Financial Performance - For the three months ended June 30, 2022, the company reported revenue of HKD 33,247,000, a decrease of 45.4% compared to HKD 60,778,000 for the same period in 2021[7] - Gross profit for the same period was HKD 11,786,000, down 22.5% from HKD 15,184,000 year-over-year[7] - The net profit for the period was HKD 1,473,000, representing a decline of 26.9% compared to HKD 2,014,000 in the previous year[7] - Basic and diluted earnings per share were HKD 0.39, down from HKD 0.56 in the same quarter of 2021[7] - Other income decreased significantly to HKD 268,000 from HKD 36,000 in the prior year, indicating a decline of 25.6%[7] - The company incurred finance costs of HKD 787,000, an increase of 32.5% compared to HKD 594,000 in the previous year[7] - Total comprehensive income attributable to owners of the company was HKD 1,566,000, down from HKD 2,240,000 in the same period last year[7] - The company's revenue decreased by approximately 45.3% from about HKD 60.8 million to approximately HKD 33.2 million for the three months ended June 30, 2022, primarily due to recent waves of COVID-19 and global economic recession[40] - The pre-tax profit for the three months ended June 30, 2022, was HKD 21.5 million, down from HKD 45.6 million in the same period of 2021[31] - The total profit and comprehensive income attributable to the company’s owners was approximately HKD 1.6 million, down from HKD 2.2 million in the previous year[51] Expenses and Costs - The cost of sales decreased by approximately 52.9% from about HKD 45.6 million to approximately HKD 21.5 million, directly related to the decline in revenue[41] - Administrative expenses were HKD 5,539,000, a decrease of 17.0% from HKD 6,665,000 in the previous year[7] - The total employee costs increased to HKD 3.93 million in 2022 from HKD 3.74 million in 2021, reflecting a rise in salaries and benefits[31] - Gross profit decreased by approximately 22.4% from about HKD 15.2 million to about HKD 11.8 million, with gross margin for the periods being approximately 25.0% and 35.5% respectively[43] - Administrative expenses decreased from approximately HKD 6.7 million to about HKD 5.5 million, attributed to reduced legal and professional fees[49] - Financing costs increased from approximately HKD 0.6 million to about HKD 0.8 million, mainly due to increased mortgage loan interest[50] Business Strategy and Operations - The company aims to enhance its market presence and explore new product lines in the upcoming quarters[7] - The company has shifted its focus to developing proprietary formula and branded products in response to declining demand and intense market competition[39] - The company has been optimizing and expanding its business, focusing on diversification and creating new products and sales channels[55] - The company is closely monitoring the development of the COVID-19 pandemic and the global economic environment, adjusting its business strategies accordingly[55] Corporate Governance - The board of directors confirmed that the financial information presented is accurate and complete, with no misleading elements[7] - The company has complied with all corporate governance code provisions, except for the insurance for legal actions against directors, which was not obtained during the reporting period[80] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards[83] - The company has adopted a stock trading code for directors, ensuring compliance with GEM listing rules[77] - The company has established a non-competition agreement with its major shareholders, ensuring compliance throughout the reporting period[76] Shareholder Information - The company’s major shareholders, Ms. Wang Zilu and Mr. Ding Zhiwei, collectively hold 70% of the company's equity through their spousal relationship[67] - The company aims to maintain at least 50% beneficial ownership by its major shareholders[66][68] Financing Activities - The company has established a loan agreement with Hang Seng Bank for a total financing amount of HKD 50 million, HKD 30 million, and HKD 100,000 under financing letter A[66] - A second financing letter with Chuang Hing Bank was established, providing trade financing of up to HKD 48 million, term loan of HKD 20 million, and overdraft financing of HKD 3 million[68] Dividend Policy - The company did not declare any dividends for the current period, consistent with the previous year[36] - The company did not recommend any interim dividend for the period, consistent with the previous year[52] Market Presence - The company operates solely in Hong Kong, with all revenue generated from the sale and distribution of alcoholic beverages within the region[24] - There were no individual customers accounting for more than 10% of total revenue during the reporting period[25] Compliance and Reporting - The company has begun evaluating the impact of new and revised Hong Kong Financial Reporting Standards but has not yet determined if they will significantly affect its operational performance and financial position[19] - The company has not granted, exercised, canceled, or allowed any stock options since the adoption of the stock option plan in December 2017[73] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[74]
威扬酒业控股(08509) - 2023 Q1 - 季度财报