Financial Performance - Revenue for the three months ended March 31, 2022, was HK$8,393,000, a decrease of 21.2% compared to HK$10,642,000 for the same period in 2021[9] - Gross profit for the same period was HK$5,138,000, representing a gross margin of 61.2%, compared to HK$4,861,000 in 2021[9] - Operating expenses increased to HK$3,241,000, up 19.5% from HK$2,711,000 in the previous year[9] - Profit before tax for the period was HK$1,248,000, down 24.3% from HK$1,649,000 in 2021[9] - Profit attributable to owners of the Company was HK$1,373,000, a decrease of 23.5% compared to HK$1,796,000 in the same period last year[10] - Basic and diluted earnings per share decreased to HK$0.26 from HK$0.42, reflecting a decline of 38.1%[10] - Total revenue decreased by approximately HK$2,249,000 from approximately HK$10,642,000 for the three months ended March 31, 2021, to approximately HK$8,393,000 for the three months ended March 31, 2022, primarily due to the slowdown in the publications and advertising business caused by COVID-19[46] - Cost of sales decreased from approximately HK$5,781,000 for the three months ended March 31, 2021, to approximately HK$3,255,000 for the three months ended March 31, 2022, in line with the decrease in revenue[47] - Gross profit increased from approximately HK$4,861,000 for the three months ended March 31, 2021, to approximately HK$5,138,000 for the three months ended March 31, 2022, due to a greater decrease in cost of sales compared to revenue[52] - Operating expenses increased by approximately HK$530,000 from approximately HK$2,711,000 for the three months ended March 31, 2021, to approximately HK$3,241,000 for the three months ended March 31, 2022, mainly due to increased legal and professional expenses[53] - Finance costs amounted to approximately HK$649,000 and HK$501,000 for the three months ended March 31, 2022, and 2021, respectively, primarily consisting of interest payable to an independent third party borrower and a shareholder[54] Equity and Shares - As of March 31, 2022, total equity attributable to owners of the Company was HK$23,158,000, compared to HK$14,009,000 at the beginning of the year[12] - The Company issued new shares amounting to HK$7,776,000 during the period, contributing to the increase in total equity[12] - The weighted average number of ordinary shares increased to 518,400,000 in Q1 2022 from 432,000,000 in Q1 2021, reflecting a growth of 20%[35] - The total issued share capital of the company as of March 31, 2022, is 518,400,000 shares[75] - As of March 31, 2022, Mr. Lui Man Wah holds 320,023,300 shares, representing a 61.73% interest in the company[72] - Source Creation International Limited, wholly owned by Mr. Lui Man Wah, is the beneficial owner of the same block of shares[79] - The company plans to offer up to 86,400,000 placing shares at a price of HK$0.09 per share, with net proceeds expected to be approximately HK$7.6 million after relevant expenses[60] - The new placing shares represent approximately 16.67% of the issued share capital of the company immediately after completion of the placing[60] - The company intends to use the net proceeds for current business development expenditures[63] COVID-19 Impact - The ongoing COVID-19 pandemic has led to significant challenges, including travel restrictions and lockdowns, impacting the Group's operations and customer base in the Guangdong-Hong Kong-Macau Greater Bay Area[39] - The Company anticipates facing ongoing challenges from the COVID-19 pandemic, particularly from the Omicron variant, and plans to tighten control over operating costs to mitigate impacts[41] - The company will consider tightening operational cost controls in response to the ongoing uncertainties related to COVID-19[43] - No dividends were paid or proposed for the three months ended March 31, 2022, consistent with the same period in 2021[32] Corporate Governance - The financial results have been prepared in accordance with Hong Kong Financial Reporting Standards and the GEM Listing Rules[16] - The Company was incorporated in the Cayman Islands and has been listed on GEM since February 16, 2015[14] - The Group has not early adopted any new HKFRSs that are not yet effective, and expects no material impact on financial statements in the foreseeable future[22] - The Group's income tax expense remains unaffected as it does not have any assessable profit in Hong Kong[27] - The Audit Committee has reviewed the unaudited condensed consolidated financial results for the three months ended March 31, 2022[97] - The unaudited consolidated financial performance for the three months ended March 31, 2022, has been reviewed by the management and approved by the Board[98] - The report is dated May 13, 2022, and includes the composition of the Board of Directors[99] - The Board consists of one executive director, one non-executive director, and three independent non-executive directors[100] - No other persons were reported to have any interest or short position in the shares of the company as of March 31, 2022[82] - There were no competing business interests reported by the Directors or controlling shareholders during the three months ended March 31, 2022[90] - The company has adopted a Share Option Scheme that will expire on February 16, 2025[83] Business Outlook - The company remains cautiously optimistic about its business despite the ongoing challenges posed by COVID-19 and is actively monitoring developments related to the Macau government's Gaming Law amendment[45] - The company has not disclosed any new product or technology developments in the provided documents[90] - The company has not indicated any market expansion or acquisition strategies in the provided documents[90] - No specific financial metrics or performance indicators were disclosed in the provided documents[101]
惠陶集团(08238) - 2022 Q1 - 季度财报