Financial Performance - Revenue from external customers for IT product sales and distribution was HK$10.91 million, while repair and service support revenue was HK$2.49 million, totaling HK$13.40 million for the quarter[3] - Segment profit for IT product sales and distribution was HK$458,000, and repair and service support segment profit was HK$1.03 million, resulting in a total segment profit of HK$1.49 million[3] - Operating profit for the quarter was HK$727,000, and the share of net profit from an associate accounted for using the equity method was HK$439,000[3] - Profit before income tax was HK$1.17 million, with income tax expenses of HK$301,000, leading to a net profit for the period of HK$865,000[3] - Revenue for the three months ended 31 March 2023 was HK$13.403 million, a significant decrease from HK$179.427 million in the same period last year[26] - Gross profit for the period was HK$3.346 million, compared to HK$8.614 million in the previous year[26] - Earnings per share for the period were HK$3.69 cents, compared to HK$3.90 cents in the previous year[26] - Total revenue for the three months ended 31 March 2023 was HK$13.4 million, a significant decrease of HK$166.0 million compared to HK$179.4 million in the same period last year[34][41] - Revenue from sales and distribution of IT products dropped to HK$10.9 million in Q1 2023 from HK$177.6 million in Q1 2022[30] - Revenue from repairs and service support increased to HK$2.5 million in Q1 2023 from HK$1.8 million in Q1 2022[30] - Overall gross profit margin improved significantly from 4.8% in Q1 2022 to 25.0% in Q1 2023, driven by higher-margin repair and service support business[41] - The company recorded a profit attributable to owners of HK$0.9 million in Q1 2023, unchanged from Q1 2022[41] - Revenue from external customers for the three months ended 31 March 2023 was HK$179.427 million, with HK$177.632 million from IT product sales and distribution and HK$1.795 million from repairs and service support[48] - Segment profit for the three months ended 31 March 2023 was HK$3.904 million, with HK$3.465 million from IT product sales and distribution and HK$439,000 from repairs and service support[48] - Operating profit for the three months ended 31 March 2023 was HK$2.422 million, with a share of net profit of an associate accounted for using the equity method of HK$130,000[48] - Profit before income tax for the three months ended 31 March 2023 was HK$2.552 million, with income tax expenses of HK$1.638 million[48] - Profit for the period ended 31 March 2023 was HK$914,000[48] - Total comprehensive income for the period ended 31 March 2023 was HK$1.965 million, including exchange differences arising on translation of foreign operations of HK$1.100 million[53] - The Group recorded a net profit of approximately HK$0.9 million for both the three months ended 31 March 2023 and 2022[79] - Basic earnings per share attributable to ordinary equity holders was HK$3.69 cents for the three months ended 31 March 2023, compared to HK$3.90 cents in the same period in 2022[91] Revenue Breakdown by Region - Revenue from Japan increased to HK$6.6 million in Q1 2023 from HK$0.99 million in Q1 2022[35] - Revenue from the United States decreased sharply to HK$1.4 million in Q1 2023 from HK$104.3 million in Q1 2022[35] - Japan market contributed approximately 49.1% of the Group's revenue for the three months ended 31 March 2023, compared to 0.6% in the same period in 2022[70][72] - Hong Kong market contributed approximately 22.2% of the Group's revenue for the three months ended 31 March 2023, compared to 6.0% in the same period in 2022[70][72] - Australia market contributed approximately 10.6% of the Group's revenue for the three months ended 31 March 2023, compared to 1.0% in the same period in 2022[70][72] Costs and Expenses - Salaries, wages, and other benefits amounted to HK$707,000, and depreciation charges were HK$244,000 for the quarter[3] - Unallocated corporate expenses were HK$894,000, which includes various operational costs not directly tied to specific segments[3] - Cost of sales decreased to approximately HK$10.0 million for the three months ended 31 March 2023, compared to HK$170.8 million for the same period in 2022[73] - Gross profit decreased by approximately HK$5.3 million for the three months ended 31 March 2023, with overall gross margin increasing from 4.8% to 25.0%[74] - Depreciation of property, plant and equipment was HK$15,000 for the three months ended 31 March 2023, compared to