss expanded | - The Board does not recommend the payment of any dividend for the three months ended **June 30, 2021**[22](index=22&type=chunk)[24](index=24&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) This section discusses the company's business outlook, review of operations by product and sales channel, and financial performance [Business Outlook](index=8&type=section&id=OUTLOOK) Despite the ongoing impact of the COVID-19 pandemic on Hong Kong's retail sector, the Group plans to expand its jewelry design series and retail network once the pandemic and economic environment improve, while also exploring social media marketing to generate shareholder returns and sustain long-term growth - The **COVID-19 pandemic** continues to impact Hong Kong's retail sector through social distancing measures, leading to decreased consumer spending[29](index=29&type=chunk)[33](index=33&type=chunk) - Future strategies include **expanding jewelry design series**, **extending the retail network**, and **exploring social media marketing**[30](index=30&type=chunk)[33](index=33&type=chunk) [Business Review](index=9&type=section&id=BUSINESS%20REVIEW) Total revenue for the quarter increased by 35.1% to HKD 27.12 million, primarily driven by increased marketing activities boosting sales of gem-set jewelry and pure gold products, though recycled gold product trade revenue declined due to global gold price fluctuations, with both retail and wholesale channels showing significant growth - Total revenue for the quarter increased by **HKD 7.04 million** (35.1% year-on-year), primarily driven by increased sales of gem-set jewelry and pure gold products, partially offset by a decrease in recycled gold product trade revenue, mainly attributable to increased marketing activities[34](index=34&type=chunk)[38](index=38&type=chunk) [Revenue Analysis by Product](index=9&type=section&id=Revenue%20by%20Products) This quarter saw strong revenue growth in gem-set jewelry products and pure gold products, increasing by 31.5% and 126.7% respectively, primarily due to market promotion activities, while recycled gold product trade revenue significantly decreased by 46.0% due to global gold price fluctuations | Product Category | Q1 2021 Revenue (Million HKD) | Q1 2020 Revenue (Million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gem-set Jewelry Products | **13.70** | **10.42** | +31.5% | | Pure Gold Products | **10.77** | **4.75** | +126.7% | | Recycled Gold Product Trade | **2.65** | **4.91** | -46.0% | [Revenue Analysis by Business (Sales Channels)](index=10&type=section&id=Revenue%20by%20Business%20%28sales%20channels%29) This quarter, retail channel revenue increased by 66.5% year-on-year, and wholesale channel revenue increased by 32.5%, primarily due to increased marketing activities, while recycled gold product trade revenue decreased by 46.0% | Sales Channel | Q1 2021 Revenue (Million HKD) | Q1 2020 Revenue (Million HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Retail | **21.36** | **12.83** | +66.5% | | Wholesale | **3.10** | **2.34** | +32.5% | | Recycled Gold Product Trade | **2.65** | **4.91** | -46.0% | [Financial Review](index=10&type=section&id=Other%20income) Other income for the quarter was HKD 0.4 million, a significant decrease of HKD 1.4 million from HKD 1.8 million in the prior year, primarily because the prior period included approximately HKD 1.67 million in government anti-epidemic fund subsidies, which were absent this quarter - Other income decreased from **HKD 1.8 million** in the prior year to **HKD 0.4 million**, mainly due to **HKD 1.67 million** in government subsidies (Anti-epidemic Fund and Employment Support Scheme) received in the prior period, which were not present in the current period[46](index=46&type=chunk)[50](index=50&type=chunk) [Other Information](index=11&type=section&id=Other%20Information) This section covers corporate governance practices, directors' and substantial shareholders' interests, share schemes, and the audit committee's review [Corporate Governance Practices](index=11&type=section&id=CORPORATE%20GOVERNANCE%20PRACTICE) The company is committed to maintaining high standards of corporate governance, largely complying with the Corporate Governance Code during the reporting period, but deviating from code provision A.2.1 where the Chairman and Chief Executive Officer roles are held by the same person, Mr. Fu Chun Keung, an arrangement the Board believes is in the Group's best interest given Mr. Fu's critical role and extensive experience - The company deviated from Corporate Governance Code (CG Code) provision A.2.1, where the **Chairman and Chief Executive Officer roles are held by the same person, Mr. Fu Chun Keung**[52](index=52&type=chunk)[54](index=54&type=chunk) - The Board believes this arrangement is appropriate as it benefits the Group's overall management, decision-making, and strategic planning, with effective checks and balances from senior management and the Board[53](index=53&type=chunk)[54](index=54&type=chunk) [Directors' and Substantial Shareholders' Interests](index=12&type=section&id=Directors%27%20and%20Substantial%20Shareholders%27%20Interests) As of June 30, 2021, MGH Limited, the company's principal controlling shareholder, held 75% of the company's shares, with directors Mr. Fu Chun Keung, Ms. Fu Wan Ling, and Ms. Cheung Lai Yuk deemed to jointly hold these shares through their interests in MGH Limited, and no other substantial shareholder interests or short positions were disclosed beyond the information provided | Name | Capacity | Number of Shares Held | Percentage of Equity | | :--- | :--- | :--- | :--- | | Mr. FU Chun Keung | Controlled Corporation Interest | **562,500,000** | **75%** | | Ms. FU Wan Ling | Controlled Corporation Interest | **562,500,000** | **75%** | | Ms. CHEUNG Lai Yuk | Controlled Corporation Interest, Spouse's Interest | **562,500,000** | **75%** | - **MGH Limited**, as the beneficial owner, holds **562,500,000 shares**, representing **75%** of the company's issued share capital[69](index=69&type=chunk) [Share Schemes](index=16&type=section&id=Share%20Schemes) The company adopted a Share Award Scheme on March 19, 2021, and a Share Option Scheme on March 6, 2019, with no share awards or options granted, exercised, cancelled, or lapsed under either scheme as of June 30, 2021 - The company has adopted a **Share Award Scheme** (March 19, 2021) and a **Share Option Scheme** (March 6, 2019)[72](index=72&type=chunk)[73](index=73&type=chunk) - As of **June 30, 2021**, no awards or share options have been granted, exercised, or remain outstanding under either the Share Award Scheme or the Share Option Scheme[72](index=72&type=chunk)[74](index=74&type=chunk) [Audit Committee](index=17&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, comprising three independent non-executive directors with Mr. Chan Tsz Ming as Chairman, has reviewed the unaudited consolidated results for the quarter and found them to be prepared in compliance with appropriate accounting standards and relevant regulations - The Audit Committee comprises **three independent non-executive directors**, with **Mr. Chan Tsz Ming as Chairman**[82](index=82&type=chunk)[87](index=87&type=chunk) - The Audit Committee has reviewed the **unaudited consolidated results for the three months ended June 30, 2021**[83](index=83&type=chunk)[87](index=87&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=19&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the statement of profit or loss and other comprehensive income, statement of changes in equity, and notes to the financial statements [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=19&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the three months ended June 30, 2021, the company reported revenue of HKD 27.117 million, a 35.1% year-on-year increase, and gross profit of HKD 8.164 million, up 17.0%, but due to increased selling and administrative expenses and a significant decrease in other income, the loss for the period expanded to HKD 0.279 million from HKD 0.085 million in the prior year, resulting in a basic loss per share of HKD 0.04 cents | Financial Metric (Thousand HKD) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Revenue | **27,117** | **20,079** | | Gross profit | **8,164** | **6,975** | | Loss before taxation | **(539)** | **(73)** | | Loss for the period | **(279)** | **(85)** | | Basic loss per share (HK cents) | **(0.04)** | **(0.01)** | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=20&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2021, the company's total equity was HKD 80.587 million, a slight decrease from HKD 80.941 million as of March 31, 2021, primarily due to a loss for the period of HKD 0.279 million and an exchange difference expense of HKD 0.075 million | Equity Item (Thousand HKD) | March 31, 2021 (Audited) | June 30, 2021 (Unaudited) | | :--- | :--- | :--- | | Total Equity | **80,941** | **80,587** | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=21&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The financial statement notes provide detailed information on the company's general information, basis of preparation, revenue composition, other income, expense items, loss per share calculation, and dividend policy, highlighting revenue breakdown by business and product type, and the reason for the significant decrease in other income [Note 3: Revenue and Segment Information](index=22&type=section&id=3.%20REVENUE%20AND%20SEGMENT%20INFORMATION) Total revenue for the quarter was HKD 27.117 million, with jewelry business (retail and wholesale) contributing HKD 24.463 million and recycled gold product trade contributing HKD 2.654 million; by product, gem-set jewelry products generated HKD 13.699 million and gold jewelry products generated HKD 10.764 million Revenue by Business (Thousand HKD) | Business Type | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Retail business of jewelry shops | **21,363** | **12,831** | | Wholesale of jewelry products | **3,100** | **2,336** | | Recycled gold product trade | **2,654** | **4,912** | | **Total** | **27,117** | **20,079** | Revenue by Product (Thousand HKD) | Product Type | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Gem-set jewelry products | **13,699** | **10,422** | | Gold jewelry products | **10,764** | **4,745** | | Recycled gold product trade | **2,654** | **4,912** | | **Total** | **27,117** | **20,079** | [Note 4: Other Income](index=23&type=section&id=4.%20OTHER%20INCOME) Total other income for the quarter was HKD 0.04 million, significantly lower than HKD 1.8 million in the prior year, primarily due to the absence of HKD 1.672 million in Hong Kong government anti-epidemic fund and Employment Support Scheme subsidies received in the prior period - The **HKD 1.672 million** government grants received in the prior period were from the **Retail Sector Subsidy Scheme** and the **Employment Support Scheme** under the Hong Kong SAR Government's Anti-epidemic Fund[118](index=118&type=chunk)[120](index=120&type=chunk) [Note 8: Loss Per Share](index=25&type=section&id=8.%20LOSS%20PER%20SHARE) Basic loss per share for the quarter was HKD 0.04 cents, calculated based on a loss for the period of HKD 0.279 million and a weighted average of 750 million shares, with no diluted loss per share presented due to the absence of outstanding potentially dilutive ordinary shares | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Loss for the period (Thousand HKD) | **(279)** | **(85)** | | Weighted average number of shares (Thousand shares) | **750,000** | **750,000** | [Note 10: Dividends](index=25&type=section&id=10.%20DIVIDENDS) The Board does not recommend the payment of any dividend for the three months ended June 30, 2021, consistent with the policy for the prior year - The Board does not recommend the payment of any dividend for the three months ended **June 30, 2021** (2020: nil)[130](index=130&type=chunk)[131](index=131&type=chunk)

