Financial Performance - Revenue for the three months ended March 31, 2023, was approximately HKD 31,667,000, a decrease of about 12.9% compared to HKD 36,356,000 in the same period of 2022[4] - Loss attributable to shareholders for the three months ended March 31, 2023, was approximately HKD 2,698,000, a reduction of about 42.2% from HKD 4,668,000 in the same period of 2022[4] - Gross profit for the three months ended March 31, 2023, was HKD 643,000, compared to HKD 452,000 in the same period of 2022, indicating an improvement in gross margin[5] - Operating loss for the three months ended March 31, 2023, was HKD 2,745,000, improved from HKD 4,716,000 in the same period of 2022[5] - Total comprehensive loss for the period was HKD 2,378,000, compared to HKD 4,691,000 in the same period of 2022, reflecting a reduction in overall losses[5] - The company reported a basic and diluted loss per share of approximately HKD 0.0146 for the three months ended March 31, 2023, compared to a loss of approximately HKD 0.0253 for the same period last year[20] Revenue Breakdown - Revenue from telecommunications services was HKD 1,131,000 for the three months ended March 31, 2023, compared to HKD 487,000 in the same period of 2022, showing significant growth[12] - Revenue from distribution business was HKD 30,536,000 for the three months ended March 31, 2023, down from HKD 35,869,000 in the same period of 2022[12] - Revenue from telecommunications services and distribution business was approximately HKD 1,131,000 and HKD 30,536,000, accounting for about 3.6% and 96.4% of total revenue, respectively[39] - The distribution business in Hong Kong generated revenue of approximately HKD 14,167,000 for the three months ended March 31, 2023, a decrease of about 21.9% from approximately HKD 18,131,000 in the same period last year[28] - The distribution business in China reported revenue of approximately HKD 2,416,000 for the three months ended March 31, 2023, an increase of about 2.9 times from approximately HKD 623,000 in the same period last year[29] - The revenue from mobile and data recharge distribution business decreased by approximately HKD 17,115,000, or 18.5%, to approximately HKD 13,953,000 compared to the same period last year[32] Cost Management and Business Strategy - The company is actively negotiating with service providers to further reduce the unit cost of call time and mobile data, aiming to lower the selling price of prepaid products to enhance competitiveness[28] - The company is expanding its business in Hong Kong to include the distribution of mobile phones and electronic products, which has become a major source of revenue[28] - The company is exploring overseas markets to offer mobile data services at lower prices for outbound travelers[28] - The group has strengthened cost control and extended credit terms for distributors to adapt to various market conditions[28] - The group continues to explore suitable business opportunities and investment prospects in the telecommunications sector while implementing strict cost control measures[38] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code as per GEM Listing Rules Appendix 15 during the three-month period ending March 31, 2023[58] - The company’s board members have confirmed adherence to the trading standards set forth in the GEM Listing Rules for securities transactions[59] - The company has disclosed no other interests or positions held by directors or major shareholders that require reporting under the Securities and Futures Ordinance as of March 31, 2023[53] - The company is committed to high levels of corporate governance to protect shareholder interests[58] Shareholder Information - As of March 31, 2023, the company has a significant shareholder, New Everich Holdings Limited, holding 104,437,500 shares, representing 56.49% of the total shares[51] - Li Jiancheng, a major shareholder, controls 56.49% of the shares through New Everich, and also holds 5,062,500 shares directly, accounting for 2.74%[51] - The company’s major shareholders include Golden Brand Holdings Limited, which holds 16,500,000 shares, representing 8.92%[54] Risk Management and Internal Control - The company has established a risk management and internal control system, which has been deemed sufficient and effective by the audit committee[66] - The management has confirmed the effectiveness of the financial reporting and risk management systems as of March 31, 2023[66] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited performance for the three months ending March 31, 2023, and confirmed compliance with applicable accounting standards[68] Business Development - The company continues to focus on its telecommunications services and distribution business as its primary revenue streams[7] - The group is optimistic about medium to long-term business development and is actively expanding market channels in various regions[35] - The group has established a formal cooperation agreement to accelerate its 5G infrastructure business development[35] Other Information - The company did not recommend any dividend for the three months ended March 31, 2023[4] - The company has not granted or cancelled any stock options under its stock option plan as of March 31, 2023, and there are no unexercised options remaining[57] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the three months ending March 31, 2023[61] - The company has no reported interests in any competing businesses as of March 31, 2023, except for a joint venture with Direct Telecom Limited, which may offer competing services[62] - The company is committed to not engaging in any business that competes with its RF-SIM operations in Hong Kong and Macau, as per a non-competition agreement signed in May 2010[65] - Sunward Telecom Limited's wholly-owned subsidiary, Zhonggang Tong Telecom Co., Ltd., has obtained exclusive licensing rights for RF-SIM intellectual property in Hong Kong and Macau[65] - The company focuses on the development, production, and sales of RF-SIM products, as well as the licensing of RF-SIM rights outside Hong Kong and Macau[63]
直通电讯(08337) - 2023 Q1 - 季度财报