Financial Performance - For the nine months ended September 30, 2019, the group recorded unaudited revenue of approximately RMB 584 million, a decrease of about 23.3% compared to RMB 761 million for the same period in 2018[5]. - The group reported an unaudited loss of approximately RMB 1.8 million for the nine months ended September 30, 2019, compared to an unaudited profit of RMB 0.5 million for the same period in 2018[5]. - Basic loss per share for the nine months ended September 30, 2019, was RMB 0.23, compared to basic earnings of RMB 0.06 for the same period in 2018[5]. - Revenue for the three months ended September 30, 2019, was RMB 18.314 million, down from RMB 25.938 million for the same period in 2018[9]. - Gross profit for the nine months ended September 30, 2019, was RMB 18.279 million, compared to RMB 23.473 million for the same period in 2018[9]. - The group’s loss before tax for the nine months ended September 30, 2019, was RMB 861, compared to a profit of RMB 2,054 for the same period in 2018[9]. - Revenue from customer contracts for the nine months ended September 30, 2019, was RMB 58,449,000, a decrease of 23.2% compared to RMB 76,085,000 for the same period in 2018[53]. - Sales of printed products amounted to RMB 23,655,000, down 28.7% from RMB 33,156,000 in the previous year[53]. - Revenue from garment manufacturers was RMB 44,964,000, a decline of 23.6% from RMB 58,909,000 in 2018[57]. - Major customer A contributed RMB 12,068,000 to total sales, down 23.0% from RMB 15,841,000 in the previous year[60]. - For the nine months ended September 30, 2019, the company's revenue was approximately RMB 58.4 million, a decrease of 23.3% compared to RMB 76.1 million for the same period in 2018[73]. - The gross profit for the nine months ended September 30, 2019, was approximately RMB 18.3 million, down about 22.1% from RMB 23.5 million in the same period of 2018, resulting in a gross margin increase from 30.9% to 31.3%[76]. Dividends and Shareholder Information - The board of directors resolved not to declare an interim dividend for the nine months ended September 30, 2019, consistent with the previous year[5]. - The company did not declare an interim dividend for the nine months ended September 30, 2019, consistent with the same period in 2018[67]. - The major shareholder, Mr. Lin, holds 600 million shares, representing 75% of the company's equity[93]. Administrative and Operating Expenses - The group incurred administrative expenses of RMB 16.092 million for the nine months ended September 30, 2019, down from RMB 18.886 million for the same period in 2018[9]. - Distribution and selling expenses decreased slightly to approximately RMB 3.7 million for the nine months ended September 30, 2019, from RMB 3.8 million in the same period of 2018[77]. - Administrative expenses were reduced to approximately RMB 16.1 million for the nine months ended September 30, 2019, from RMB 18.9 million in the same period of 2018, due to cost-cutting measures[78]. New Business Initiatives - The group established a wholly-owned subsidiary named RN Crypto (BVI) Company Limited, aimed at collaborating with partners in the blockchain business[18]. - The company plans to explore new business opportunities, including selling waist products through different channels and providing blockchain services[75]. - The company will focus more resources on exploring potential customers in China and overseas apparel brands to expand sales and improve profitability[75]. Financial Reporting Standards - The group prepared the unaudited consolidated financial statements for the nine months ended September 30, 2019, in accordance with Hong Kong Financial Reporting Standards[19]. - The financial statements were presented in Renminbi, which is the functional currency of the company[19]. - The application of new Hong Kong Financial Reporting Standards did not have a significant impact on the financial position and performance of the group for the current and prior periods[29]. - The group adopted HKFRS 16 on leases, which replaced HKAS 17 and related interpretations[30]. - The company has not made adjustments under the new Hong Kong Financial Reporting Standards 16 for leases that end within 12 months from the initial application date[51]. - The company has chosen not to recognize right-of-use assets and lease liabilities for leases that end within 12 months from the initial application date[51]. Capital Expenditure and Investments - The net proceeds from the listing, after deducting related expenses, were approximately HKD 37.6 million (equivalent to about RMB 32.7 million)[86]. - The total planned amount for upgrading production facilities and digital printing technology is HKD 37.6 million, with actual usage at HKD 12.4 million, leaving a balance of HKD 25.2 million[88]. - The company has allocated HKD 17.0 million for upgrading printing technology, with HKD 1.8 million utilized so far, resulting in a remaining balance of HKD 15.2 million[88]. - HKD 3.0 million has been earmarked for developing RFID technology capabilities, with no funds used yet, leaving a full balance of HKD 25 million[88]. - The company plans to enhance heat transfer production facilities with a budget of HKD 6.0 million, of which HKD 4.1 million has been spent, leaving HKD 1.9 million remaining[88]. - An investment of HKD 5.3 million is designated for upgrading IT systems, with HKD 2.1 million utilized, resulting in a remaining balance of HKD 3.2 million[88]. - The sales and marketing department expansion has a budget of HKD 3.0 million, with HKD 0.8 million spent, leaving HKD 2.2 million available[88]. - General working capital has an allocation of HKD 3.3 million, with HKD 3.1 million used, leaving a balance of HKD 0.2 million[88]. - The actual usage of funds is lower than planned due to the time taken to identify suitable machinery for digital printing and RFID technology[89]. - The company aims to continue its production line upgrades and development in the future based on market conditions[89]. Audit and Compliance - The Audit Committee was established on June 24, 2017, and consists of three independent non-executive directors[128]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2019, and confirmed compliance with applicable accounting standards and GEM listing rules[128]. - The company appointed Tongren Financing Limited as a compliance advisor on March 7, 2017, with no interests in the company's equity[125].
新达控股(08471) - 2019 Q3 - 季度财报