Financial Performance - The group's revenue for the nine months ended December 31, 2022, was approximately HKD 62.9 million, a decrease of about HKD 10.2 million or 13.9% compared to the same period in 2021[12]. - The net profit attributable to equity holders for the nine months ended December 31, 2022, was approximately HKD 1.8 million, a decrease of about HKD 4.3 million or 70.8% compared to the same period in 2021[12]. - The total comprehensive income for the nine months ended December 31, 2022, was approximately HKD 1.7 million, a decrease of about HKD 4.4 million or 72.0% compared to the same period in 2021[12]. - The gross profit for the nine months ended December 31, 2022, was HKD 42.1 million, down from HKD 49.2 million in the same period of 2021[16]. - Basic earnings per share decreased to 0.11 HKD for the nine months ended December 31, 2022, compared to 0.38 HKD for the same period in 2021[26]. - The group reported a profit of approximately 1.8 million HKD for the period, a decrease of about 70.8% from approximately 6.0 million HKD for the nine months ended December 31, 2021[46]. Dividends and Shareholder Information - The board of directors does not recommend the payment of an interim dividend for the nine months ended December 31, 2022[12]. - The group did not recommend the payment of an interim dividend for the period, consistent with the previous year[27]. - The company has not proposed any interim dividend for the period[97]. - The company’s major shareholder, Yu Ding, holds a 47.09% equity interest in the company[92]. - Rothley Investment Limited owns 3.75% of the company's shares, fully owned by Ms. Babington[91]. Expenses and Costs - The group incurred administrative expenses of HKD 17.8 million for the nine months ended December 31, 2022, compared to HKD 15.7 million in the same period of 2021[16]. - The group's financial costs for the nine months ended December 31, 2022, were HKD 0.519 million, an increase from HKD 0.392 million in the same period of 2021[16]. - The group's administrative expenses increased by approximately 13.3% to about HKD 17.8 million for the nine months ended December 31, 2022, from approximately HKD 15.7 million for the same period in 2021[57]. Revenue Sources - Direct sales revenue from retail stores for the nine months ended December 31, 2022, was approximately HKD 53.2 million, a decrease of about HKD 3.3 million or 5.8% compared to approximately HKD 56.5 million for the same period in 2021[64]. - The revenue from food and beverage operations at the TREE Café decreased from approximately HKD 3.1 million for the nine months ended December 31, 2021, to about HKD 2.6 million for the same period in 2022[67]. - Commission income decreased from approximately HKD 7.4 million for the nine months ended December 31, 2021, to about HKD 6.2 million for the same period in 2022[68]. - The group recorded no revenue from the sale of luxury Italian furniture to Chinese customers through Shanghai Yita Meizhi for the nine months ended December 31, 2022, compared to approximately HKD 4.3 million for the same period in 2021[65]. Other Income and Government Support - The group’s other income for the nine months ended December 31, 2022, was HKD 5.1 million, compared to HKD 0.5 million in the same period of 2021[16]. - Other income increased from approximately 0.5 million HKD for the nine months ended December 31, 2021, to approximately 5.1 million HKD for the corresponding period, an increase of about 923.4%[55]. - The group received government subsidies amounting to approximately 1.6 million HKD during the period[55]. Market Environment and Strategy - The retail environment remains competitive, and consumer confidence continues to be affected by the ongoing COVID-19 pandemic, indicating challenges for the upcoming fiscal year[84]. - The company will focus on operating its two retail stores in Hong Kong and its e-commerce platform while seeking to integrate and invest to enhance current revenue sources and explore new opportunities[84]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as per GEM listing rules since its listing on January 25, 2018, except for code provision C.2.1[114]. - The board of directors has confirmed compliance with the securities trading code of conduct during the reporting period[119]. - No additional disclosures regarding interests or short positions in the company's shares were made by directors as of December 31, 2022[125]. Sustainability Efforts - The group has strengthened its commitment to sustainability by increasing tree planting efforts in partnership with Indonesian partners, having planted nearly 100,000 trees to date[71]. Business Operations - The group operates two "TREE" retail stores in Hong Kong and has launched online sales since May 2019, offering a variety of furniture and home decor products[47]. - The group acquired Easy Home Credit Limited, which primarily provides consumer loan services, in January 2022[60]. - The group has established multiple distribution agreements with Chinese distributors, with non-refundable annual fees of HKD 0.8 million and HKD 2.4 million for distribution rights in Hainan Province and Beijing, respectively[66]. Share Options and Leadership - The company has not granted any share options under the share option scheme during the period[98]. - The board believes that having the same person serve as both chairman and CEO provides strong and consistent leadership, enhancing efficiency in business decision-making[96].
中显智能齐家控股(08395) - 2023 Q3 - 季度财报