F8企业(08347) - 2020 Q1 - 季度财报

Performance Highlights Performance Highlights The company reported strong Q1 2019 revenue growth of 75.9% to HKD 88.1 million and profit of HKD 6.3 million, though adjusted profit declined 14.5% YoY, with no dividend recommended Key Financial Indicators for Q1 2019 | Metric | 2019 Q1 (HKD million) | 2018 Q1 (HKD million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. 88.1 | Approx. 50.1 | +75.9% | | Profit attributable to owners | Approx. 6.3 | Approx. 3.2 | +96.9% | - Profit growth was primarily driven by increased sales of diesel and marine diesel, alongside a fair value gain on contingent consideration payable of approximately HKD 3.6 million; excluding this one-off gain, profit attributable to owners would have decreased from HKD 3.2 million in the prior year to HKD 2.7 million, representing a 14.5% year-on-year decrease[12] - The Board of Directors does not recommend the payment of any dividend for the three months ended June 30, 2019[13] Unaudited Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Statement of Profit or Loss and other Comprehensive Income Revenue surged 75.9% to HKD 88.06 million this quarter; despite higher cost of sales, operating profit rose to HKD 6.77 million due to a HKD 3.6 million fair value gain, leading to a near doubling of profit for the period to HKD 6.3 million and basic EPS of HKD 0.79 cents Key Profit and Loss Data for Q1 2019 (HKD thousand) | Item | 2019 Q1 (HKD thousand) | 2018 Q1 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 88,060 | 50,065 | +75.9% | | Gross Profit | 6,365 | 5,754 | +10.6% | | Profit from Operations | 6,770 | 3,723 | +81.8% | | Profit for the Period | 6,298 | 3,161 | +99.2% | | Basic EPS | 0.79 | 0.40 | +97.5% | Unaudited Condensed Consolidated Statement of Changes in Equity As of June 30, 2019, the company's total equity increased to HKD 94.852 million from HKD 88.551 million at the beginning of the period, primarily driven by the HKD 6.301 million total comprehensive income recorded during the quarter Summary of Changes in Equity (HKD thousand) | Item | Amount (HKD thousand) | | :--- | :--- | | As at April 1, 2019 | 88,551 | | Profit and Total Comprehensive Income for the Period | 6,301 | | As at June 30, 2019 | 94,852 | Notes to the Unaudited Condensed Consolidated Financial Statements The notes detail the company's core business of diesel sales and transport in Hong Kong, accounting policies, and financial items, noting diesel sales comprised over 80% of revenue, explaining the new two-tiered profits tax rate, and confirming no dividend distribution this quarter - The company's principal activities involve the sale and transportation of diesel oil and related products in Hong Kong[27] Revenue Breakdown by Product (HKD thousand) | Product | 2019 Q1 (HKD thousand) | 2018 Q1 (HKD thousand) | | :--- | :--- | :--- | | Diesel Oil | 71,783 | 47,828 | | Marine Diesel Oil | 16,081 | 2,068 | | Lubricant Oil | 196 | 169 | | Total | 88,060 | 50,065 | - The company adopted Hong Kong's new two-tiered profits tax rate regime, taxing the first HKD 2 million of assessable profits at 8.25% and the remainder at 16.5%[49][50] - The Board of Directors does not recommend the payment of any dividend for the three months ended June 30, 2019[51] Management Discussion and Analysis Business Review and Future Prospects The company's core business of diesel sales and transport in Hong Kong saw a 75.9% revenue increase this quarter, driven by existing project demand and new marine diesel clients; management is optimistic about future demand from public infrastructure and logistics, planning talent acquisition and new business opportunities - The company's principal business is supplying diesel oil, marine diesel oil, and lubricant oil to construction companies in Hong Kong for their operating machinery and vehicles[60] - Revenue for the quarter increased by 75.9% to HKD 88.1 million, primarily driven by increased demand from an existing client's project that commenced in October 2018 and the acquisition of three new marine diesel oil customers[61] - The Board believes the Hong Kong diesel oil sales market outlook is positive, driven by public infrastructure investments, such as the Airport Third Runway project, and the recovery of the logistics industry[66] Financial Review Revenue grew 75.9% to HKD 88.1 million this quarter, with diesel sales at 81.5% and marine diesel sales at 18.3%; however, cost of sales outpaced revenue growth at 84.4%, lowering gross profit margin from 11.5% to 7.2% due to bulk discounts, with net profit growth largely from a one-off fair value gain Changes in Revenue Composition | Revenue Source | 2019 Q1 Share | 2018 Q1 Share | | :--- | :--- | :--- | | Diesel Oil Sales | 81.5% | 95.5% | | Marine Diesel Oil Sales | 18.3% | 4.1% | | Lubricant Oil Sales | 0.2% | 0.3% | Profitability Analysis | Metric | 2019 Q1 (HKD million) | 2018 Q1 (HKD million) | | :--- | :--- | :--- | | Gross Profit | 6.4 | 5.8 | | Gross Profit Margin | 7.2% | 11.5% | - The decrease in gross profit margin was primarily due to bulk purchase discounts offered to a major customer during the reporting period[76] Liquidity and Capital Resources The Group maintains a sound financial position, funding operations via cash from activities; as of June 30, 2019, it reported HKD 91.1 million in net current assets, a 6.3x current ratio, and a 3.2% gearing ratio, with HKD 3 million utilized from HKD 20 million bank facilities, facing foreign exchange risk from Malaysian Ringgit assets Key Financial Ratios (As at June 30, 2019) | Metric | Value | | :--- | :--- | | Net Current Assets | Approx. 