Financial Performance - Revenue for the three months ended June 30, 2021, was HK$13,432,000, representing a 29% increase from HK$10,421,000 in the same period of 2020[13] - Gross profit for the same period was HK$5,643,000, compared to HK$5,156,000 in 2020, indicating a gross profit margin improvement[13] - Loss from operations was HK$1,737,000, a significant increase from a loss of HK$82,000 in the previous year[13] - Loss for the period was HK$1,994,000, compared to a loss of HK$363,000 in the corresponding period of 2020[13] - Basic and diluted loss per share was HK$0.25, compared to HK$0.05 in the same period last year[13] - Total comprehensive income for the period attributable to the owners of the Company was a loss of HK$1,994,000, compared to a loss of HK$363,000 in 2020[25] - The Group's loss for the period was HK$1,994,000, compared to a loss of HK$363,000 in 2020[47] - The Group incurred a net loss of approximately HK$2.0 million for the three months ended June 30, 2021, compared to a net loss of approximately HK$0.4 million in the same period of 2020[62][64] Revenue Breakdown - Sales of biometrics identification devices and security products accounted for HK$9,096,000 and HK$4,336,000 respectively in Q1 2021, compared to HK$6,769,000 and HK$3,652,000 in Q1 2020, indicating growth in both segments[25] - Revenue recognized at a point in time was HK$10,135,000 for the three months ended June 30, 2021, up from HK$7,378,000 in the prior year, reflecting a 37% increase[25] - Revenue recognized over time was HK$3,297,000 for the same period, slightly increasing from HK$3,043,000 in 2020[25] - The increase in revenue was mainly due to a HK$2.3 million (or 34.3%) increase in sales of biometrics identification devices and accessories compared to the corresponding period in 2020[54] - Revenue from auxiliary and other services increased by approximately HK$0.7 million (or 18.7%) compared to the same period in 2020[54] Expenses and Costs - Other income decreased to HK$3, down from HK$572, indicating a decline in additional revenue sources[13] - Selling and distribution costs were HK$1,083,000, up from HK$830,000, reflecting increased marketing efforts[13] - Administrative and other operating expenses rose to HK$6,300,000 from HK$4,880,000, highlighting increased operational costs[13] - The cost of inventories sold was HK$6,016,000 for the three months ended June 30, 2021[40] - Cost of sales increased by approximately 20.5% to approximately HK$4.7 million for the three months ended June 30, 2021, leading to a gross profit margin decline from approximately 49.5% to 42.0%[59][60] - Administrative expenses increased by approximately HK$1.4 million to approximately HK$6.3 million for the three months ended June 30, 2021, primarily due to higher staff costs and legal expenses[61] Shareholder Information - As of June 30, 2021, Delighting View holds 206,000,000 shares, representing 25.75% of the company's issued share capital[82] - Kailong Asia Limited and Soleil Capital Limited each hold 190,000,000 shares, accounting for 23.75% of the company's issued share capital[82] - The weighted average number of ordinary shares for calculating basic loss per share was 800,000,000 for both 2021 and 2020[48] Corporate Governance - The Company has established an Audit Committee comprising three independent non-executive Directors to supervise the financial reporting process and internal control systems[107] - The Company has adopted and complied with the Corporate Governance Code from the date of Listing up to the date of this report, with some deviations noted[96] - The Board believes that having Mr. Tony Yuen serve as both Chairman and CEO is in the best interest of the Group for effective management and business development[104] - The Company has a written terms of reference for the Audit Committee in compliance with GEM Listing Rules[107] - The financial reporting process and internal control systems are under the supervision of the Audit Committee[107] Future Plans - The Group plans to enhance marketing capabilities and expand its product portfolio, focusing on software development to increase market share in Hong Kong and Macau[71][72] - Future plans include launching affordable locally manufactured fingerprint identification devices and establishing a new software development center in the PRC[71][72] - The Group aims to diversify its business into artificial intelligence technology solutions and catering management services due to the recent COVID-19 situation in Hong Kong[71][73] - The public listing status on GEM is expected to facilitate access to capital markets for corporate finance and enhance the Group's competitiveness[71][72] Compliance and Audit - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable regulations[19] - The Audit Committee is of the opinion that adequate disclosures have been made in the financial statements[110] - The Company has confirmed compliance with the Model Code and Required Standard of Dealings from the date of listing to the report date[93] - The unaudited condensed consolidated financial statements for the three months ended June 30, 2021, have been reviewed by the Audit Committee, which believes the financial information complies with applicable accounting standards and GEM Listing Rules[108]
懒猪科技(08379) - 2022 Q1 - 季度财报