Financial Performance - Revenue for the three months ended June 30, 2021, was HKD 60,778,000, a slight increase of 0.76% compared to HKD 60,320,000 in the same period of 2020[5] - Gross profit for the same period was HKD 15,184,000, representing a significant increase of 36.5% from HKD 11,117,000 in 2020[5] - The net profit attributable to owners of the company for the period was HKD 2,240,000, compared to HKD 2,556,000 in the previous year, reflecting a decrease of 12.4%[5] - Basic and diluted earnings per share for the period were HKD 0.56, down from HKD 0.63 in the same period last year[5] - The company reported a total comprehensive income of HKD 2,014,000 for the period, down from HKD 2,556,000 in 2020[5] - Other income for the period was HKD 36,000, a decrease of 93.8% compared to HKD 585,000 in the previous year[5] - The group reported revenue of HKD 60,778,000 for wine products, an increase from HKD 55,207,000 in the same period last year, representing a growth of approximately 10.4%[41] - Other alcoholic beverages generated revenue of HKD 60,320,000, compared to HKD 5,096,000 in the previous year, indicating a significant increase[41] - The group’s pre-tax profit was HKD 862,000, compared to HKD 421,000 in the previous year, indicating an increase of about 104.5%[49] - Revenue for the group remained relatively stable at approximately HKD 60.8 million for the three months ended June 30, 2021, compared to approximately HKD 60.3 million for the same period in 2020[56] Expenses and Costs - Administrative expenses increased to HKD 6,665,000 from HKD 3,433,000, marking an increase of 94.5% year-on-year[5] - The cost of goods sold was HKD 45,594,000, a decrease from HKD 49,203,000 in the previous year, reflecting a reduction of approximately 7.3%[49] - Total employee costs increased to HKD 3,744,000 from HKD 3,155,000, marking an increase of about 18.6%[49] - The cost of sales decreased by approximately 7.3% from about HKD 49.2 million for the three months ended June 30, 2020, to about HKD 45.6 million for the current period[57] - Gross profit increased by approximately 36.6% from about HKD 11.1 million for the three months ended June 30, 2020, to about HKD 15.2 million for the current period, with gross margin rising from approximately 18.4% to 25.0%[59] Financing and Shareholder Information - Financing costs decreased significantly to HKD 594,000 from HKD 1,753,000, a reduction of 66.1%[5] - Financing costs decreased to HKD 594,000 from HKD 2,422,000, showing a reduction of approximately 75.5%[47] - The company has established a bank financing agreement with Hang Seng Bank for a maximum financing amount of HKD 50,000,000, HKD 30,000,000, and HKD 100,000 for various credit facilities[85] - The company has a total of 400,000,000 shares issued as of June 30, 2021, with major shareholders holding 70% of the equity[76] - Wang Zilu holds 280,000,000 shares, representing a 70% ownership stake in the company[79] - The company is committed to maintaining at least 50% beneficial ownership by its major shareholders as per financing agreements[85] Corporate Governance and Compliance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring high-level corporate governance and shareholder interest protection[98] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards and GEM Listing Rules[99] - The company has confirmed compliance with a non-competition agreement established on December 18, 2017, involving major shareholders[95] - All directors have adhered to the securities trading code of conduct during the reporting period[96] - The company experienced delays in publishing its annual results announcement and annual report for the year ended March 31, 2021, which have since been remedied[98] - The audited annual results announcement and annual report were published on July 30, 2021, and August 1, 2021, respectively[98] - The company emphasizes that the delay in publishing the annual results was an unfortunate and isolated incident[98] Business Operations and Strategy - The company continues to focus on expanding its wholesale and retail operations in the wine and alcoholic beverage market[28] - The financial report indicates that the company is committed to maintaining operational efficiency despite rising administrative costs[28] - The group did not have any individual customer contributing over 10% of total revenue during the reporting period[43] - The company is actively seeking to acquire suitable properties for its own warehouses to increase product storage capacity and has successfully implemented an e-commerce platform and developed an online auction platform to enhance sales of high-end wines[72] - The company has expanded its business presence by establishing an office in Shanghai, China, to promote its products through various marketing and sales activities[72] Stock Options and Securities - The company has a stock option plan adopted on December 18, 2017, which complies with GEM listing rules[90] - No stock options have been granted, exercised, canceled, or lapsed since the adoption of the stock option plan[91] - The company and its subsidiaries did not purchase, sell, or redeem any listed securities during the reporting period[93]
威扬酒业控股(08509) - 2022 Q1 - 季度财报