Financial Performance - Revenue for the three months ended September 30, 2020, was RMB 14,028,000, a decrease of 14.1% compared to RMB 16,344,000 for the same period in 2019[14] - Gross profit for the three months ended September 30, 2020, was RMB 13,572,000, down 17.2% from RMB 16,344,000 in the previous year[14] - Profit before taxation for the three months ended September 30, 2020, was RMB 4,702,000, a decline of 46.6% compared to RMB 8,801,000 in the same period of 2019[14] - Profit attributable to owners of the Company for the three months ended September 30, 2020, was RMB 4,661,000, down 27.8% from RMB 6,464,000 in the previous year[14] - Earnings per share for the three months ended September 30, 2020, was 1.17 RMB cents, compared to 1.62 RMB cents for the same period in 2019, reflecting a decrease of 27.8%[14] - Total comprehensive income for the period was RMB 4,692,000, down 27.5% from RMB 6,464,000 in the previous year[14] - The company reported a profit of RMB 9,899,000 for the nine months ended September 30, 2020, compared to RMB 40,589,000 for the same period in 2019, indicating a significant decrease of about 75.7%[27] - As of September 30, 2020, the total comprehensive income for the period was RMB 9,930,000, a decrease from RMB 13,880,000 for the same period in 2019, representing a decline of approximately 28.5%[27] Cost Management - Direct operating costs for the three months ended September 30, 2020, were RMB (456,000), indicating a cost management strategy in response to revenue decline[14] - Staff costs increased to RMB (3,477,000) for the three months ended September 30, 2020, compared to RMB (2,526,000) in the same period of 2019, reflecting a rise of 37.7%[14] - Other gains and losses for the three months ended September 30, 2020, were RMB 32,000, down from RMB 65,000 in the previous year, indicating a decrease of 50.8%[14] - The Group's total staff costs for the nine months ended September 30, 2020, amounted to RMB 10,763,000, compared to RMB 10,752,000 for the same period in 2019, reflecting a slight increase[62] - Total depreciation for the nine months ended September 30, 2020, was RMB 3,437,000, compared to RMB 2,346,000 for the same period in 2019[62] Impact of Covid-19 - The financial performance was adversely affected by the Covid-19 pandemic, leading to reduced revenue due to decreased customer demand and increased expected credit loss provisions[35] - The decrease in revenue was mainly due to the outbreak of Covid-19, which led to mandatory holiday extensions and quarantine measures that temporarily hindered operations[98] - The Group's operations were temporarily hindered due to mandatory holiday extensions and quarantine measures in response to Covid-19[117] - The Group's proactive approach during the Covid-19 pandemic included various anti-epidemic measures to protect employee health and minimize operational disruptions[76] - The Group is actively monitoring the ongoing impacts of Covid-19 on its operations and financial performance, adjusting strategies as necessary[35] Taxation and Compliance - The subsidiaries in the PRC are subject to a tax rate of 25% during the reporting period[59] - The Group's current tax expense for the three months ended September 30, 2020, included a credit of RMB (500) for PRC Enterprise Income Tax, compared to an expense of RMB 3,084 in the same period of 2019[57] - The current tax expense decreased from approximately RMB 6.8 million for the nine months ended September 30, 2019, to approximately RMB 1.7 million for the same period in 2020, reflecting a decrease in net profit[116] - The Group's taxation included an income tax credit of RMB 0.5 million for the nine months ended June 30, 2020, compared to an income tax expense of RMB 6.0 million for the same period in 2019[116] Corporate Governance - The Company has complied with the provisions of the Corporate Governance Code, except for a deviation from code provision A.2.1 regarding the separation of roles of chairman and chief executive officer[155] - The Company emphasizes the importance of high standards of corporate governance for its continuous growth[155] - The Company has adopted and complied with the Corporate Governance Code where applicable[156] - The Company has established an audit committee in compliance with GEM Listing Rules, ensuring proper governance and oversight[166] - The audit committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2020, confirming compliance with applicable accounting standards and legal requirements[168] Business Development - The Group completed the acquisition of 51% equity interests in Wuhan Desheng Meimei Health Management Co., Ltd. in August 2020, expanding its service offerings in postpartum care[81] - The Group plans to leverage high-tech actions such as artificial intelligence and big data to build an integrated service platform for the medical industry and promote the healthy growth of domestic SMEs[83] - The Group believes that providing postpartum care services will be a good entry point into the healthcare industry and plans to explore selective acquisitions and partnerships to strengthen its revenue base[94] - The market size of postpartum care centres in the PRC is estimated to reach approximately RMB 29 billion by 2024, indicating a positive outlook for the industry[89] - The concentration of the postpartum care service industry is currently very low, indicating significant growth potential in the coming decade[93] Shareholding and Capital Structure - As of September 30, 2020, the company's issued share capital was HK$40,000,000, with 400,000,000 ordinary shares issued[122] - Mr. Zhang Junshen and Mr. Zhang Junwei each hold 300,000,000 shares, representing a 75% shareholding in the company[128] - The interests of Mr. Zhang Junshen include 219,801,980 shares held by Hero Global and 80,198,020 shares as a party acting in concert with Mr. Zhang Junwei[132] - The interests of Mr. Zhang Junwei include 80,198,020 shares held by Icon Global and 219,801,980 shares as a party acting in concert with Mr. Zhang Junshen[132] - The company has maintained its capital structure since its listing on the GEM of the Stock Exchange on July 9, 2018[122] - No changes in the capital structure have occurred since the listing[122] Dividends - A final dividend of HK$12,000,000 (equivalent to RMB 10,884,000) was declared for the year ended December 31, 2019, with no interim dividend recommended for the nine months ended September 30, 2020[66][67] - The Board proposed a final cash dividend of HK$0.03 per share for the year ended December 31, 2019, which was approved by shareholders on May 22, 2020[122] - No interim dividend was recommended for the nine months ended September 30, 2020, compared to nil for the same period in 2019[122]
紫元元(08223) - 2020 Q3 - 季度财报