Financial Performance - Revenue for the three months ended March 31, 2023, was HK$30,585,000, a decrease of 6.1% compared to HK$32,567,000 for the same period in 2022[15]. - Gross profit for the reporting period was HK$13,019,000, down 8.5% from HK$14,238,000 in the previous year[16]. - Operating profit decreased significantly to HK$4,253,000, a decline of 61.0% from HK$10,912,000 in Q1 2022[16]. - Profit for the period was HK$3,138,000, representing a 65.8% decrease compared to HK$9,183,000 in the same quarter of 2022[16]. - Total comprehensive income for the period was HK$4,007,000, down 56.9% from HK$9,288,000 in Q1 2022[16]. - Basic and diluted earnings per share decreased to 0.78 HK cents, down from 2.30 HK cents in the previous year[16]. - The profit for the period ended March 31, 2023, is HK$3,138,000, compared to HK$9,183,000 for the same period in the previous year, indicating a decrease of approximately 65.8%[20]. - Profit attributable to equity holders of the Company was approximately HK$3.1 million, down from approximately HK$9.2 million for Q1 2022[118]. - Excluding non-recurring listing expenses, profit attributable to shareholders would have been approximately HK$8.0 million for the Reporting Period[118]. Expenses and Costs - Administrative expenses increased to HK$8,170,000, a rise of 189.5% compared to HK$2,829,000 in Q1 2022[16]. - The Group's listing-related expenses amounted to HK$4,944,000 in Q1 2023, which were not present in the same period of the previous year, impacting overall expenses significantly[65]. - Administrative expenses increased by approximately 192.9% or HK$5.4 million to approximately HK$8.2 million, primarily due to increased listing expenses[116]. - The Group's costs of sales decreased by approximately 3.8% or HK$0.7 million to HK$17.6 million due to a different product mix[114]. - Sales cost decreased by approximately 3.8% from HKD 18.3 million in Q1 2022 to HKD 17.6 million in the reporting period, attributed to reduced revenue and the need to produce different product combinations[119]. Revenue Breakdown - Revenue from slewing rings increased significantly, with ODM sales rising by 78.7% to HK$14.5 million, while OEM sales decreased by 25.5% to HK$0.1 million[95]. - The Group's sourcing of machineries revenue decreased by 33.9% to HK$5.0 million, compared to HK$7.6 million in Q1 2022[95]. - Revenue from sales of machineries decreased by approximately 33.9% or HK$2.6 million to HK$5.0 million due to reduced demand from customers[107]. - Revenue from sales of mechanical parts and components decreased by approximately 36.2% or HK$3.7 million to HK$6.6 million during the Reporting Period[108]. - Revenue from slewing rings increased by approximately HK$4.3 million to HK$19.0 million, representing a growth of 29.7% compared to Q1 2022[102]. - Sales of slewing rings accounted for approximately 62.0% of total revenue and approximately 82.0% of the Group's total gross profit[104]. - The overall quantity of slewing rings sold increased by 1,779 sets, representing a growth of 127.0% during the Reporting Period[104]. Equity and Reserves - As of March 31, 2023, the total equity attributable to owners of the Company is HK$147,572,000, an increase from HK$143,565,000 as of January 1, 2023, reflecting a growth of approximately 2.1%[20]. - The retained earnings as of March 31, 2023, stand at HK$115,117,000, up from HK$112,455,000 at the beginning of the year, marking an increase of about 2.4%[20]. - The statutory reserve increased from HK$4,727,000 to HK$5,203,000 during the period, reflecting a transfer of HK$476,000[20]. - The exchange reserve showed an improvement, moving from (HK$1,128,000) to (HK$259,000), indicating a positive currency translation impact[20]. Compliance and Governance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring transparency and compliance with local regulations[34]. - The Company has complied with all applicable Code Provisions of the Corporate Governance Code, except for Code Provision C.2.1, where the roles of chairman and chief executive are held by the same individual, Mr. YP Chan[158]. - An audit committee was established on October 21, 2019, comprising three independent non-executive Directors, to review accounting policies and practices[165]. - The Company has established written guidelines regulating the transactions of securities by senior management and employees likely to possess inside information[161]. - The Company aims to comply with the Corporate Governance Code to ensure up-to-date governance practices[159]. Future Outlook and Strategies - The Group aims to strengthen its position as a premium slewing ring manufacturer and increase profit margins by enhancing efficiency, product quality, and reducing production costs[124]. - Strategies to achieve objectives include acquiring and replacing machinery to enhance production capacity in Dongguan, expanding market share, increasing automation, and establishing an ERP system[125]. - The Group continues to develop new products and services, leveraging proceeds from its listing to enhance its manufacturing capabilities beyond slewing rings[84]. - The Group is in the process of assessing the impact of new accounting standards effective from January 1, 2024, but has not yet determined their potential significance on results[56]. Shareholder Information - As of March 31, 2023, Mr. YP Chan holds a long position of 300 million shares, representing 75% of the issued capital of the Company[129]. - The Company has conditionally adopted a Share Option Scheme to reward participants for their contributions and incentivize further contributions[133]. - C Centrum holds 300,000,000 shares, representing 75% of the company's issued capital[137]. - Ms. Leung Tak Yee, as the spouse of Mr. YP Chan, is deemed to have an interest in the same 300,000,000 shares, also representing 75%[137]. Banking Facilities - The company entered into a banking facility letter with HSBC for a trading facility of up to HK$16,000,000[150]. - The company also has a trading facility of up to HK$15,000,000 with DBS Bank[143]. - The Company is committed to ensuring Mr. YP Chan remains a director and the largest shareholder throughout the term of the banking facilities[149].
永联丰控股(08617) - 2023 Q1 - 季度财报