Financial Performance - The company reported unaudited revenue of approximately HKD 9,458,000 for the three months ended March 31, 2023, representing an increase of about 7.3% compared to HKD 8,818,000 for the same period in 2022[5]. - The loss attributable to the owners of the company for the three months ended March 31, 2023, was approximately HKD 5,423,000, a decrease from a loss of HKD 8,229,000 for the same period in 2022[5]. - The basic loss per share for the three months ended March 31, 2023, was HKD 0.0417, compared to HKD 0.0777 for the same period in 2022[8]. - The gross loss for the three months ended March 31, 2023, was HKD 639,000, an improvement from a gross loss of HKD 1,201,000 in the same period of 2022[7]. - Total comprehensive loss for the three months ended March 31, 2023, amounted to HKD 8,384,000, compared to HKD 8,981,000 for the same period in 2022[8]. - The company reported other income of HKD 715,000 for the three months ended March 31, 2023, compared to HKD 347,000 in the same period of 2022[7]. - The financing costs decreased to HKD 908,000 for the three months ended March 31, 2023, from HKD 1,519,000 in the same period of 2022[7]. - The cost of sales for the reporting period was approximately HKD 8,819,000, a decrease of about 12.0% from HKD 10,019,000 in the same period last year[37]. - The company's administrative expenses increased by approximately 5.0% to HKD 5,265,000, primarily due to higher rental costs[37]. Revenue Breakdown - For the three months ended March 31, 2023, the group's revenue was HKD 10,173,000, an increase of 11.0% compared to HKD 9,165,000 for the same period in 2022[19]. - Distribution business revenue reached HKD 9,054,000, up 20.3% from HKD 7,527,000 in the previous year[19]. - The distribution business reported revenue of approximately HKD 9,054,000, a 20.3% increase from HKD 7,527,000 in the previous year, driven by recovery in demand post-COVID-19[31][32]. - The property investment segment reported zero revenue for the reporting period, unchanged from the same period in 2022[29]. Dividends and Shareholder Information - The company did not recommend the payment of any interim dividend for the three months ended March 31, 2023[5]. - The company did not declare any interim dividends for the three months ended March 31, 2023, consistent with the previous year[25]. - Major shareholders include A S Investment Holdings Ltd and Ever Better Holdings Ltd, each holding 10.87% of the shares, while Yang Xiuhuan and Su Zhiming each hold 12.44%[61]. Assets and Liabilities - The company’s total assets as of March 31, 2023, included a revaluation surplus of HKD 1,800,000[9]. - As of March 31, 2023, the company had cash and cash equivalents of approximately HKD 515,000, down from approximately HKD 1,161,000 as of December 31, 2022[39]. - The total net assets of the company as of March 31, 2023, were approximately HKD 92,656,000, an increase from HKD 71,934,000 as of December 31, 2022[39]. - The company has pledged investments for margin financing of approximately HKD 4,886,000 and secured loans of about HKD 9,000,000 against investment properties in Hong Kong[45]. - The company has a financial guarantee for a loan principal of RMB 13,000,000 at an annual interest rate of 8%, which remains unpaid as of March 31, 2023[46]. - The company's capital commitments amounted to approximately HKD 43,649,000 as of March 31, 2023, compared to HKD 43,202,000 as of December 31, 2022[47]. Economic Outlook and Strategic Focus - The economic outlook for Hong Kong is expected to improve significantly in Q1 2023, driven by a recovery in inbound tourism and domestic demand[52]. - The company will focus on its existing businesses and reduce the scale of its one-stop value chain services due to the impact of the COVID-19 pandemic on financial performance[53]. - The company remains cautious regarding its property investments amid geopolitical tensions and global pessimism[54]. - The group continues to focus on its core businesses, including one-stop value chain services, property investment, distribution, and financial services[19]. Operational Developments - The group is focusing on local and overseas suppliers to procure food and beverage products, with a diverse range including processed seafood, fresh and frozen seafood, and alcoholic beverages[55]. - The group has been distributing sunflower meal primarily to a well-known Chinese state-owned enterprise since the fiscal year 2022, leveraging its high protein content for livestock feed[55]. - The group anticipates an increase in lending demand from individual and corporate clients due to the current economic environment, but is adopting a cautious approach to mitigate default risks[57]. - The performance of the financial services business has been poor, leading the board to decide to reduce this segment and reallocate resources to more promising areas[58]. - The group is actively marketing and selling food and beverage products through online platforms, including third-party platforms and its own social media stores[55]. - The group is in discussions to procure and supply corn to the aforementioned state-owned enterprise[55]. Governance and Compliance - The company adhered to the corporate governance code as per GEM Listing Rules Appendix 15 throughout the reporting period[67]. - The Audit Committee, established on July 31, 2001, is responsible for reviewing and monitoring the financial reporting process and internal control systems[70]. - The Audit Committee consists of three independent non-executive directors[70]. - The group has not granted any stock options under its stock option plan during the reporting period[64]. - No securities were purchased, redeemed, or sold by the company or its subsidiaries during the reporting period[69].
中国农业生态(08166) - 2024 Q1 - 季度财报