裕丰昌控股(08631) - 2022 Q3 - 季度财报

Performance Highlights This section provides a concise overview of the Group's key financial performance indicators for the nine months ended December 31, 2021 Performance Highlights for the Nine Months Ended December 31, 2021 | Metric | For the Nine Months Ended December 31, 2021 | For the Nine Months Ended December 31, 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. HKD 191.0 million | Approx. HKD 180.8 million | ▲ 5.6% | | Gross Margin | Approx. 2.8% | Approx. 1.7% | ▲ 1.1 percentage points | | Loss Attributable to Owners of the Company | Approx. HKD 0.8 million | Approx. HKD 3.0 million | ▼ 73.3% | | Dividends | Not Recommended | N/A | - | Financial Statements This section presents the Group's unaudited condensed consolidated financial statements, including the statement of profit or loss, statement of changes in equity, and accompanying notes Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the nine months ended December 31, 2021, the Group's revenue increased by 5.6% to HKD 191.0 million, with gross profit significantly rising to HKD 5.428 million, and loss for the period narrowing to HKD 0.833 million due to increased gross profit and reduced administrative expenses Key Data from Consolidated Statement of Profit or Loss (For the Nine Months Ended December 31) | Item | 2021 (HKD '000) | 2020 (HKD '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 190,952 | 180,798 | ▲ 5.6% | | Gross Profit | 5,428 | 3,053 | ▲ 77.8% | | Administrative and Other Operating Expenses | (6,349) | (7,855) | ▼ 19.2% | | Loss Before Tax | (833) | (3,705) | ▼ 77.5% | | Total Loss for the Period | (833) | (2,986) | ▼ 72.1% | | Basic Loss Per Share (HK cents) | (0.21) | (0.75) | Narrowed by 72% | Unaudited Condensed Consolidated Statement of Changes in Equity As of December 31, 2021, the Group's total equity slightly decreased to HKD 54.325 million from HKD 55.158 million on April 1, 2021, primarily due to the HKD 0.833 million loss recorded during the period Summary of Changes in Equity (For the Nine Months Ended December 31, 2021) | Item | Amount (HKD '000) | | :--- | :--- | | As at April 1, 2021 (Audited) | 55,158 | | Loss and Total Comprehensive Loss for the Period | (833) | | As at December 31, 2021 (Unaudited) | 54,325 | Notes to the Unaudited Condensed Consolidated Financial Statements This section provides key notes to the financial statements, covering general information, accounting policies, revenue breakdown, expense details, taxation, loss per share calculation, and dividend policy, with the Group's principal business being the sale of diesel and related products in Hong Kong, generating almost all revenue from Hong Kong, and no dividends declared during the period 1. General Information Sun Kong Holdings Limited, an investment holding company incorporated in the Cayman Islands and listed on GEM since January 8, 2019, primarily engages in the sale of diesel and related products in Hong Kong - The Group's principal business is the sale of diesel and related products in Hong Kong[15] 2. Basis of Preparation and Principal Accounting Policies These unaudited interim financial statements, reviewed by the Audit Committee, are prepared in accordance with Hong Kong Financial Reporting Standards, with accounting policies consistent with the annual financial statements as of March 31, 2021, and the adoption of new/revised standards having no significant impact on the Group's financial position - The accounting policies adopted in these interim financial statements are consistent with those in the previous annual financial statements, and the adoption of new accounting standards has had no significant impact[25][27] 3. Revenue For the nine months ended December 31, 2021, the Group's total revenue was HKD 191.0 million, with diesel sales of HKD 190.6 million accounting for the vast majority, and all revenue from customer contracts generated in Hong Kong Revenue Breakdown (For the Nine Months Ended December 31) | Revenue Source | 2021 (HKD '000) | 2020 (HKD '000) | | :--- | :--- | :--- | | Diesel Sales | 190,556 | 180,190 | | AdBlue Sales | 396 | 333 | | Ancillary Transportation Services | – | 275 | | Total | 190,952 | 180,798 | 4. Loss Before Tax During the reporting period, the Group's finance costs increased to HKD 0.193 million from HKD 0.149 million in the prior period, while staff costs totaled approximately HKD 5.374 million, up from HKD 4.957 million, and depreciation of property, plant and equipment slightly decreased - For the nine months ended December 31, 2021, finance costs increased by 29.5% year-on-year to HKD 0.193 million[36] - Staff costs (including directors' emoluments) increased by 8.4% year-on-year from HKD 4.957 million to HKD 5.374 million[36] 5. Taxation No Hong Kong profits