Financial Performance - For the three months ended March 31, 2023, the revenue was HK$2,208,000, a decrease of 73.7% compared to HK$8,393,000 for the same period in 2022[9] - The gross profit for the same period was HK$1,292,000, down 74.9% from HK$5,138,000 in the previous year[9] - The company reported a loss before tax of HK$1,132,000, compared to a profit of HK$1,248,000 in Q1 2022[9] - The loss attributable to owners of the company was HK$1,112,000, compared to a profit of HK$1,373,000 in the same period last year[10] - Basic and diluted loss per share was HK$0.21, compared to a profit of HK$0.26 per share in Q1 2022[10] - Total revenue decreased by approximately HK$6,185,000 from approximately HK$8,393,000 for the three months ended March 31, 2022, to approximately HK$2,208,000 for the three months ended March 31, 2023, primarily due to a slowdown in the outdoor advertising business[48] - Gross profit decreased from approximately HK$5,138,000 for the three months ended March 31, 2022, to approximately HK$1,292,000 for the three months ended March 31, 2023, mainly due to a decrease in sales volume[50] - Operating expenses decreased to HK$2,058,000, a reduction of 36.4% from HK$3,241,000 in Q1 2022[9] - Operating expenses decreased by approximately HK$1,183,000 from approximately HK$3,241,000 for the three months ended March 31, 2022, to approximately HK$2,058,000 for the three months ended March 31, 2023, due to reduced legal and professional expenses[51] - Finance costs amounted to approximately HK$366,000 for the three months ended March 31, 2023, compared to HK$649,000 for the same period in 2022[57] Equity and Shares - As of March 31, 2023, total equity attributable to owners of the company was HK$30,594,000, down from HK$31,889,000 at the beginning of the year[12] - The weighted average number of ordinary shares for calculating loss per share remained unchanged at 518,400,000 for both periods[37] - The company has 518,400,000 shares in issue as of March 31, 2023[78] - Mr. Lui Man Wah holds 320,023,300 shares, representing approximately 61.73% of the issued share capital of the company[73] - No dividend has been paid or proposed for the three months ended March 31, 2023, consistent with the same period in 2022[34] Business Operations and Market Conditions - Publications and advertising income for the period was HK$1,988,000, down 57.6% from HK$4,684,000 in the previous year[26] - Outdoor advertising income fell to HK$220,000, a decline of 93.9% from HK$3,617,000 in the prior year[26] - The demand for advertising was severely affected in the first quarter of 2023, with companies preferring smaller and more diversified advertisements to test the Macau market[45] - Visitor numbers to Macau gradually increased in the first quarter of 2023, following the relaxation of travel restrictions[44] - The prolonged COVID-19 pandemic has significantly impacted the tourism business in Macau, with total visitation dropping by 26.0% to 5.7 million in 2022 compared to 2021[39] - The total number of visitors to Macau in 2022 was 5.7 million, a decrease of 26.0% compared to 2021, and only 14.5% of the visitor numbers in 2019[41] - The new gaming concession in Macau was confirmed in December 2022, following a period of uncertainty in the tourism and hotel industry[40] - The advertising industry is still facing uncertainty due to geopolitical tensions and economic challenges, despite expectations that the pandemic's impact will ease[46] Future Plans and Developments - The company plans to use the net proceeds from the placing for current business development expenditures[62] - The company plans to develop a new business segment related to fast-moving consumer goods, including traditional Chinese medicine and beauty products, to create synergies with its existing advertising business[65] - The new business segment is expected to diversify the company's product portfolio and benefit shareholders as a whole[68] - The company aims to raise additional funding through the New Placing Shares to strengthen its financial position without incurring interest burdens[66] Compliance and Governance - The financial results have been prepared in accordance with Hong Kong Financial Reporting Standards[16] - The company has been listed on GEM since February 16, 2015, and operates under the GEM Listing Rules[14] - The Group has not early adopted any new HKFRSs that are not yet effective, and anticipates no material impact on future consolidated financial statements[21] - The Audit Committee has reviewed the unaudited condensed consolidated financial results for the three months ended March 31, 2023[92] - The audit committee, consisting of independent non-executive directors, reviewed the financial performance before presenting it to the board for approval[94] - As of the report date, the board includes two executive directors and three independent non-executive directors[98] - The unaudited condensed consolidated financial results for the three months ended March 31, 2023, have not been audited by the Company's auditor[96] - There are no known competing businesses or conflicts of interest involving the Directors or controlling shareholders during the reporting period[90] Share Transactions - During the three months ended March 31, 2023, the company did not purchase, sell, or redeem any of its listed securities[85] - The Share Option Scheme adopted on February 16, 2015, will expire on February 16, 2025, and all options granted have been cancelled as of October 16, 2019[84] Capital Raising - The company completed a placing of new shares on April 3, 2023, raising approximately HK$14.2 million after expenses, with the new shares representing approximately 16.67% of the issued share capital[59] - The net proceeds from the Placing have not been utilized as of the report date[64]
惠陶集团(08238) - 2023 Q1 - 季度财报