Financial Performance - For the three months ended March 31, 2022, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 64.3 million, an increase of about 8.8% compared to the same period in 2021[7]. - The gross profit for the same period was approximately HKD 9.7 million, a decrease of about 27.8% compared to the previous year[8]. - The company recorded a net loss of approximately HKD 10.1 million for the three months ended March 31, 2022[9]. - The total comprehensive loss for the period amounted to approximately HKD 10.6 million, compared to a loss of HKD 781,000 in the same period last year[14]. - The basic and diluted loss per share for the three months ended March 31, 2022, was HKD 1.02, compared to HKD 0.05 for the same period in 2021[12]. - The group reported a pre-tax loss of HKD 9,844,000 for the three months ended March 31, 2022, compared to a loss of HKD 410,000 for the same period in 2021[46]. - The company's gross profit decreased by approximately 28.1% to about HKD 9.7 million, with a gross margin dropping from approximately 22.8% in 2021 to about 15.1% in 2022[66]. - Administrative expenses increased by approximately 40.4% to about HKD 16 million, primarily due to increased employee costs and additional office rental expenses[68]. Revenue Breakdown - The group's revenue for the three months ended March 31, 2022, was HKD 64,319,000, an increase of 8.4% compared to HKD 59,111,000 for the same period in 2021[23]. - Revenue from IT infrastructure solutions services was HKD 23,372,000, up 34.4% from HKD 17,427,000 in the previous year[24]. - Revenue from IT development solutions services decreased to HKD 28,108,000, down 7.8% from HKD 30,504,000 in the same period last year[24]. - Revenue from the IT infrastructure solutions segment was approximately HKD 23.4 million, accounting for about 36.3% of total revenue, and increased by approximately 34.1% from about HKD 17.4 million in the previous year[58]. - Revenue from the IT development solutions segment decreased by approximately 7.9% to about HKD 28.1 million, representing about 43.7% of total revenue, down from approximately HKD 30.5 million in the previous year[59]. - Revenue from IT maintenance and support services increased by approximately 50.4% to about HKD 11.6 million, accounting for about 18.1% of total revenue, up from approximately HKD 7.7 million in the previous year[61]. - The group reported a total of HKD 1,200,000 in revenue from entertainment products for the three months ended March 31, 2022[27]. Dividend and Shareholder Information - The board of directors did not recommend the payment of a quarterly dividend for the three months ended March 31, 2022[10]. - The group did not recommend any dividend payment for the three months ended March 31, 2022, consistent with the previous year[41]. - Major shareholders included Vigorous King Limited, holding approximately 43.05% of the company's shares[96]. - The board has decided not to declare any dividends for the three months ending March 31, 2022[110]. Employee and Operational Insights - As of March 31, 2022, the company had a total of 180 employees, an increase from 128 employees as of March 31, 2021[76]. - Total employee costs for the quarter were approximately HKD 20.3 million, compared to approximately HKD 13.5 million in the same quarter of 2021, reflecting a year-over-year increase of about 50.37%[76]. - The company did not engage in any significant acquisitions or disposals of subsidiaries or associates during the quarter[75]. Financial Position and Debt - The group had bank borrowings of HKD 10,013,000 as of March 31, 2022, down from HKD 11,717,000 as of December 31, 2021[54]. - The company had cash and cash equivalents of approximately HKD 41.3 million as of March 31, 2022, compared to HKD 30 million as of December 31, 2021[71]. - The company's debt-to-equity ratio was 35.2% as of March 31, 2022, up from 28.0% as of December 31, 2021[71]. - The company had a total of HKD 31 million in secured bank financing as of March 31, 2022, unchanged from December 31, 2021[84]. Strategic Plans and Market Response - The company plans to expand its customer base and improve cost control while actively adjusting its business strategies in response to market changes and the ongoing impact of COVID-19[63]. - The timeline for utilizing the remaining net proceeds is expected to extend to December 31, 2022, due to macroeconomic conditions and the impact of the Omicron COVID-19 variant[107]. Governance and Compliance - The company has adopted the corporate governance code as per GEM listing rules and believes it has complied with the code, except for the dual role of the chairman and CEO[100]. - As of March 31, 2022, there were no known interests or businesses competing with the company's operations among its directors or major shareholders[103]. - The company has not made any insurance arrangements for potential legal actions against its directors, citing low risk due to effective risk management systems[101]. Investments and Future Plans - The company has fully utilized funds for developing IT solutions tailored for the financial and insurance industries, expanding ERP systems, and enhancing service quality through a technical support center[106]. - The company has allocated HKD 9.15 million for providing cloud computing and IoT products, with HKD 9.08 million already utilized[104]. - The company plans to enhance its professional team's expertise with an allocation of HKD 1.75 million, which has been fully utilized[104]. Risk Management - The company did not adopt any hedging strategies for foreign currency risks during the quarter, which primarily stemmed from transactions in USD and EUR[85]. - There were no significant foreign currency risks reported for the quarter, as most transactions were conducted in HKD and RMB[85]. Other Information - The company did not purchase, sell, or redeem any of its listed securities during the quarter[86]. - The company has not disclosed any interests or short positions that require reporting under the Securities and Futures Ordinance as of March 31, 2022[99]. - No significant events occurred after the reporting period, aside from those disclosed in other parts of the report[112].
倢冠控股(08606) - 2022 Q1 - 季度财报