Financial Performance - The group's revenue for the three months ended June 30, 2021, was approximately HKD 26.3 million, an increase of about HKD 6.9 million or 35.9% compared to the same period in 2020[4] - Net profit for the same period was approximately HKD 3.9 million, representing an increase of about HKD 1.9 million or 93.5% year-on-year[4] - Total comprehensive income for the three months ended June 30, 2021, was approximately HKD 3.9 million, an increase of about HKD 2.0 million or 97.7% compared to the previous year[4] - Basic and diluted earnings per share for the period were HKD 0.24, compared to HKD 0.13 for the same period in 2020[15] - The group reported a gross profit of HKD 17.7 million for the three months ended June 30, 2021, compared to HKD 13.9 million in the same period of 2020[9] - The group's gross profit rose from approximately 13.9 million HKD to about 17.7 million HKD, an increase of approximately 27.4%[37] - The group's net profit increased by approximately 93.5%, rising from about 2.0 million HKD to approximately 3.9 million HKD[44] - Basic earnings per share increased from 0.13 HKD in 2020 to 0.24 HKD in 2021[32] Revenue Sources - Furniture and home decor sales contributed 20.6 million HKD in 2021, up from 16.0 million HKD in 2020, indicating a significant increase in sales[26] - Direct sales revenue from retail stores was approximately HKD 17.6 million, an increase of about HKD 1.8 million or 11.5% from HKD 15.7 million in the previous year[50] - Commission income increased by approximately HKD 3.8 million, primarily due to higher income from furniture agency services provided by Hong Kong Yixiang Family[55] - Food and beverage income from TREE Café rose to approximately HKD 1.0 million, up from HKD 0.4 million in the same period last year[54] - Distribution and licensing fee income was approximately HKD 0.8 million, accounting for about 3.0% of total revenue, compared to 4.1% in the previous year[53] Expenses and Costs - Administrative expenses increased to HKD 5.8 million from HKD 3.6 million year-on-year[9] - The group's tax expense increased from approximately 0.2 million HKD to about 0.6 million HKD[43] - The cost of sales increased from approximately 5.4 million HKD to about 8.6 million HKD, representing a growth of approximately 57.5%[36] - Selling and marketing expenses remained stable, increasing slightly from approximately 8.3 million HKD to about 8.4 million HKD[40] - Administrative expenses rose by approximately 60.5%, from about 3.6 million HKD to approximately 5.8 million HKD, mainly due to increased service fees and employee compensation[41] Equity and Financial Position - The group’s total equity as of June 30, 2021, was approximately HKD 74.3 million, an increase from HKD 57.5 million as of June 30, 2020[17] - The company raised a total of HKD 20.3 million from the share issuance, with actual usage until June 30, 2021, amounting to HKD 12.3 million, leaving an unutilized balance of HKD 8.0 million[61] - The company plans to allocate the unutilized net proceeds of HKD 8.0 million towards future payments related to the acquisition of Hong Kong Yishang Family, which was completed on December 31, 2018[61] - The expected payment for the acquisition is approximately HKD 17.3 million, anticipated to be made within one month from the audited accounts date ending December 31, 2020, subject to further board approval[61] Corporate Governance and Shareholder Information - The company adheres to good corporate governance practices as per the GEM Listing Rules and has complied with applicable code provisions since its listing[77] - The company has a significant shareholder, Yu Ding, holding 57.76% of the shares, with Mr. Tang being the sole owner of Yu Ding[66][71] - Mary Kathleen Babington holds 3.75% of the shares through Rothley Investment Limited, which she fully owns[67] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the three months ending June 30, 2021[75] - The board confirmed that there are no direct or indirect competitive businesses held by controlling shareholders or their close associates during the three months ending June 30, 2021[74] Future Outlook and Strategic Initiatives - The company plans to continue focusing on its two TREE retail stores and e-commerce platform while seeking new opportunities for revenue enhancement[58] - The company is actively looking for new partners for distribution in China after receiving notice that existing agreements will not be renewed[53] - The outlook for the upcoming fiscal year remains challenging due to competitive retail conditions and weak consumer confidence in Hong Kong[58] Other Information - The company has planted 2,250 trees through its partnership with Trees4Trees as part of its corporate social responsibility initiatives[57] - The company has utilized HKD 6.5 million for expanding its sales network, with HKD 2.1 million spent on enhancing brand image and awareness[61] - The company has allocated HKD 1.9 million to improve operational efficiency and HKD 1.8 million for design and consulting services[61] - The company did not recommend the payment of an interim dividend for the relevant period[81] - The company has not granted any share options under the share option scheme during the relevant period[83] - The audit committee has reviewed the unaudited consolidated financial statements for the relevant period[86]
中显智能齐家控股(08395) - 2022 Q1 - 季度财报