北亚策略(08080) - 2022 Q1 - 季度财报

Financial Performance UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS Revenue increased by 3.1% to HKD 639.396 million, but operating profit decreased by 47.9% and profit for the period fell by 62.4% due to higher expenses Q1 Financial Performance Summary (For the three months ended June 30) | Metric | 2021 (HKD thousands) | 2020 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 639,396 | 620,468 | +3.1% | | Gross Profit | 103,672 | 101,550 | +2.1% | | Operating Profit | 26,959 | 51,729 | -47.9% | | Profit for the Period | 15,980 | 42,531 | -62.4% | | Basic EPS | 5.2 HK cents | 15.6 HK cents (Restated) | -66.7% | UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Total comprehensive income for the quarter was HKD 21.259 million, a significant 48.1% decrease from HKD 40.959 million in the prior year, as positive currency translation differences from overseas operations could not offset the sharp decline in profit for the period Q1 Comprehensive Income Summary (For the three months ended June 30) | Metric | 2021 (HKD thousands) | 2020 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Profit for the period | 15,980 | 42,531 | -62.4% | | Currency translation differences from overseas operations | 5,279 | (1,572) | N/A | | Total Comprehensive Income | 21,259 | 40,959 | -48.1% | Notes to Financial Statements Notes to the financial statements detail principal activities, revenue composition, financial costs, taxation, EPS calculation, and equity changes, with revenue primarily from hi-tech product distribution in China Principal Activities and Revenue Sources The company's principal activities include hi-tech product distribution and services (SMT equipment trade and related services), leasing (finance and operating leases), and investment holding, with total revenue of HKD 639.396 million for the quarter, primarily from customer contracts in China (including Hong Kong) - The Group primarily engages in three businesses: hi-tech product distribution and services, leasing, and investment holding[18] Q1 Revenue Composition (HKD thousands) | Revenue Source | 2021 | 2020 | | :--- | :--- | :--- | | By Type | | | | Sales of goods | 584,675 | 560,158 | | Sales support services | 38,245 | — | | Commission and other service income | 6,781 | 42,527 | | Finance lease arrangements income | 3,454 | 5,066 | | Operating lease arrangements income | 6,241 | 12,717 | | Total | 639,396 | 620,468 | | By Geographical Location (Contract Revenue Only) | | | | China (including Hong Kong) | 608,359 | 583,777 | | Asia - Others | 21,342 | 18,908 | | Total Contract Revenue | 629,701 | 602,685 | Earnings Per Share Basic and diluted earnings per share for the quarter were 5.2 HK cents, a 66.7% decrease from the restated 15.6 HK cents in the prior year, directly linked to the decline in net profit and adjusted for the May 2021 open offer - Basic earnings per share decreased by 66.7% year-on-year, as profit for the period declined from HKD 42.53 million to HKD 15.98 million[42][13] - The weighted average number of ordinary shares used for EPS calculation has been retrospectively adjusted to reflect the impact of the open offer completed on May 13, 2021[39] Dividends The Board does not recommend an interim dividend for the three months ended June 30, 2021, consistent with the prior year's policy - The Directors do not recommend an interim dividend for the current quarter (2020 corresponding period: nil)[49] Changes in Equity As of June 30, 2021, total equity increased to HKD 1.317 billion, primarily influenced by profit for the period (+HKD 15.98 million), open offer (+HKD 38.71 million), share option exercises (+HKD 6.24 million), and new share option expenses (+HKD 8.37 million) - On May 13, 2021, the company completed a 'five-for-one' open offer, issuing 54,516,161 shares at HKD 0.71 per share, raising approximately HKD 38.71 million in gross proceeds[55][56] - During the period, 7,692,345 share options were exercised, and 19,484,000 new share options were granted[63] - The Group recognized approximately HKD 8.37 million in share option expenses due to options granted this quarter[73] Management Discussion and Analysis BUSINESS REVIEW This quarter, overall revenue slightly increased by 3.1%, but net profit sharply declined by 62.4% due to a 36.5% surge in operating expenses, primarily staff costs and non-cash share option expenses, while the hi-tech distribution business grew steadily, and the leasing business saw a significant profit drop Overall Financial and Business Performance Revenue grew 3.1% to HKD 639.396 million this quarter, but net profit sharply declined 62.4% to HKD 15.98 million, primarily due to a HKD 7.3 million increase in staff costs and HKD 8.37 million in non-cash share option expenses, leading to a 36.5% rise in total operating expenses - Revenue increased by 3.1% year-on-year this quarter, but net profit decreased by 62.4% year-on-year[75][81] - Operating expenses increased by 36.5% year-on-year, mainly due to a HKD 7.3 million increase in staff costs (including commissions) and the recognition of HKD 8.37 million in share option expenses[77] Hi-Tech Distribution and Services Division As the Group's core business, this segment's revenue grew 1.6% to HKD 608 million and net profit increased 8.8% to HKD 37.15 million, driven by higher direct machine sales and a favorable customer mix, boosting gross margin from 14.8% to 16.4% Hi-Tech Distribution Segment Performance Summary | Metric | 2021 Q1 (HKD) | 2020 Q1 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | approx. 608 million | approx. 598 million | +1.6% | | Net Profit | approx. 