Financial Performance - Revenue for the three months ended March 31, 2021, amounted to approximately HK$14.2 million, an increase from HK$8.1 million in the same period of 2020, representing a growth of 75.5%[8] - Loss after taxation for the three months ended March 31, 2021, was approximately HK$15.2 million, compared to a loss of HK$2.9 million in the same period of 2020, indicating a significant increase in losses[8] - Basic and diluted loss per share for the three months ended March 31, 2021, was approximately HK4.99 cents, compared to HK1.79 cents in the same period of 2020[10] - Total comprehensive loss for the period was HK$15.7 million, compared to HK$4.0 million in the same period of 2020, indicating a worsening financial position[11] - The company reported a loss before tax of HK$15.2 million for the three months ended March 31, 2021, compared to a loss of HK$2.9 million in the same period of 2020[10] - The company reported a loss for the period of HK$15,193,000 for the three months ended March 31, 2021, compared to a loss of HK$2,857,000 for the same period in the previous year[13] - The total comprehensive loss for the period was HK$15,656,000, which includes an exchange difference loss of HK$463,000[13] - The Group recorded a loss before income tax of approximately HK$15.2 million for the three months ended March 31, 2021, representing an increase of approximately 431.8% from approximately HK$2.9 million for the same period in the preceding year[102] - Total comprehensive loss attributable to owners of the parent was approximately HK$15.7 million for the three months ended March 31, 2021, compared to a total comprehensive loss of approximately HK$4.0 million for the corresponding period in 2020[103] Revenue Breakdown - For the three months ended March 31, 2021, the total revenue was HK$14,186,000, a significant increase of 75.1% compared to HK$8,114,000 in the same period of 2020[34] - The manufacturing and trading of threads segment generated revenue of HK$11,642,000, up from HK$8,114,000 in 2020, while the interior design and decoration segment reported revenue of HK$2,544,000[34] - Revenue from the PRC was HK$6,151,000, an increase from HK$4,366,000 in 2020, while overseas revenue rose to HK$4,477,000 from HK$2,948,000[40] - Revenue from the interior design and decoration segment for the three months ended March 31, 2021 was HK$2.5 million, covering the period from the acquisition date to the end of the reporting period[84] - The Group's total revenue for the three months ended 31 March 2021 was HK$14.2 million, with the manufacturing and trading of threads contributing 82.1% and interior design and decoration contributing 17.9%[79] Expenses and Costs - Gross profit for the three months ended March 31, 2021, was approximately HK$2.5 million, up from HK$1.3 million in the same period of 2020, reflecting a gross margin improvement[10] - The Group's cost of inventories sold for the three months ended 31 March 2021 was HK$9,487,000, an increase from HK$6,843,000 in the same period in 2020[56] - The Group's employee benefit expenses (excluding directors' remuneration) for the three months ended March 31, 2021 were HK$5,062,000, compared to HK$3,645,000 for the same period in 2020[56] - Administrative expenses rose to HK$5.1 million for the three months ended March 31, 2021, compared to HK$3.3 million in the same period of 2020, indicating increased operational costs[10] - Selling and distribution expenses increased to HK$1.5 million for the three months ended March 31, 2021, compared to HK$1.4 million in the same period of 2020[10] - The cost of sales for the manufacturing and trading of threads increased to approximately HK$9.5 million for the three months ended March 31, 2021, an increase of approximately 38.6% from approximately HK$6.8 million for the same period in 2020[88] - The cost of sales for the interior design and decoration segment was HK$2.1 million for the three months ended March 31, 2021, with no revenue recorded for the same period in 2020 due to the timing of the acquisition[89] Goodwill and Impairment - The impairment loss on goodwill for the three months ended March 31, 2021, was HK$11.1 million, which was not present in the same period of 2020[10] - The Group recognized an impairment loss of HK$11,128,000 related to goodwill from the acquisition of Diamond Motto Limited during the three months ended March 31, 2021[48] - The acquisition of Diamond Motto Limited resulted in an increase in goodwill and share premium by approximately HK$11,128,000 due to the difference between the fair value and issue price of consideration shares[49] - The total consideration for the acquisition of Diamond Motto Limited increased unexpectedly from HK$14,500,000 to HK$25,628,000, indicating potential goodwill impairment[50] - An impairment loss on goodwill of HK$11,128,000 was charged to profit or loss during the three months ended 31 March 2021[51] Corporate Governance and Management - The company has confirmed that none of the directors or controlling shareholders are engaged in any competing businesses[144] - The board is committed to strong corporate governance practices to safeguard shareholder interests[145] - The corporate governance code has been adopted, with regular reviews to ensure compliance and meet shareholder expectations[146] - The roles of chairman and CEO are held by Mr. Wong Kwok Wai, ensuring strong leadership and effective operations[148] - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance with the standards and expectations of shareholders and stakeholders[149] - The board will continue to review the separation of the roles of Chairman and CEO when it is deemed beneficial for the overall group[149] Share Capital and Ownership - As of March 31, 2021, the total equity of the company was HK$69,501,000, a decrease from HK$45,608,000 as of January 1, 2021, primarily due to a loss for the period[13] - As at 31 March 2021, the Company's issued share capital amounted to approximately HK$17.8 million, divided by 355,441,860 Shares of HK$0.05 each[112] - The company's total issued ordinary share capital is HK$17,772,093, divided into 355,441,860 shares at HK$0.05 each[140] - Mr. Wong Kwok Wai, the chairman, holds a 33.76% interest in the Company through Three Gates Investment, which owns 120,000,000 shares[131] - Gold-Face Finance Limited, Upbest Credit and Mortgage Limited, Good Foundation Company, Upbest Strategic Company, and Upbest Financial Holdings each hold 80,000,000 shares, accounting for 22.51% of the issued share capital[138] - Mr. Leung King Yue holds a beneficial ownership of 10,000,000 shares, representing 2.81% of the Company[131] - Mr. Leong Chi Wai and Glory Radiance International Limited each hold 17,875,972 shares, which is 5.03% of the issued share capital[140] - Fung Wing Cheung, Tony holds 24,000,000 shares, representing 6.75% of the issued share capital[140] Future Outlook and Strategy - The Group expects the new line of business in interior design to diversify its portfolio and increase income sources[125] - The Group is conducting a feasibility study to invest in thoroughbred horse racing and breeding operations, aiming to enhance shareholder returns[126] - The Group will continue to review existing businesses to improve operations and financial position[126] - The Board believes seeking suitable investment opportunities will maximize returns for shareholders[126] - The Group is closely monitoring the impacts of trade conflicts and COVID-19 on its financial status and cash flow[127] - The Group's existing sewing thread manufacturing and sales business faces challenges due to the COVID-19 pandemic and ongoing US-China trade conflicts, which are expected to continue impacting financial performance[127] Miscellaneous - The company was incorporated in the Cayman Islands and has its registered office in Grand Cayman[15] - The company's headquarters is located in Tsim Sha Tsui East, Kowloon, Hong Kong[172] - The principal place of business in China is situated at No. 386 Zeng Nan Road, Fang Cun, Liwan District, Guangzhou[171] - The stock code for Shen You Holdings Limited is 8377[173] - The company is audited by Asian Alliance (HK) CPA Limited[171] - The principal bank for the company is The Hongkong and Shanghai Banking Corporation Limited[171] - The Hong Kong branch share registrar and transfer office is Tricor Investor Services Limited[172] - The principal share registrar and transfer office is Ocorian Trust (Cayman) Limited[172] - The company's website is www.shenyouholdings.com[173]
维港育马(08377) - 2021 Q1 - 季度财报