91.1 million HKD | | Current Ratio | Approx. 6.3 times | | Gearing Ratio | Approx. 3.2% | - As of June 30, 2019, the Group had available banking facilities of approximately HKD 20 million, of which HKD 3 million was utilized[84] - The Group's foreign exchange risk primarily arises from financial assets denominated in Malaysian Ringgit, with no financial instruments used for hedging[86] Material Acquisitions and Disposal of Subsidiaries, Associates or Joint Ventures During the reporting period, the company undertook two significant capital operations: establishing a joint venture in China with Xinyu Iron & Steel Group and others for steel product processing, holding a 55% stake, and completing the disposal of 90% equity in China Forest Food Co., Ltd. on April 9, 2019 - On June 27, 2019, the company's indirect wholly-owned subsidiary entered into a joint venture agreement with Xinyu Iron & Steel Group and Xinyu Investment Holdings to establish a joint venture in China with a registered capital of RMB 30 million for steel product processing, with the company holding a 55% equity interest[94] - On April 9, 2019, the company completed the disposal of its 90% equity interest in China Forest Food Co., Ltd. to China Eco-Tourism Investment Co., Ltd[95] Use of Proceeds The company's net proceeds from listing were approximately HKD 45.1 million; as of June 30, 2019, HKD 22.9 million was utilized for purchasing diesel tank trucks, marine diesel barges, strengthening manpower, and supplementing working capital, with HKD 22.2 million remaining for fleet expansion and IT system upgrades as planned Use of Net Proceeds (HKD million) | Planned Use | Planned Amount (HKD million) | Actual Utilized (HKD million) | Unutilized (HKD million) | | :--- | :--- | :--- | :--- | | Purchase of diesel tank trucks | 7.8 | 3.7 | 4.1 | | Purchase of marine diesel barges | 14.0 | 8.5 | 5.5 | | Strengthening manpower | 6.1 | 1.7 | 4.4 | | Enhancement of IT systems | 3.6 | 0.1 | 3.5 | | Working capital for new business | 9.1 | 4.4 | 4.7 | | Working capital | 4.5 | 4.5 | – | | Total | 45.1 | 22.9 | 22.2 | Other Disclosures This section discloses miscellaneous information, including the company's HKD 2.6 million investment in a Malaysian listed company, 26 employees with HKD 1.8 million in staff costs, and compliance with Hong Kong environmental regulations with no violations or significant post-reporting period events - As of June 30, 2019, the Group invested approximately HKD 2.6 million in a company listed on the Malaysian stock exchange, recording an unrealized gain of approximately HKD 0.1 million[109] - As of June 30, 2019, the Group employed 26 staff members, with total staff costs for the quarter amounting to approximately HKD 1.8 million[110] - The company complies with Hong Kong's environmental laws and regulations, with no prosecutions, fines, or penalties for environmental non-compliance during the reporting period[115][120] Other Information Interests and short positions of Directors and chief executive This section discloses the shareholdings of directors and major shareholders, noting Chairman Mr. Fong Chun Man holds 55% through Grand Tycoon Limited, Executive Director Mr. Li Hok Yin beneficially owns 10.27%, and no share options have been granted since the adoption of the share option scheme Shareholdings of Directors and Major Shareholders (As at June 30, 2019) | Name/Entity | Capacity | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Fong Chun Man | Interest in controlled corporation | 440,000,000 | 55% | | Mr. Li Hok Yin | Beneficial owner | 82,132,000 | 10.27% | | Grand Tycoon Limited | Beneficial owner | 440,000,000 | 55% | - No share options have been granted by the company since the adoption of the share option scheme on March 23, 2017, up to June 30, 2019[137] Corporate Governance The company established Audit, Nomination, and Remuneration Committees compliant with GEM Listing Rules, chaired or majority-held by independent non-executive directors; the Audit Committee reviewed unaudited financial statements, and the company adhered to the Corporate Governance Code and directors complied with the Model Code for Securities Transactions - The company has established an Audit Committee, a Nomination Committee, and a Remuneration Committee, with their composition and terms of reference complying with the requirements of the GEM Listing Rules[143][149][152] - The unaudited condensed consolidated financial statements of the Group for the three months ended June 30, 2019, have been reviewed by the Audit Committee[145] - The company complied with the code provisions of the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules for the three months ended June 30, 2019[161]