Financial Performance - Revenue from goods and services for the three months ended March 31, 2023, was HKD 5,270,000, a decrease of 16.2% compared to HKD 6,290,000 in the same period of 2022[5] - Cost of goods sold for the same period was HKD 3,686,000, down from HKD 5,668,000, reflecting a reduction of 35.0%[5] - The company reported a loss before tax of HKD 1,813,000 for Q1 2023, compared to a loss of HKD 1,232,000 in Q1 2022, indicating a 47.2% increase in losses[5] - Total comprehensive loss for the period was HKD 1,813,000, slightly higher than the HKD 1,418,000 reported in the previous year[5] - Basic and diluted loss per share remained at HKD 0.05 for both Q1 2023 and Q1 2022[5] - The group reported a total segment loss of HKD 227,000 for the three months ended March 31, 2023, compared to a profit of HKD 342,000 for the same period in 2022[18] - The group incurred an unaudited loss before tax of HKD 1.81 million for the three months ended March 31, 2023, compared to a loss of HKD 1.41 million in the same period of 2022[26] - Loss for the period increased from approximately HKD 1.4 million to about HKD 1.8 million, with the footwear and apparel segment reporting a loss of approximately HKD 62,000[47] Equity and Share Capital - The company’s total equity as of March 31, 2023, was HKD (578,000), a decrease from HKD 2,602,000 as of March 31, 2022[6] - The company completed a share consolidation on March 21, 2023, converting 722,304,000 shares into 36,115,200 consolidated shares[7] - The average number of ordinary shares used for calculating basic loss per share was adjusted to 36,115,000 shares for the three months ended March 31, 2023, due to a share consolidation[29] - The company raised approximately HKD 10,264,000 from a share placement completed on January 17, 2022, which increased share capital by HKD 1,003,000 and share premium by HKD 9,731,000[7] Expenses - Employee benefit expenses increased to HKD 1,364,000 in Q1 2023 from HKD 745,000 in Q1 2022, representing an increase of 83.7%[5] - Other operating expenses rose to HKD 1,675,000 in Q1 2023, compared to HKD 944,000 in Q1 2022, marking an increase of 77.6%[5] - Financing costs increased by 119.9% from approximately HKD 166,000 to about HKD 365,000, primarily due to interest expenses on a HKD 14.8 million loan[44] - The group reported unallocated expenses of HKD 1.586 million for the three months ended March 31, 2023[18] Revenue Breakdown - For the three months ended March 31, 2023, the group recorded revenue of approximately HKD 5.3 million, a decrease of 15.9% compared to HKD 6.3 million for the same period in 2022[37] - Revenue from the footwear business for the three months ended March 31, 2023, was approximately HKD 5.3 million, down from HKD 6.2 million in 2022, primarily due to a slowdown in sports apparel trade following the 2022 World Cup[38] - Revenue from loan brokerage services decreased by 96.7% from approximately HKD 61,000 to about HKD 2,000 for the three months ended March 31, 2023[40] Business Operations - The group has decided to sell its long-term loss-making loan brokerage business for a nominal price of HKD 1 to an independent third party, effective April 20, 2023[36] - The group has expanded its retail footprint by opening three physical stores in Hong Kong engaged in footwear trade by the end of 2022[34] - The group plans to continue consolidating its position in the industry and allocate internal resources to develop its existing footwear trading business while exploring suitable business opportunities[34] - The total number of employees increased from 5 to 24 over the year, reflecting growth in operations[55] Corporate Governance - The company has established a high standard of corporate governance to protect shareholder interests and enhance corporate value, in compliance with the GEM Listing Rules[66] - The board of directors confirmed compliance with the trading standards and code of conduct for securities transactions during the review period[73] - The audit committee reviewed the unaudited consolidated financial results for the three months ending March 31, 2023, and found them to be prepared in accordance with applicable accounting standards[74] - The audit committee consists of three members, all of whom are independent non-executive directors[74] Share Options and Dividends - The company has adopted a share option scheme, granting 14,400,000 options to eligible participants on January 6, 2023, with an exercise price of HKD 0.42 per share[70] - As of March 31, 2023, the company has a total of 1,680,000 share options available for future grants as of the report date[70] - No dividends were proposed for the three months ended March 31, 2023, consistent with the previous year[25] Other Information - As of March 31, 2023, the company has not repurchased any of its own shares, nor have any subsidiaries purchased or sold any shares[72] - No significant investments or acquisitions were reported for the three months ended March 31, 2023[57] - No significant events occurred after the review period, aside from those disclosed[75] - The unaudited quarterly results announcement for the three months ending March 31, 2023, has been published on the Hong Kong Stock Exchange and the company's website[77] - As of March 31, 2023, the beneficial ownership of shares by the director Mr. Chan Tze Yeung is 6,750 shares, representing approximately 0.02% of the total shares[67]
积木集团(08187) - 2023 Q1 - 季度财报