Financial Performance - For the three months ended September 30, 2022, the Group reported revenue of HK$94,946,000, a slight increase of 0.73% compared to HK$94,259,000 in the same period of 2021[10]. - The gross profit for the same period was HK$8,104,000, down 12.3% from HK$9,241,000 year-on-year[10]. - Profit before taxation decreased to HK$1,262,000, representing a decline of 69.6% compared to HK$4,142,000 in the previous year[10]. - The profit for the period was HK$962,000, down 74.4% from HK$3,762,000 in the corresponding period of 2021[10]. - Basic and diluted earnings per share were HK$0.22, a decrease of 65.6% from HK$0.64 in the same period last year[11]. - Total comprehensive income for the period attributable to owners of the Company was HK$416,000, down 88.1% from HK$3,507,000 in the previous year[11]. Revenue Breakdown - Revenue from Environmental and Cleaning services for the three months ended September 30, 2022, was HK$92,685,000, a slight increase from HK$91,005,000 in the same period of 2021, representing a growth of 1.84%[27]. - Interest income from Money Lending decreased to HK$2,261,000 in Q3 2022 from HK$3,254,000 in Q3 2021, reflecting a decline of 30.54%[27]. - For the three months ended September 30, 2022, the environmental and cleaning services in Hong Kong generated revenue of approximately HK$88.0 million, an increase from approximately HK$83.1 million for the same period in 2021, attributed to new service contracts in the residential sector[82]. - Revenue from the Hong Kong environmental and cleaning services increased to approximately HK$88 million for the three months ended September 30, 2022, compared to approximately HK$83.1 million for the same period in 2021, driven by new service contracts[85]. Expenses and Costs - The Group's administrative expenses increased significantly to HK$6,865,000, up 67.5% from HK$4,091,000 in the same period of 2021[10]. - Selling, marketing, and administrative expenses increased by approximately HK$2.8 million to approximately HK$7.6 million for the three months ended September 30, 2022, primarily due to higher staff costs and other operational expenses[115]. - Staff costs, including Directors' emoluments, totaled HK$49,328,000 for Q3 2022, down from HK$51,523,000 in Q3 2021, representing a reduction of 4.26%[36]. - Finance costs for the three months ended September 30, 2022, were HK$146,000, down from HK$373,000 in the same period of 2021, a decrease of 60.81%[33]. Impairment and Losses - The Group recognized an impairment loss of approximately HK$46 million on past due loans and interest receivables due to financial difficulties faced by borrowers amid challenging economic conditions[92][95]. - The money lending business recorded a net profit of approximately HK$1.2 million for the three months ended September 30, 2022, down from approximately HK$2.6 million in 2021, excluding an impairment loss of approximately HK$46 million[94][95]. Taxation - The provision for Hong Kong Profits Tax for the period was calculated at 16.5% of estimated assessable profits, with the first HK$2,000,000 taxed at 8.25%[39]. - The income tax expense for the period was HK$300,000, down from HK$380,000 in the previous year, reflecting a decrease of 21.1%[52]. - The PRC subsidiaries are subject to a 25% Enterprise Income Tax rate for the three months ended 30 September 2022, consistent with the previous year[43]. Corporate Governance - The Company has maintained high standards of corporate governance, applying the principles of the Corporate Governance Code and GEM Listing Rules[147]. - The roles of chairman and chief executive officer are performed by the same individual, Mr. Yu Shaoheng, which deviates from Code provision A.2.1, but the Company believes adequate representation of shareholders' interests is maintained[150]. - All non-executive Directors are not appointed for a specific term, which deviates from Code provision A.4.1, but they are subject to retirement by rotation and re-election[150]. - The audit committee reviewed the Group's financial and accounting policies, internal controls, and financial reporting for the three months ended September 30, 2022, concluding that the results complied with applicable accounting standards[152]. Market Conditions - The prolonged Sino-US trade tensions and the global spread of COVID-19 have created a challenging economic environment for the Group's operations in both Hong Kong and the PRC[92]. - The Group is facing intensified labor market competition in Hong Kong, leading to a higher labor turnover rate in the environmental and cleaning services industry[103]. - The Shanghai Operations are not expected to significantly improve in the coming fiscal year due to negative factors affecting nearly all sectors of businesses in Shanghai[107]. Future Strategies - To mitigate increased labor costs, the Group aims to transfer most of these costs to customers and implement more efficient workflows and stringent cost control procedures[103]. - The Group plans to strengthen marketing efforts to expand market shares in the commercial and residential sectors and focus on high-value customers for additional revenue through cross-selling services[104]. - The Group continues to strengthen its risk management policy in the money lending business, focusing on reducing exposure to high-risk loans[108]. Shareholder Information - The weighted average number of ordinary shares for the purpose of basic and diluted earnings per share remained unchanged at 540,000 shares[52]. - As of September 30, 2022, the total number of shares available for issue under the Share Option Scheme was 54,000,000 shares, representing 10% of the shares in issue[124]. - Mr. Yu Shaoheng held 350,536,631 ordinary shares, representing 64.91% of the total issued share capital as of the latest practicable date[130]. - Mr. Yu Weiye and Ms. Mui Fong each held 54,431,400 ordinary shares, representing 10.08% of the total issued share capital[135]. Dividends - No dividends were recommended for the three months ended September 30, 2022, remaining at HK$Nil compared to the same period in 2021[49]. - The Board does not recommend the payment of any dividend for the three months ended September 30, 2022[116].
宝联控股(08201) - 2023 Q1 - 季度财报