罗马元宇宙集团(08072) - 2023 Q1 - 季度财报

Financial Highlights The company reported a significant revenue decline and an expanded loss for the three months ended June 30, 2022 Financial Highlights for the Three Months Ended June 30, 2022 | Metric | Value | | :--- | :--- | | Revenue | approx. HKD 13.5 million (29.6% year-on-year decrease) | | Loss for the period | approx. HKD 3.1 million (HKD 1.0 million loss in prior period) | | Basic and diluted loss per share | HKD 0.46 cents | | Dividend | Not declared | Unaudited Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements, including the statement of comprehensive income and statement of changes in equity Unaudited Condensed Consolidated Statement of Comprehensive Income The company recorded HKD 13.494 million in revenue, a 29.6% year-on-year decrease, leading to an expanded loss of HKD 3.129 million for the period Results Overview for the Three Months Ended June 30, 2022 | Item | Three Months Ended June 30, 2022 (HKD thousands) | Three Months Ended June 30, 2021 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 13,494 | 19,156 | -29.6% | | Other income | 3,524 | 614 | +474.0% | | Employee benefit expenses | (9,964) | (11,357) | -12.3% | | Finance costs | (1,510) | (483) | +212.6% | | Loss before income tax | (3,148) | (895) | +251.7% | | Loss for the period | (3,129) | (1,009) | +210.1% | | Basic and diluted loss per share (HKD cents) | (0.46) | (0.16) | +187.5% | Unaudited Condensed Consolidated Statement of Changes in Equity Total equity decreased to HKD 362.5 million as of June 30, 2022, primarily due to the HKD 3.129 million loss incurred during the period - As of June 30, 2022, the Group's total equity was HKD 362,522 thousand, a decrease from HKD 365,651 thousand as of April 1, 2022, mainly due to a loss for the period of HKD 3,129 thousand[7] Notes to the Consolidated Financial Statements This section provides detailed notes on the company's financial statements, covering general information, revenue, expenses, and other financial items General Information and Basis of Preparation The company, an investment holding entity registered in Cayman Islands, prepares its financial statements in HKD under Hong Kong Financial Reporting Standards, with no significant impact from new standards - The Group primarily engages in providing valuation and advisory services, financing services, and securities brokerage, placing and underwriting, and investment advisory and asset management services[9] - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[11] - The adoption of new and revised Hong Kong Financial Reporting Standards had no significant impact on the preparation and presentation of the results and financial position for the current and prior periods[15] Revenue Total revenue declined by 29.6% to HKD 13.494 million, mainly due to a significant decrease in valuation and advisory services, partially offset by growth in financing services interest income Revenue Segment Details | Revenue Source | 2022 (HKD thousands) | 2021 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Valuation and advisory services | 7,306 | 13,790 | -47.0% | | Securities brokerage, placing and underwriting, etc | 76 | 916 | -91.7% | | Interest income from financing services | 6,112 | 4,450 | +37.3% | | Total | 13,494 | 19,156 | -29.6% | Other Income Other income significantly increased to HKD 3.524 million, driven by a one-off gain from asset disposal, new management fee income, and government subsidies - The period recorded a gain of HKD 1.26 million from the disposal of a motor vehicle and management fee income of HKD 1.092 million, with no such income in the prior period[25] - The Group received HKD 0.488 million in government subsidies under the Hong Kong "Employment Support Scheme," with no such subsidy in the prior period[25] Employee Benefit Expenses Employee benefit expenses decreased by 12.3% to HKD 9.964 million, primarily due to reduced staff costs following the disposal of a subsidiary Employee Benefit Expenses Breakdown | Item | 2022 (HKD thousands) | 2021 (HKD thousands) | | :--- | :--- | :--- | | Salaries and allowances | 9,356 | 10,762 | | Contributions to defined contribution retirement plans | 249 | 305 | | Other benefits | 359 | 290 | | Total | 9,964 | 11,357 | Loss Before Income Tax The loss before income tax was significantly impacted by a net exchange loss of HKD 2.825 million, contrasting with an exchange gain in the prior period - The period recorded a net exchange loss of HKD 2,825 thousand, compared to an exchange gain of HKD 861 thousand in the prior period, negatively impacting profitability[27] Finance Costs Finance costs more than doubled to HKD 1.51 million, primarily due to increased interest expenses on bank and other borrowings Finance Costs Breakdown | Item | 2022 (HKD thousands) | 2021 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 293 | 128 | | Interest on other borrowings | 1,195 | 311 | | Finance charges on lease liabilities | 22 | 44 | | Total | 1,510 | 483 | Dividends and Loss Per Share The board resolved not to declare any dividends for the period, while basic and diluted loss per share increased to HKD 0.46 cents due to expanded losses - The Board