Financial Performance - For the three months ended March 31, 2023, the company's revenue was approximately HKD 11,834,000, a decrease of about 49.96% compared to HKD 23,640,000 in the same period last year[6][11]. - The company reported a net loss of HKD 16,596,000 for the review period, compared to a loss of HKD 14,996,000 in the previous year, indicating an increase in losses due to a significant reduction in revenue[7][12]. - The gross profit margin improved from approximately 13.51% in the previous year to about 18.77% in the current period, despite the decline in overall revenue[11]. - Total revenue for the first quarter of 2023 was HKD 11,834,000, a significant decrease of 50.0% from HKD 23,640,000 in the first quarter of 2022[29]. - The cost of sales for the period was HKD 9,612,000, down from HKD 20,447,000 in the previous year, indicating a reduction of 53.0%[32]. - Employee benefits expenses, including salaries for directors and key management personnel, decreased to HKD 9,083,000 from HKD 12,530,000, a reduction of 27.0%[32]. - Other income and gains totaled HKD 2,214,000, down from HKD 2,772,000, reflecting a decrease of 20.1%[30]. - The basic and diluted loss per share attributable to ordinary shareholders was HKD 0.347, slightly higher than HKD 0.337 in the previous year[18]. - The total comprehensive loss for the period was HKD 13,467,000, compared to a total comprehensive loss of HKD 14,089,000 in the previous year[39]. - As of March 31, 2023, the total equity attributable to equity holders of the parent company was HKD 237,348,000, down from HKD 250,815,000 at the beginning of the year[39]. Expenses and Cost Management - Sales and distribution expenses decreased by 14.67% to approximately HKD 4,455,000, while administrative expenses decreased by 3.38% to approximately HKD 12,009,000 compared to the previous year[12]. - The financing costs for the review period were approximately HKD 174,000, compared to HKD 133,000 in the same period last year[12]. - The company incurred financing costs of HKD 174,000 for the period, which is an increase of 30.8% compared to HKD 133,000 in the same period last year[30]. Business Strategy and Development - The company plans to focus on core business development and improve management systems to ensure normal business operations amid significant revenue decline[14]. - The company aims to enhance market expansion by adopting various cooperative business models and promoting geothermal energy as an alternative heating source[14]. - The company is committed to addressing historical issues and improving its operational management system to advance the development of the green energy industry[15]. - The company continues to focus on providing, installing, and maintaining shallow geothermal energy utilization systems as its primary business[21]. Legal and Regulatory Matters - The company is currently involved in a legal dispute regarding a share transfer agreement, with a claim amounting to RMB 245,217,995.83[41]. - The company’s investment management subsidiary has had its bank deposits frozen as part of the legal proceedings, amounting to RMB 50,288[41]. - The court ruled that Shanghai Portze must compensate 恒有源投资 for legal fees amounting to RMB 200,000 and dismissed all claims from Shanghai Portze[43]. - 上海港澤 has filed an appeal against the court ruling, with the second instance yet to be heard[43]. - The company believes the court ruling will not have a significant adverse impact on its normal operations and finances[43]. - The company will actively respond to the lawsuit and provide updates to shareholders and investors as necessary[43]. Shareholder Information - The company has not recognized any tax provision for Hong Kong profits tax due to no taxable profits generated in Hong Kong for the period[34]. - As of March 31, 2023, the total number of issued shares is 4,526,925,163 shares[51]. - As of March 31, 2023, 徐生恒 holds 15.85% of the company's shares, amounting to 717,670,600 shares[45]. - 中節能香港 holds a significant stake of 1,190,000,000 shares, representing 26.29% of the total issued shares[50]. - The weighted average number of ordinary shares issued for the calculation of basic loss per share increased to 4,526,925,000 shares from 4,394,597,000 shares year-on-year[37]. - The company’s board and key executives have disclosed their shareholdings, with no other undisclosed interests as of March 31, 2023[52]. Corporate Governance - The company has established an audit committee to oversee financial reporting, risk management, and internal control systems, consisting of four independent non-executive directors[57]. - The board of directors has complied with the GEM Listing Rules regarding securities trading during the review period[58]. - There were no repurchases, redemptions, or sales of the company's listed securities during the review period[60]. - No dividends were declared or proposed for the three months ended March 31, 2023, consistent with the previous year[36].
中国恒有源集团(08128) - 2023 Q3 - 季度财报