Financial Performance - The group recorded revenue of approximately HKD 73,520,000 for the three months ended June 30, 2023, compared to HKD 63,565,000 for the same period in 2022, representing a year-over-year increase of approximately 15.4%[6] - The profit attributable to the owners of the company for the three months ended June 30, 2023, was approximately HKD 149,000, a significant decrease from HKD 1,125,000 for the same period in 2022, reflecting a decline of approximately 86.8%[6] - The gross profit for the three months ended June 30, 2023, was HKD 16,253,000, slightly up from HKD 16,202,000 in the same period of 2022, indicating a marginal increase of 0.3%[7] - The total comprehensive income for the period attributable to the owners of the company was HKD 149,000, down from HKD 1,125,000 in the previous year, indicating a decline of approximately 86.8%[7] - The group’s pre-tax profit for the three months ended June 30, 2023, was HKD 289,000, a decrease from HKD 1,231,000 in the same period of 2022, representing a decline of approximately 76.6%[7] - The basic earnings per share for the three months ended June 30, 2023, was HKD 0.01, down from HKD 0.10 in the same period of 2022, reflecting a decrease of approximately 90%[7] Expenses and Costs - The group incurred a financing cost of HKD 248,000 for the three months ended June 30, 2023, compared to HKD 151,000 in the same period of 2022, marking an increase of approximately 64.9%[7] - The group’s sales and distribution expenses increased to HKD 8,861,000 for the three months ended June 30, 2023, compared to HKD 7,180,000 in the same period of 2022, reflecting an increase of approximately 23.4%[7] - The group’s administrative expenses were HKD 7,865,000 for the three months ended June 30, 2023, slightly down from HKD 7,985,000 in the same period of 2022, indicating a decrease of approximately 1.5%[7] - The company’s pre-tax profit for the three months ended June 30, 2023, was impacted by total employee costs of HKD 7,067,000, up from HKD 6,124,000 in 2022[22] - Cost of sales for the same period was approximately HKD 57,267,000, an increase of about HKD 9,904,000 or approximately 20.9% compared to HKD 47,363,000 for the same period last year[33] Dividends - The group did not recommend any dividend payment for the three months ended June 30, 2023, consistent with the previous year where no dividend was declared[6] - The company did not declare or recommend any dividends for the three months ended June 30, 2023[25] Revenue Breakdown - Revenue breakdown by product line for 2023 includes: Daily necessities and grain products at HKD 22,282,000, packaged food at HKD 14,990,000, sauces and condiments at HKD 15,547,000, dairy and eggs at HKD 9,276,000, beverages and alcohol at HKD 5,503,000, and kitchen and hygiene products at HKD 5,922,000[17] - Revenue for the three months ended June 30, 2023, increased by approximately HKD 9,955,000 or about 15.7% to approximately HKD 73,520,000, driven by increased demand for food and beverage products[32] Other Income - Other income for the three months ended June 30, 2023, was HKD 1,119,000, compared to HKD 766,000 in 2022, with significant contributions from service fees and interest income[20] - Other income rose from approximately HKD 766,000 to about HKD 1,119,000, mainly due to a service fee of approximately HKD 1,001,000 received from an independent third party[36] Cash and Financial Position - As of June 30, 2023, the company's cash and bank balances were approximately HKD 38,425,000, with a current ratio of about 4.3 times[46] - The debt-to-equity ratio as of June 30, 2023, was approximately 19.1%, down from 20.4% at the end of March 2023[47] Future Plans and Investments - The company plans to allocate approximately HKD 12,560,000 to upgrade the ERP system to enhance operational efficiency, with about HKD 7,720,000 already spent on consulting services and software/hardware acquisition[53] - Approximately HKD 5,540,000 is earmarked for sales and marketing activities to attract more customers and increase loyalty, with HKD 1,311,000 already spent on advertising and local food exhibitions[54] - The company has allocated around HKD 9,000,000 for the startup and renovation costs of a new restaurant, with HKD 3,064,000 already utilized for renovations[56] - The company plans to install new automated repackaging equipment with an allocation of approximately HKD 3,500,000, but has decided to outsource the repackaging process instead due to cost-effectiveness[56] - The company aims to strategically increase warehouse facilities near customers to support rising inventory levels, although the leasing has not yet commenced due to rising rental prices[52] Market Conditions and Strategy - The company anticipates a competitive market environment in 2023 and plans to invest more resources in sales and marketing activities[30] - The company has experienced a recovery in business due to government stimulus measures and the easing of COVID-19 restrictions, leading to increased sales[30] - The company remains cautiously optimistic about its core business despite economic uncertainties arising from the latest COVID-19 situation and government policy changes[57] - The board is actively assessing and managing uncertainties, taking necessary measures to navigate challenging times while adhering to pre-IPO strategic commitments[57] - The company aims to leverage its current customer base to offer a wide range of products and execute prudent cost control to seek optimal business development opportunities[57] Corporate Governance - The company has adhered to the corporate governance code as per GEM listing rules for the three months ending June 30, 2023[70] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the quarter and confirmed compliance with applicable accounting standards and GEM listing rules[72] Shareholder Information - As of June 30, 2023, major shareholders hold approximately 51.88% of the company's shares, with Mr. Huang Shaowen and Mr. Huang Shaohua each holding 602,800,000 shares[59] - No stock options were granted, exercised, lapsed, or cancelled under the stock option plan during the three months ending June 30, 2023[62] Risks and Challenges - Key strategic, operational, and financial risks include market competition, employee commitment and satisfaction, warehousing disruptions, customer credit risks, and investment returns[57] - The company believes it has a competitive advantage over competitors due to its strong track record and experienced management team[57] - The board will continue to explore opportunities for business diversification to strengthen and broaden the customer base[57] - The company is committed to expanding its operations to become one of Hong Kong's leading distributors of food and beverage groceries[57] Significant Events - No significant events affecting the group have been reported after June 30, 2023, up to the date of the quarterly report[71]
亚洲富思(08413) - 2024 Q1 - 季度财报