Financial Performance - Revenue for the three months ended March 31, 2020, amounted to approximately HK$20.60 million, representing a decrease of approximately 43.50% compared to HK$36.46 million for the same period in 2019[8]. - Loss attributable to owners of the Company for the three months ended March 31, 2020, was approximately HK$7.70 million, compared to HK$3.46 million for the same period in 2019[8]. - Basic loss per share for the three months ended March 31, 2020, was approximately HK0.77 cent, compared to HK0.35 cent for the same period in 2019[8]. - Gross profit for the three months ended March 31, 2020, was approximately HK$6.19 million, down from HK$10.47 million in the same period of 2019[10]. - Total comprehensive loss for the period ended March 31, 2020, was approximately HK$6.57 million, compared to a total comprehensive loss of HK$2.91 million for the same period in 2019[10]. - Administrative expenses for the three months ended March 31, 2020, were approximately HK$11.98 million, compared to HK$11.55 million for the same period in 2019[10]. - Finance costs for the three months ended March 31, 2020, were approximately HK$1.07 million, slightly up from HK$1.02 million in the same period of 2019[10]. - Other income, gains, and losses for the three months ended March 31, 2020, were a loss of approximately HK$64, compared to a loss of HK$306 for the same period in 2019[10]. Revenue Breakdown - Revenue from finished watches was HK$12,408,000, down 43.8% from HK$22,085,000 in 2019[32]. - Revenue from SKD kits decreased by 51.3% to HK$6,779,000 from HK$13,913,000 in 2019[32]. - Revenue from watch parts increased to HK$1,416,000, up 203.0% from HK$465,000 in 2019[32]. - Revenue from Hong Kong increased to HK$7,702,000, up 126.8% from HK$3,407,000 in 2019[28]. - Revenue from Brazil decreased by 24.9% to HK$5,561,000 from HK$7,399,000 in 2019[28]. Equity and Capital Structure - The balance at March 31, 2020, showed total equity of approximately HK$56.41 million, down from HK$74.15 million at March 31, 2019[11]. - The authorized share capital of the Company was increased from HK$380,000 to HK$10,000,000 by creating an additional 9,962,000,000 shares[14]. - The total amount utilized from the net proceeds since the listing was HK$34.47 million, with HK$33.97 million already used by March 31, 2020[82]. Cash Flow and Financial Ratios - As of 31 March 2020, the Group had cash and cash equivalents of approximately HK$28.35 million, down from HK$37.61 million as of 31 March 2019[61]. - The current ratio was approximately 1.05 times as of 31 March 2020, compared to 1.21 times as of 31 March 2019[61]. - The gearing ratio, calculated as total bank borrowings as a percentage of total equity, was approximately 170.38% as of March 31, 2020, up from 115.54% as of March 31, 2019[66]. Employment and Corporate Governance - The Group had a total of 147 employees as of March 31, 2020, down from 170 employees as of March 31, 2019[71]. - The Company has complied with the Corporate Governance Code throughout the period, except for the deviation regarding the roles of chairman and CEO being held by the same individual[112]. - The Company has established an Audit Committee to oversee financial reporting and internal control procedures, ensuring compliance with GEM Listing Rules[119]. Market Conditions and Future Outlook - The Group expects a slow recovery in business as COVID-19 is contained in China and other regions, but short-term sales pressure remains[53]. - The HKTDC Export Index for timepieces fell from 35.5 in Q1 2019 to 13.9 in Q1 2020, indicating a significant decline in export confidence[52]. - The outbreak of COVID-19 has introduced uncertainties that may impact the Group's financial performance, although the extent of the impact cannot be reasonably estimated at this stage[74]. Shareholding and Securities Transactions - As of March 31, 2020, Mr. Cheuk Sin Cheong and Ms. Au Corona Ching Mei each hold 750,000,000 ordinary shares, representing 75% of the total shares of the Company[87]. - Million Easy Enterprises Ltd. holds a beneficial interest in 750,000,000 shares, which is also 75% of the total shares of the Company[96]. - During the reporting period, the Company did not purchase, sell, or redeem any of its listed securities[97]. Compliance and Internal Controls - The Audit Committee reviewed the unaudited consolidated results for the Period, confirming they were prepared in compliance with applicable accounting standards[121]. - The Company confirms that all Directors complied with the required standards of dealings regarding securities transactions during the Period[117]. - The Company adopted a code of conduct for securities transactions by Directors, ensuring compliance with GEM Listing Rules throughout the Period[115].
恒伟集团控股(08219) - 2020 Q1 - 季度财报