tax provision was made for the Group during the reporting period due to the absence of assessable profits, contrasting with a deferred tax credit of HKD 0.719 million in the prior period - For the three and nine months ended December 31, 2021, no Hong Kong profits tax was incurred as the Group had no assessable profits[39] 6. Loss Per Share For the nine months ended December 31, 2021, basic and diluted loss per share significantly narrowed to 0.21 HK cents from 0.75 HK cents in the prior period, calculated based on a weighted average of 400 million ordinary shares with no potential ordinary shares issued during the period Loss Per Share Calculation | Item | For the Nine Months Ended December 31, 2021 | For the Nine Months Ended December 31, 2020 | | :--- | :--- | :--- | | Loss for the Period Attributable to Owners of the Company (HKD '000) | (833) | (2,986) | | Weighted Average Number of Ordinary Shares | 400,000,000 | 400,000,000 | 7. Dividends The Board does not recommend the payment of any dividend for the nine months ended December 31, 2021 - The Board does not recommend the payment of dividends for the nine months ended December 31, 2021[43] Management Discussion and Analysis This section provides a detailed discussion and analysis of the Group's business operations, financial performance, and future outlook Business Review and Future Prospects The Group, primarily engaged in diesel sales in Hong Kong to logistics and construction companies, faced increased procurement costs due to volatile crude oil prices and reduced demand from cross-border logistics due to restrictions, though partially offset by local construction recovery, with future focus on cash flow management amid ongoing COVID-19 uncertainties - Significant fluctuations in crude oil prices led to a substantial increase in diesel procurement costs, putting pressure on operating cash flow[48] - Cross-border transportation services were restricted due to COVID-19 related customs clearance arrangements, resulting in reduced diesel demand from the logistics sector[49] - The recovery of Hong Kong's local construction industry stimulated a rebound in diesel demand for construction machinery[50] - The Group will continue to closely monitor the pandemic's development, focusing on cash flow management, and preparing for business recovery[56] Financial Review During the review period, the Group's revenue grew by 5.6% to HKD 191.0 million, primarily driven by a 71.3% increase in average diesel selling price offsetting a 38.1% volume decrease, leading to a 4.4% rise in cost of sales, an improved gross margin from 1.7% to 2.8%, a 20.3% reduction in administrative and other operating expenses, and a significant narrowing of net loss from HKD 3.0 million to HKD 0.8 million Revenue For the nine months ended December 31, 2021, the Group's total revenue increased by 5.6% to HKD 191.0 million, primarily driven by a 71.3% surge in average diesel selling price, which offset a 38.1% decline in diesel sales volume, with diesel sales remaining the absolute revenue pillar, accounting for 99.8% Sales Volume and Average Selling Price Changes (For the Nine Months Ended December 31) | Product | Metric | 2021 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Diesel | Sales Volume (million liters) | 43.2 | 69.8 | ▼ 38.1% | | | Average Selling Price (HKD/liter) | 4.42 | 2.58 | ▲ 71.3% | | AdBlue | Sales Volume (thousand liters) | 101.6 | 71.5 | ▲ 42.1% | | | Average Selling Price (HKD/liter) | 3.90 | 4.65 | ▼ 16.1% | Cost of sales During the reporting period, cost of sales increased by 4.4% to HKD 185.5 million, aligning with revenue growth, with diesel costs comprising 97.1% of total cost of sales, and the average unit procurement cost of diesel rising by 68.8% year-on-year, consistent with market trends - Diesel costs accounted for 97.1% of total cost of sales, amounting to HKD 180.1 million[71] - The average unit procurement cost of diesel increased by 68.8% from HKD 2.47 per liter to HKD 4.17 per liter[71] Gross profit and gross profit margin Benefiting from revenue growth outpacing cost increases, the Group's gross profit surged by 74.2% from HKD 3.1 million to HKD 5.4 million, consequently improving the gross margin from 1.7% to 2.8% compared to the prior period Gross Profit and Gross Profit Margin Performance (For the Nine Months Ended December 31) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Gross Profit | Approx. HKD 5.4 million | Approx. HKD 3.1 million | | Gross Margin | Approx. 2.8% | Approx. 