37.15 million | approx. 34.14 million | +8.8% | | Gross Margin | 16.4% | 14.8% | +1.6 p.p. | Leasing Division Despite a 43.4% increase in total segment revenue to HKD 31.54 million due to operating lease asset sales, core leasing performance was weak, with operating lease income down 50.9% and finance lease interest income down 31.8%, leading to a 56.8% drop in net profit to HKD 3.84 million due to semiconductor shortages and macroeconomic uncertainty - Segment net profit decreased by 56.8% year-on-year to HKD 3.84 million[97] - Core leasing income significantly declined: - Operating lease arrangements income: 50.9% year-on-year decrease - Finance lease interest income: 31.8% year-on-year decrease[95] - The primary reasons for the profit decline were semiconductor chip shortages leading to customer production halts and return of leased machines, alongside macroeconomic uncertainty suppressing client long-term capital investment[97] Use of Proceeds from Open Offer The net proceeds of approximately HKD 36.3 million from the open offer completed on May 13, 2021, were fully utilized this quarter as planned for the acquisition of solder paste printers - The net proceeds from the open offer, approximately HKD 36,296,000, were fully utilized this quarter for the acquisition of solder paste printers[99] OUTLOOK Looking ahead, the Group sees growth opportunities in China's domestic demand, 5G transition, and smartphone market recovery, but global semiconductor chip shortages pose a severe challenge, impacting supply chains and customer demand, expected to pressure short-term performance in both hi-tech distribution and leasing businesses Overall Outlook Despite global pandemic and geopolitical uncertainties, the Group anticipates significant opportunities in the SMT industry from China's domestic demand, 5G upgrades, and a strong smartphone market recovery, though global semiconductor chip shortages remain a major challenge, causing SMT machine backlogs and potential supply delays - Key growth opportunities stem from strong domestic demand in China, equipment upgrades driven by 5G transformation, and the recovery of the smartphone market[102][107] - Global semiconductor chip shortages are the primary challenge, leading to SMT machine supply backlogs and potential delays in product supply and demand[103][104] - The company will continue to seek suitable investment or self-use opportunities in commercial and residential properties[111] Hi-tech Distribution and Services Division Outlook In the short term, global semiconductor chip shortages and pandemic risks may depress this segment's revenue and profit due to reduced client capital investment and delivery delays, but the company will continue investing in service infrastructure and monitoring costs to prepare for market normalization - Global semiconductor chip shortages and pandemic-related risks may depress the segment's revenue and net profit in the short term, primarily due to reduced orders and delivery delays[116] Leasing Division Outlook The leasing segment faces severe challenges, as semiconductor chip shortages have led some clients to return leased machines due to production halts, directly impacting operating lease business, with performance expected to remain under pressure until supply chain issues significantly improve, especially next quarter - Due to semiconductor chip shortages causing client production halts and return of leased machines, the leasing segment's performance is expected to remain under pressure, especially in the next quarter[120] Other Disclosures Directors', Chief Executive's and Other Persons' Interests The report details the interests of the company's directors, chief executive, and major shareholders in shares and related shares (including share options) as of June 30, 2021, with Executive Director Ms. Zhang Yifan and major shareholder Ms. Lu Ying being significant holders - Executive Director Ms. Zhang Yifan holds approximately 5.06% of the total share and related share interests[123] - Major shareholder Ms. Lu Ying, through her wholly-owned company Sincere Ardent Limited and personal holdings, collectively holds approximately 51.33% of the share interests, making her the controlling shareholder[130][132] SHARE OPTION SCHEME The report details share option movements for directors, major shareholders, and employees under the 2014 Share Option Scheme during the period, with 19,484,000 new options granted and 7,692,345 options exercised, and adjustments made to unexercised options due to the open offer - During the period, the company granted a total of 19,484,000 new share options to executive directors, employees, and others, with an exercise price of HKD 0.714[139][141] - During the period, 7,692,345 share options were exercised on June 29, 2021, at an adjusted exercise price of HKD 0.811[141][144] CORPORATE GOVERNANCE The company maintains high corporate governance standards but deviates from the code as the Chairman and Chief Executive roles are not separate; an Audit Committee of three independent non-executive directors oversees financial reporting, internal controls, and risk management, and has reviewed this quarter's financial report - The company deviates from the Corporate Governance Code as the roles of Chairman and Chief Executive are not separate, which does not comply with code provision A.2.1[152] - The company has established an Audit Committee, comprising three independent non-executive directors, responsible for overseeing financial reporting, internal controls, and risk management; this quarter's financial information has been reviewed by the Audit Committee[153][157]