Financial Performance - The Group's revenue for the three months ended March 31, 2023, was HK$9,277,000, an increase of 50.5% compared to HK$6,163,000 for the same period in 2022[11] - Gross profit for the period was HK$6,122,000, representing a gross margin of 65.9%, up from HK$4,621,000 in the previous year[11] - Profit from operations increased to HK$1,157,000, compared to HK$248,000 in the same period last year, marking a significant improvement[11] - Profit before taxation rose to HK$1,049,000, up from HK$207,000 in the prior year, reflecting a growth of 406.3%[11] - The profit attributable to owners of the Company from continuing operations was HK$1,055,000, compared to HK$213,000 in the previous year[12] - The total comprehensive income for the period was HK$543,000, an increase from HK$235,000 in the same period of 2022[15] - The profit for the period was HK$549,000, compared to a profit of HK$240,000 for the same period in 2022, indicating a 128.8% increase[17] - Total comprehensive income for the period was HK$549,000, reflecting a significant improvement from the total comprehensive expense of HK$241,000 in the previous year[17] - The consolidated net profit attributable to owners of the Company for the Period amounted to approximately HK$549,000, representing an increase of approximately HK$309,000 or 128.8% compared to a net profit of approximately HK$240,000 for the same period in 2022[71] Expenses and Costs - Research and development expenses for the period were HK$2,633,000, slightly higher than HK$2,468,000 in the previous year, indicating continued investment in innovation[11] - Administrative expenses increased to HK$1,836,000 from HK$1,329,000, reflecting higher operational costs[11] - Total staff costs for the three months ended March 31, 2023, amounted to HK$4,207,000, up from HK$4,063,000 in 2022, indicating a rise of approximately 3.5%[33] - The cost of sales increased by approximately HK$1,613,000 or 104.6% to approximately HK$3,155,000, mainly due to increased purchases[63] - Administrative and other operating expenses increased by approximately HK$622,000 or 14.2% to approximately HK$4,995,000, mainly due to increased staff costs and professional fees[69] Discontinued Operations - The Group reported a loss from discontinued operations of HK$506,000, compared to a profit of HK$27,000 in the previous year[11] - The total revenue from discontinued operations was nil for the three months ended March 31, 2023, consistent with the previous year[47] - The Group's discontinued operation in the Money Lending Business resulted in a loss attributable to owners of approximately HK$506,000 for the Period, compared to a profit of approximately HK$27,000 in 2022[72] Shareholder Information - As of March 31, 2023, Mr. Liu Guanzhou holds 22,700,000 shares, representing approximately 1.78% of the total shareholding[99] - As of March 31, 2023, Mr. Chiu Ngai Hung holds 663,477,955 shares, representing approximately 52.13% of the total shareholding[107] - The total number of shares in issue as of March 31, 2023, is 1,272,640,000, which is used for calculating the percentage of shareholding[100] - The total number of shares in issue as of March 31, 2023, is 1,272,640,000[108] Strategic Focus and Market Trends - The company continues to focus on the provision of software platform services as a key revenue driver[28] - The Group's business has been positively impacted by the gradual recovery of the economy and increased investment in technology by the Hong Kong government, which is considered a major customer[75] - The increasing adoption of IT solutions among Hong Kong SMEs is a key driver for the growth of the Hong Kong IT market, with enterprises investing in ERP and CRM systems to enhance customer retention and reduce operational costs[85][89] - The adoption of Big Data solutions is a significant trend in the Hong Kong IT market, helping export-oriented enterprises optimize production, logistics, and sales processes[91][95] - Digital transformation has become a major priority for organizations, accelerated by the COVID-19 pandemic, leading to the integration of advanced technologies in business operations[93] - The company plans to focus on growth prospects in fast-growing segments while maintaining its position in slower-growing segments to recover from the post-COVID-19 impact[94] Compliance and Governance - The Audit Committee consists of three independent non-executive Directors, responsible for reviewing financial reporting and internal controls[113] - The Company has adopted a code of conduct for securities transactions by Directors, with no reported non-compliance during the period[115] - The Company is committed to maintaining rigorous standards in its financial reporting and risk management processes[113] - The Audit Committee has reviewed the accounting principles and practices adopted by the Company[114] - The Company had no arrangements that would allow Directors or their family members to benefit from purchasing shares or debt securities[106] - No Directors have interests in any competing businesses as of the report date[110] - The Company has not been notified of any other interests or short positions in its shares by persons other than Directors and substantial shareholders as of March 31, 2023[109] Other Financial Information - The company reported other income of HK$30,000 for the period, compared to no other income reported in the same period of 2022[30] - The total equity attributable to owners of the company increased to HK$10,746,000 as of March 31, 2023, from HK$10,197,000 at the beginning of the year[17] - The company did not incur any current tax for Hong Kong Profits Tax for the periods ended March 31, 2022, and 2023, due to tax losses carried forward[37] - The company has taken necessary measures to recover outstanding loans from its discontinued Money Lending Business, with a minor portion of loans and interest receivables recovered[84][88] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[116] - The company has not yet applied new HKFRSs that have been issued but are not yet effective, and is assessing their potential impact[22] - The financial statements are prepared under the historical cost convention and comply with accounting standards issued by the HKICPA[19] - The unaudited financial statements should be read in conjunction with the Group's annual financial statements for the year ended December 31, 2022[23]
悟喜生活(08148) - 2023 Q1 - 季度财报