Financial Performance - Revenue for the three months ended March 31, 2022, was approximately HKD 57.95 million, an increase of about 40.89% compared to HKD 41.13 million for the same period in 2021[6] - Profit attributable to owners of the company for the three months ended March 31, 2022, was approximately HKD 0.96 million, compared to a loss of approximately HKD 3.14 million for the same period in 2021[6] - Basic earnings per share for the three months ended March 31, 2022, was approximately HKD 0.64 cents, compared to a loss of HKD 0.31 cents per share for the same period in 2021[6] - Gross profit for the three months ended March 31, 2022, was approximately HKD 15.88 million, compared to HKD 11.68 million for the same period in 2021[7] - The total comprehensive loss for the three months ended March 31, 2022, was approximately HKD 4.78 million, compared to a loss of HKD 8.60 million for the same period in 2021[7] - The company reported a pre-tax profit of approximately HKD 0.83 million for the three months ended March 31, 2022, compared to a pre-tax loss of approximately HKD 3.14 million for the same period in 2021[7] - For the three months ended March 31, 2022, the group recorded a gross profit of approximately HKD 15.88 million, an increase of about 35.95% compared to the same period in 2021[39] Revenue Breakdown - The revenue breakdown by geographic location shows significant contributions from Indonesia (HKD 37.11 million), India (HKD 5.43 million), and Hong Kong (HKD 6.64 million) for the three months ended March 31, 2022[16] - The sales of finished watches amounted to HKD 47.22 million, while components and parts generated HKD 8.94 million and HKD 1.80 million, respectively, for the same period[18] Expenses and Costs - The company’s administrative expenses for the three months ended March 31, 2022, were approximately HKD 13.92 million, compared to HKD 13.00 million for the same period in 2021[7] - The company’s financial costs for the three months ended March 31, 2022, were approximately HKD 1.31 million, compared to HKD 1.21 million for the same period in 2021[7] - Administrative expenses increased by approximately HKD 0.92 million or about 7.08% to approximately HKD 13.92 million for the period, primarily due to rising legal, professional fees, and employee costs[39] - The depreciation expense for property, plant, and equipment was HKD 1.42 million for the three months ended March 31, 2022, compared to HKD 1.25 million in the previous year[19] Equity and Capital - The company’s total equity as of March 31, 2022, was approximately HKD 44.19 million, an increase from HKD 31.22 million as of March 31, 2021[8] - The company issued new shares during the period, increasing its share capital to HKD 15 million[8] - The total amount raised from the rights issue was approximately HKD 11 million, with a net amount of approximately HKD 10 million after expenses[45] - Approximately HKD 7 million of the net proceeds from the rights issue is intended for repaying bank loans, and approximately HKD 3 million for general working capital[45] Market Outlook - The company anticipates a recovery in the watch market in 2022, driven by improved growth prospects in major external economies and the easing of public health measures due to the rollout of COVID-19 vaccines[35] - The Hong Kong Trade Development Council's export index fell to 24.7 in Q1 2022, indicating a significant decline in export confidence among local exporters compared to 39.0 in Q1 2021[34] Governance and Compliance - The company’s board believes that the current management structure is effective despite deviations from corporate governance codes[70] - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with trading regulations[73] - The audit committee was established on June 20, 2018, in accordance with GEM listing rules, with members including Mr. Yu Shou Ning, Mr. Zhao Zhi Peng, and Ms. Yu Hui Fang[74] - The audit committee's primary responsibilities include recommending the appointment and dismissal of external auditors, reviewing financial statements, and overseeing internal control procedures[74] - The financial information in the quarterly report has not been audited but has been reviewed by the audit committee, which believes it complies with applicable accounting standards and GEM listing rules[74] Shareholder Information - As of March 31, 2022, the company’s major shareholders, Mr. Chok and Mrs. Chok, each hold 93,000,000 shares, representing 62% of the total shares[58] Future Plans - The group plans to continue focusing on core business development and improving product design to maximize long-term returns for shareholders[38] - The company has no major investment or capital asset plans for the upcoming year beyond those disclosed in the prospectus published on June 28, 2018[65] Other Information - The group has not reported any tax expenses for the three months ended March 31, 2022, as it is not subject to income tax in the Cayman Islands and British Virgin Islands[21] - The group had no capital commitments as of March 31, 2022[50] - The group had no significant contingent liabilities as of March 31, 2022[56] - The company did not declare any dividends for the three months ended March 31, 2022, consistent with the previous year[24] - The company did not engage in any purchases, sales, or redemptions of its listed securities during the reporting period[63] - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period[64] - The company’s stock option plan, approved on June 20, 2018, allows for the issuance of options up to 10% of the issued shares at any time[67] - No stock options have been granted since the adoption of the stock option plan up to March 31, 2022[68] - The quarterly report contains forward-looking statements based on various assumptions regarding the group's current and future business strategies and operating environment[75] - The forward-looking statements reflect the group's current views on future events but are not guarantees of future performance and are subject to risks and uncertainties[75]
恒伟集团控股(08219) - 2022 Q1 - 季度财报