2022-01-31-港交所-浩柏国际_第一季度业绩报告2021_19页_1mb

Financial Performance Summary for Hong Bao International (Cayman) Q1 2021

Revenue
Total revenue for the quarter ended June 30, 2021, was approximately HKD 1.7 million, representing a significant decrease of about HKD 6.6 million or 79.1% compared to the same period in 2020. This decline is primarily attributed to the COVID-19 pandemic, which caused economic stagnation and reduced opportunities for new water circulation system projects in Hong Kong and Macau.

Gross Profit and Losses
Gross profit decreased by approximately 500,000 HKD or 54.7% to about HKD 421,000, mainly due to lower revenue. The overall net loss for the quarter was HKD 3.8 million, an increase from HKD 7.6 million loss in 2020 Q1. This is driven by reduced project intake and higher operating costs partially offset by cost-cutting measures.

Key Challenges
The COVID-19 outbreak severely impacted the business, with Hong Kong experiencing a historic economic downturn. This led to few new bids for projects, intense competition, and short labor shortages due to travel restrictions. Additionally, high labor costs and challenging market conditions exacerbated the financial strain.

Management's Response
The company implemented strategies to mitigate effects, including reducing administrative and financing expenses. Future outlook remains cautiously optimistic, with plans to explore business diversification and partnerships, provided favorable company conditions continue.

Governance and Strategic Notes
The company maintains governance standards, with a board led by Chairman and CEO Lan Haojun. External factors like currency risk are minimal, and no major events post-quarter affect operations. Funds are allocated towards business expansion and repayment of loans to address the changing economic landscape.