Financial Performance - For the nine months ended September 30, 2019, the company reported revenue of approximately RMB 28.1 million, a decrease of about 50.6% compared to RMB 56.9 million for the same period in 2018[4] - The company recorded a loss of approximately RMB 5.7 million for the nine months ended September 30, 2019, compared to a profit of RMB 6.4 million for the same period in 2018, primarily due to a weak overall economy and increased sales and administrative expenses[4] - Basic loss per share for the nine months ended September 30, 2019, was approximately RMB 0.80 cents, down from a profit of RMB 0.96 cents for the same period in 2018[4] - For the three months ended September 30, 2019, revenue was RMB 8.2 million, down from RMB 12.9 million in the same period of 2018, representing a decline of approximately 36.5%[5] - Gross profit for the nine months ended September 30, 2019, was RMB 8.8 million, a decrease of over 58% from RMB 21.0 million in the same period of 2018[5] - The company’s total comprehensive loss for the nine months ended September 30, 2019, was RMB 5.0 million, compared to a total comprehensive income of RMB 6.3 million for the same period in 2018[5] - The company reported a net loss of RMB 5,733,000 for the nine months ended September 30, 2019, compared to a profit of RMB 6,447,000 for the same period in 2018[22] - The group’s revenue for the nine months ended September 30, 2019, was approximately RMB 28.1 million, a decrease of about RMB 28.8 million or 50.6% compared to the same period in 2018[29] - Revenue from Sichuan Qingtian for the same period was approximately RMB 24.4 million, down RMB 26.1 million or 51.7% year-on-year[29] - Revenue in traditional sales regions such as Sichuan, Yunnan, Guizhou, Chongqing, and Tibet decreased by approximately RMB 10.5 million or 30.2% compared to 2018, with Sichuan province alone dropping by RMB 8.6 million or 30.8%[29] Expenses and Costs - The company’s administrative expenses for the nine months ended September 30, 2019, were RMB 10.9 million, significantly higher than RMB 8.6 million for the same period in 2018[5] - Administrative expenses increased by approximately 25.9% to RMB 10.9 million for the nine months ended September 30, 2019, primarily due to a significant rise in product R&D expenses[34] - Sales and distribution expenses rose by approximately 22.2% to RMB 4.5 million for the same period, mainly due to increased showroom renovation amortization[35] - The company’s financing costs for the nine months ended September 30, 2019, were reported as zero, indicating no interest expenses from bank and other borrowings[15] Shareholder Information - The company issued 134 million new shares at HKD 0.235 per share on June 25, 2019, raising a total of HKD 31.49 million, which will be used for the purposes mentioned in the announcement[7] - As of September 30, 2019, the company’s total equity was RMB 179.5 million, an increase from RMB 158.8 million as of September 30, 2018[6] - Sun Universal Limited holds 245,300,400 shares, representing 30.51% of the total shares[42] - Brilliant Talent Global Limited owns 116,580,000 shares, accounting for 14.50% of the total shares[42] - The company has not granted any stock options since the adoption of the stock option plan on December 19, 2016[45] Compliance and Governance - The audit committee reviewed the unaudited consolidated financial statements for the nine months ending September 30, 2019, and found them compliant with applicable accounting standards[53] - The company has not repurchased any of its own shares from the listing date until September 30, 2019[54] - The company has adhered to the corporate governance code as per GEM listing rules from the listing date until September 30, 2019[55] - There are no reported interests or short positions in the company's shares by any individuals other than those disclosed[44] - The company confirmed compliance with the non-competition agreement by major shareholders from the listing date to the report date[50] - The compliance advisor, Eight Financial Limited, has no interests in the company as of September 30, 2019[51] - The company has established an audit committee consisting of three independent non-executive directors[53] Strategic Plans - The company faced challenges due to the ongoing US-China trade war and stricter environmental regulations, leading to a significant decline in revenue and increased product costs[24] - The company plans to consolidate resources in traditional advantageous provinces like Sichuan and Chongqing, pausing expansion into new markets to stabilize its market share[26] - The company aims to enhance its competitive edge by increasing investment in product technology research and development[26] - The group plans to acquire a target company engaged in data center operations in Shanghai, China, to diversify its business and expand revenue sources[27] - The group believes that entering the data center industry aligns with its overall interests and will enhance corporate value for shareholders[27] Tax and Other Income - The company’s tax expense for the nine months ended September 30, 2019, included a deferred tax expense of RMB (179,000), compared to RMB (179,000) for the same period in 2018[17] - The group reported a tax expense of approximately RMB (0.2) million for the nine months ended September 30, 2019, a decrease of about 106.9% compared to RMB 2.6 million in the same period of 2018, due to losses incurred[36] - The company reported a total other income of RMB 648,000 for the nine months ended September 30, 2019, compared to RMB 261,000 for the same period in 2018[14] - The company’s foreign exchange reserve showed a gain of RMB 690,000 for the nine months ended September 30, 2019, compared to a loss of RMB 110,000 in the same period of 2018[6]

