思博系统(08319) - 2022 Q1 - 季度财报

Performance Summary The first quarter of FY2022 saw a 7.8% revenue decline, yet gross profit, net profit, and EPS all increased by approximately 4%, signaling improved profitability Q1 Performance Overview For the first quarter ended June 30, 2021 (FY2022 Q1), the company's revenue decreased by 7.8% year-on-year, but gross profit, net profit, and earnings per share all grew by approximately 4%, indicating improved profitability 2022 Q1 Key Performance Indicators | Indicator | FY2022 Q1 | YoY Change | | :--- | :--- | :--- | | Revenue | Approximately HKD 115.8 million | -7.8% | | Gross Profit | Approximately HKD 17.3 million | +3.9% | | Profit and Total Comprehensive Income | Approximately HKD 4.0 million | +3.9% | | Earnings Per Share | Approximately 0.50 HK cents | +4.2% | Condensed Consolidated Financial Statements Despite a 7.8% revenue decrease, effective cost control led to a 3.9% increase in gross profit and net profit, with total equity growing due to profit and share option exercises, as detailed in the comprehensive notes Condensed Consolidated Statement of Comprehensive Income This quarter's revenue was HKD 115.8 million, a 7.8% decrease from HKD 125.6 million in the same period last year. Despite the revenue decline, gross profit increased by 3.9% year-on-year to HKD 17.29 million due to effective control over cost of sales, resulting in a profit for the period of HKD 4.03 million, a 3.9% increase year-on-year Consolidated Statement of Comprehensive Income (For the three months ended June 30) | Item (HKD thousands) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Revenue | 115,835 | 125,641 | | Cost of sales | (98,549) | (108,996) | | Gross Profit | 17,286 | 16,645 | | Other income and gains | 1,016 | 420 | | Selling expenses | (9,779) | (9,378) | | Administrative expenses | (3,581) | (2,896) | | Profit before income tax expense | 4,833 | 4,652 | | Income tax expense | (804) | (776) | | Profit and total comprehensive income for the period | 4,029 | 3,876 | | Basic earnings per share | 0.50 HK cents | 0.48 HK cents | Condensed Consolidated Statement of Changes in Equity As of June 30, 2021, the company's total equity increased from HKD 122.0 million at the beginning of the period to HKD 126.1 million. This growth primarily resulted from the HKD 4.03 million profit recorded during the period, along with a small increase in share capital and share premium due to the exercise of share options - As of June 30, 2021, the Group's total equity was HKD 126,122 thousand, an increase from HKD 121,995 thousand as of March 31, 2021[10] - The primary factors contributing to the increase in equity include a profit for the period of HKD 4,029 thousand and shares issued due to the exercise of share options[10] Notes to the Condensed Consolidated Financial Statements The financial statement notes provide detailed explanations of the company's business, accounting policies, segment information, revenue composition, taxation, dividends, and earnings per share calculation. Key information points include: the company primarily engages in IT infrastructure solutions, its business is highly concentrated in Hong Kong, and customer concentration decreased in the current period. The company proposes a final dividend for the year - The Group is principally engaged in providing information technology infrastructure solutions in Hong Kong and Macau[12] Revenue by Geographical Region (HKD thousands) | Region | 2021 Q1 | 2020 Q1 | | :--- | :--- | :--- | | Hong Kong | 115,750 | 125,258 | | Macau | 85 | 383 | | Total | 115,835 | 125,641 | - During the reporting period, no single customer contributed 10% or more of the Group's revenue, whereas in the same period last year, one single customer contributed 25.6% of revenue, indicating a reduction in customer concentration risk[19] - The Board recommends a final dividend of 0.90 HK cents per ordinary share for the year ended March 31, 2021, totaling HKD 7,204,000, subject to approval at the Annual General Meeting[27] Management Discussion and Analysis Public sector growth offset private sector decline this quarter, with the company focusing on strategic IT opportunities and M&A while managing costs amidst economic uncertainties, alongside a significant post-period acquisition Business Review and Outlook This quarter's business performance showed divergence: public sector business revenue and gross profit both achieved significant growth, effectively offsetting the decline in the private sector due to reduced demand. Looking ahead, despite macroeconomic uncertainties, the company will focus on four strategic directions, including hybrid cloud and cybersecurity, to drive long-term growth, and will prudently explore M&A opportunities Public vs. Private Sector Business Performance Comparison (FY2022 Q1 vs FY2021 Q1) | Sector | Revenue Change | Gross Profit Change | Gross Margin Change | | :--- | :--- | :--- | :--- | | Private Sector | -25.8% | -15.6% | +1.9 percentage points | | Public Sector | +13.7% | +32.3% | +1.9 percentage points | - The company believes the short-to-medium term economic environment is challenging due to the ongoing global coronavirus pandemic and uncertainties arising from US-China tensions[36] - The company's long-term strategy focuses on four key business opportunities: (i) hybrid cloud, multi-cloud, and "as-a-service"; (ii) container technology and DevOps; (iii) cybersecurity; and (iv) application management services[38] - The company will continue to explore suitable merger and acquisition opportunities and has implemented prudent cost optimization measures to address the current revenue environment[39] Financial Review This quarter's financial review indicates that although total revenue decreased by 7.8% due to reduced customer demand, the gross profit margin improved from 13.2% to 14.9%, primarily benefiting from more favorable terms obtained from suppliers. This led to a 3.9% year-on-year increase in gross profit. Selling and administrative expenses rose due to increased staff costs, but profit attributable to owners of the company still achieved a 3.9% growth - Revenue decreased by 7.8% from approximately HKD 125.6 million to approximately HKD 115.8 million, primarily due to reduced customer demand for information technology infrastructure solutions[41] - Gross profit margin increased by 1.7 percentage points from 13.2% in the same period last year to 14.9%, mainly due to the company obtaining more favorable terms from suppliers[42] - Selling expenses and administrative expenses increased by 4.3% and 23.7% year-on-year, respectively, primarily due to increased staff costs[44][45] - Profit attributable to owners of the company increased by 3.9% from approximately HKD 3.9 million to approximately HKD 4.0 million[50] Events After Reporting Date Subsequent to the reporting period, the company entered into a significant acquisition agreement on July 9, 2021, to acquire a 70% equity interest in ServiceOne International Holdings Limited, which may impact the company's future operations - On July 9, 2021, the company entered into a sale and purchase agreement to acquire 70% of the issued share capital of ServiceOne International Holdings Limited[52] Other Information This section details director and major shareholder equity interests, outlines the share option scheme, and confirms the company's adherence to corporate governance practices with one noted deviation Directors' and Chief Executive's Interests and Major Shareholders' Interests This section details the shareholdings of the company's directors, chief executives, and major shareholders. As of June 30, 2021, Mr. Chu Siu Sum, Mr. Lau Wai Kwok, and Mr. Wong Chu Ki were the directors with the largest shareholdings. Additionally, the interests of major shareholders such as Mr. Mok Chu Leung and Mr. Cheung Lap Kei are listed Directors' Interests in the Company's Ordinary Shares (As of June 30, 2021) | Director Name | Nature of Interest | Total Number of Shares | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Chu Siu Sum | Beneficial owner | 226,890,000 | 28.3% | | Mr. Lau Wai Kwok | Beneficial owner | 100,000,000 | 12.5% | | Mr. Wong Chu Ki | Beneficial owner | 53,300,000 | 6.7% | | Mr. Chan Kin Mei | Beneficial owner | 6,720,000 | 0.8% | Major Shareholders' Interests in the Company's Ordinary Shares (As of June 30, 2021) | Shareholder Name | Nature of Interest | Total Number of Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Mok Chu Leung | Beneficial owner | 91,800,000 | 11.5% | | Mr. Cheung Lap Kei | Beneficial owner | 89,760,000 | 11.2% | Share Option Scheme As of June 30, 2021, there were 7,000,000 outstanding share options under the company's share option scheme. All these options were granted on April 15, 2019, with an exercise price of HKD 0.111 per share. No new options were granted during the reporting period, but some options were exercised or lapsed - As of June 30, 2021, there were 7,000,000 outstanding share options under the scheme[63] - All outstanding share options have an exercise price of HKD 0.111 per share, exercisable in five tranches until April 14, 2029[63][70] Corporate Governance Practices The company is committed to maintaining a high level of corporate governance. During the reporting period, the company complied with the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules. The only deviation is that the company secretary is not an employee of the company, an arrangement the Board considers cost-effective. The Audit Committee has reviewed the quarterly financial statements and deemed their disclosure sufficient - The company has complied with the Corporate Governance Code throughout the reporting period, with one deviation: the company secretary, Mr. Lau Siu Kei, is not an employee of the company, an arrangement the Board considers more cost-effective[75] - The company's Audit Committee, in conjunction with management, has reviewed the unaudited condensed consolidated financial statements for the three months ended June 30, 2021, and is of the opinion that adequate disclosures have been made[76]