Financial Performance - For the three months ended June 30, 2019, the group recorded revenue of approximately HKD 82.5 million, an increase of about HKD 2.4 million or 3.0% compared to the same period in 2018 [4]. - The net profit attributable to the owners of the company for the same period was approximately HKD 3.1 million, a decrease of about HKD 3.3 million from HKD 6.4 million in the prior year, primarily due to expenses related to the proposed transfer of listing and increased sales and distribution costs [5]. - Gross profit for the three months ended June 30, 2019, was HKD 10.2 million, slightly down from HKD 10.2 million in the same period of 2018 [9]. - The company reported a basic earnings per share of HKD 1.10 for the three months ended June 30, 2019, down from HKD 2.29 in the same period of 2018 [9]. - The pre-tax profit for the three months ended June 30, 2019, was HKD 832,000, compared to HKD 0 for the same period in 2018 [68]. - The company reported a profit attributable to owners of approximately HKD 3.1 million for the three months ended June 30, 2019, down from HKD 6.4 million for the same period in 2018, representing a decrease of about 51.6% [78]. - Revenue increased by approximately 3.0% to HKD 82.5 million for the three months ended June 30, 2019, compared to HKD 80.1 million for the same period in 2018, driven by higher sales of certain products [80]. - The cost of goods sold rose by approximately 3.4% to HKD 72.3 million for the three months ended June 30, 2019, compared to HKD 69.9 million for the same period in 2018 [83]. - Gross profit remained stable at approximately HKD 10.2 million for both periods, but the gross margin decreased from 12.7% to 12.4% [84]. - Selling and distribution costs increased by approximately 49.0% to HKD 1.8 million for the three months ended June 30, 2019, compared to HKD 1.2 million for the same period in 2018 [85]. - Tax expenses decreased by approximately 29.5% to HKD 944,000 for the three months ended June 30, 2019, compared to HKD 1,339,000 for the same period in 2018 [89]. Assets and Liabilities - The total assets less current liabilities as of June 30, 2019, amounted to HKD 131.36 million, up from HKD 128.30 million as of March 31, 2019 [15]. - Current assets as of June 30, 2019, totaled HKD 95.67 million, compared to HKD 91.32 million as of March 31, 2019 [12]. - The total equity of the company increased to HKD 131.28 million as of June 30, 2019, from HKD 128.19 million as of March 31, 2019 [15]. - The total bank borrowings of the group as of June 30, 2019, were approximately HKD 14.2 million, down from HKD 16.2 million as of March 31, 2019, indicating a reduction of about 12.35% [95]. - The group's debt-to-equity ratio was approximately 10.9% as of June 30, 2019, compared to 12.8% as of March 31, 2019, reflecting a decrease of 1.9 percentage points [95]. Cash Flow - The net cash used in operating activities for the period ended June 30, 2019, was (4,935) thousand HKD, compared to (7,494) thousand HKD for the same period in 2018 [27]. - The net cash generated from financing activities was 10,000 thousand HKD, while cash used for repaying bank loans was (12,415) thousand HKD [27]. - The cash and cash equivalents at the end of the period decreased by 2,562 thousand HKD, compared to an increase of 37,778 thousand HKD in the previous year [27]. - The cash and cash equivalents at the beginning of the period were 20,853 thousand HKD, and at the end of the period were 13,359 thousand HKD [27]. - Cash and cash equivalents decreased to HKD 13.71 million from HKD 20.85 million as of March 31, 2019 [12]. Corporate Governance and Compliance - The board of directors does not recommend the payment of a dividend for the three months ended June 30, 2019 [6]. - The board of directors did not recommend the distribution of any dividends for the three months ended June 30, 2019, consistent with the previous year [97]. - The company has maintained compliance with the GEM Listing Rules regarding securities transactions by directors since the date of listing [111]. - The company has adhered to the corporate governance code since its listing on October 19, 2017 [116]. - The audit committee was established on September 21, 2017, and consists of three independent non-executive directors [117]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended June 30, 2019, and found them compliant with applicable accounting standards [119]. Business Operations - The company is classified as an investment holding company, primarily engaged in the import and wholesale of frozen seafood products [28]. - The company’s operating activities are focused on the import and wholesale of frozen seafood products, classified as a single operating segment [61]. - Revenue from major products included crab and roe at HKD 7,716,000, fish at HKD 12,140,000, and squid at HKD 4,044,000, contributing to a total of HKD 82,472,000 [64]. - Revenue by customer type showed seafood resellers generated HKD 76,944,000, while frozen seafood catering service providers contributed HKD 5,528,000, totaling HKD 82,472,000 [65]. - Revenue by region indicated that Hong Kong accounted for HKD 65,852,000, China for HKD 9,580,000, and Macau for HKD 6,587,000, totaling HKD 82,472,000 [66]. - The company aims to strengthen its market position in the frozen seafood import and wholesale industry through new supplier arrangements and expanding its product portfolio [79]. - The management maintains a cautiously optimistic outlook for the business despite the current economic downturn in Hong Kong [78]. Accounting Standards - The company adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2019, which did not have a significant impact on the financial performance and position [33]. - The financial data for the quarter ended June 30, 2019, was prepared in accordance with Hong Kong Accounting Standards [30]. - The company has applied the new Hong Kong Financial Reporting Standard 16 on leases, which replaces the previous standard and affects the accounting policies [36]. - The initial measurement of lease liabilities is based on the present value of unpaid lease payments at the lease commencement date [47]. - The company will recognize right-of-use assets at the commencement date, measured at cost less accumulated depreciation and impairment losses [41]. - The company applied HKFRS 16 from April 1, 2019, with no significant impact on the financial statements for the three months ended June 30, 2019 [60]. - The company reported no adjustments to the financial data for leases as a lessor under HKFRS 16 during the transition [59]. Shareholder Information - The total number of shares held by major shareholders, including Chen Jianfeng and Xie Chunxia, is 210,000,000 shares, representing 75% of the total shareholding [99]. - No share options were granted, exercised, expired, or lapsed under the share option scheme during the three months ended June 30, 2019 [112]. - There were no buybacks, sales, or redemptions of the company's listed securities during the three months ended June 30, 2019 [109]. - The company has not engaged in any business that constitutes or may constitute competition with the group during the three months ended June 30, 2019 [110]. - No significant investments, acquisitions, or disposals related to subsidiaries or associates occurred during the three months ended June 30, 2019 [96].
大洋环球控股(08476) - 2020 Q1 - 季度财报