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") 香港聯合交易所有限公司（「聯交所」）GEM 的特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Main Board. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the companies listed on GE ...

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Main Board of the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM ...

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") 香港聯合交易所有限公司（「聯交所」）GEM 的特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Main Board of the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the ...

chong fai Q1_20-21_Blue_OP.pdf 1 7/8/2020 14:49:18 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") 香港聯合交易所有限公司（「聯交所」）GEM 的特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Main Board of the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only a ...

chong fai AR19-20_X2_Final_(12.2mm)_OP.pdf 1 22/6/2020 18:04:19 CHARACTERISTICS OF GEM of the stock exchange of hong kong limited (the "stock exchange") 香港聯合交易所有限公司（「聯交所」）GEM 的特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Main Board. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due ...

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") 香港聯合交易所有限公司（「聯交所」）GEM 的特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Main Board of the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the ...

This report, for which the directors (the "Director(s)") of Dominate Group Holdings Company Limited (the "Company", together with its subsidiaries, the "Group") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and ...

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") 香港聯合交易所有限公司（「聯交所」）GEM 的特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Main Board of the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the ...

CHARACTERISTICS OF GEM of the stock exchange of hong kong limited (the "stock exchange") 香港聯合交易所有限公司（「聯交所」）GEM 的特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Main Board. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the companies listed on GE ...