Financial Performance - The group's revenue increased by approximately HKD 74.24 million or 70.09%, from about HKD 105.92 million for the nine months ended September 30, 2020, to approximately HKD 180.16 million for the nine months ended September 30, 2021[14]. - The company recorded a profit of approximately HKD 8.55 million for the nine months ended September 30, 2021, compared to a profit of HKD 0.20 million for the same period in 2020, representing a significant increase[18]. - Revenue for the nine months ended September 30, 2021, was approximately HKD 180.16 million, up 70.25% from HKD 105.93 million in the same period of 2020[25]. - Gross profit for the nine months ended September 30, 2021, was approximately HKD 30.21 million, an increase of 62.50% from HKD 18.60 million in the previous year[25]. - Customer contract revenue for the nine months ended September 30, 2021, was HKD 180,155,000, up 70.0% from HKD 105,925,000 in the same period of 2020[33]. - For the nine months ended September 30, 2021, the revenue from transformer sales was HKD 93,160,000, an increase of 55.5% compared to HKD 59,844,000 in the same period of 2020[33]. - The revenue from electronic components sales reached HKD 83,685,000 for the nine months ended September 30, 2021, representing a 91.3% increase from HKD 43,744,000 in the previous year[33]. - The revenue from sales of switching power supplies was HKD 2,979,000 for the nine months ended September 30, 2021, an increase of 52.5% from HKD 1,951,000 in the same period of 2020[33]. - For the nine months ended September 30, 2021, the company reported a profit attributable to owners of HKD 8,554,000, a significant increase from HKD 200,000 for the same period in 2020, representing a growth of 4177%[46]. Cost and Expenses - The sales cost rose by approximately HKD 62.61 million or 71.69%, from about HKD 87.33 million to approximately HKD 149.94 million during the same period[14]. - Sales and distribution expenses increased by approximately HKD 1.29 million or 27.16%, from HKD 4.75 million to HKD 6.04 million for the nine months ended September 30, 2021[17]. - Administrative expenses rose by approximately HKD 1.11 million or 8.06%, from HKD 13.78 million to HKD 14.89 million for the same period[17]. - Financing costs increased by approximately HKD 0.28 million or 24.35%, from HKD 1.15 million to HKD 1.43 million for the nine months ended September 30, 2021[17]. - The total employee costs, including directors' remuneration, amounted to HKD 30,790,000 for the nine months ended September 30, 2021, compared to HKD 21,409,000 in the same period of 2020, reflecting a 43.8% increase[39]. - Research and development expenses for the nine months ended September 30, 2021, were HKD 2,354,000, which is a 43.8% increase from HKD 1,636,000 in the same period of 2020[39]. Market and Sales Analysis - Transformers accounted for approximately 51.71% of the group's sales for the nine months ended September 30, 2021, down from 56.50% in the same period of 2020[9]. - Electronic components represented about 46.45% of sales for the nine months ended September 30, 2021, up from 41.30% in the same period of 2020[9]. - The geographical breakdown of revenue shows that sales in China reached HKD 40,149,000 for the nine months ended September 30, 2021, up from HKD 32,822,000 in the same period of 2020, a growth of 22.4%[36]. Strategic Initiatives - The company plans to establish an additional production line by the end of the fiscal year to meet the growing customer demand following the establishment of a new production line in July 2021[22]. - The management is focusing on maintaining sufficient buffer inventory and strengthening business relationships to sustain competitive advantages amid supply chain uncertainties[22]. - The company continues to advertise in well-known industry magazines to promote its products despite restrictions on traditional exhibitions[13]. - The company maintained close communication with existing customers to follow up on revised delivery schedules[13]. Risk Management and Governance - The company has established a risk management committee to oversee risk governance structures and hedging policies, including copper futures purchasing activities[66]. - The board believes that integrating core elements of good corporate governance into the management structure and internal control procedures helps balance the interests of shareholders, customers, and employees[67]. - The company confirms compliance with the corporate governance code as of September 30, 2021[68]. - The company has adopted a code of conduct for directors regarding securities transactions, which is more lenient than the GEM Listing Rules[61]. Taxation and Dividends - The company did not make any provisions for Hong Kong profits tax or Chinese corporate income tax for the nine months ended September 30, 2021, due to sufficient prior tax losses to offset taxable profits[41][42]. - The tax rate for the Chinese subsidiaries was 25% for the nine months ended September 30, 2021[42]. - No dividends were declared or proposed for the nine months ended September 30, 2021, consistent with the same period in 2020[43]. Shareholder Information - The company’s major shareholder, Mr. Zhong Zhiheng, holds 63.0% of the shares, while Mr. Zhong Tiancheng holds 7.0%[49]. - The company has a total of three executive directors and three independent non-executive directors as of the report date[69]. - No directors or controlling shareholders have any business that directly or indirectly competes with the company's business as of September 30, 2021[63]. Compliance and Audit - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial performance for the nine months ended September 30, 2021, and found no objections to the accounting treatments adopted by the company[64]. - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2021, with no significant impact on its accounting policies or financial statements[30]. - The company has not issued, exercised, or cancelled any share options under the share option scheme during the nine months ended September 30, 2021[57]. - There were no significant events after the reporting period up to the date of this report[60]. - The company did not repurchase any of its own shares during the period from January 1, 2021, to September 30, 2021[59].
侨洋国际控股(08070) - 2021 Q3 - 季度财报