Financial Performance - The group's revenue increased by approximately HKD 43.1 million or 59.1%, from about HKD 73.0 million for the three months ended March 31, 2022, to approximately HKD 116.1 million for the three months ended March 31, 2023[14]. - The sales cost rose by approximately HKD 36.2 million or 57.3%, from about HKD 63.2 million for the three months ended March 31, 2022, to approximately HKD 99.4 million for the three months ended March 31, 2023[14]. - The gross profit increased by approximately HKD 6.9 million or 70.7%, from about HKD 9.8 million for the three months ended March 31, 2022, to approximately HKD 16.7 million for the three months ended March 31, 2023[14]. - The gross profit margin improved from 13.4% for the three months ended March 31, 2022, to 14.4% for the three months ended March 31, 2023[14]. - The company recorded a profit of approximately HKD 8.1 million for the three months ended March 31, 2023, compared to HKD 1.8 million for the same period in 2022, reflecting a significant increase in pre-tax profit[18]. - Revenue for the three months ended March 31, 2023, was approximately HKD 116.1 million, up from HKD 73.0 million in the same period of 2022, representing a growth of about 58.0%[23]. - The basic earnings per share for the three months ended March 31, 2023, was HKD 4.03, compared to HKD 0.91 for the same period in 2022, indicating a substantial improvement in profitability[23]. - The company reported a pre-tax profit of HKD 8,051,000 for the three months ended March 31, 2023, compared to HKD 1,827,000 in the same period of 2022, marking a substantial increase[41]. Sales and Product Performance - Transformers accounted for approximately 40.8% of the group's sales for the three months ended March 31, 2023, down from 51.4% for the same period in 2022[10]. - Electronic components and other products represented approximately 57.7% of the group's sales for the three months ended March 31, 2023, up from 47.8% for the same period in 2022[10]. - Transformer sales amounted to HKD 47,409,000, up 26.4% from HKD 37,506,000 year-over-year[30]. - Sales of electronic components surged to HKD 66,982,000, a significant increase of 92.0% compared to HKD 34,891,000 in the previous year[30]. - The geographical revenue breakdown shows that sales in India increased significantly to HKD 29,328,000 from HKD 16,365,000, reflecting a growth of 79.5%[32]. Costs and Expenses - Administrative expenses increased by approximately HKD 1.8 million or 36.7% to about HKD 6.9 million, driven by higher R&D expenditures for new product development and upgrades[16]. - Financing costs increased by approximately HKD 0.2 million or 37.5% to about HKD 0.8 million, attributed to rising bank borrowings and interest rates during the review period[16]. - The total employee costs, including directors' remuneration, increased to HKD 6,309,000 from HKD 4,514,000 year-over-year[38]. - Research and development expenses rose to HKD 2,380,000, up from HKD 721,000 in the previous year, indicating a focus on innovation[38]. Other Income and Gains - Other income increased by approximately HKD 39,000 or 843.9% to about HKD 44,000 for the three months ended March 31, 2023, primarily due to increased interest income during the review period[15]. - Other gains rose by approximately HKD 2.6 million or 1,005.4% to about HKD 2.9 million for the same period, mainly due to investment income from copper options hedging policies[15]. Strategic Initiatives - The group plans to enhance production efficiency to reduce waste and overall production costs[11]. - The management maintained close communication with existing customers to follow up on revised delivery schedules[11]. - The company is optimistic about market demand for clean energy equipment, particularly electronic components, due to global policies favoring renewable and sustainable development[19]. - The management has adopted new hedging policies regarding copper options to effectively control material costs amid economic uncertainties[19]. - The company has increased production capacity during the review period to meet the growing demand from its developed customer base[19]. Corporate Governance and Compliance - The audit committee reviewed the unaudited condensed consolidated financial results for the three months ended March 31, 2023, and had no objections to the accounting treatments adopted by the company[62]. - The company has complied with the corporate governance code during the reporting period[65]. - The board confirmed no knowledge of any circumstances that would require disclosure under GEM Listing Rules as of March 31, 2023[66]. - The company is committed to transparency in accordance with GEM listing regulations[66]. - The report emphasizes the importance of corporate governance and accountability[66]. Shareholder Information - As of March 31, 2023, Mr. Zhong Zhiheng holds a 63.0% equity interest in the company through controlled corporation with 126,000,000 shares[45]. - Mr. Zhong Tiancheng has a beneficial interest of 7.0% with 14,000,000 shares[45]. - The company did not declare an interim dividend for the three months ended March 31, 2023, consistent with the previous year[40]. - The company did not declare any dividends for the three months ended March 31, 2023, consistent with the previous year[51]. - No share options were granted, exercised, or cancelled under the share option scheme during the three months ended March 31, 2023[52]. - The company did not purchase, sell, or redeem any listed securities during the period from January 1, 2023, to March 31, 2023[54]. - There were no capital commitments or contingent liabilities for the group as of March 31, 2023[55][56]. Significant Events - The company entered into two provisional agreements to acquire properties in Tsuen Wan, Hong Kong, for a total consideration of HKD 21,680,000 on February 23, 2023[57]. - No significant events or changes were reported that would impact the company's financial standing[66]. - The company continues to monitor market conditions and regulatory requirements closely[66]. - The board remains focused on strategic growth and operational efficiency[66]. - The company is preparing for future disclosures as required by the GEM listing rules[66].
侨洋国际控股(08070) - 2023 Q1 - 季度财报