积木集团(08187) - 2020 Q3 - 季度财报

Financial Performance The Group's revenue declined significantly, leading to a wider net loss for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue fell 45.7% YoY to HK$53.98 million, widening the net loss to HK$9.72 million Key Financial Data for the First Three Quarters of 2020 | Metric | Nine months ended Sep 30 (2020) | Nine months ended Sep 30 (2019) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 53,977 HK$ thousands | 99,361 HK$ thousands | -45.7% | | Loss before tax | (11,181) HK$ thousands | (3,372) HK$ thousands | +231.6% | | Loss for the period | (9,724) HK$ thousands | (5,527) HK$ thousands | +75.9% | | Basic loss per share | (2.03) HK cents | (1.15) HK cents | +76.5% | Condensed Consolidated Statement of Changes in Equity Total equity shifted to a deficit of HK$2.44 million, driven by a period loss of HK$9.72 million Summary of Changes in Equity | Item | Amount (HK$ thousands) | | :--- | :--- | | As at Jan 1, 2020 (audited) | 2,849 | | Loss for the period | (9,724) | | Deemed contribution from a director | 4,360 | | As at Sep 30, 2020 (unaudited) | (2,443) | Notes to the Financial Statements This section details segment performance, revenue sources, and other key financial statement items Segment Information The footwear segment turned profitable while the loan intermediary segment incurred a significant loss - The Group's operating segments include the footwear business and loan intermediary services[16] Segment Results Analysis (For the nine months ended September 30) | Segment | Revenue (2020) | Revenue (2019) | Segment results (2020) | Segment results (2019) | | :--- | :--- | :--- | :--- | :--- | | Footwear business | 34,096 HK$ thousands | 31,024 HK$ thousands | 9,174 HK$ thousands | (6,952) HK$ thousands | | Loan intermediary services | 19,881 HK$ thousands | 68,337 HK$ thousands | (13,784) HK$ thousands | 10,469 HK$ thousands | Revenue Sources Total revenue decreased by 45.7% to HK$53.98 million, driven by a sharp fall in loan intermediary services Revenue Composition (For the nine months ended September 30) | Business | 2020 (HK$ thousands) | 2019 (HK$ thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Footwear trading | 34,096 | 31,024 | +9.9% | | Provision of loan intermediary services | 19,881 | 68,337 | -70.9% | | Total | 53,977 | 99,361 | -45.7% | Dividends No dividends were declared or paid during the nine months ended September 30, 2020 - The Board does not recommend the payment of a dividend for the nine months ended September 30, 2020[23] Loss Per Share Basic loss per share widened to 2.03 HK cents from 1.15 HK cents in the prior year period Calculation of Basic Loss Per Share | Item | Nine months ended Sep 30 (2020) | Nine months ended Sep 30 (2019) | | :--- | :--- | :--- | | Loss for the period (HK$ thousands) | (9,724) | (5,527) | | Number of ordinary shares ('000) | 480,000 | 480,000 | | Basic loss per share (HK cents) | (2.03) | (1.15) | Events After the Reporting Period The company raised net proceeds of approximately HK$9.0 million from a share placement in October 2020 - The company completed a share placement on October 30, 2020, issuing 21,600,000 shares and raising net proceeds of approximately HK$9.0 million to supplement working capital[27] Management Discussion and Analysis This section provides a review of business operations, financial performance, and future outlook Business Review and Outlook The footwear business recovered while the loan intermediary business declined sharply due to the pandemic - Despite pressure in overseas markets from the pandemic and competition, the Group successfully expanded its client portfolio in China, completing its first orders for a well-known Chinese retailer[30] - Management believes the footwear business is recovering after several years of losses and will continue to seek development opportunities in both domestic and overseas markets[30] - The loan intermediary business saw a significant decline due to two main factors: 1) a sharp drop in loan demand caused by the COVID-19 pandemic and lockdown measures; and 2) a decreased willingness to lend from funding sources amid the economic situation[33] - In response, management has adopted a plan to reduce costs by closing several branches and laying off underperforming employees, while actively seeking alternative funding sources[33] Financial Review Revenue fell 45.7% and net loss widened to HK$9.7 million, driven by the loan intermediary segment's decline Segment Revenue Breakdown (For the nine months ended September 30) | Segment | 2020 (HK$ thousands) | % of Total | 2019 (HK$ thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Footwear trading | 34,096 | 63.2% | 31,024 | 31.2% | | Provision of loan intermediary services | 19,881 | 36.8% | 68,337 | 68.8% | | Total | 53,977 | 100.0% | 99,361 | 100.0% | - Employee benefit expenses decreased from HK$63.3 million to HK$35.9 million, primarily due to the implementation of cost reduction and restructuring plans during the period[41] - Other operating expenses decreased from HK$20.0 million to HK$11.6 million, mainly due to reduced business activities and cost-cutting measures amid the pandemic[43] - Finance costs decreased by 66.1% from HK$1.0 million to HK$0.3 million, as the Group had repaid all bank borrowings in 2019[44] - The footwear business segment achieved a profit before tax of approximately HK$9.2 million (2019: loss of HK$7.0 million), mainly benefiting from higher gross margins on domestic sales and cost reductions[46] - The loan intermediary services segment recorded a loss before tax of approximately HK$13.8 million (2019: profit of HK$10.5 million), primarily due to the decrease in revenue caused by the COVID-19 pandemic[46] Corporate Governance and Shareholder Information This section outlines the company's governance structure and key shareholder interests Interests of Directors and Substantial Shareholders Jimu Group Holdings Limited is the substantial shareholder, holding 73% of the company's issued share capital Substantial Shareholders' Holdings | Shareholder Name | Capacity | Number of shares held | Approximate percentage of shareholding | | :--- | :--- | :--- | :--- | | Jimu Group Holdings Limited | Beneficial owner | 350,400,000 | 73% | | Huawen Industry Group Limited | Interest of controlled corporation | 350,400,000 | 73% | | Jimu Holdings | Interest of controlled corporation | 350,400,000 | 73% | Audit Committee The Audit Committee reviewed the unaudited financial statements for the period, ensuring compliance - The Audit Committee is composed of three independent non-executive directors and is responsible for overseeing financial reporting and internal control procedures[58] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for this quarter[58]