Financial Performance - Revenue for the three months ended June 30, 2023, was HK$37,722,000, a decrease of 57.8% compared to HK$89,336,000 for the same period in 2022[18]. - Gross profit for the same period was HK$895,000, down 60.2% from HK$2,247,000 in the previous year[18]. - Loss before taxation increased to HK$7,481,000, compared to a loss of HK$2,954,000 in the previous period, reflecting a significant decline in financial performance[18]. - Loss for the period was HK$7,454,000, which is 118.1% higher than the loss of HK$3,413,000 reported in the same period last year[18]. - For the three months ended June 30, 2023, the total comprehensive expenses amounted to HK$7,452,000, compared to HK$3,507,000 for the same period in 2022, representing an increase of 112%[20]. - The loss for the period attributable to owners of the Company was HK$7,454,000, which is a significant increase from the loss of HK$3,413,000 in the previous year, indicating a 118% rise in losses[20]. - Basic and diluted loss per share for the period was HK$0.71, compared to HK$0.41 for the same period in 2022, reflecting a 73% increase in loss per share[20]. - The Group recorded a net loss of approximately HK$7.5 million for the three months ended 30 June 2023, compared to a net loss of approximately HK$3.4 million for the same period in 2022, representing an increase in loss of about 119%[76]. Revenue Breakdown - Revenue from air freight services was HK$35,167,000, down 53.0% from HK$74,763,000 in the previous year[42]. - Sea freight revenue decreased significantly to HK$1,428,000 from HK$13,316,000, representing an 89.3% decline[42]. - The Group introduced a new business segment, trading of fashion items, generating HK$1,127,000 in revenue during the period[42]. - Entrusted management services for operating an online e-commerce platform reported no revenue in the current period, down from HK$1,257,000 in the previous year[42]. - Revenue from trading of fashion items amounted to approximately HK$1.1 million, accounting for approximately 3.0% of total revenue[98]. - Revenue from air freight forwarding and related logistics services amounted to approximately HK$35.2 million, accounting for approximately 93.2% of total revenue[92]. - Revenue from sea freight forwarding and related logistics services decreased to approximately HK$1.4 million, accounting for approximately 3.8% of total revenue[93]. - No revenue was generated from entrusted management services for operating an online e-commerce platform during the Review Period, as operations were temporarily halted since January 2023[97]. Expenses and Costs - Administrative expenses rose to HK$6,846,000, an increase of 42.3% from HK$4,811,000 in the previous year[18]. - Sales and marketing expenses increased to HK$1,492,000, up 43.9% from HK$1,037,000 in the previous year[18]. - Corporate expenses for the period were HK$4,201,000, which is an increase compared to HK$1,851,000 in the same period last year[54]. - The Group's gross profit decreased by approximately 60.2% from approximately HK$2.2 million to approximately HK$0.9 million, with a gross profit margin of approximately 2.4%[100]. - The Group's total other income decreased to HK$154,000 for the three months ended 30 June 2023, compared to HK$322,000 in the same period of 2022[6]. - The Group's interest expenses on bank borrowings increased to HK$26,000 for the three months ended 30 June 2023, up from HK$20,000 in the previous year[6]. Strategic Adjustments and Future Outlook - The company has acknowledged the need for strategic adjustments in response to the significant decline in revenue and profitability[18]. - The Group anticipates a gradual recovery in the PRC amid uncertain global economic conditions, with a focus on cost control measures to ensure robust operating cash flow[79]. - The Group is actively seeking potential investment opportunities to diversify its business portfolio and enhance shareholder value[86]. - The Group has renewed the entrusted management agreement with Zhejiang Jiyueke Brand Management Co., Ltd., enhancing its business model from a freight forwarder to a technology solution provider[84]. Corporate Governance and Shareholder Information - The company has complied with the corporate governance code as stipulated in the GEM Listing Rules during the review period from April 1, 2023, to June 30, 2023[139]. - The company will continue to review its corporate governance practices to enhance governance levels and meet increasing regulatory requirements and shareholder expectations[140]. - No directors or controlling shareholders are engaged in any competing business or have conflicts of interest with the company during the review period[143]. - The Board does not recommend payment of any dividend for the three months ended 30 June 2023, consistent with the previous year[66]. - As of June 30, 2023, Mr. Thomas Loy holds 75,992,000 shares, representing approximately 6.89% of the company's issued share capital[148]. - Mr. Yan Ximao, an executive director, holds 1,170,000 shares, which is approximately 0.11% of the company's issued share capital[148]. - Mr. Liao Daichun, the chief executive officer, holds 100,000 shares, representing approximately 0.01% of the company's issued share capital[148]. - There were no arrangements during the review period that allowed directors to acquire benefits through the acquisition of shares in the company[152]. - Substantial shareholders had interests or short positions in the shares of the company that were required to be disclosed under the SFO as of June 30, 2023[154]. Share Issuance and Capital Management - The Company raised HK$8,011,000 from the placing of new shares during the period, after deducting issuing expenses of HK$323,000[22]. - The Group conducted a placing of 112,830,000 new ordinary shares at a price of HK$0.071 each, raising gross proceeds of approximately HK$8.0 million, with net proceeds of approximately HK$7.67 million fully utilized for general working capital[126][131]. - As of June 30, 2023, the Group had no material capital commitments[119][124]. - The actual use of net proceeds from the placing matched the intended use, with no material changes reported[133].
万励达(08482) - 2024 Q1 - 季度财报