Financial Performance - For the three months ended March 31, 2023, the company reported revenue of HKD 42,217,000, a decrease of 2.5% compared to HKD 43,303,000 for the same period in 2022[8] - The cost of sales for the same period was HKD 31,664,000, down from HKD 35,279,000, resulting in a gross profit of HKD 10,553,000, which is an increase of 31.5% from HKD 8,024,000 in 2022[8] - Other income increased significantly to HKD 4,252,000 from HKD 1,423,000, marking a growth of 199.5%[8] - The operating loss for the quarter was HKD 8,206,000, an improvement from a loss of HKD 15,582,000 in the previous year, indicating a reduction of 47.3%[8] - The loss before tax was HKD 10,563,000, down from HKD 16,814,000, reflecting a decrease of 37.2%[8] - The total comprehensive loss for the period was HKD 10,173,000, compared to HKD 16,779,000 in the same quarter of 2022, showing a reduction of 39.5%[8] - Basic and diluted loss per share for the quarter was HKD 1.34, improved from HKD 2.12 in the previous year[8] - Net loss for the three months ended March 31, 2023, was approximately HKD 10.7 million, compared to a net loss of approximately HKD 16.9 million for the same period in 2022, primarily due to improved gross margin[28] - Gross profit for the three months ended March 31, 2023, was approximately HKD 10.6 million, with a gross margin of 25%, compared to a gross profit of approximately HKD 8.0 million and a gross margin of 18.5% for the same period in 2022[34] Cost Management - Cost of sales decreased by approximately 10.2% from HKD 35.3 million for the three months ended March 31, 2022, to approximately HKD 31.7 million for the same period in 2023, attributed to reduced revenue and effective cost control measures[33] - Distribution costs decreased from HKD 8.3 million for the three months ended March 31, 2022, to HKD 6.7 million for the three months ended March 31, 2023, primarily due to strict cost control measures[36] - Administrative expenses decreased by approximately 3% from HKD 16.8 million for the three months ended March 31, 2022, to HKD 16.3 million for the three months ended March 31, 2023, mainly due to reductions in employee costs and office expenses[37] - Financial costs increased from HKD 1.2 million for the three months ended March 31, 2022, to HKD 2.4 million for the three months ended March 31, 2023, due to increased interest expenses on borrowings and lease liabilities[38] Corporate Strategy - The company continues to focus on expanding its product offerings and enhancing operational efficiency to drive future growth[12] - The company plans to diversify its business strategy, including improving equipment and increasing automation, expanding the customer base, and continuing to attract high-end talent[30] - The company operates a single business segment focused on the production of books and paper products[20] Compliance and Governance - The financial report is prepared in accordance with the GEM Listing Rules and reflects the company's commitment to transparency and compliance[15] - The company has complied with the corporate governance code principles and applicable code provisions for the three months ended March 31, 2023, with one exception regarding the separation of roles between the chairman and CEO[46] - The company’s auditor has issued a report on the financial statements without any reservations, indicating a clean audit opinion[18] - The audit committee reviewed the unaudited consolidated financial performance for the three months ending March 31, 2023, confirming compliance with applicable accounting standards[60] Shareholder Information - As of March 31, 2023, the total equity attributable to equity shareholders was HKD 47,632,000, down from HKD 113,506,000 at the end of the previous year[10] - As of March 31, 2023, 9% of the company's issued share capital was pledged as collateral for a loan by the controlling shareholder[55] - As of March 31, 2023, First Tech holds 480,000,000 shares, representing 60% of the company's equity[57] - The company has a pledge on 72,000,000 shares, equivalent to 9% of the issued share capital, as collateral for a loan[57] - No dividends were proposed for the three months ended March 31, 2023, consistent with the previous period[44] - The company does not recommend the distribution of dividends for the three months ended March 31, 2023, consistent with the previous year[25] - No share buybacks, sales, or redemptions occurred during the three months ended March 31, 2023[53] - No other individuals, apart from the disclosed parties, hold 10% or more of the voting rights in any member company of the group as of March 31, 2023[58] - The company has no directors or their close associates holding interests in any competing businesses[59] Risks and Challenges - The company faces risks such as economic uncertainty due to tightening monetary policies, rising paper costs, and challenges from technological advancements in the publishing industry[30] Acquisition Activity - The company has entered into an agreement to acquire 13% of the registered capital of a target company for RMB 1,050,000, to be paid through the issuance of 31,120,000 shares, representing approximately 3.74% of the enlarged issued share capital[29] - The company has agreed to purchase 13% of the registered capital of a target company for RMB 1,050,000, to be paid through the issuance of 31,120,000 shares, representing approximately 3.74% of the enlarged issued share capital post-completion[42]
万里印刷(08385) - 2023 Q1 - 季度财报