Financial Performance - Revenue for the three months ended March 31, 2022, was HK$32,567,000, representing a 131.3% increase from HK$14,079,000 in the same period of 2021[16]. - Gross profit for the same period was HK$14,238,000, up 214.5% from HK$4,520,000 year-on-year[17]. - Operating profit increased significantly to HK$10,912,000, compared to HK$1,716,000 in the prior year, marking a growth of 535.4%[17]. - Profit for the period reached HK$9,183,000, a substantial rise of 479.5% from HK$1,586,000 in the previous year[17]. - Total comprehensive income for the period was HK$9,288,000, compared to HK$1,323,000 in the same period last year, reflecting a growth of 600.5%[17]. - Basic and diluted earnings per share increased to 2.30 HK cents, up from 0.40 HK cents in the prior year[17]. - The company reported other income of HK$98,000, which is a 206.3% increase from HK$32,000 in the previous year[17]. - Profit attributable to equity holders for the Reporting Period was HK$9.2 million, significantly up from HK$1.6 million in Q1 2021[57]. - Total current income tax expense increased to HK$1.7 million from HK$0.1 million in Q1 2021[54]. Expenses and Costs - Selling and distribution expenses rose to HK$574,000, compared to HK$197,000 in the same period last year, indicating a 191.4% increase[17]. - Administrative expenses were HK$2,829,000, slightly higher than HK$2,549,000 in the previous year, showing an increase of 11%[17]. - Cost of inventories and consumables rose to HK$16.7 million, up from HK$7.8 million in the same period last year[51]. - Employee benefit expenses, including directors' emoluments, increased to HK$2.9 million from HK$2.3 million[51]. - The cost of sales increased by approximately 91.7% to HK$18.3 million, primarily due to higher direct labor costs and increased revenue[88]. - Administrative expenses increased by approximately 11.0% to HK$2.8 million, mainly due to higher staff costs[90]. Equity and Reserves - As of March 31, 2022, the company's total equity attributable to owners was HK$138,819,000, an increase from HK$102,397,000 as of March 31, 2021, reflecting a growth of 35.6%[20]. - The statutory reserve increased to HK$3,356,000 as of March 31, 2022, up from HK$2,813,000 a year earlier, indicating a rise of 19.3%[21]. - Retained earnings as of March 31, 2022, were HK$88,080,000, compared to HK$45,940,000 as of March 31, 2021, marking an increase of 91.5%[20]. - The exchange reserve increased to HK$3,872,000 as of March 31, 2022, from HK$2,133,000 a year earlier, reflecting a growth of 81.7%[21]. - The company maintained a share capital of HK$4,000,000 as of both January 1, 2022, and March 31, 2022, indicating stability in its capital structure[21]. Corporate Governance - The company confirmed that the information in the report is accurate and complete in all material respects, with no misleading statements[4]. - The Company has complied with all applicable Code Provisions of the Corporate Governance Code, except for the separation of the roles of chairman and chief executive[126]. - A corporate governance committee was established on 31 March 2022 to review the Company's governance policies[127]. - The Group has adopted a code regulating the securities transactions of Directors and executive officers, ensuring compliance throughout the Reporting Period[128]. - The audit committee was established on October 21, 2019, in compliance with GEM Listing Rules and consists of three independent non-executive Directors[133]. - The audit committee has reviewed the accounting policies and practices adopted by the Group and discussed financial reporting matters with management[134]. - The unaudited condensed consolidated financial statements for the reporting period were discussed and reviewed by the audit committee[134]. Business Operations - The company is engaged in the manufacturing and trading of slewing rings and machinery products, with a focus on expanding its market presence[31]. - The company operates primarily in the manufacturing and trading of slewing rings and machinery products[36]. - All revenue is derived from contracts with customers and recognized at a point in time[48]. - The company has identified only one operating segment for reporting purposes, which is the manufacturing and sourcing of slewing rings and machinery products[47]. - The Group has positioned itself as one of the fastest-growing "one-stop service" providers in the slewing rings market[69]. - The Group continues to develop new products and expand its service offerings beyond slewing rings[68]. - The company aims to enhance production capacity by acquiring and replacing machinery and equipment at its Dongguan facilities[100]. - The company plans to increase market share and strengthen marketing efforts[100]. - The company is focused on improving automation levels and establishing an enterprise resource planning (ERP) system[100]. - The finance department will be expanded to support business growth[100]. - Employee training will be enhanced to improve overall productivity and efficiency[100]. - The Group's business resilience was highlighted during the COVID-19 pandemic, with a surge in demand for sourcing mechanical parts[69]. Shareholding and Dividends - The company did not declare any dividends during the reported period, maintaining its focus on reinvestment[21]. - No dividends were recommended for the Reporting Period[59]. - The Board does not recommend the payment of any dividend for the Reporting Period, consistent with Q1 2021[124]. - As of March 31, 2022, Mr. Chan Yuk Pan holds a long position of 300,000,000 shares, representing 75% of the issued capital[103]. - C Centrum holds 300,000,000 shares, representing 75% of the issued capital of the Company[111]. - Ms. Leung Tak Yee, as the spouse of Mr. YP Chan, is deemed to be interested in the same 300,000,000 shares, also representing 75%[111]. - The Company has not purchased, sold, or redeemed any of its listed securities during the Reporting Period[113]. - Mr. YP Chan holds a beneficial interest of 75% in both the Company and its indirect wholly-owned subsidiary, Best Linking Limited[117]. - No share options have been granted under the Share Option Scheme since its adoption[107]. Compliance and Standards - The company has not early adopted new and amended standards that are effective for financial years beginning on or after January 1, 2022[41]. - The company is currently assessing the impact of new standards and amendments on its results and financial position[45]. - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[38]. - The financial statements are presented in Hong Kong dollars (HKD) and are unaudited[36].
永联丰控股(08617) - 2022 Q1 - 季度财报