Financial Performance - Revenue for the first quarter of 2022 was HKD 25,898,000, an increase of 5.9% compared to HKD 24,464,000 in the same period of 2021[16]. - Gross profit decreased to HKD 1,364,000, down 53.6% from HKD 2,937,000 year-on-year[16]. - The company reported a loss before tax of HKD 1,050,000, compared to a profit of HKD 73,000 in the first quarter of 2021[16]. - The net loss for the period was HKD 1,020,000, compared to a profit of HKD 0 in the same quarter of the previous year[16]. - Basic and diluted loss per share was HKD 1.02, compared to earnings of HKD 0.05 per share in the prior year[16]. - Revenue increased by 5.9% from HKD 24,500,000 in Q1 2021 to HKD 25,900,000 in Q1 2022, primarily due to higher sales from Hong Kong apparel and related products[78]. - The company reported a loss of HKD 1,020,000 in Q1 2022 compared to a profit of HKD 49,000 in Q1 2021, primarily due to reduced gross profit[89]. Cost and Expenses - Administrative expenses decreased to HKD 1,845,000 from HKD 2,360,000, reflecting a reduction of 21.8%[16]. - Financial costs increased to HKD 307,000, up from HKD 134,000, indicating a rise of 129.1%[16]. - Cost of sales rose by 14.0% from HKD 21,500,000 in Q1 2021 to HKD 24,500,000 in Q1 2022, consistent with the increase in sales[79]. - Administrative expenses decreased from HKD 2,400,000 in Q1 2021 to HKD 1,800,000 in Q1 2022, attributed to lower professional fees and employee salaries[86]. - Financial costs increased from approximately HKD 100,000 in Q1 2021 to HKD 300,000 in Q1 2022[87]. Income and Other Revenue - Other income increased to HKD 45,000 from HKD 33,000, showing a growth of 36.4%[16]. - The company reported other income of HKD 45 thousand for the quarter, compared to HKD 33 thousand in the same period of 2021[65]. - Other income increased from HKD 33,000 in Q1 2021 to HKD 45,000 in Q1 2022, mainly due to higher sample sales revenue[81]. Equity and Assets - The company’s total equity as of March 31, 2022, was HKD 47,837,000, down from HKD 57,546,000 at the beginning of the year[19]. - Non-current assets located in Hong Kong were valued at HKD 26,403 thousand, a decrease from HKD 27,565 thousand in 2021[64]. - As of March 31, 2022, the total equity of the group was HKD 47.8 million, down from HKD 57.6 million as of March 31, 2021[102]. - The group's cash and cash equivalents were HKD 400,000 as of March 31, 2022, compared to HKD 8.3 million as of March 31, 2021[102]. Business Operations and Strategy - The company continues to focus on providing construction and related materials agency services[25]. - The company is exploring new business opportunities in construction and related materials in ASEAN countries to diversify revenue sources[99]. - The company’s operations are primarily based in Hong Kong, with significant revenue contributions from customers in Macau, Germany, and Cambodia[57]. - The ongoing impact of COVID-19 has severely affected the group's profitability, with a decline in gross margins due to lower average order prices from customers[99]. - The group is closely monitoring the operational impact of COVID-19 and taking appropriate actions to mitigate its effects on production and logistics[100]. - The group anticipates a challenging business environment due to ongoing customer requests for longer credit terms and weak retail market conditions[99]. Governance and Compliance - The company has adhered to the corporate governance code as per GEM Listing Rules Appendix 15 during the three months ended March 31, 2022[129]. - All directors confirmed compliance with the trading standards for securities transactions during the three months ended March 31, 2022[134]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2022, ensuring compliance with applicable accounting standards and GEM Listing Rules[139]. Dividends and Investments - The company did not recommend any dividend for the three months ended March 31, 2022, consistent with the previous year[71]. - The group does not recommend any dividend payment for the three months ended March 31, 2022, consistent with the previous year[103]. - The group has not engaged in any significant acquisitions or disposals for the three months ended March 31, 2022[104]. - The group has no plans for significant investments or capital assets as of March 31, 2022[105]. - The company has no significant investments or contingent liabilities as of March 31, 2022[93][94]. Risks and Uncertainties - Forward-looking statements in the report are subject to risks and uncertainties that may cause actual performance to differ significantly from those anticipated[140]. - The company is focused on managing foreign exchange risks, particularly with transactions denominated in euros, while considering hedging strategies as necessary[96].
细叶榕科技(08107) - 2022 Q1 - 季度财报