Financial Performance - The consolidated revenue for the three months ended June 30, 2022, was approximately HKD 39,300,000, a decrease of about 4.8% compared to approximately HKD 41,300,000 for the same period last year[3]. - The loss attributable to the owners of the company decreased from approximately HKD 5,200,000 in the same period last year to approximately HKD 500,000[3]. - Gross profit for the three months ended June 30, 2022, was HKD 23,070,000, compared to HKD 23,306,000 for the same period last year[7]. - Operating expenses for the period were HKD 27,405,000, a slight decrease from HKD 28,070,000 in the previous year[7]. - The company reported a loss before tax of HKD 1,241,000, significantly improved from a loss of HKD 5,554,000 in the same period last year[7]. - The basic and diluted loss per share for the period was HKD 0.1, compared to HKD 1.0 for the same period last year[8]. - The total comprehensive loss for the period was HKD 465,000, compared to HKD 5,959,000 for the same period last year[9]. - The group recorded revenue of approximately HKD 39,300,000, a decrease of about 4.8% compared to the same period last year, primarily due to strict social distancing measures during the fifth wave of the pandemic[40]. - The loss attributable to the company's owners was approximately HKD 500,000, a significant reduction from a loss of HKD 5,200,000 in the previous year, mainly due to wage subsidies received under the Hong Kong government's employment support scheme[40]. - The gross profit margin increased to approximately 58.7%, up from 56.5% in the previous year, attributed to better cost control and price adjustments[40]. - Total operating expenses decreased by approximately 2.4% to about HKD 27,400,000, consistent with the decline in revenue[41]. Financial Position - The company has a net current liability of approximately HKD 90,742,000 as of June 30, 2022[14]. - The company received a loan extension from a major shareholder, allowing for the repayment date to be extended to June 22, 2023, for an outstanding balance of approximately HKD 104,119,000[14]. - The board believes that the company will have sufficient financial resources to meet its financial obligations in the foreseeable future[14]. Dividend Policy - The company did not recommend the payment of an interim dividend for the three months ended June 30, 2022, compared to no dividend in the previous year[22]. Taxation - The effective tax rate for the company's subsidiaries in Hong Kong and China remains at 16.5% and 25%, respectively, with a specific subsidiary benefiting from a reduced rate of 8.25% on the first HKD 2 million of taxable profits[18]. Market Conditions - The global economic growth is projected to decline from 5.7% in 2021 to 2.9% in 2022, significantly lower than the earlier forecast of 4.1%[24]. - In Hong Kong, the restaurant industry saw a revenue drop of 23.1% year-on-year in the first quarter of 2022, generating approximately HKD 1.5 billion[25]. - The electronic cigarette industry is facing significant regulatory challenges, with a ban on imports and sales in Hong Kong effective April 30, 2022[29]. - The restaurant business has been significantly impacted by the COVID-19 pandemic, with food costs rising since Q3 2021, yet the company continues to develop its restaurant operations in Hong Kong[31]. - The economic outlook for China has been downgraded, with GDP growth expected at 4% for the year, below the official target of approximately 5.5%[35]. Business Development - The Italian Tomato brand has expanded to 5 cafes and 30 cake shops in Hong Kong as of June 30, 2022, following the addition of one cafe during the reporting period[31]. - The company has fully acquired 100% of Huayin Biotechnology, enhancing its stake in a subsidiary that produces and sells antibacterial toothpaste, with production actively ongoing[32]. - The first batch of toothpaste has been launched in stores, and the second batch is in production, with online marketing initiated across platforms like WeChat and JD.com[34]. - The company anticipates improved consumer sentiment in Hong Kong's restaurant industry due to the easing of social distancing measures and the introduction of a new consumption voucher scheme in August[37]. - The Chinese healthcare market is projected to reach $2.3 trillion by 2030, driven by population growth and government support, presenting opportunities for the company to expand its market share in oral care products[38]. - The company is strategically increasing its store count for Italian Tomato, contingent on lease agreements, while exploring outsourcing for some production processes to control costs[31]. - The company is focusing on integrating online and offline sales channels to attract more customers and expand its customer base[34]. - The company is developing its healthcare business, which has led to an increase in operating expenses[41]. Corporate Governance - The company has established an audit committee in compliance with GEM Listing Rules, which includes three independent non-executive directors[55]. - All directors have adhered to the trading compliance standards regarding securities transactions during the three months ending June 30, 2022[56]. - The company is committed to maintaining high standards of corporate governance and has complied with the corporate governance code as per GEM Listing Rules during the reporting period[57]. - The executive directors as of August 10, 2022, include Mr. Huang Chao and Mr. Wu Xiaowen, along with independent non-executive directors Mr. Chen Yiping, Mr. Yang Haiyu, and Mr. Zeng Shiquan[58]. Shareholder Information - Major shareholders include Hanbo Holdings Limited, holding 296,887,066 shares (57.01%), and Mr. Tang Shengming, holding 71,428,571 shares (13.72%) after conversion of convertible bonds[46]. - No stock options were granted during the reporting period, and there were no unexercised stock options as of June 30, 2022[50]. - The company aims to continue contributing to its achievements through its stock option plan, which allows participants to purchase shares[49].
荣晖控股(08213) - 2023 Q1 - 季度财报