Financial Performance - For the three months ended March 31, 2021, the group recorded unaudited revenue of approximately RMB 16.3 million, an increase of about 68.0% compared to RMB 9.7 million for the same period in 2020[4] - The group reported an unaudited loss of approximately RMB 0.2 million for the three months ended March 31, 2021, a significant improvement from an unaudited loss of RMB 2.3 million for the same period in 2020[4] - Basic loss per share for the three months ended March 31, 2021, was RMB 0.02, compared to RMB 0.28 for the same period in 2020[4] - Gross profit for the three months ended March 31, 2021, was RMB 5.65 million, compared to RMB 2.59 million for the same period in 2020[8] - The total comprehensive loss for the period attributable to owners of the company was RMB 0.19 million for the three months ended March 31, 2021, compared to RMB 2.28 million for the same period in 2020[8] - Revenue from clothing manufacturers contributed RMB 11,209,000, up from RMB 8,366,000 in the previous year, representing a growth of 33.5%[20] - Revenue from printed products and woven labels increased by approximately 82.7% and 292.5% respectively, primarily due to higher sales volumes[49] - The group's cost of sales increased by approximately 50.6% or about RMB 3.6 million compared to the same period in 2020[51] - The gross profit margin improved from approximately 26.7% for the three months ended March 31, 2020, to approximately 34.6% for the same period in 2021[51] Expenses and Dividends - The group incurred distribution and selling expenses of RMB 0.78 million for the three months ended March 31, 2021[8] - Administrative expenses for the three months ended March 31, 2021, were RMB 4.72 million, slightly lower than RMB 4.98 million for the same period in 2020[8] - The board of directors decided not to declare an interim dividend for the three months ended March 31, 2021, consistent with the decision for the same period in 2020[4] - Other income and gains decreased to approximately RMB 0.1 million from RMB 1.1 million in the previous year, mainly due to the absence of government unemployment subsidies[52] - Administrative expenses decreased from approximately RMB 5.0 million to RMB 4.7 million, reflecting cost control measures[54] Equity and Assets - The group's total equity as of March 31, 2021, was RMB 57.97 million, a decrease from RMB 66.61 million as of January 1, 2020[10] - The company operates primarily in China, with most of its non-current assets and capital expenditures located in or used for China[39] Business Operations and Strategy - The group is primarily engaged in providing label solutions and manufacturing and supplying garment accessories in China[16] - The company continues to serve a large number of clothing brand companies and designated procurement companies in China[48] - The group plans to utilize approximately RMB 8.0 million of unutilized net proceeds to expand into the domestic garment trading business, aiming to diversify revenue sources[63] - The group has identified potential customers in China and is seeking to expand sales and improve profitability through new business opportunities[49] Governance and Compliance - The company has adopted a code of conduct for directors' securities trading, complying with GEM Listing Rules sections 5.48 to 5.67, with no known violations reported as of March 31, 2021[89] - The company has adhered to the corporate governance code and principles since its listing on July 21, 2017, ensuring high standards of governance and shareholder protection[90] - The audit committee, established on June 24, 2017, consists of three independent non-executive directors and has reviewed the unaudited consolidated financial statements for the three months ending March 31, 2021, confirming compliance with applicable accounting standards[94] - The company has maintained compliance with the corporate governance code in all material aspects as of March 31, 2021[90] - There are no known competitive interests held by the company's controlling shareholders or their close associates that could conflict with the group's business as of March 31, 2021[93] Shareholder Information - The major shareholder, Mr. Lin, holds 600 million shares, representing 70.6% of the company[78] - Neo Concept, a controlled entity of Mr. Lin, also holds 600 million shares, equating to 70.6% of the company[83] Future Plans and Investments - The planned use of proceeds includes enhancing production facilities and digital printing technology with an allocation of HKD 7.9 million, of which HKD 2.5 million has been utilized[67] - The company aims to strengthen its capabilities in RFID technology application with a budget of HKD 3.0 million, with HKD 0.5 million already spent[67] - A total of HKD 33 million is allocated for general working capital, with HKD 3.3 million already utilized[67] - The company plans to develop its internet and information technology business with an allocation of HKD 3.0 million, fully utilized as of March 31, 2021[67] - The company has a total of HKD 37.6 million planned for various initiatives, with HKD 18.6 million already utilized and HKD 19.0 million remaining[67] - The company has plans to expand its sales and marketing department with an allocation of HKD 3.0 million, of which HKD 1.5 million has been utilized[67] Impact of External Factors - The impact of COVID-19 continues to create uncertainty in the global macroeconomic environment, which may affect the group's financial performance[57]
新达控股(08471) - 2021 Q1 - 季度财报