1.7% | Administrative and other operating expenses The Group effectively controlled operating costs, with administrative and other operating expenses decreasing by 20.3% year-on-year from HKD 7.9 million to HKD 6.3 million - Administrative and other operating expenses decreased by 20.3% from HKD 7.9 million in the prior period to HKD 6.3 million[80] Loss for the period Overall, due to increased gross profit and continuous reduction in operating costs, the Group's net loss for the reporting period significantly narrowed by 73.3% from HKD 3.0 million in the prior period to HKD 0.8 million - Net loss decreased from HKD 3.0 million to HKD 0.8 million, narrowing by 73.3% year-on-year, primarily attributable to increased gross profit and decreased operating costs[87] Capital expenditure and Dividend During the reporting period, the Group's capital expenditure was approximately HKD 1.1 million, primarily for the purchase of diesel tank trucks, representing a 62.1% significant decrease from HKD 2.9 million in the prior period, and the Board did not recommend any dividend payment - Capital expenditure decreased by 62.1% year-on-year to HKD 1.1 million, primarily for the purchase of diesel tank trucks[86] - The Board does not recommend the payment of any dividend for the nine months ended December 31, 2021[88] Events after the Reporting Period As of December 31, 2021, the Group could not reliably estimate the ultimate financial impact of the COVID-19 pandemic, and management believes no significant events have occurred after the reporting period that would materially affect the Group's financial performance and operations - Management believes that no significant events requiring disclosure have occurred since December 31, 2021, that could materially affect the Group's financial performance[85] Other Important Information This section covers additional crucial information, including the use of proceeds, environmental policies, interests of directors and substantial shareholders, and corporate governance practices Use of Proceeds The company's net proceeds from listing were approximately HKD 34.8 million, with HKD 27.2 million utilized and HKD 7.6 million remaining unused as of December 31, 2021, primarily allocated for purchasing diesel tank trucks (HKD 2.6 million) and upgrading IT systems (HKD 5.0 million), expected to be fully utilized by March 31, 2023 Use of Net Proceeds (As of December 31, 2021) | Purpose | Revised Allocation (HKD million) | Actual Utilization (HKD million) | Unutilized Amount (HKD million) | Expected Full Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Purchase of Diesel Tank Trucks | 15.0 | 12.4 | 2.6 | By March 31, 2023 | | Expansion of Workforce | 1.7 | 1.7 | – | N/A | | Upgrade of Information Technology System | 5.0 | – | 5.0 | By March 31, 2023 | | Working Capital | 13.1 | 13.1 | – | N/A | | Total | 34.8 | 27.2 | 7.6 | | - Due to project delays, the remaining funds for purchasing diesel tank trucks and upgrading IT systems are now expected to be fully utilized by March 31, 2023[98] Environment Policies and Performance The Group prioritizes environmental protection, implementing measures to reduce air pollutant emissions and prevent oil product leaks in compliance with Hong Kong's environmental laws and regulations, with no prosecutions or penalties for environmental breaches as of the reporting date - The Group has implemented various environmental protection measures and continuously monitors its operations to ensure compliance, with no record of violations as of the reporting date[102][103][105] Interests of Directors, Executives, and Substantial Shareholders As of December 31, 2021, Mr. Lo Ming Yik, Chairman and Executive Director, held 62.78% of the issued share capital through his wholly-owned company, Fully Fort Group Limited, with no other directors, executives, or substantial shareholders holding disclosable interests or short positions - Mr. Lo Ming Yik, the Chairman of the Board, holds 62.78% of the company's shares through a controlled corporation[112][116] - Substantial shareholder Fully Fort Group Limited beneficially owns 62.78% of the company's shares, being wholly-owned by Mr. Lo Ming Yik[119][120] Corporate Governance The company complied with the Corporate Governance Code in Appendix 15 of the GEM Listing Rules during the reporting period, establishing Audit, Nomination, and Remuneration Committees with independent non-executive directors playing key roles, and confirming no competing business from controlling shareholders or directors, while maintaining sufficient public float - The company has adopted a share option scheme, but no share options were granted, exercised, or cancelled during the reporting period[124][125] - The company has established Audit, Nomination, and Remuneration Committees, whose composition and terms of reference comply with corporate governance requirements[133][135][142] - The company complied with the provisions of the Corporate Governance Code throughout the reporting period and maintained a sufficient public float[151][156]