Financial Performance - The group recorded revenue of approximately HKD 57,944,000 for the three months ended June 30, 2021, a decrease of 3.6% compared to HKD 61,032,000 for the same period in 2020[4] - The profit attributable to owners of the company for the same period was approximately HKD 192,000, down 84.7% from HKD 1,250,000 in the previous year[4] - Gross profit for the three months ended June 30, 2021, was HKD 14,349,000, representing a gross margin of 24.7%, compared to HKD 11,802,000 and a gross margin of 19.4% for the same period in 2020[6] - The company reported a pre-tax profit of HKD 409,000 for the quarter, significantly lower than HKD 1,433,000 in the prior year[6] - Basic earnings per share for the quarter were HKD 0.02, compared to HKD 0.11 for the same period last year, reflecting a decrease of 81.8%[6] - The pre-tax profit for the three months ended June 30, 2021, was HKD 192,000, down from HKD 1,250,000 in the same period last year[31] - Revenue for the three months ended June 30, 2021, decreased by approximately HKD 3,088,000 or about 5.1% to approximately HKD 57,944,000 compared to HKD 61,032,000 for the same period in 2020, primarily due to a sharp decline in sales of kitchen and hygiene products[35] - Sales of kitchen and hygiene products dropped by approximately HKD 14,695,000 to about HKD 4,167,000 for the three months ended June 30, 2021, compared to HKD 18,862,000 for the same period in 2020[35] - Gross profit increased by approximately 21.6% to about HKD 14,349,000 for the three months ended June 30, 2021, from approximately HKD 11,802,000 for the same period in 2020, despite a decrease in revenue[39] - Gross margin improved to 24.8% for the three months ended June 30, 2021, compared to 19.3% for the same period in 2020[39] Dividends and Equity - The board of directors did not recommend the payment of any dividend for the three months ended June 30, 2021, consistent with the previous year[4] - The group did not declare or recommend any dividends for the three months ended June 30, 2021[29] - Total equity as of June 30, 2021, was HKD 103,744,000, an increase from HKD 103,552,000 at the beginning of the period[8] Revenue Breakdown - Sales revenue from daily necessities and grain products was HKD 17,549,000, up from HKD 13,120,000 in 2020, representing a growth of approximately 33.5%[1] - The revenue from packaged foods was HKD 11,481,000, an increase from HKD 9,179,000 in the previous year, reflecting a growth of about 25.1%[1] - The group generated revenue of HKD 814,000 from restaurant operations, marking the commencement of its restaurant service business[33] Expenses and Costs - The total employee costs amounted to HKD 5,316,000, an increase from HKD 3,786,000 in 2020, indicating a rise of approximately 40.5%[27] - Selling and distribution expenses as a percentage of total revenue increased to approximately 11.5% for the three months ended June 30, 2021, from 8.5% for the same period in 2020[42] - Administrative expenses rose from approximately HKD 6,160,000 to about HKD 7,175,000, primarily due to increased employee costs and director remuneration[44] Cash and Debt Management - As of June 30, 2021, the group had cash and bank balances of approximately HKD 37,936,000, compared to HKD 38,438,000 as of March 31, 2021[50] - The debt-to-equity ratio was approximately 6.6% as of June 30, 2021, down from 7.8% as of March 31, 2021[52] Future Plans and Investments - The company plans to allocate approximately HKD 12,560,000 to upgrade the ERP system to enhance operational efficiency, with about HKD 4,447,000 already spent on consulting services and software and hardware acquisition[57] - Approximately HKD 5,540,000 is earmarked for sales and marketing activities to attract more customers and enhance loyalty, with around HKD 1,159,000 already utilized for advertising and local food exhibitions[58] - The company intends to open about 5 restaurants by December 31, 2022, with the first one already launched in Tsim Sha Tsui in April 2021, allocating approximately HKD 9,000,000 for startup and renovation costs[61] - As of the report date, approximately HKD 2,017,000 has been spent on the renovation and startup of the new restaurant in Tsim Sha Tsui[61] - The company has reallocated unutilized net proceeds of approximately HKD 3,278,000 for general working capital, excluding rental expenses for the Yau Tong property[57] - Approximately HKD 5,211,000 of net proceeds is designated for general working capital to support daily operations, with about HKD 621,000 already utilized[61] Corporate Governance and Compliance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[14] - The financial results for the quarter have not been audited by independent auditors but have been reviewed by the company's audit committee[16] - The company confirmed compliance with the GEM Listing Rules regarding securities trading by directors[71] - The company has adopted corporate governance practices in line with GEM Listing Rules to ensure transparency and protect shareholder interests[76] - The audit committee was established in accordance with GEM Listing Rules and consists of three independent non-executive directors[80] - The audit committee reviewed the unaudited consolidated results for the three months ended June 30, 2021, and confirmed compliance with applicable accounting standards and GEM Listing Rules[80] Market Outlook - The group anticipates that the economic recovery in Hong Kong will take time, closely monitoring market conditions for suitable opportunities[34] - The company is actively assessing and managing uncertainties arising from the COVID-19 pandemic while maintaining a reasonable optimism about its core business[61] Shareholder Information - As of June 30, 2021, the total number of issued shares was 1,162,000,000[67] - Mr. Huang Shaowen and Mr. Huang Shaohua each hold 602,800,000 shares, representing approximately 51.88% of the total shares[65] - The company has granted a total of 112,000,000 share options to employees at an exercise price of HKD 0.30 per share[70] - No share options were exercised, lapsed, or cancelled during the three months ended June 30, 2021[70] - There were no purchases, sales, or redemptions of the company's listed securities during the three months ended June 30, 2021[75] - No significant events affecting the group occurred after June 30, 2021, up to the date of the quarterly report[78] - The current executive directors include the chairman and CEO, with independent non-executive directors providing oversight[81]
亚洲富思(08413) - 2022 Q1 - 季度财报