Financial Performance - The group's revenue decreased from approximately HKD 6,329,000 for the three months ended March 31, 2020, to approximately HKD 4,430,000 for the three months ended March 31, 2021, a reduction of about 30%[6]. - Gross profit for the three months ended March 31, 2021, was approximately HKD 421,000, with a gross margin of approximately 9.50%, compared to a gross profit of approximately HKD 1,019,000 and a gross margin of 16.10% for the same period in 2020[6]. - Loss attributable to equity shareholders decreased from approximately HKD 2,514,000 for the three months ended March 31, 2020, to approximately HKD 1,673,000 for the same period in 2021, a reduction of about 33%[6]. - The operating loss for the three months ended March 31, 2021, was approximately HKD 1,616,000, an improvement from an operating loss of HKD 2,379,000 for the same period in 2020[14]. - The basic and diluted loss per share for the three months ended March 31, 2021, was HKD 0.21, compared to HKD 0.31 for the same period in 2020[16]. - The total comprehensive loss attributable to equity shareholders for the three months ended March 31, 2021, was approximately HKD 1,668,000, compared to HKD 2,386,000 for the same period in 2020[16]. - The profit before tax for the three months ended March 31, 2021, was a loss of HKD 1,692,000, compared to a loss of HKD 2,603,000 in the same period of 2020, indicating an improvement[38]. - The total comprehensive loss for the three months ended March 31, 2021, was HKD 1,668,000, compared to a loss of HKD 2,386,000 in the same period of 2020[21]. Revenue Breakdown - The revenue from Hong Kong for the three months ended March 31, 2021, was HKD 4,074,000, down from HKD 5,927,000 in 2020, representing a decline of 31%[39]. - The revenue from Mainland China for the three months ended March 31, 2021, was HKD 356,000, compared to HKD 402,000 in 2020, showing a decrease of 11.5%[39]. - The group's revenue decreased from approximately HKD 6,329,000 to approximately HKD 4,430,000, a decline of about 30% due to reduced travel demand caused by the COVID-19 pandemic[62]. Cost Management - The company experienced a significant decrease in service costs from HKD 5,310,000 in 2020 to HKD 4,009,000 in 2021, reflecting a reduction of approximately 25%[14]. - Financing costs decreased from HKD 224,000 in 2020 to HKD 76,000 in 2021, a reduction of approximately 66%[14]. - Administrative expenses remained relatively stable at approximately HKD 3,130,000 for the three months ended March 31, 2021, compared to HKD 3,356,000 in the same period last year[69]. - The group incurred depreciation expenses of HKD 1,890,000 for the three months ended March 31, 2021, down from HKD 2,650,000 in 2020[38]. Other Income and Financial Position - Other income increased significantly to approximately HKD 1,018,000 for the three months ended March 31, 2021, compared to HKD 95,000 for the same period in 2020, primarily due to COVID-19 related rent concessions[6]. - The loss attributable to equity shareholders decreased from approximately HKD 2,514,000 to approximately HKD 1,673,000, a reduction of about 33% due to increased other income from COVID-19 related rent concessions[74]. - As of March 31, 2021, the group had no interest-bearing borrowings, indicating a stable financial position[80]. - The group maintained a cash and cash equivalents level deemed appropriate for operational funding and managing liquidity risks[80]. Business Strategy and Development - The company is actively monitoring the impact of COVID-19 on its business and has implemented contingency measures[50]. - The company plans to expand its self-service digital photo booth network by replicating its successful business model from Hong Kong to mainland China and other countries[53]. - The company is reassessing its existing projects, including the expansion of its self-service photo booth network and upgrading its IT infrastructure[57]. - The company aims to diversify its business model by allocating further funds and resources to upgrade its IT infrastructure[61]. - The company is seeking new locations with good business development potential for its self-service photo booth network[57]. - Business development in Guangdong Province and Hong Kong has faced delays due to the COVID-19 pandemic and changing government policies regarding identification photos[124]. - The company is continuously evaluating and modifying its existing plans to achieve sustainable business growth and long-term shareholder benefits[124]. Shareholder Information - The company did not recommend the declaration of any interim dividend for the three months ended March 31, 2021[6]. - The company did not declare any interim dividend for the three months ended March 31, 2021, and March 31, 2020[45]. - The company has not confirmed any withholding tax for declared dividends during the relevant period[45]. - As of March 31, 2021, Causeway Treasure holds 427,600,560 shares, representing approximately 53.45% of the company's total issued shares[101]. - The beneficial ownership of Causeway Treasure is divided among Chen Yongji and Chen Tianqi, each owning approximately 47.25%, and Ouyang Yinghe owning about 5.5%[101]. - Photo-Me International Plc. holds 109,972,500 shares, accounting for approximately 13.75% of the company's equity[108]. - The company’s major shareholders, the Chen family, hold approximately 53.45% of the issued share capital[116]. Compliance and Governance - The company adhered to all applicable corporate governance codes during the reporting period, ensuring shareholder interests were protected[92]. - The board consists of seven directors, including three independent non-executive directors, ensuring proper governance and protection of shareholder interests[113]. - The company has appointed Eight Financial Limited as a compliance advisor to provide guidance on GEM listing rules compliance[95]. - There were no undisclosed interests or short positions held by directors or senior management in the company or its associated entities as of March 31, 2021[105]. - The company maintains independence from any competitive business interests reported by its directors[113]. Capital Raising and Utilization - The company raised approximately HKD 62,000,000 from the sale of 200,000,000 shares at HKD 0.31 per share, with a net amount of about HKD 31,852,000 after expenses[120]. - As of March 31, 2021, the company has utilized approximately HKD 7,604,000 of the net proceeds, leaving HKD 24,248,000 unutilized[121]. - The company plans to expand its self-service photo identification camera network in Guangdong Province, with HKD 29,381,000 allocated for this purpose, of which HKD 6,652,000 has been used[121]. - All unutilized proceeds are currently deposited in a licensed bank in Hong Kong[125].
名仕快相(08483) - 2021 Q1 - 季度财报