HK$587,000 in the same period in 2022[63] - Depreciation of right-of-use assets was HK$506,000 for the three months ended 31 March 2023, compared to HK$293,000 in the same period in 2022[63] - Interest expenses on lease liabilities were HK$41,000 for the three months ended 31 March 2023, compared to HK$14,000 in the same period in 2022[63] - Net foreign exchange losses were HK$145,000 for the three months ended 31 March 2023, compared to HK$100,000 in the same period in 2022[63] - Income tax expenses were HK$301,000 for the three months ended 31 March 2023, compared to HK$1,638,000 in the same period in 2022[66] - Selling and distribution expenses were reduced by approximately 80.7% during the period, primarily due to adjustments in the business model to improve efficiency and save staff costs[79] - Administrative expenses decreased by approximately 31.9% to HK$3.1 million for the three months ended 31 March 2023[79] Corporate Governance and Compliance - The company's Audit Committee reviewed the unaudited condensed consolidated financial information for the quarter and provided advice and comments[16] - The company has adopted a code of conduct regarding securities transactions by Directors, ensuring compliance with GEM Listing Rules[12] - The company has complied with the Corporate Governance Code as set out in Part 2 of Appendix 15 to the GEM Listing Rules during the quarter[12] - No sales between segments were carried out during the three months ended 31 March 2023 and 2022[46] - Interest income from bank deposits, interest on lease liabilities, and corporate expenses are not allocated to segments as they are managed by the central treasury function[46] - The adoption of new and amended accounting standards effective from 1 January 2023 did not have a material impact on the Group's financial information for the three months ended 31 March 2023[54] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended 31 March 2023[89] - No arrangements were made during the three months ended 31 March 2023 for Directors to acquire benefits through shares or debentures[85] - No competing business interests were held by Directors or controlling shareholders during the three months ended 31 March 2023[89] Business Strategy and Future Plans - Segment profit to segment revenue ratio increased from approximately 2.0% to approximately 4.2% due to higher expected gross margins[24] - The Group's repair and service support segment is expected to grow steadily in the coming quarters[21] - The Shenzhen repair center commenced operation during the period, providing end-to-end repair services[21] - The Group adjusted its sales and distribution business model to focus on higher gross margin IT products, improving liquidity[24] - The Group aims to shorten the cash conversion cycle by improving inventory turnover days and mitigating inventory risk[21] - The Group allocated more resources to develop its repair and service support segment and explore investment opportunities in the "Circular Economy"[24] - The Group expects intense competition in the IT product distribution business and plans to adjust operations in response to technological advances and increased competition[78] - The Group aims to diversify its business portfolio by focusing on the repairs and service support segment, which currently contributes significantly to overall revenue and has a relatively high profit margin[78] - The Group plans to set up an additional repair center in Guangdong Province to expand services to cover more product types, including smart devices and related accessories[78] - The Group is exploring opportunities in the "Circular Economy" business segment, including after-sales services and recycling of 3C products to reproduce raw materials[78] Shareholder Information - Foxconn (Far East) Limited holds 11,853,524 shares, representing 50.58% of the company's issued share capital[84] - Hon Hai Precision Industry Co., Ltd. is deemed to have an interest in the shares held by Foxconn (Far East) Limited, also representing 50.58% of the issued share capital[89] Liquidity and Financial Position - As of 31 March 2023, the Group had net current assets of approximately HK$143.5 million and cash and cash equivalents of approximately HK$135.9 million[81] - The Group's gearing ratio decreased to approximately 6.4% as of 31 March 2023, compared to 51.5% as of 31 March 2022[81] Dividend Policy - No interim dividend was recommended for Q1 2023, consistent with Q1 2022[41]
讯智海(08051) - 2023 Q1 - 季度财报