Financial Performance - Revenue for the three months ended March 31, 2021, was approximately HKD 41.13 million, an increase of about 99.66% compared to HKD 20.60 million for the same period in 2020[6] - Loss attributable to owners of the company for the three months ended March 31, 2021, was approximately HKD 3.14 million, compared to a loss of approximately HKD 7.70 million for the same period in 2020[6] - Basic loss per share for the three months ended March 31, 2021, was approximately HKD 0.31, compared to HKD 0.77 for the same period in 2020[6] - Gross profit for the three months ended March 31, 2021, was approximately HKD 11.68 million, compared to HKD 6.19 million for the same period in 2020[7] - Total comprehensive loss for the three months ended March 31, 2021, was approximately HKD 8.60 million, compared to HKD 6.57 million for the same period in 2020[7] - The company reported a pre-tax loss of approximately HKD 3.14 million for the three months ended March 31, 2021, compared to a loss of HKD 7.70 million in the same period of 2020[26] Revenue Breakdown - The revenue breakdown by product for the three months ended March 31, 2021, included finished watches at HKD 25.68 million, components kits at HKD 4.77 million, and watch parts at HKD 10.69 million[18] - The geographical revenue distribution showed significant contributions from Indonesia (HKD 29.65 million), Brazil (HKD 3.99 million), and Saudi Arabia (HKD 3.05 million) for the three months ended March 31, 2021[16] Expenses and Costs - Administrative expenses for the three months ended March 31, 2021, were approximately HKD 13.00 million, compared to HKD 11.98 million for the same period in 2020[7] - Financial costs for the three months ended March 31, 2021, were approximately HKD 1.21 million, compared to HKD 1.07 million for the same period in 2020[7] - The depreciation expense for property, plant, and equipment was HKD 1.25 million for the three months ended March 31, 2021, compared to HKD 1.01 million in 2020[19] - Administrative expenses increased by approximately HKD 1.02 million or about 8.51% to approximately HKD 13.00 million due to costs associated with relocating to a new factory in Shenzhen[38] Equity and Financial Ratios - The company's total equity as of March 31, 2021, was approximately HKD 31.22 million[9] - As of March 31, 2021, the group's cash and cash equivalents were approximately HKD 12.27 million, down from HKD 28.35 million as of March 31, 2020[41] - The current ratio as of March 31, 2021, was approximately 1.02, compared to 1.05 as of March 31, 2020[41] - The group's debt-to-equity ratio was approximately 256.18% as of March 31, 2021, compared to 107.38% as of March 31, 2020[43] Business Operations - The company operates primarily as an investment holding company, with subsidiaries engaged in the design, development, manufacturing, and distribution of watch products[11] - The company continues to focus on ODM (Original Design Manufacturing) as its primary business segment, with no reported assets and liabilities by segment due to the nature of its operations[15] - The group plans to continue focusing on core business development and improving product design and development capabilities[37] Workforce and Employment - The group has reduced its workforce to 108 employees as of March 31, 2021, down from 147 employees as of March 31, 2020, primarily to improve management in design, quality control, and R&D[46] Dividends and Investments - The company did not declare any dividends for the three months ended March 31, 2021, consistent with the previous year[24] - No significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period, apart from those disclosed in the quarterly report[57] - The company has no major investment or capital asset plans for the upcoming year, aside from those disclosed in the prospectus published on June 28, 2018, and the quarterly report[58] Governance and Compliance - The audit committee has reviewed the unaudited consolidated performance for the reporting period, confirming compliance with applicable accounting standards and GEM listing rules[68] - The company has adopted a code of conduct for directors' securities trading, confirming compliance with trading regulations during the reporting period[67] - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the company due to the rapid development phase[66] - The compliance advisor agreement with Tian Cai Capital International Limited was terminated on March 31, 2021[64] Stock Options - The stock option plan approved by shareholders on June 20, 2018, is valid for 10 years and aims to reward contributions from eligible personnel and attract high-quality employees[59] - The board of directors can grant stock options to eligible employees, with a maximum of 10% of issued shares at any time, and must seek shareholder approval for significant grants exceeding 0.1% of the company's share capital[61] - The company has not granted any stock options since the adoption of the plan up to March 31, 2021[61] Market Conditions - The Hong Kong Trade Development Council's export index improved from 16.0 in Q1 2020 to 39.0 in Q1 2021, indicating a recovery in business sentiment[33] - The watch industry index rose from 13.9 in Q1 2020 to 36.5 in Q1 2021, reflecting improved economic conditions in the sector[34] Forward-Looking Statements - Forward-looking statements in the quarterly report are based on various assumptions regarding the company's current and future business strategies and operating environment[70]
恒伟集团控股(08219) - 2021 Q1 - 季度财报