Financial Performance - The group reported revenue of HKD 43,303,000 for the three months ended March 31, 2022, a decrease of 24.0% compared to HKD 57,009,000 in the same period of 2021[9]. - Gross profit for the same period was HKD 6,563,000, down 52.0% from HKD 13,660,000 year-on-year[9]. - Operating loss increased to HKD 15,582,000, compared to an operating loss of HKD 2,504,000 in the previous year, reflecting a significant decline in profitability[9]. - The group recorded a loss before tax of HKD 16,814,000, compared to a loss of HKD 4,093,000 in the prior year, indicating a worsening financial performance[9]. - The net loss for the period was HKD 16,922,000, compared to a net loss of HKD 4,204,000 in the same quarter of 2021[9]. - Basic and diluted loss per share was HKD 2.12, compared to a loss of HKD 0.53 per share in the previous year[9]. - The net loss for the three months ended March 31, 2022, was approximately HKD 16.9 million, compared to a net loss of HKD 4.2 million for the same period in 2021[28]. - The group recorded a loss of approximately HKD 16.9 million for the three months ended March 31, 2022, compared to a loss of HKD 4.2 million for the same period in 2021, primarily due to reduced sales orders caused by COVID-19 and global economic uncertainty[40]. Equity and Financial Position - The group’s total equity as of March 31, 2022, was HKD 113,506,000, down from HKD 208,347,000 at the beginning of the year[11]. - As of March 31, 2022, the group had an outstanding bank financing principal amount of HKD 136,407,884, with a covenant requiring tangible asset net worth to be no less than HKD 200 million[41]. - The group recognized an impairment loss of HKD 56,150,000 on accounts receivable due to high uncertainty in recoverable amounts caused by economic instability and COVID-19[41]. Expenses - The company experienced a significant increase in distribution costs, which rose to HKD 8,258,000 from HKD 4,237,000 year-on-year, reflecting higher expenses in sales activities[9]. - Administrative expenses increased to HKD 15,310,000, compared to HKD 14,085,000 in the same period last year, indicating rising operational costs[9]. - Other income decreased by approximately 36.4% to HKD 1.4 million for the three months ended March 31, 2022, down from HKD 2.2 million in 2021, primarily due to reduced rental income[34]. - Distribution costs increased to approximately HKD 8.3 million for the three months ended March 31, 2022, compared to HKD 4.2 million in 2021, attributed to higher freight and commission expenses[35]. - Administrative expenses rose by approximately 8.7% to HKD 15.3 million for the three months ended March 31, 2022, from HKD 14.1 million in 2021, mainly due to increased employee costs and office expenses[36]. - Financial costs for the three months ended March 31, 2022, were approximately HKD 1.2 million, compared to HKD 1.6 million for the same period in 2021, indicating stability in financial costs[37]. Strategic Outlook - The group plans to continue exploring new strategies for market expansion and product development to improve future performance[9]. - The company plans to improve equipment and increase automation to enhance competitiveness and market share[30]. - The company remains cautiously optimistic about the printing market's stable and healthy development despite challenges from economic uncertainties and rising paper costs[30]. Corporate Governance - The group has complied with the corporate governance code principles during the reporting period, with a noted deviation regarding the separation of roles between the Chairman and CEO[45][46]. - The audit committee reviewed the unaudited consolidated financial performance for the three months ending March 31, 2022, confirming compliance with applicable accounting standards[58]. - No directors or their close associates hold interests in any competing businesses[57]. Shareholder Information - The Chairman and CEO, Mr. Lin, holds a 60% equity interest in the company through a controlled corporation, with 480,000,000 shares held[54]. - First Tech holds a 60% equity stake in the company, with 480,000,000 shares owned[56]. - As of March 31, 2022, First Tech is the sole beneficial owner of 50,000 shares in a related entity[55]. - The pledged shares by First Tech amount to 72,000,000, representing 9% of the company's issued share capital[56]. - The group did not grant or exercise any share options under the stock option plan during the three months ended March 31, 2022[50]. - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the three months ended March 31, 2022[52]. Dividends - No dividend was recommended for the three months ended March 31, 2022, consistent with the same period in 2021[25]. - The group did not propose any dividend for the three months ended March 31, 2022, consistent with the previous period[43]. COVID-19 Measures - The company has implemented various measures to ensure the health and safety of customers and employees amid the COVID-19 pandemic[30].
万里印刷(08385) - 2022 Q1 - 季度财报