Financial Performance - The company reported revenue of HKD 988,291,000 for the three months ended September 30, 2022, compared to HKD 23,252,000 in the same period of 2021, representing a significant increase[4]. - The cost of services provided was HKD 984,565,000, resulting in a gross profit of HKD 3,726,000, up from HKD 2,359,000 in the previous year[4]. - The company incurred a loss before tax of HKD 12,410,000, compared to a loss of HKD 5,909,000 in the same period last year[4]. - The net loss for the period was HKD 13,907,000, which includes a loss attributable to owners of the company of HKD 13,238,000[6]. - Basic and diluted loss per share was HKD 0.18, compared to HKD 0.08 in the same period of the previous year[6]. - Total comprehensive loss for the period was HKD 32,775,000, compared to a total comprehensive loss of HKD 5,337,000 in the same period last year[6]. - The company recorded a loss attributable to shareholders of approximately HKD 13.24 million, compared to HKD 6.20 million in the previous year, with the increase mainly due to fair value changes in financial assets[25]. - The company recorded a loss of approximately HKD 30,000 in its lending business, down from a profit of HKD 1.33 million in the previous year, attributed to a more cautious approach in lending[31]. - The company experienced a loss of HKD 4.97 million from investments in listed securities, compared to a profit of HKD 2.2 million in the previous year[24]. Revenue Breakdown - Revenue from fresh produce and agricultural products trading was HKD 977,522,000, while revenue from excavation and construction services was HKD 9,006,000[13]. - Revenue from coal mining and construction services was approximately HKD 9 million, a decrease from HKD 20.17 million in the previous year, representing 0.91% of total revenue[27]. - The fresh agricultural products trading business generated revenue of approximately HKD 977,520,000, accounting for 98.91% of the total revenue of the group, with a classified profit of HKD 4,690,000[33]. Costs and Expenses - Interest income from lending business was HKD 1,763,000, down from HKD 3,080,000 in the previous year[13]. - Financing costs for the period were HKD 470,000, slightly down from HKD 480,000 in the previous year[25]. - Tax expenses for the period amounted to HKD 1.5 million, up from HKD 370,000 in the previous year, primarily due to tax expenses from the new fresh product trading business[25]. - Gross profit increased from approximately HKD 2.36 million to approximately HKD 3.73 million, but the overall gross margin decreased from 10.15% to 0.38% due to reduced revenue from excavation and construction services, decreased interest income from lending, and low margins in fresh agricultural product trading[24]. Strategic Focus and Future Outlook - The company continues to focus on expanding its service offerings in fresh produce trading and construction services[10]. - The board anticipates continued challenges in the coal mining and construction services due to COVID-19, rising production costs, and intense market competition, which may lead to lower-than-expected revenues if new project orders are not secured[37]. - The board is optimistic about the demand for imported fruits and quality agricultural products in China due to rising purchasing power and living standards[40]. - The group plans to allocate more resources to the fresh agricultural products trading segment, which is expected to be a major growth driver[40]. - The group has established a strategic partnership with China National Grain and Oils Information Center (Guangdong) Co., Ltd to enhance product quality and customer relationships in the fresh agricultural products trade[40]. Corporate Governance - The company is committed to maintaining high levels of corporate governance to enhance shareholder value, with clear separation of roles between the chairman and CEO[55]. - The audit committee, consisting of four independent non-executive directors, reviewed the unaudited condensed consolidated financial statements, ensuring compliance with applicable accounting standards and GEM listing rules[57]. - The company has adopted the GEM listing rules regarding securities trading conduct, ensuring all directors complied with these standards during the reporting period[54]. - No directors or major shareholders had any interests in businesses that compete or may compete with the company during the reporting period[51]. - The company has not established any arrangements for directors to benefit from purchasing shares or debt securities of the company or any other corporation[49]. - The board of directors includes four executive directors and four independent non-executive directors, with ongoing reviews of the board structure[58]. Shareholder Information - As of September 30, 2022, major shareholders include Hsu Kung Ming with a 27.42% stake (2,054,380,000 shares) and Red Tree Bay Investment Group International Limited with a 27.58% stake (2,066,380,000 shares)[50]. - Hsu Kung Ming is recognized as the beneficial owner of 12,000,000 shares, representing 0.16% of the company's ordinary shares[50]. Dividend and Proceeds - The company did not recommend any dividend distribution for the three months ended September 30, 2022[20]. - As of September 30, 2022, the remaining unutilized proceeds from the 2016 placement amounted to approximately HKD 80,000,000, which has not been used for any investments yet[45]. - The board may consider reallocating part of the unutilized proceeds to the fresh agricultural products trading business due to its positive outlook[45]. Other Income and Losses - Other income for the period was approximately HKD 780,000, compared to HKD 750,000 in the previous year, primarily from government subsidies and interest income[24]. - The group recorded a fair value loss of approximately HKD 4,970,000 on financial assets measured at fair value through profit or loss during the period, compared to a gain of HKD 2,200,000 in the previous year[35]. - The company did not engage in any purchase, sale, or redemption of its listed securities during the reporting period[53]. - The company has not disclosed any new product developments, market expansions, or mergers during the reporting period[56].
都都控股(08250) - 2023 Q1 - 季度财报