Financial Performance - Revenue for the first quarter of 2023 was HKD 28,254,000, an increase of 10% compared to HKD 25,636,000 in the same period of 2022[5] - Cost of sales decreased significantly to HKD 22,360,000 from HKD 34,504,000, resulting in a gross profit of HKD 5,894,000 compared to a loss of HKD 8,868,000 in the previous year[5] - Operating profit for the quarter was HKD 745,000, a turnaround from an operating loss of HKD 15,734,000 in Q1 2022[5] - Profit attributable to owners of the company was HKD 1,641,000, compared to a loss of HKD 14,791,000 in the same quarter last year[5] - Basic and diluted earnings per share for the quarter were HKD 1.03, a significant improvement from a loss of HKD 13.57 per share in Q1 2022[5] - The company reported other income of HKD 321,000, down from HKD 850,000 in the previous year[5] - Administrative expenses decreased to HKD 5,974,000 from HKD 7,819,000, reflecting cost control measures[5] Revenue Sources - Construction contract revenue for the three months ended June 30, 2023, was HKD 25.641 million, slightly up from HKD 25.426 million in 2022, while machinery leasing revenue surged to HKD 2.613 million from HKD 0.210 million[13] - The company attributed the increase in profit to higher machinery leasing income, improved profit margins from new construction projects, and reduced administrative expenses[26] - Major customers contributing over 10% of total revenue included Customer 1 with HKD 12.935 million and Customer 2 with HKD 8.967 million for the three months ended June 30, 2023[16] Cost Management - The cost of sales for the same period was approximately HKD 22.4 million, a decrease of about 35.2% from HKD 34.5 million in the previous year, mainly due to reduced labor costs[30] - Administrative expenses decreased to approximately HKD 6.0 million, down about 23.6% from HKD 7.8 million in the previous year, primarily due to reductions in legal, professional, and marketing expenses[32] Investments and Future Plans - The company has invested significantly in machinery and equipment for its foundation engineering business, indicating a focus on operational capacity[8] - The group plans to invest in human resources and information systems to enhance operational capabilities and efficiency in foundation and site leveling works, as well as drilling pile projects[27] - The group aims to actively seek potential business opportunities to diversify revenue sources and enhance shareholder returns, particularly in the financial and fintech sectors[27] Financial Management and Fundraising - The company announced the issuance of convertible bonds to raise approximately HKD 29.4 million for the acquisition of Jun Da Holdings Limited, which was later terminated[41] - The principal amount of the first convertible bond issued was HKD 10 million at a 2.5% interest rate, while the second convertible bond was planned for HKD 30 million[41] - The net proceeds from the placement of new shares in November 2022 amounted to approximately HKD 6.5 million, which was fully utilized for general working capital by June 30, 2023[46] - The company proposed a rights issue in February 2023 to raise approximately HKD 33.5 million, with a subscription price of HKD 0.147 per share[47] - The rights issue was approved by independent shareholders on April 12, 2023, and the net proceeds are intended for expanding the company's foundational business capabilities and developing AI business[47] - As of June 30, 2023, the net proceeds from the rights issue had not been utilized, with HKD 18.5 million allocated for expanding foundational business capabilities and HKD 7.5 million for AI development[50] - The company plans to use approximately HKD 7.5 million from the rights issue for general working capital, with a timeline for utilization by June 30, 2024[50] Governance and Compliance - The financial report is prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance and transparency[9] - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ending June 30, 2023, confirming compliance with applicable accounting standards and GEM listing rules[64] - The company has adhered to the corporate governance code as per GEM listing rules during the three months ending June 30, 2023[63] - There were no competitive businesses or conflicts of interest involving directors or major shareholders during the three months ending June 30, 2023[57] Shareholder Information - The company did not recommend the payment of an interim dividend for the three months ended June 30, 2023, consistent with the previous year[22] - The largest shareholder, Jinshi One Limited Partnership Fund, holds 33,098,750 shares, representing approximately 20.69% of the total shares[53] - Success Run International Limited, controlled by Ms. Wang Feixiang, holds 21,790,000 shares, accounting for 13.62% of the total shares[53] - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ending June 30, 2023[55] - The company has adopted a share option scheme effective from September 22, 2017, allowing for the issuance of options up to 10% of the total issued shares at any time[59] - No share options were granted, exercised, expired, or lapsed during the three months ending June 30, 2023[61] Miscellaneous - The first quarter report for the period ending June 30, 2023, will be electronically distributed to shareholders[66] - The company is committed to ensuring shareholders can access printed copies of the first quarter report upon request[66] - The board of directors includes executive and independent non-executive members, ensuring diverse governance[66]
中国新消费集团(08275) - 2024 Q1 - 季度财报