Company: CLIK
Filing Date: 2025-03-27
Form Type: F-1/A
Source: 0001013762-25-003127
Chunk: 89

Company: Click Holdings Ltd.
Filing Date: 2025-03-27
Form: F-1/A
Chunk 89
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 Segment gross profit margin remained stable at 13.2% in FY2022 and 15.6% in FY2023. Net profit also remained stable at the level of around $0.2 million in both financial years. Logistics and other solution services Segment revenue was generated from service fee for sourcing and placement of independent contractors from our talent pool who are blue collar workers. Segment revenue increased by approximately $0.6 million or 47.2% in FY2023 which was mainly attributable to the rapid expansion of this segment during the year in particular the new engagement with customers in the logistics and warehousing industry which is labour intensive and relies heavily on staffing solution services. Segment gross profit also increased with the increase in segment revenue while the gross profit margin decreased from 16.0% in FY2022 to 11.9% in FY2023 which was mainly due to discount given to new customers with an aim to capture new business and increase market share. Net profit of this segment remained stable at approximately $0.2 million in FY2022 and FY2023 despite the significant surge in segment revenue because more general and administrative expenses incurred in the expansion of talent pool to cater for the rapid expansion of this business segment. Corporate and unallocated expenses increased by $63,604 or 103.7% in FY2023 mainly because of the increase in general and administrative expenses of $53,418 arising from relocation of the Group to larger office during the year. Impact of COVID-19 on our business The outbreak of COVID -19affected both the business and the labor aspects of the employment market. On the business front, businesses experienced depressed performance, which disrupted recruitment and expansion plans of many organizations, therefore affecting the Group’s operations. At the same time, pandemic -relatedlockdowns restricted labor mobility. As most of the pandemic restrictions in Hong Kong were eased in early 2023, we believe that Hong Kong’s economy is poised for recovery and a return to normalcy. Consequently, we do not expect material impact of COVID -19on our business operations. 50 Key factors affecting operating results We believe the following key factors may affect our results of operations: Economic conditions in Hong Kong Majority of our operations is located in Hong Kong. Accordingly, our business, prospects, financial condition and results of operations may be influenced to a significant degree by political, economic and social conditions in China generally and by continued economic growth in Hong Kong. Ability of our Group to stay competitive in the human resources solution services market The sustainability of our revenue and