Financial Performance - The group recorded unaudited revenue of approximately HKD 122.1 million for the nine months ended December 31, 2022, a decrease of about 2.6% compared to HKD 125.4 million for the same period in 2021[7]. - The profit attributable to the owners of the company, excluding gains from property sales, was HKD 5.1 million, an increase of 137.4% from HKD 2.1 million for the nine months ended December 31, 2021[7]. - The gross profit for the nine months ended December 31, 2022, was HKD 26.646 million, compared to HKD 24.704 million for the same period in 2021, reflecting an increase in gross profit margin[8]. - The total comprehensive income attributable to the owners of the company for the nine months ended December 31, 2022, was HKD 5.077 million, compared to HKD 17.652 million for the same period in 2021[8]. - The company's basic and diluted earnings per share for the nine months ended December 31, 2022, was HKD 1.3, down from HKD 4.4 for the same period in 2021[8]. - The company reported a loss of HKD 34,000 for the three months ended December 31, 2022, compared to a profit of HKD 17.131 million for the same period in 2021[8]. - The company did not recommend any dividend payment for the nine months ended December 31, 2022, consistent with the previous year[7]. Revenue Sources - For the nine months ended December 31, 2022, the total revenue from merchandise sales was HKD 122,087,000, a decrease of 2.6% compared to HKD 125,404,000 for the same period in 2021[18]. - Major customer A contributed HKD 21,477,000 to total revenue, up from HKD 20,669,000 in the previous year, representing a growth of 3.9%[21]. - Revenue from the United States decreased significantly to HKD 49,896,000 from HKD 55,692,000, reflecting a decline of 10.5% year-on-year[22]. - The company did not report any property sale income for the nine months ended December 31, 2022, compared to HKD 15,513,000 in the previous year[26]. Expenses and Costs - The company experienced a significant increase in administrative expenses, totaling HKD 15.443 million for the nine months ended December 31, 2022, compared to HKD 16.104 million for the same period in 2021[8]. - The company’s employee costs, including director remuneration, amounted to approximately HKD 15.6 million for the nine months ended December 31, 2022, compared to HKD 15.1 million for the same period in 2021[29]. - The cost of goods sold was approximately HKD 92.5 million for the nine months ended December 31, 2022, compared to HKD 95.3 million for the same period in 2021[29]. - Selling and distribution expenses rose by approximately 27.4% to about 7.2 million HKD for the nine months ended December 31, 2022, compared to 5.7 million HKD in the previous year[52]. - Administrative expenses decreased by approximately 4.1% to about 15.4 million HKD for the nine months ended December 31, 2022, down from 16.1 million HKD in 2021[53]. - Total financing costs for the nine months were HKD 195,000, a decrease of 79.8% from HKD 964,000 in the same period last year[27]. - Financing costs significantly decreased by approximately 79.8% to about 0.2 million HKD for the nine months ended December 31, 2022, compared to 1.0 million HKD in the previous year[54]. Other Income and Gains - Government grants received increased to HKD 790,000 for the nine months ended December 31, 2022, compared to HKD 48,000 in the same period last year[25]. - The company reported a foreign exchange gain of HKD 31,000 for the nine months ended December 31, 2022, compared to a loss of HKD 3,000 for the same period in 2021[10]. - The company reported a net loss of HKD 253,000 from foreign exchange, compared to a loss of HKD 25,000 in the previous year[26]. - Interest income rose to HKD 121,000 for the nine months ended December 31, 2022, compared to HKD 42,000 in the previous year, marking an increase of 187.8%[25]. - The total other income for the nine months was HKD 944,000, significantly higher than HKD 120,000 in the same period last year[25]. - Other income increased from approximately 0.1 million HKD in 2021 to about 0.9 million HKD in 2022, mainly due to government subsidies related to the employment support scheme[50]. Market Outlook and Strategy - The group maintains a cautious outlook on post-pandemic market recovery due to persistent high inflation affecting the macroeconomic environment[58]. - The group plans to enhance overall competitiveness to achieve business growth despite most brand customers tightening procurement[58]. - The group aims for substantial development in sustainable clothing and outdoor apparel sectors[58]. - The group will continue to explore high-value customers and allocate resources for developing proprietary brand construction and online sales platforms[58]. Shareholder Information - As of December 31, 2022, major shareholders, Mr. Leung and Ms. Tam, each hold 280,000,000 shares, representing 70% of the issued share capital through Giant Treasure[62]. - The shares held by Giant Treasure are equally owned by Mr. Leung and Ms. Tam, who are spouses[62]. Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM listing rules, with one deviation regarding the separation of roles of Chairman and CEO[68]. - The board believes that the current leadership structure, with Mr. Leung serving as both Chairman and CEO, is appropriate given his long-term management of the group since 2008[68]. - There are no known conflicts of interest between the directors and the group’s business as of December 31, 2022[66]. - No significant contracts involving directors or their close associates were reported as having substantial beneficial interests related to the company's business as of December 31, 2022[69]. Audit and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the quarterly report and the unaudited condensed consolidated results for the nine months ended December 31, 2022, confirming compliance with applicable accounting standards and GEM listing rules[71]. - No major events occurred after December 31, 2022, that significantly impacted the group's operational and financial performance[70].
爱世纪集团(08507) - 2023 Q3 - 季度财报