Financial Performance - The Group's revenue for the three months ended June 30, 2022, amounted to approximately HK$19,061,000, representing an increase of approximately 244% compared to the same period in the previous financial year[10]. - The Group's gross profit for the same period was approximately HK$1,364,000, increasing by approximately HK$492,000 compared to the previous financial year[10]. - Loss attributable to owners of the Company for the three months ended June 30, 2022, amounted to approximately HK$7,603,000, compared to HK$6,429,000 for the same period in 2021[10]. - Total comprehensive loss for the period was approximately HK$10,903,000, compared to HK$8,399,000 for the same period in 2021[15]. - The loss before tax for the period was approximately HK$10,413,000, compared to HK$8,346,000 in the previous year[15]. - Total comprehensive loss for the period attributable to owners of the Company was HK$8,093,000, compared to HK$6,482,000 in the previous period, representing an increase of 24.9%[18]. - Loss per share for the period was HK$0.52, compared to HK$0.44 in the previous period, indicating a decline in performance[18]. - The Group reported a loss before tax of HK$10,413,000, reflecting the challenges faced during the period[32]. - The Group's financial performance reflects ongoing challenges, with a focus on cost management and potential market expansion strategies[35]. Revenue Breakdown - Revenue from external sales for the Gold and Jewellery Business was HK$17,935,000, while the Lending Business generated HK$647,000 and the Fintech Business contributed HK$479,000, totaling HK$19,061,000[32]. - The increase in revenue was mainly attributable to the growth in the Group's Jewellery Business and wholesale of golden jewellery products in the PRC during the review period[116][119]. - The revenue from the Gold and Jewellery Business increased by approximately HK$12,774,000, from approximately HK$5,161,000 for the three months ended June 30, 2021, to approximately HK$17,935,000 for the three months ended June 30, 2022[130]. - The increase in revenue was mainly due to the rise in wholesale of golden jewellery products in the PRC[131]. Expenses - Administrative expenses for the three months ended June 30, 2022, were approximately HK$11,421,000, compared to HK$9,094,000 in the previous year[15]. - Selling expenses for the same period were approximately HK$36,000, a decrease from HK$406,000 in the previous year[15]. - Unallocated expenses for the period amounted to HK$8,346,000, contributing to the overall loss before tax[32]. - Cost of sales increased from approximately HK$4,659,000 for the three months ended June 30, 2021, to approximately HK$17,697,000 for the three months ended June 30, 2022, aligning with the increase in sales[117][120]. - The overall gross profit margin decreased from approximately 15.8% for the three months ended June 30, 2021, to 7.2% for the three months ended June 30, 2022, due to the lower margin of the Jewellery Business[117][120]. Dividends and Shareholder Information - The Board does not recommend the payment of an interim dividend for the three months ended June 30, 2022[10]. - As of June 30, 2022, Mr. Zhang Chunhua holds 834,851,294 shares through a controlled corporation, representing 57.29% of the company's issued share capital[141]. - Mr. Zhang Chunhua also has a personal interest in 57,098,000 shares, accounting for 3.92% of the company's issued share capital[141]. - The total number of shares in issue as of June 30, 2022, was 1,457,238,414[143]. Taxation - No provision for Hong Kong profits tax was made as the Group did not generate any assessable profits arising in Hong Kong for the three months ended June 30, 2022[36]. - The tax rate for PRC subsidiaries is 25%, and no provision for PRC Enterprise Income Tax was made as the Group has no assessable profits arising in the PRC[36]. - The subsidiary established in Kazakhstan is subject to a corporate income tax rate of 20% on taxable income, with an exemption until January 1, 2066, for income from financial services provided in the Astana International Financial Centre[36]. Corporate Governance - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee to oversee specific aspects of its affairs[175]. - The Audit Committee, comprising three independent non-executive Directors, is responsible for reviewing the Group's financial reporting system and risk management procedures[177]. - The company has complied with all provisions of the Corporate Governance Code as per the GEM Listing Rules[176]. - The company has adopted a code of conduct regarding securities transactions by Directors, ensuring compliance with GEM Listing Rules[170]. Future Outlook and Strategy - Future outlook remains cautious, with management emphasizing the need for strategic adjustments in response to market conditions[35]. - The Group continues to evaluate opportunities for market expansion and potential acquisitions to enhance its competitive position[35]. - The Group plans to strengthen the development of its fintech business, increase user base, and improve service quality and performance[136]. - The Group will closely monitor market conditions and consider further expansion in the lending business[132]. - The company aims to reassess existing business opportunities to reallocate resources more effectively[138].
朗华国际集团(08026) - 2023 Q1 - 季度财报