P B : FIRST QUARTERLY REPORT FOR THE THREE MONTHS ENDED 30 JUNE 2023

(incorporated in Cayman Islands with limited liability)

(Stock code: 8331)

2023

FIRST QUARTERLY REPORT

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid- sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.

This report, for which the directors (the "Directors") of P.B. Group Limited (the "Company", together with its subsidiaries, the "Group") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.

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FIRST QUARTERLY RESULTS

The board of Directors (the "Board") of the Company is pleased to announce the unaudited condensed consolidated results of the Group for the three months ended 30 June 2023 (the "Reporting Period"), together with the comparative unaudited figures for the corresponding period in 2022 as follows:

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the three months ended 30 June 2023

		Three months ended
		30 June
		2023		2022
	Notes	CNY'000	CNY'000
		(Unaudited)	(Unaudited)
Revenue	3	14,514		21,180
Cost of sales		(9,015)	(11,737)
Gross profit		5,499		9,443
Other income, other net gains and losses		487		243
Selling and distribution expenses		(995)	(1,426)
Administrative and other expenses		(6,545)	(5,281)
Finance costs		(128)	(121)
Loss on fair value changes of financial
assets at fair value through profit or loss		(696)	(291)
(Loss)/profit before taxation		(2,378)	2,567
Income tax credit/(expenses)	5	119		(560)
(Loss)/profit for the period		(2,259)	2,007
Other comprehensive income
for the period
Items that may be reclassified
subsequently to profit or loss:
Exchange differences arising on
translation of foreign operations		1,807		2,171
Total comprehensive (loss)/income
for the period		(452)	4,178
(Loss)/profit for the period attributable
to owners of the Company	6	(2,259)	2,007
Total comprehensive (loss)/income
for the period attributable to
owners of the Company		(452)	4,178
(Loss)/Earnings per share (CNY) :
Basic and diluted	6	(1.42) cents	1.26 cents

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the three months ended 30 June 2023

													Safety
													fund and	Foreign
													production	currency
				Share	Other	Statutory	maintenance	translation	Accumulated
	Share capital	premium	reserve	reserve		fund	reserve		losses	Total
		CNY'000	CNY'000	CNY'000	CNY'000		CNY'000	CNY'000		CNY'000	CNY'000
At 1 April 2022 (unaudited)	13,261		146,974	23,351	7,724	1,729	(491)	(69,136)	123,412
Profit for the period		-	-	-	-		-	-	2,007				2,007
Exchange difference arising
on translation of financial
statement of foreign
operation		-	-	-	-		-	2,171				-	2,171
Other comprehensive income
for the period		-	-	-	-		-	2,171				-	2,171
Total comprehensive income
for the period		-	-	-	-		-	2,171			2,007				4,178
Appropriation to statutory
reserve		-	-	-	297			-	-	(297)	-
Appropriation and utilisation
of safety fund and
production maintenance
fund, net		-	-	-	-	(22)	-	22				-
At 30 June 2022 (unaudited)		13,261		146,974	23,351	8,021		1,707	1,680	(67,404)	127,590
At 1 April 2023 (audited)	13,261		146,974			23,351			8,731		1,880			2,695			(72,001)	124,891
Loss for the period		-	-	-	-		-	-	(2,259)	(2,259)
Exchange difference arising
on translation of financial
statement of foreign
operation		-	-	-	-		-	1,807				-	1,807
Other comprehensive income
for the period		-	-	-	-		-	1,807				-	1,807
Total comprehensive loss
for the period		-	-	-	-		-	1,807			(2,259)	(452)
Appropriation to statutory
reserve		-	-	-	89			-	-	(89)	-
Appropriation and utilisation
of safety fund and
production maintenance
fund, net		-	-	-	-		-	-		-	-
At 30 June 2023 (unaudited)	13,261		146,974			23,351			8,820		1,880			4,502			(74,349)	124,439

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Notes:

1. Other reserve
   It represents (a) the capital contribution from the previous controlling shareholder, Mr. Li Feile of Feishang International Holdings Limited ("Feishang International") during the fiscal year of 2002 to 2003; and (b) the difference between the nominal value of the issued share capital of the Company and share capital of the then holding company, Feishang International, upon the group reorganisation.
2. Statutory reserve
   As required by applicable law and regulations, entities established and operated in the People's Republic of China (the "PRC") shall set aside/appropriate a portion of its after tax profits of each period to fund statutory reserve. The statutory reserve is not distributable as cash dividends and must be made before distribution of dividend to equity owners.
3. Safety fund and production maintenance fund
   As stipulated by the State Administration of Work Safety of the PRC, Wuhu Feishang Non- metal Material Co., Limited*（蕪湖飛尚非金屬材料有限公司）("Feishang Material") is required to accrue the safety production fund and the production maintenance fund which is based on the production volume for the utilisation of future safety production expense.

• For identification purpose only

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