Financial Performance - The group's revenue increased by approximately HKD 15.5 million or 26.9%, from approximately HKD 57.5 million for the three months ended March 31, 2021, to approximately HKD 73.0 million for the three months ended March 31, 2022[14]. - For the three months ended March 31, 2022, the company reported revenue of HKD 72,995,000, an increase of 26.8% compared to HKD 57,542,000 for the same period in 2021[23]. - The company recorded a profit of HKD 1,827,000 for the three months ended March 31, 2022, a decrease of 58.8% from HKD 4,429,000 in the same period of 2021[23]. - The company reported a profit before tax of HKD 1,827,000, down 58.8% from HKD 4,429,000 in the same period last year[38]. Cost and Profitability - The sales cost rose by approximately HKD 17.1 million or 37.1%, from approximately HKD 46.1 million for the three months ended March 31, 2021, to approximately HKD 63.2 million for the three months ended March 31, 2022[14]. - The gross profit decreased by approximately HKD 1.7 million or 14.8%, from approximately HKD 11.5 million for the three months ended March 31, 2021, to approximately HKD 9.8 million for the three months ended March 31, 2022[14]. - The gross profit margin fell from 19.9% for the three months ended March 31, 2021, to 13.4% for the three months ended March 31, 2022[14]. - The gross profit margin for the period was impacted by a cost of sales amounting to HKD 57,292,000, compared to HKD 34,562,000 in the previous year[36]. Sales Composition - Transformer products accounted for approximately 51.4% of the group's sales for the three months ended March 31, 2022, compared to 46.5% for the same period in 2021[9]. - The switch power products represented approximately 0.8% of the group's sales for the three months ended March 31, 2022, down from 2.0% in the same period of 2021[9]. - Electronic components and other products accounted for approximately 47.8% of the group's sales for the three months ended March 31, 2022, compared to 51.3% for the same period in 2021[9]. - Transformer sales accounted for HKD 37,506,000, up 40.2% from HKD 26,779,000 in the previous year[32]. - The sales of electronic components increased to HKD 34,891,000, a rise of 18.1% from HKD 29,536,000 in 2021[32]. - Revenue from external customers in India surged to HKD 16,365,000, a significant increase of 58.5% compared to HKD 10,321,000 in the prior year[34]. Expenses and Financing - Administrative expenses remained stable at approximately HKD 5,052,000 for the three months ended March 31, 2022, compared to HKD 5,128,000 in the previous year[20]. - Financing costs increased by 45.7% to HKD 625,000 for the three months ended March 31, 2022, from HKD 429,000 in the same period of 2021, primarily due to an increase in short-term loans[20]. - Total employee costs, including directors' remuneration, increased to HKD 4,514,000 from HKD 3,405,000, reflecting a rise of 32.5%[36]. Corporate Governance and Compliance - The company has complied with the corporate governance code during the reporting period[59]. - The audit committee reviewed the unaudited consolidated financial results for the three months ended March 31, 2022, with no objections to the accounting treatments adopted by the company[55]. - The company has adopted a code of conduct for directors regarding securities trading, which has been fully complied with during the reporting period[52]. - There were no changes in the board of directors or senior management since the date of the company's 2021 annual report[45]. Market Outlook and Strategy - The company anticipates ongoing economic uncertainty due to the COVID-19 pandemic and its variants, affecting demand patterns and supply chain stability[18]. - Management is optimistic about market demand for clean energy equipment, particularly electronic components, driven by global policies favoring sustainability[21]. - The company has implemented new hedging policies regarding copper options to better control material costs[18]. - Management plans to maintain sufficient buffer inventory to address uncertainties in demand and supply chains[18]. - The company is confident in its ability to seize post-pandemic business opportunities for long-term sustainable growth[21]. Shareholder Information - As of March 31, 2022, the major shareholder, Mr. Zhong Zhiheng, holds 126,000,000 shares, representing 63.0% of the company's equity[41]. - The company did not declare an interim dividend for the three months ended March 31, 2022, consistent with the previous year[37]. - The company reported no dividends for the three months ended March 31, 2022, consistent with the previous year[47]. Risk Management - The risk management committee was established to oversee risk governance structures and hedging policies, including copper futures purchasing activities[57]. - The company has been closely monitoring the COVID-19 situation and believes it has not had a significant impact on its business operations and management[51].
侨洋国际控股(08070) - 2022 Q1 - 季度财报