Financial Performance - The company reported revenue of HKD 25,636,000 for the three months ended June 30, 2022, a decrease of 5.6% compared to HKD 27,143,000 in the same period last year[8]. - The cost of sales increased significantly to HKD 34,504,000, resulting in a gross loss of HKD 8,868,000 compared to a gross profit of HKD 3,327,000 in the previous year[8]. - Operating loss for the period was HKD 15,734,000, a decline from an operating profit of HKD 367,000 in the prior year[8]. - The company recorded a total comprehensive loss attributable to owners of HKD 14,791,000 for the period, compared to a comprehensive income of HKD 226,000 in the same quarter last year[6]. - Basic and diluted loss per share was HKD 13.57, compared to earnings of HKD 0.49 per share in the previous year[6]. - The group recorded a net loss of HKD 14,791,000 for the three months ended June 30, 2022, compared to a net profit of HKD 226,000 for the same period in 2021, indicating a significant decline in profitability[44]. Administrative and Operational Costs - Administrative expenses rose to HKD 7,819,000, up from HKD 3,209,000 in the same period last year, indicating increased operational costs[8]. - The increase in administrative expenses was attributed to legal and professional fees related to the rights issue and increased marketing expenses due to business development[52]. - The group faced cost overruns in its drilling pile projects, particularly due to delays in the Hung Hom project, leading to a decline in gross profit[52]. - The group's financing costs decreased to HKD 143,000 in the three months ended June 30, 2022, from HKD 251,000 in the same period of 2021[39]. Revenue Sources and Customer Contributions - Major customer contributions included HKD 15,062,000 from Customer 1 and HKD 6,763,000 from Customer 2, with Customer 1 representing over 10% of total revenue[32]. - The company reported other income of HKD 850,000, an increase from HKD 249,000 in the previous year, reflecting some diversification in revenue sources[8]. Rights Issue and Capital Management - The group completed a rights issue on May 3, 2022, issuing 81,000,000 shares at a subscription price of HKD 0.55 per share, raising approximately HKD 42.6 million net of estimated expenses[65]. - Approximately HKD 20 million from the rights issue proceeds will be used for the purchase of a new office and related renovation costs[65]. - The actual usage of the rights issue proceeds included HKD 3.1 million for the repayment of convertible notes and HKD 2.1 million for the purchase of new office properties and related renovations[69]. - The company plans to hire full-time employees with an allocated budget of HKD 7.0 million, of which none has been utilized as of June 30, 2022[69]. - Business development and marketing expenses accounted for HKD 1.0 million out of the planned HKD 3.0 million[69]. Governance and Compliance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[25]. - The unaudited consolidated financial statements for the three months ended June 30, 2022, have been reviewed by the audit committee[84]. - The audit committee believes that the financial statements comply with applicable accounting standards and GEM listing rules, ensuring adequate disclosure[84]. - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[85]. Market Environment and Future Plans - The overall industry and business environment remain challenging due to the ongoing COVID-19 pandemic, impacting the foundation industry with supply chain disruptions and labor shortages[53]. - The company has invested significantly in machinery and equipment for foundation engineering, indicating a focus on enhancing operational capabilities[24]. - The company is engaged in foundation engineering and has a range of drilling equipment, which positions it for potential market expansion[24]. - The group plans to invest in human resources and information systems to enhance operational capabilities and efficiency in foundation and site preparation works[53]. Shareholder Information - Major shareholders include China New Economy Investment Limited with a 19.53% stake and Success Run International Limited with a 13.59% stake as of June 30, 2022[73]. - The total number of shares issued after the completion of the rights issue in May 2022 was 135,000,000 shares, each with a par value of HKD 0.5[67]. - The group did not declare an interim dividend for the three months ended June 30, 2022, consistent with the previous year[43]. - The board did not recommend the payment of an interim dividend for the three months ended June 30, 2022[58]. Share Option Scheme - The company has adopted a share option scheme effective from September 22, 2017, which allows for the issuance of options up to 10% of the total issued shares at any time[79]. - No share options were granted, exercised, expired, or lapsed during the three months ending June 30, 2022[81].
中国新消费集团(08275) - 2023 Q1 - 季度财报