Financial Performance - The group's revenue decreased by approximately HKD 327,000 to about HKD 4,103,000 for the three months ended March 31, 2022, compared to HKD 4,430,000 for the same period in 2021[6]. - Photography service revenue dropped by approximately 45.98% to about HKD 2,393,000 for the three months ended March 31, 2022, down from HKD 4,430,000 for the same period in 2021[6]. - Medical services revenue was approximately HKD 1,710,000 for the three months ended March 31, 2022, starting from October 2021 when the company began operating medical centers in Hong Kong[6]. - The company's revenue decreased from approximately HKD 4,430,000 for the three months ended March 31, 2021, to approximately HKD 4,103,000 for the three months ended March 31, 2022, a decline of about 7.38%[46]. - Revenue from photography services for the three months ended March 31, 2022, was HKD 2,393 thousand, down 46% from HKD 4,430 thousand in the same period of 2021[24]. - Revenue from medical services for the three months ended March 31, 2022, was HKD 1,710 thousand, with no revenue reported in the same period of 2021[24]. - Total revenue for the group for the three months ended March 31, 2022, was HKD 4,103 thousand, a decrease of 7% compared to HKD 4,430 thousand in the same period of 2021[24]. - Revenue from Hong Kong was HKD 3,831 million, down 6.0% from HKD 4,074 million year-on-year[30]. - Revenue from Mainland China was HKD 272 million, a decline of 23.6% compared to HKD 356 million in the previous year[30]. Loss and Expenses - The group's gross loss and gross profit for the three months ended March 31, 2022, were approximately HKD 901,000 and HKD 421,000, respectively, with gross loss margin and gross profit margin at approximately 21.96% and 9.50%[6]. - Loss attributable to equity shareholders increased by approximately HKD 2,062,000 to about HKD 3,735,000 for the three months ended March 31, 2022, compared to HKD 1,673,000 for the same period in 2021[6]. - Operating loss for the three months ended March 31, 2022, was approximately HKD 3,732,000, compared to HKD 1,616,000 for the same period in 2021[11]. - The company reported a net loss of HKD 3,864,000 for the three months ended March 31, 2022, compared to HKD 1,673,000 for the same period in 2021[11]. - The total comprehensive loss for the three months ended March 31, 2022, was HKD (3,909) thousand, compared to a loss of HKD (1,668) thousand in the same period of 2021[12]. - Basic and diluted loss per share for the period was HKD (0.47), compared to HKD (0.21) in the previous year[12]. - The group reported a loss before tax of HKD 3,863 million for the quarter, compared to a loss of HKD 1,692 million in the same period last year[30]. - The company reported a loss attributable to equity shareholders of approximately HKD 3,735,000 for the three months ended March 31, 2022, up from HKD 1,673,000 for the same period in 2021, marking an increase of about 123.56%[55]. Impact of COVID-19 - The COVID-19 pandemic has significantly impacted the financial performance and business development of the group, particularly affecting the demand for identity photos[37]. - The increase in loss was primarily due to higher gross loss from the impact of the fifth wave of COVID-19 in Hong Kong and increased administrative expenses due to higher employee costs and director remuneration related to the medical services business[6]. - The management believes that the decline in demand for identity photos is temporary and expects a recovery in the near future as vaccination rates increase[40]. - The group plans to continue monitoring the COVID-19 situation and has taken measures to mitigate its impact on financial conditions and operational performance[41]. - The company has reported delays in business development in Guangdong Province and Hong Kong due to the COVID-19 pandemic and macroeconomic uncertainties[97]. Administrative and Operational Changes - Administrative expenses increased from approximately HKD 3,130,000 for the three months ended March 31, 2021, to approximately HKD 4,173,000 for the same period in 2022, an increase of about 33.33%[52]. - The company has terminated underperforming lease agreements for photo booths as a cost-control measure[41]. - The company is reallocating more funds and resources towards IT infrastructure to optimize its business model and achieve diversification in core operations[43]. - The company is enhancing its IT capabilities to meet future business trends and customer demands, including upgrading its IT infrastructure and payment systems[96]. Medical Services Expansion - The company is expanding its medical services business, aiming to further develop its medical network in Hong Kong by the end of 2022[44]. - The company has initiated various outreach vaccination services to provide flexible vaccination channels to the public[44]. - The company is actively recruiting suitable practitioners and locations to expand its medical services business further[44]. - The company commenced providing medical services through medical centers in Hong Kong starting October 2021[22]. Corporate Governance and Compliance - The company has maintained compliance with all applicable corporate governance codes as of March 31, 2022[69]. - All directors confirmed compliance with the trading standards for securities transactions during the three months ending March 31, 2022[70]. - The audit committee has reviewed the unaudited consolidated results for the three months ended March 31, 2022, confirming compliance with applicable accounting standards and GEM listing rules[91]. Shareholder Information - The major shareholder, Causeway Treasure, holds approximately 53.45% of the company's shares[83]. - The company has not declared any interim dividend for the periods ended March 31, 2022, and March 31, 2021[33]. - The company has not made any significant investments or future plans regarding major investments and capital assets as of March 31, 2022[62]. - There were no major acquisitions or disposals of subsidiaries, associates, or joint ventures during the period ending March 31, 2022[63]. - The company has not pledged any assets as of March 31, 2022[64]. - There are no significant contingent liabilities reported as of March 31, 2022[65]. - The company did not purchase, sell, or redeem any of its listed securities during the three months ending March 31, 2022[71]. - The company has not disclosed any new product or technology developments, market expansions, or mergers and acquisitions during the reporting period[62][63][64][65]. Utilization of Proceeds - As of March 31, 2022, the company has utilized approximately HKD 10,546,000 of the net proceeds from the share sale, with a remaining unutilized amount of HKD 21,306,000[92]. - The company plans to expand its self-service identity photo digital camera network in Guangdong Province, with HKD 24,381,000 allocated for this purpose, of which HKD 6,652,000 has been used[94]. - The company has reassigned approximately HKD 5,000,000 from the unutilized proceeds for general working capital due to challenges in expanding the self-service identity photo digital camera market in Guangdong Province[97]. - All unutilized proceeds are currently held in a licensed bank in Hong Kong[99].
名仕快相(08483) - 2022 Q1 - 季度财报