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中国信息科技(08178) - 2020 Q3 - 季度财报

Financial Performance - For the nine months ended September 30, 2020, the revenue was approximately HKD 40,267,000, a decrease of 2.77% compared to HKD 41,413,000 in the same period last year[21]. - The loss attributable to owners for the nine months ended September 30, 2020, was approximately HKD 14,762,000, significantly reduced from HKD 63,644,000 in the previous year, mainly due to a prior year fair value loss on investment properties of approximately HKD 35,286,000[21]. - The loss per share for the nine months ended September 30, 2020, was HKD 0.26, compared to a loss of HKD 1.11 per share in the previous year[21]. - The group recorded revenue of approximately HKD 40,267,000 for the nine months ended September 30, 2020, a decrease of 2.77% compared to approximately HKD 41,413,000 for the same period last year[49]. - Customer contract revenue decreased from approximately HKD 34,358,000 for the nine months ended September 30, 2019, to approximately HKD 29,704,000 for the same period in 2020, primarily due to project delays caused by the COVID-19 pandemic[49]. - The group's gross profit for the nine months ended September 30, 2020, was approximately HKD 17,785,000, an increase from approximately HKD 16,604,000 for the same period last year, mainly due to increased interest income[49]. - The gross profit for the nine months ended September 30, 2020, was HKD 17,785 thousand, up from HKD 16,604 thousand in the same period of 2019, indicating a growth of 7.1%[52]. - The company reported total comprehensive income of HKD 8,824 thousand for the three months ended September 30, 2020, compared to a total comprehensive loss of HKD 7,327 thousand in the same period of 2019, showing a turnaround[54]. - The company’s revenue from sales of computer hardware and software for the nine months ended September 30, 2020, was HKD 24,439 thousand, down from HKD 27,322 thousand in the same period of 2019, a decline of 10.4%[63]. - The company’s total income from customer contracts for the nine months ended September 30, 2020, was HKD 29,704 thousand, down from HKD 34,358 thousand in the same period of 2019, a decline of 13.5%[62]. Dividends and Shareholder Information - The board of directors does not recommend the payment of an interim dividend for the nine months ended September 30, 2020, consistent with the previous year[21]. - No interim dividend was recommended for the nine months ended September 30, 2020, consistent with 2019[8]. - As of September 30, 2020, Mr. Wang Ju Cheng holds 403,971,449 shares through Discover Wide Investments Limited, representing approximately 7.03% of the company's issued share capital[79]. - Mr. Wang also has a beneficial ownership of 137,816,000 shares, accounting for about 2.40% of the issued share capital[79]. - Mr. Huang Jing Zhao holds a beneficial ownership of 10,008,000 shares, which is approximately 0.17% of the issued share capital[79]. - The total number of ordinary shares issued by the company is 5,744,191,908 shares as of the report date[79]. - The company granted a total of 571,200,000 share options on April 11, 2017, with an exercise period until April 10, 2027[84]. - An additional 571,200,000 share options were granted on September 27, 2017, with an exercise period until September 26, 2027[84]. - On June 21, 2019, the company granted 217,056,000 share options, valid until June 20, 2029[84]. - On April 6, 2020, the company granted 42,192,000 share options, with an exercise period until April 5, 2030[84]. - As of September 30, 2020, the company had a total of 5,744,191,908 shares issued, with major shareholders holding significant stakes[98]. - Mr. Zhang Rong directly holds 743,720,000 shares, representing 12.95% of the company's issued share capital[96]. - Discover Wide, controlled by Mr. Wang Jucheng, holds 403,971,449 shares, accounting for 7.03% of the total issued shares[96]. Operational Strategies and Market Adaptation - The COVID-19 pandemic and geopolitical tensions have created unprecedented challenges for the business environment, leading to a cautious approach in budgeting and project implementation[22]. - The company has focused on enhancing its services and products to provide affordable high-quality solutions to clients during the nine months ended September 30, 2020[25]. - The company continues to adapt to market changes and enhance its operational strategies to ensure sustainable business development[25]. - The company has emphasized the importance of technology during the pandemic, with a shift towards digital and mobile business models[22]. - The company has developed an advanced IoT-based epidemic prevention solution, enhancing building operation systems for maintenance, energy saving, and epidemic control[27]. - The company is collaborating with property developers to install intelligent systems that automatically analyze potential order theft by agents, improving operational efficiency[28]. - The company aims to promote the "epidemic prevention building" concept in Greater China and international markets, contributing to smart city and health epidemic fields[27]. - The company continues to develop products and systems tailored to various industries, ensuring affordable and secure advanced technology solutions for clients[28]. Collaborations and Partnerships - A collaboration was established with a subsidiary of a listed company in Hong Kong to develop products in smart cities, predictive analytics, and health and epidemic prevention[25]. - The group has established partnerships with various vertical software partners to jointly develop AI+ predictive modules, improving both new and existing projects[40]. - The group has signed memorandums of understanding and strategic cooperation agreements with different enterprises, including public transport and real estate companies, to enhance service reliability and safety[42]. Cost Management and Financial Stability - Sales and distribution expenses were approximately HKD 573,000, a decrease of 73.86% compared to approximately HKD 2,192,000 for the same period last year, primarily due to reduced promotional activities during the reporting period[49]. - Administrative expenses were approximately HKD 23,989,000, a decrease of 43.99% compared to HKD 42,829,000 for the same period last year, mainly due to cost control measures implemented during the period[50]. - The company’s administrative expenses decreased significantly to HKD 8,045 thousand for the three months ended September 30, 2020, from HKD 13,383 thousand in the same period of 2019, a reduction of 40.8%[52]. - The total liabilities decreased to HKD 7,970 thousand for the nine months ended September 30, 2020, compared to HKD 3,190 thousand in the same period of 2019, reflecting a significant increase in financial stability[52]. - Total finance costs for the nine months ended September 30, 2020, were HKD 7,970,000, an increase of 149.5% compared to HKD 3,190,000 in 2019[5]. Risk Management and Corporate Governance - The board of directors is responsible for ensuring the group maintains a robust and effective internal control and risk management system to protect shareholder investments and group assets[127]. - The risk management framework includes the board, audit committee, and senior management, with the audit committee reviewing the effectiveness of internal controls and risk management systems[127]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the nine months ending September 30, 2020, ensuring compliance with applicable accounting standards[119]. - The company has established a remuneration committee responsible for determining the specific remuneration of all executive directors[121]. - The company has complied with the GEM Listing Rules regarding the appointment of at least three independent non-executive directors[115]. - The company has adopted a code of conduct for securities trading by directors, which complies with GEM Listing Rules[116]. - The company believes that having Mr. Huang Jingzhao serve as both Chairman and CEO is in its best interest for policy continuity and business stability[113]. - There have been no significant changes to the board of directors' information since the mid-term report date[125]. - The board consists of executive directors including Mr. Huang Jingzhao (Chairman and CEO) and independent non-executive directors[126].