Financial Performance - The company reported a significant increase in revenue for the first quarter of 2023, with a year-on-year growth of 25%[10]. - Revenue for the three months ended March 31, 2023, was RMB 16,573,000, a 1.5% increase from RMB 16,335,000 in the same period of 2022[18]. - Gross profit increased significantly to RMB 2,743,000, compared to RMB 1,331,000 in the previous year, representing a 106.1% increase[18]. - Loss before tax for the period was RMB 2,914,000, compared to a loss of RMB 1,795,000 in the same period of 2022, indicating a deterioration in performance[18]. - Loss for the period was RMB 2,917,000, up from RMB 1,491,000 in the previous year, reflecting a 95.5% increase in losses[18]. - Basic and diluted loss per share was RMB (0.006), compared to RMB (0.004) in the same period of 2022[18]. - Total comprehensive loss for the period was RMB 2,917,000, compared to a total comprehensive loss of RMB 685,000 in the previous year[18]. - The company reported a foreign exchange loss of RMB 61,000, compared to a gain of RMB 264,000 in the same period of 2022[18]. - For the three months ended March 31, 2023, the company's revenue was approximately RMB 16.5 million, representing an increase of RMB 0.2 million or 1.5% compared to approximately RMB 16.3 million for the same period in 2022[75]. Revenue Breakdown - Revenue from the sale of ITO film was RMB 7,204,000, a decrease of 10.8% from RMB 8,079,000 in the previous year[41]. - Revenue from Smart PDLC products was RMB 6,471,000, down 14.8% from RMB 7,593,000 in the same period of 2022[41]. - Revenue from other products increased significantly to RMB 2,898,000, compared to RMB 663,000 in the same period last year, marking a growth of 337.3%[41]. - Domestic revenue from Mainland China accounted for RMB 12,514,000, an increase from RMB 12,244,000 in the previous year, reflecting a growth of 2.2%[44]. Cost Management - Operating expenses have been reduced by 5% due to improved efficiency measures implemented in Q1 2023[10]. - Selling and distribution expenses decreased to RMB 948,000 from RMB 1,636,000, a reduction of 42.1%[18]. - Administrative expenses decreased to RMB 3,932,000 from RMB 4,358,000, a reduction of 9.8%[18]. - The cost of inventories sold for the three months ended March 31, 2023 was RMB 13,549,000, a decrease from RMB 14,848,000 in the same period of 2022, reflecting a reduction of approximately 8.7%[51]. - Employee benefit expenses for the three months ended March 31, 2023 totaled RMB 3,576,000, down from RMB 4,973,000 in the same period of 2022, indicating a decrease of approximately 28.1%[51]. Future Outlook - The company has provided a positive outlook for the upcoming quarters, projecting a revenue growth of 20% for the full year 2023[10]. - New product launches are expected to contribute an additional 10% to revenue, with two major products set to be released in Q2 2023[10]. - Market expansion plans include entering two new international markets by the end of 2023, aiming for a 30% increase in market share[10]. - The company plans to remain cautious in expanding production lines and conducting research and development projects to meet expected future demand[74]. Research and Development - The company is investing in new technology development, allocating approximately $5 million for R&D in the next quarter[10]. - The company continues to engage in the research and development of Smart Polymer-Dispersed Liquid Crystals and other related products[21]. - The Group's research costs for the three months ended March 31, 2023 were RMB 555,000, a decrease of approximately 55.0% from RMB 1,235,000 in the same period of 2022[51]. Corporate Governance - The Company believes that combining the roles of Chairman and CEO will not impair the balance of power and authority within the management structure[105]. - The Company has complied with the Corporate Governance Code principles during the relevant period, with a noted deviation from paragraph C.2.1[104]. - The Audit Committee, established on 21 July 2017, is responsible for reviewing the financial reporting process and internal control systems[109]. - The Audit Committee consists of three independent non-executive Directors, with Ms. Pan Jianli serving as the chairperson[110]. - The Audit Committee reviewed the unaudited consolidated financial statements for the three months ended 31 March 2023, confirming compliance with applicable accounting principles[111]. Share Options and Ownership - The Share Option Scheme allows the Company to grant options to eligible persons, with a total of 480,000,000 shares available for issuance[117]. - As of the report date, 5,100,000 share options have been granted, representing 0.981% of the issued shares of the Company[123]. - The exercise price for the share options is set at HK$1.16 per share[126]. - The Share Option Scheme will remain in effect for a total of ten years, expiring on October 16, 2027[132]. - The total number of outstanding share options as of March 31, 2023, remains unchanged at 5,100,000[139]. Shareholding Structure - As of March 31, 2023, China Shuifa Singyes Energy Holdings Limited holds 324,324,325 shares, representing approximately 62.37% of the total shareholding[144]. - Water Development (HK) Holdings Co., Limited also holds 324,324,325 shares, equivalent to 62.37% of the shareholding[144]. - AMATA Limited is a beneficial owner of 40,000,000 shares, accounting for 7.69% of the total shareholding[144]. - The total number of shares issued as of March 31, 2023, is 520,000,000[149]. - The company has not reported any forfeited or surrendered options during the reporting period[139]. Compliance and Non-Competition - The controlling shareholders confirmed compliance with the non-competition deed during the reporting period[167]. - No directors or controlling shareholders had any business interests that compete with the Group's business during the reporting period[166]. - The company has not engaged in any business that competes with the Group's business as per the non-competition agreement[165].
水发兴业新材料(08073) - 2023 Q1 - 季度财报