Financial Performance - Revenue for the three months ended March 31, 2023, was approximately HKD 74.03 million, an increase of about 27.75% compared to HKD 57.95 million for the same period in 2022[6] - Profit attributable to owners of the company for the three months ended March 31, 2023, was approximately HKD 0.90 million, slightly down from HKD 0.96 million for the same period in 2022[6] - Basic earnings per share for the three months ended March 31, 2023, was approximately HKD 0.55 cents, compared to HKD 0.64 cents for the same period in 2022[7] - Gross profit for the three months ended March 31, 2023, was approximately HKD 18.93 million, up from HKD 15.88 million for the same period in 2022[7] - Total comprehensive income for the three months ended March 31, 2023, was a loss of approximately HKD 0.72 million, compared to a loss of HKD 4.78 million for the same period in 2022[7] Revenue Breakdown - Revenue from finished watches was HKD 57.99 million, up from HKD 47.22 million in the previous year, while revenue from component kits increased to HKD 14.66 million from HKD 8.94 million[18] - The geographical revenue breakdown shows significant growth in Indonesia, with revenue rising to HKD 51.01 million from HKD 37.11 million, and in India, increasing to HKD 9.36 million from HKD 5.43 million[16] Expenses and Costs - Administrative expenses for the three months ended March 31, 2023, were approximately HKD 14.21 million, compared to HKD 13.92 million for the same period in 2022[7] - Financial costs for the three months ended March 31, 2023, were approximately HKD 2.17 million, an increase from HKD 1.31 million for the same period in 2022[7] - The depreciation of property, plant, and equipment was reported at HKD 1.19 million, down from HKD 1.42 million in the previous year[19] - Administrative expenses increased by approximately HKD 0.29 million or about 2.08% to approximately HKD 14.21 million for the period, primarily due to rising employee costs[37] - Financial costs rose by approximately HKD 0.86 million or about 65.65% to approximately HKD 2.17 million, mainly due to rising bank interest rates[37] Equity and Cash Position - The company’s total equity as of March 31, 2023, was approximately HKD 37.94 million, down from HKD 38.66 million as of December 31, 2022[8] - As of March 31, 2023, the group's cash and cash equivalents were approximately HKD 10.34 million, down from HKD 11.64 million as of March 31, 2022[41] - The group's current ratio as of March 31, 2023, was approximately 1.13 times, compared to 0.91 times as of March 31, 2022[41] - The debt-to-equity ratio as of March 31, 2023, was approximately 243.44%, up from 203.79% as of March 31, 2022[42] Tax and Regulatory Compliance - The company reported a tax expense of HKD 86, compared to none in the previous year, reflecting a new tax obligation under Hong Kong's two-tiered profits tax system[22] - The company has complied with the GEM Listing Rules regarding corporate governance, with a noted deviation in the separation of the roles of Chairman and CEO[64] - The financial information in the quarterly report has not been audited but has been reviewed by the Audit Committee[66] - The company has confirmed that directors have complied with the trading regulations during the reporting period[65] Management Outlook and Strategy - The management anticipates that the trade outlook for Hong Kong will improve further in the coming months due to the reopening of borders with mainland China[35] - The company plans to focus on enhancing product design and development capabilities to maximize long-term returns for shareholders[36] - The management noted that while the overseas market environment remains uncertain, there are significant opportunities in the Southeast Asian market for automatic and quartz watches[35] Corporate Governance and Structure - The stock option plan was approved on June 20, 2018, and is valid for 10 years, allowing the issuance of options not exceeding 10% of the total issued shares at any time[60] - No stock options have been granted since the adoption of the plan up to March 31, 2023[61] - The Audit Committee was established on June 20, 2018, and is responsible for recommending the appointment of external auditors and reviewing financial statements[66] - The company has taken sufficient checks and balances in its management structure despite the noted governance deviation[64] - The company aims to attract high-quality employees through the stock option plan, enhancing its ability to recruit and retain talent[60] - The Chairman and CEO, Mr. Cheung, has been in operational roles since 1986, which the board believes benefits the company's business during its rapid development phase[64] Other Information - The company did not declare any dividends for the three months ended March 31, 2023, consistent with the previous year[23] - The group had no capital commitments as of March 31, 2023[43] - There were no significant events occurring after the reporting period[50] - The group did not participate in any derivative activities or foreign exchange hedging during the period[47] - There were no major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[57] - The report includes forward-looking statements based on various assumptions regarding the company's future business strategies and operating environment[68]
恒伟集团控股(08219) - 2023 Q1 - 季度财报