Financial Performance - For the three months ended March 31, 2021, the group's revenue was approximately HKD 32.9 million, an increase of about 30.2% compared to the same period last year[10]. - The gross profit for the same period was approximately HKD 11.6 million, representing an increase of about 38.2%, with the gross margin rising from approximately 33.3% to about 35.4%[19]. - Profit attributable to equity holders for the period was approximately HKD 1.05 million, an increase of about 9.5% from approximately HKD 0.96 million in the previous period[21]. - The group reported a gross profit of HKD 11.649 million for the three months ended March 31, 2021, compared to HKD 8.429 million for the same period in 2020[41]. - Operating profit for the period was HKD 1.568 million, an increase from HKD 0.874 million in the previous year[41]. - The net profit for the period was HKD 1.048 million, compared to HKD 0.957 million for the same period in 2020[43]. - Other income for the three months ended March 31, 2021, was HKD 102,000, compared to HKD 1,825,000 in the same period of 2020[55]. - The company reported a net loss of HKD 104,000 from other gains/losses for the three months ended March 31, 2021, compared to a gain of HKD 156,000 in the previous year[55]. - The effective tax rate for the group remains at 16.5% for Hong Kong profits tax and 25% for mainland China profits tax, with a preferential rate of 15% for one subsidiary[58]. Revenue Breakdown - The sales of beauty products accounted for 94.8% of total revenue, amounting to HKD 31.2 million, while cosmetic bags contributed 5.2% with HKD 1.7 million[18]. - Sales of beauty products reached HKD 31,202,000, up 39% from HKD 22,480,000 in the previous year[53]. - Sales of cosmetic bags decreased to HKD 1,721,000, down 39% from HKD 2,813,000 in the same period of 2020[53]. Market and Strategy - The strong sales demand for hand sanitizers and personal care products from U.S. and European customers during the pandemic significantly contributed to revenue growth[18]. - The company plans to continue monitoring changing market preferences and evaluate different sales and marketing strategies to introduce new products to meet customer demands[15]. - The management team is actively exploring new sales channels in the local Hong Kong market to enhance overall sales volume[18]. - The company remains confident in overcoming challenges and maintaining sustainable business performance for shareholders[15]. - The global business environment continues to be challenging due to the ongoing pandemic, but there is hope for gradual economic recovery with widespread vaccination efforts[15]. Dividends and Shareholder Information - The company does not recommend any interim dividend for the period, consistent with the previous period[10]. - No interim dividend was proposed for the three months ended March 31, 2021, and March 31, 2020[59]. - Basic earnings per share for the three months ended March 31, 2021, were consistent with diluted earnings per share due to no potential dilutive ordinary shares being in issue[60]. - The company’s major shareholders, including Mr. Ko and Ms. Chan, hold 300,000,000 shares each, representing 75% of the voting shares[75]. - Classic Charm Investments Limited holds 300,000,000 shares, representing 75% of the voting rights in the company[80]. - The beneficial ownership of the 300,000,000 shares is distributed among Mr. Ko (50.8%), Ms. Zhu (39.7%), and Ms. Chan (9.5%)[80]. - As of March 31, 2021, the company is not aware of any other individuals holding interests in the company's shares that require disclosure under the Securities and Futures Ordinance[82]. Corporate Governance and Compliance - The company has complied with all provisions of the corporate governance code as per GEM Listing Rules Appendix 15 during the reporting period[86]. - The Audit Committee, consisting of three independent non-executive directors, oversees financial reporting and risk management[91]. - The Audit Committee reviewed the unaudited financial information for the first quarter ending March 31, 2021[93]. - There were no significant changes to the company's memorandum and articles of association during the reporting period[94]. - No major events related to the company's business or financial performance occurred after the reporting period up to the report date[95]. Cash and Expenses - As of March 31, 2021, the group had cash and cash equivalents of approximately HKD 87.6 million, a decrease from approximately HKD 119.0 million as of December 31, 2020[23]. - The current ratio as of March 31, 2021, was approximately 5.0 times, up from about 3.5 times as of December 31, 2020[23]. - Administrative expenses decreased by approximately HKD 0.3 million or about 4.2% to approximately HKD 7.8 million from approximately HKD 8.1 million in the previous period[24]. - Sales and distribution expenses increased by approximately HKD 0.9 million or about 63.4% to approximately HKD 2.3 million from approximately HKD 1.4 million in the previous period[25]. Stock Options and Share Issuance - The stock option plan allows the company to grant options to eligible individuals, with a total of 40,000,000 shares available for issuance, representing 10% of the issued share capital[65]. - As of March 31, 2021, the company has issued 400,000,000 shares, with the stock options plan potentially increasing the total issued shares to 440,000,000 if fully exercised[65]. - The exercise price of the stock options will not be less than the highest of the closing price on the offer date, the average closing price over the five trading days prior to the offer date, or the nominal value of the shares[69]. - No stock options were unexercised, granted, cancelled, exercised, or lapsed as of March 31, 2021[70]. - The stock option plan is valid for 10 years from the adoption date, expiring on September 28, 2027[68]. - If the total number of shares issued or to be issued from stock options exceeds 1% of the issued share capital within any 12-month period, shareholder approval is required[65]. - The stock option plan requires that any grants to major shareholders or independent non-executive directors that exceed certain thresholds must be approved by shareholders[66]. - The company has not entered into any arrangements for its directors or senior management to acquire shares or debentures of the company or any other corporation during the three months ended March 31, 2021[73]. - The company has no record of any interests or short positions in shares or debentures held by directors or senior management as of March 31, 2021[77].
德宝集团控股(08436) - 2021 Q1 - 季度财报