Financial Performance - For the three months ended June 30, 2019, the company recorded unaudited revenue of approximately HKD 13,010,000, a decrease of about 11.94% compared to the same period last year[8]. - The unaudited loss attributable to owners of the company for the same period was approximately HKD 2,410,000, compared to a loss of HKD 2,980,000 in the corresponding period of 2018[8]. - Basic and diluted loss per share for the three months ended June 30, 2019, was HKD 0.24, compared to HKD 0.31 for the same period in 2018[8]. - The group reported revenue of HKD 13,014,000 for the three months ended June 30, 2019, a decrease of 11.8% compared to HKD 14,779,000 in the same period of 2018[24]. - The group reported a total loss before tax of HKD 2,410,000 for the period, reflecting the impact of various expenses including financing costs[28]. - The overall gross profit margin decreased from approximately 33.77% for the three months ended June 30, 2018, to 23.64% for the same period in 2019, primarily due to a decline in sales of higher-margin products[66]. Revenue Breakdown - Sales of electronic products amounted to HKD 7,463,000, down 44.8% from HKD 13,513,000 year-on-year[24]. - Revenue from restaurant operations increased significantly to HKD 5,551,000, compared to HKD 1,266,000 in the previous year, marking a growth of 338.5%[24]. - Revenue from external customers in Hong Kong was HKD 5,868,000, while revenue from European countries was HKD 4,056,000 for the three months ended June 30, 2019[36]. - Sales of electronic products decreased by approximately HKD 6,050,000, with significant declines in sales of fishing indicators and charging boards, which dropped by approximately HKD 3,290,000 and HKD 2,400,000, respectively[64]. Expenses and Losses - The company’s gross profit for the period was HKD 3,076,000, with a cost of sales amounting to HKD 9,938,000[12]. - Total comprehensive loss for the period was HKD 3,441,000, which includes an exchange difference arising from the translation of foreign operations of HKD (1,031,000)[12]. - The company’s administrative and other expenses amounted to HKD 5,226,000 for the period[12]. - Administrative and other expenses for the three months were approximately HKD 5,230,000, a reduction of about 33.52% compared to HKD 7,860,000 for the same period in 2018, mainly due to a decrease in employee costs[66]. Dividends and Shareholder Information - The board of directors did not recommend the payment of a dividend for the three months ended June 30, 2019, consistent with the previous year[8]. - The company did not recommend the payment of dividends for the three months ended June 30, 2019, compared to no dividends in the same period of 2018[57]. - Zheng Ruoxiong holds 97,560,000 shares, representing 9.56% of the company's issued share capital[72]. - Major shareholder Andris Asset Management (Hong Kong) Limited holds 66,338,000 shares, representing 6.91% of the company's issued share capital[76]. Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules during the three-month period ending June 30, 2019[80]. - The company has adopted a code of conduct for securities transactions by directors, with no known violations during the reporting period[79]. - No directors had any significant interests in contracts that could have a material impact on the group's operations during the three-month period[81]. - The audit committee has been established to review and supervise the financial reporting procedures and internal controls of the group[84]. - The committee consists of three independent non-executive directors[84]. - The unaudited condensed consolidated financial statements for the three months ended June 30, 2019, have been reviewed by the committee[84]. - The committee believes that the financial statements are prepared in accordance with applicable accounting standards and have made adequate disclosures[84]. Future Plans and Market Strategy - The company plans to focus on its core business of selling electronic products and aims to increase market share through more promotional and marketing activities[64]. - The company issued convertible bonds totaling HKD 9,408,000, which can be converted into 192,000,000 shares at an initial conversion price of HKD 0.049 per share[61]. - The company experienced a 100% decrease in subcontracting income during the three-month period due to a reduction in orders for subcontracting services in China[65]. Other Information - The group adopted HKFRS 16 "Leases" effective April 1, 2019, which resulted in the recognition of lease liabilities and right-of-use assets[20]. - The group recognized right-of-use asset depreciation of HKD 1,598,743 and lease liability interest expense of HKD 82,816 for the three months ended June 30, 2019[21]. - The group did not report any inter-segment sales during the periods analyzed[26]. - The company has not purchased, sold, or redeemed any of its listed securities during the three-month period ending June 30, 2019[77]. - The total number of share options exercised by directors as of June 30, 2019, is 45,600,000, representing 4.38% of the issued share capital[69]. - The company has granted a total of 80,000,000 share options under the pre-IPO share option plan at an exercise price of HKD 0.15, representing 7.69% of the issued share capital[69]. - As of June 30, 2019, the company had no share options granted, exercised, or lapsed during the three-month period[70]. - The report will be published on the Hong Kong Stock Exchange website and the company's website[85]. - The first quarter performance report for 2019 is referenced[86].
毅高国际控股(08218) - 2020 Q1 - 季度财报