resolved not to declare any dividends for the period[34] Loss Per Share Calculation | Item | 2022 | 2021 | | :--- | :--- | :--- | | Loss (HKD thousands) | (3,129) | (1,009) | | Weighted average number of shares (thousand shares) | 684,542 | 617,876 | | Basic and diluted loss per share (HKD cents) | (0.46) | (0.16) | Management Discussion and Analysis This section provides management's perspective on the company's operational and financial performance, capital structure, and future outlook Business and Financial Review The group's revenue decreased by 29.6% year-on-year, expanding the loss attributable to owners to HKD 3.1 million, primarily due to the disposal of a subsidiary Revenue Analysis Valuation and advisory services revenue declined by 47.0% due to a subsidiary disposal, while financing services interest income increased by 37.3% from a larger loan portfolio - Revenue from valuation and advisory services decreased by 47.0%, primarily due to the disposal of a subsidiary engaged in environmental, social, and governance reporting services in March 2022[39] - Interest income from financing services increased by 37.3%, mainly due to a larger loan portfolio during the period compared to the prior period[39] Other Income and Expense Analysis Other income significantly increased due to a one-off gain from asset disposal and government subsidies, while employee benefit expenses decreased following a subsidiary sale - Other income increased primarily due to a one-off gain of approximately HKD 1.3 million from the disposal of property, plant, and equipment, and government subsidies received under the Employment Support Scheme[43] - Employee benefit expenses decreased by approximately 12.3%, mainly due to the disposal of a subsidiary[44] - The increase in finance costs is consistent with new other borrowings to meet operational needs[48] Loss for the Period Analysis The loss attributable to owners expanded from HKD 1.0 million to HKD 3.1 million, primarily due to a HKD 5.7 million revenue decrease outweighing other income gains - The increase in loss is mainly due to a decrease in revenue of approximately HKD 5.7 million during the period, which outweighed the offsetting effect of an increase in other income, primarily from a one-off gain on asset disposal and government subsidies, of approximately HKD 2.9 million[50] Capital Structure As of June 30, 2022, HKD 63 million of the 2017 rights issue proceeds remained unutilized, with management exercising caution due to the COVID-19 pandemic Use of Proceeds from 2017 Rights Issue | Use | Intended Use (HKD millions) | Utilized as of June 30, 2022 (HKD millions) | Unutilized Funds (HKD millions) | | :--- | :--- | :--- | :--- | | Expansion of financing business | 135.0 | 135.0 | – | | Investment in potential businesses | 90.0 | 27.0 | 63.0 | | General working capital | 33.0 | 33.0 | – | | Total | 258.0 | 195.0 | 63.0 | - Due to the economic impact of the COVID-19 pandemic, management has been more cautious in seeking potential businesses, leading to delays in fund utilization[54] - The company expects the unutilized funds to be used by March 31, 2023[55] Future Prospects The group aims to strengthen its market position in valuation and advisory services, explore M&A opportunities, and leverage 'Belt and Road' and Greater Bay Area initiatives for growth - The core strategy is to become a leading valuation and advisory services provider in Hong Kong, and the Group will continue to explore M&A opportunities and business collaborations to consolidate its market position[58] - The "Belt and Road" initiative and the Greater Bay Area development are expected to create new opportunities for Hong Kong as an international financial hub, and the Group will identify new opportunities for growth[58] - The Group firmly believes that valuation and advisory services will remain a primary source of revenue in the coming years, while financing services will become more robust[58] Directors' and Major Shareholders' Interests in Shares As of June 30, 2022, Executive Director Mr. Yu Ji Hua held 2.50% interest, while major shareholder Aperto Investments Limited held 29.91% interest Directors' and Major Shareholders' Shareholdings | Name/Entity | Capacity | Number of Shares Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Yu Ji Hua | Director/Interest of controlled corporation | 17,540,000 | 2.50% | | Aperto Investments Limited | Major Shareholder/Beneficial owner | 210,000,000 | 29.91% | | Mr. Luk Kee Yan | Major Shareholder/Interest of controlled corporation | 210,000,000 | 29.91% | Corporate Governance Practices The company generally complied with corporate governance codes, with one deviation where the Chairman and CEO roles are held by the same individual, Mr. Yu Ji Hua - The company deviated from Corporate Governance Code provision C.2.1, which states that the roles of chairman and chief executive should be separate, as Mr. Yu Ji Hua holds both positions[69][71] - The Board believes that combining the two roles provides strong and consistent leadership, and is more efficient in planning and executing business decisions[71] - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements and report[76]