Financial Performance - For the three months ended March 31, 2019, the group reported revenue of approximately RMB 7.7 million, a decrease of about 68.0% compared to RMB 24.2 million for the same period in 2018[3] - The group recorded a loss of approximately RMB 1.5 million for the three months ended March 31, 2019, compared to a profit of approximately RMB 4.3 million for the same period in 2018, primarily due to a significant decline in sales[3] - Basic loss per share for the three months ended March 31, 2019, was approximately RMB 0.22 cents, compared to basic earnings per share of RMB 0.65 cents for the same period in 2018[4] - Gross profit for the three months ended March 31, 2019, was RMB 2.4 million, down from RMB 9.4 million in the same period of 2018, reflecting a decrease in revenue and an increase in sales and administrative expenses[4] - The group’s total comprehensive loss for the period was RMB 1.5 million, compared to a total comprehensive income of RMB 4.1 million for the same period in 2018[4] - The group’s sales of office furniture products accounted for the entirety of the revenue, with sales of RMB 7.7 million for the three months ended March 31, 2019, compared to RMB 24.2 million in 2018[12] - The revenue from Sichuan Qingtian was approximately RMB 6.6 million, a decrease of approximately RMB 15.8 million or about 70.5% compared to the same period in 2018[26] - The decrease in revenue was primarily due to the non-recurring nature of sales orders from major clients in Guangxi, Guangdong, and Jiangsu provinces, which did not carry over into 2019[21] - The sales in traditional provinces such as Sichuan, Chongqing, Tibet, Guizhou, and Yunnan also decreased by approximately RMB 0.8 million or 11.6% compared to the same period in 2018[27] - The group's cost of sales for the three months ended March 31, 2019, was approximately RMB 5.3 million, a decrease of about 64.1% compared to approximately RMB 14.8 million for the same period in 2018[28] - Gross profit decreased from approximately RMB 9.4 million for the three months ended March 31, 2018, to approximately RMB 2.4 million for the same period in 2019, with a gross margin decline from approximately 38.8% to approximately 31.3%[29] Expenses and Costs - The group’s administrative and other expenses increased to RMB 2.8 million for the three months ended March 31, 2019, compared to RMB 2.4 million for the same period in 2018[4] - Administrative and other expenses rose by approximately 16.9% to about RMB 2.8 million for the three months ended March 31, 2019, primarily due to increased R&D and office expenses[33] - Selling and distribution expenses increased by approximately 7.8% to about RMB 1.3 million for the three months ended March 31, 2019, attributed to higher office and renovation costs[34] - Income tax credit for the three months ended March 31, 2019, was approximately RMB 0.06 million, a decrease from an income tax expense of approximately RMB 1.6 million for the same period in 2018, due to losses incurred[35] Corporate Governance and Compliance - The audit committee has reviewed the unaudited consolidated financial statements for the three months ending March 31, 2019, confirming compliance with applicable accounting standards and GEM listing rules[54] - The company has adopted GEM listing rules as its code of conduct for directors' securities transactions, confirming compliance by all directors for the period ending March 31, 2019[55] - The company has maintained high standards of corporate governance in accordance with the GEM listing rules[57] - No shares have been repurchased or traded by the company or its subsidiaries since the listing date[56] Strategic Outlook - The company plans to strengthen its market share in traditional provinces while actively participating in various bidding activities for office furniture[23] - The overall economic slowdown and increased competition in the office furniture bidding process are expected to pose significant challenges for the company moving forward[24] - The company aims to enhance its competitiveness through increased investment in innovative product development and technology research[23] Shareholder Information - Major shareholder Sun Universal Limited held approximately 245.3 million shares, representing 36.62% of the company[43] - The company has not granted any share options since the adoption of the share option scheme on December 19, 2016, and had no outstanding options as of March 31, 2019[46] - The company entered into a non-competition agreement with its major shareholders on December 19, 2016, to protect its interests[47] Operational Focus - The group continues to operate primarily in the manufacturing and sales of office furniture products, with its headquarters located in Chengdu, China[7] - The group primarily focuses on office furniture manufacturing and sales, while Myshowhome Group specializes in sofas, indicating potential competition[48] - Myshowhome International, a subsidiary of Myshowhome Group, holds 100% equity in a company engaged in sofa manufacturing with a registered capital of HKD 8 million[48] Financial Position - The group’s financing costs were reported as zero for the three months ended March 31, 2019, indicating no interest-bearing debt during this period[4] - The group’s cash and cash equivalents as of March 31, 2019, were not disclosed in the provided documents, but the financial position reflects a significant decline in profitability[4] - As of March 31, 2019, the group had no assets pledged as collateral[36]