Financial Performance - For the three months ended March 31, 2022, the group's revenue was approximately HKD 25.3 million, a decrease of about 23.2% compared to the same period last year[10]. - The gross profit for the same period was approximately HKD 8.6 million, down about 26.1% from the previous year, with a gross margin decreasing from approximately 35.4% to 34.1%[10]. - The loss attributable to equity holders of the company for the period was approximately HKD 1.6 million, compared to a profit of approximately HKD 1.0 million in the previous year[10]. - The loss per share for the period was approximately HKD 0.39, compared to earnings of HKD 0.26 per share in the previous year[10]. - The group reported a net loss from operations of HKD 1.7 million, compared to a profit of HKD 1.6 million in the previous year[13]. - The net loss for the period was HKD 1,562,000, compared to a profit of HKD 1,048,000 for the same period in 2021[28]. - Other comprehensive income for the period was HKD 478,000, resulting in a total comprehensive loss of HKD 1,084,000[28]. Revenue Breakdown - Sales of beauty products, including cosmetics and other products, amounted to HKD 15,462,000, up 11.5% from HKD 13,880,000 in the previous year[29]. - Hand sanitizer sales decreased significantly to HKD 5,358,000, down 69.0% from HKD 17,322,000 in the prior year[29]. - Sales of cosmetic bags increased to HKD 4,470,000, a substantial rise of 160.5% compared to HKD 1,721,000 in the same period last year[29]. Expenses and Income - Other income for the period was HKD 100, slightly down from HKD 102 in the previous year[13]. - Administrative expenses for the period were HKD 7.3 million, a decrease from HKD 7.8 million in the previous year[13]. - Financing income increased to HKD 261 from HKD 37 in the previous year, indicating improved financial management[13]. - The group's administrative expenses decreased by approximately HKD 0.5 million or about 6.1% to approximately HKD 7.3 million, mainly due to a reduction in legal and professional fees[51]. - Sales and distribution expenses increased by approximately HKD 0.5 million or about 22.5% to approximately HKD 2.8 million, attributed to increased shipping and freight costs due to COVID-19 related delays[52]. Dividends - The board of directors does not recommend the payment of any interim dividend for the period, consistent with the previous year[10]. - The company did not declare any interim dividends for the three months ended March 31, 2022, consistent with the previous year[35]. - The board does not recommend the payment of any interim dividend for the period[59]. Financial Position - As of March 31, 2022, the group had cash and cash equivalents of approximately HKD 140.2 million, compared to approximately HKD 140.5 million as of December 31, 2021[50]. - The current ratio as of March 31, 2022, was approximately 8.9 times, up from approximately 7.5 times as of December 31, 2021[50]. - The group has no outstanding borrowings or other debts as of March 31, 2022, and has not reported any significant contingent liabilities[55]. Corporate Governance - The company has complied with all provisions of the corporate governance code as per GEM Listing Rules Appendix 15 during the reporting period[89]. - The audit committee reviewed the unaudited financial information for the first quarter ending March 31, 2022[94]. Stock Options - The stock option plan was approved on September 29, 2017, and became unconditional on October 27, 2017, in compliance with GEM Listing Rules Chapter 23[67]. - The total number of shares that may be issued under the stock option plan cannot exceed 10% of the total issued shares as of the effective date, which is 40,000,000 shares based on 400,000,000 issued shares[69]. - If the grant of stock options to major shareholders or independent non-executive directors exceeds 0.1% of the issued share capital, shareholder approval is required[69]. - The stock options can be exercised at any time within a period not exceeding 10 years from the grant date, subject to the terms of the stock option plan[72]. - The exercise price of the stock options will not be less than the highest of the closing price on the offer date, the average closing price over the five trading days preceding the offer date, or the nominal value[73]. - As of March 31, 2022, there were no unexercised, granted, cancelled, exercised, or lapsed stock options[74]. - The stock options granted to eligible persons cannot exceed 1% of the issued share capital within any 12-month period without shareholder approval[70]. - The stock option plan is valid for 10 years from the adoption date, expiring on September 28, 2027[72]. Shareholding Structure - Major shareholders, Classic Charm Investments Limited, hold 300,000,000 shares, representing 75% of the issued voting shares[81]. - Classic Charm Investments Limited holds 300,000,000 shares, with Mr. Ko, Ms. Zhu, and Ms. Chan owning 50.8%, 39.7%, and 9.5% respectively[83]. - No arrangements were made for directors or senior executives to benefit from acquiring shares or debentures of the company or any other corporation during the three months ending March 31, 2022[75]. - No directors or major shareholders engaged in any competitive business with the group during the three months ending March 31, 2022[88]. Future Outlook - The company continues to evaluate the impact of new accounting standards on its performance and financial position[27]. - The group plans to continue focusing on creating innovative products and expanding its business into new regions despite ongoing global uncertainties[40]. Events After Reporting Period - No significant events related to the group's business or financial performance occurred after the reporting period[97]. - There were no repurchases of shares by the company or its subsidiaries during the three months ending March 31, 2022[92].
德宝集团控股(08436) - 2022 Q1 - 季度财报