Financial Performance - Revenue decreased by 45.7% to approximately RMB 42.1 million for the three months ended March 31, 2023 (2022: RMB 77.5 million) [7] - Gross profit decreased by 63.1% to approximately RMB 2.4 million (2022: RMB 6.5 million), with a gross margin of approximately 5.7% (2022: 8.4%) [7] - Loss attributable to equity holders of the company for the three months ended March 31, 2023, was approximately RMB 5.7 million (2022: profit of RMB 1.1 million) [7] - Basic loss per share was approximately RMB 0.72 (2022: basic earnings of RMB 0.14) [8] - Total comprehensive loss attributable to equity holders for the three months ended March 31, 2023, was RMB 5.7 million (2022: profit of RMB 1.1 million) [8] - The company reported a net loss before tax of RMB 6.76 million (2022: profit of RMB 1.23 million) [8] - Revenue for the three months ended March 31, 2023, was RMB 42,085 thousand, a decrease of 45.6% from RMB 77,456 thousand for the same period in 2022 [19] - Fabric sales revenue was RMB 17,133 thousand, down 58.4% from RMB 41,134 thousand in the previous year [19] - Revenue from dyeing services was RMB 24,952 thousand, a decrease of 31.1% compared to RMB 36,322 thousand in the prior year [19] - Other income totaled RMB (2,302) thousand, compared to RMB 1,223 thousand in the same period last year, indicating a significant decline [24] Expenses and Costs - Administrative expenses increased to RMB 3.34 million for the current period (2022: RMB 2.76 million) [8] - Research expenses rose to RMB 2.06 million (2022: RMB 1.54 million) [8] - Sales and service costs decreased from approximately RMB 710 million to about RMB 397 million, a reduction of approximately 44.1% due to lower raw material costs corresponding to decreased sales volume [38] - Administrative expenses increased by approximately RMB 5 million or 17.9% to about RMB 33 million compared to RMB 28 million for the same period in 2022 [43] - Research and development expenses increased by approximately RMB 6 million to about RMB 21 million, mainly due to increased use of different raw materials during testing and analysis [45] - Financial costs decreased by approximately RMB 2 million or 20% to about RMB 8 million compared to RMB 10 million for the same period in 2022 [46] Taxation - The company recorded a corporate income tax credit of RMB 1,014 thousand for the three months ended March 31, 2023, compared to an expense of RMB (109) thousand in the same period last year [27] - The effective corporate income tax rate for the company’s entities in China is 25%, with certain subsidiaries qualifying for reduced rates [28] - The company has not recognized any Hong Kong profits tax due to no assessable profits in Hong Kong for the reporting period [27] - For the three months ended March 31, 2023, the company's tax credit amounted to approximately RMB 1.0 million, primarily due to pre-tax losses, compared to a tax expense of approximately RMB 0.1 million for the same period in 2022 [47] Shareholder Information - As of March 31, 2023, Mr. Dai Shunhua and Ms. Song Xiaoying each hold approximately 59.11% of the company's issued share capital through Spring Sea, with Mr. Dai holding 472,848,000 shares [56] - The second largest shareholder, Zhuang Yuelan, owns 121,602,000 shares, accounting for 15.20% of the total issued shares [61] - As of March 31, 2023, Spring Sea holds 472,848,000 shares, representing approximately 59.11% of the company's issued share capital [61] Dividends - No dividend was declared for the three months ended March 31, 2023 (2022: nil) [7] - The board of directors resolved not to declare any dividends for the three months ended March 31, 2023, consistent with the previous year [50] Future Outlook and Strategy - The company remains optimistic about future economic recovery in China, focusing on green and high-quality development goals, and plans to enhance its R&D system to meet market demands for environmentally friendly functional fabrics [51] - The company aims to expand its business and supply chain platform, recruit unlimited sales personnel, and adopt new marketing models, including live streaming on platforms like Douyin and Taobao, to increase market share [53] - The company will actively pursue low-carbon circular production methods and diversify its business to improve profitability and adapt to market changes [53] - The company plans to optimize its product structure and enhance product quality by introducing innovative technologies and building a brand management system to gain a competitive advantage [51] - The company will continue to seek new opportunities and partnerships to expand its strategic resources and improve international collaboration [53] - The company emphasizes the importance of technological innovation to drive green development and enhance its market position [51] Corporate Governance - The company has complied with all applicable corporate governance codes during the reporting period, except for a deviation regarding the separation of the roles of Chairman and CEO [75] - The audit committee has been established in accordance with GEM Listing Rules and consists of independent non-executive directors [78] - The audit committee reviewed the unaudited financial report for the three months ended March 31, 2023, and agreed with the accounting treatment adopted by the company [78] - At least 25% of the issued shares are held by public shareholders, in compliance with GEM listing rules [65] - The company has not conducted any related party transactions during the reporting period [70] - There are no ongoing legal proceedings or potential lawsuits threatening the company as of March 31, 2023 [64] - The company has not engaged in any significant legal disputes or liabilities as of March 31, 2023 [64] - There are no significant post-reporting period events as of the report date [79] - The quarterly report for the three months ended March 31, 2023, will be sent to shareholders and published on the company's website and the Hong Kong Stock Exchange website [80] - The board of directors includes executive and independent non-executive directors, ensuring a diverse governance structure [82]
纳尼亚集团(08607) - 2023 Q1 - 季度财报