2021 Third Quarterly Report 第三季業績報告 SK Target Cover 148(w) x 210(h)mm CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small & 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 co ...

2021 Interim Report 中期報告 SK Target Cover 148(w) x 210(h)mm CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small & med-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 ...

Financial Performance - For the three months ended August 31, 2021, the revenue was RM 2,628,000, a decrease of 44.9% compared to RM 4,766,000 in the same period of 2020[15]. - The cost of sales for the same period was RM 2,701,000, resulting in a gross loss of RM 73,000, compared to a gross profit of RM 923,000 in 2020[16]. - Loss before taxation for the period was RM 1,209,000, significantly higher than the loss of RM 145,000 reported in the previous year[16]. - The total comprehensive loss for the period was RM 1,160,000, compared to RM 534,000 in the corresponding period of 2020[17]. - Loss per share from continuing operations was RM 1.23, compared to RM 0.31 in the previous year[17]. - The company reported a profit of RM 40,000 from discontinued operations, an increase from RM 15,000 in the same period of 2020[16]. - The company reported a loss for the period of RM 1,170,000 for the three months ended August 31, 2021, compared to a loss of RM 255,000 for the same period in the previous year[19]. - The accumulated loss increased to RM 6,286,000 as of August 31, 2021, up from RM 5,116,000 as of May 31, 2021[19]. - The total comprehensive loss for the period ended August 31, 2021, was RM 1,160,000, which includes an exchange difference gain of RM 10,000[19]. - The Group recorded a net loss of approximately RM 1.2 million for the three months ended August 31, 2021, primarily due to decreased revenue caused by COVID-19 and related measures[84]. Revenue Breakdown - Manufacturing and trading segment revenue decreased to RM 2,010,000 from RM 3,677,000, representing a decline of 45.4% year-over-year[37]. - Revenue for the three months ended 31 August 2021 was RM 2,628,000, a decrease of 44.9% compared to RM 4,766,000 for the same period in 2020[37]. - Revenue from the manufacturing and trading of precast concrete junction boxes decreased by approximately 45.34%, from RM 3.7 million to RM 2.0 million during the same period[71]. - Revenue from the trading of accessories and pipes and mobile crane rental services decreased by approximately 42.46%, from RM 1.1 million to RM 0.6 million[72]. Expenses and Costs - Administrative expenses increased slightly to RM 989,000 from RM 966,000 year-on-year[16]. - The cost of inventories recognized as an expense was RM 1,938,000, down from RM 2,812,000, reflecting a decrease of 31.0%[48]. - Selling and distribution expenses decreased by approximately RM 9,000 or 4.17%, from RM 216,000 to RM 207,000, mainly due to a decrease in commission[82]. - Interest expense on leased liabilities decreased to RM 18,000 from RM 37,000, a reduction of 51.4% year-over-year[40]. Equity and Share Capital - As of August 31, 2021, the total equity of SK Target Group Limited is RM 32,428,000, a decrease from RM 33,558,000 as of May 31, 2021, reflecting a comprehensive loss for the period[19]. - The share capital remained unchanged at RM 4,277,000 from May 31, 2021, while the share premium increased to RM 26,444,000[19]. - The weighted average number of ordinary shares for calculating basic loss per share increased to 98,025,000 from 86,025,000 due to share consolidation effective on 18 August 2021[52]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code provisions, except for the separation of the roles of chairman and CEO, which is deemed appropriate under current circumstances[123]. - The Company has established an Audit Committee to oversee financial statements and internal control procedures[152]. - The audit committee has been established in accordance with GEM Listing Rules and is responsible for reviewing the company's financial statements and overseeing internal control procedures[155]. - The audit committee consists of three members, with Mr. Chu Kin Ming serving as the chairman[156]. Future Outlook and Management Commentary - The company continues to focus on improving operational efficiency and exploring new market opportunities despite the current financial challenges[15]. - The management is cautiously optimistic about the overall business prospects as Malaysia's economy is expected to slowly recover with the national COVID-19 immunisation programme[67]. - The management will closely monitor factors such as labor shortages and rising production costs that may impact business operations[66]. Share Options and Capital Raising - The Share Option Scheme was adopted on June 27, 2017, and is valid for ten years to attract and retain personnel[125]. - No share options were granted, exercised, lapsed, or cancelled under the Share Option Scheme as of August 31, 2021[140]. - The Company raised approximately HK$4.96 million through a share subscription completed on March 11, 2021, for general working capital, which was used as intended[119]. - An additional HK$1.85 million was raised through a share subscription completed on September 1, 2021, also for general working capital, and was used as intended up to the report date[119].

CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small & med-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 the GEM are generally ...

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 & 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 & ...

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 & 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 ...

CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small & 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 the GEM are generally ...

CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small & medium 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. The greater risk profile and other characteristics of ...

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 & medium 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 ...

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 & medium 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 the GEM are generally sm ...