Revenue and Profitability - Revenue for the three months ended June 30, 2021, was HKD 14,486,000, representing a 21% increase from HKD 11,975,000 for the same period in 2020[7] - Gross profit for the nine months ended June 30, 2021, was HKD 8,765,000, up 16% from HKD 7,566,000 in the same period last year[7] - Total revenue for the nine months ended June 30, 2021, reached HKD 45,896,000, compared to HKD 29,826,000 for the same period in 2020[25] - Revenue from natural gas sales and services for the three months ended June 30, 2021, was HKD 14,486,000, an increase from HKD 11,975,000 in the same period last year[25] - The group's unaudited revenue increased significantly from approximately HKD 29.83 million for the nine months ended June 30, 2020, to approximately HKD 45.90 million for the nine months ended June 30, 2021, primarily driven by the gas business segment generating approximately HKD 41.63 million[107] Losses and Financial Performance - The company reported a loss before tax of HKD 8,184,000 for the three months ended June 30, 2021, compared to a loss of HKD 4,958,000 for the same period in 2020, indicating a 65% increase in losses[7] - Total comprehensive loss for the nine months ended June 30, 2021, was HKD 12,189,000, a significant reduction from HKD 62,279,000 in the same period last year[9] - The company reported a net loss of HKD 25,476,000 for the nine months ended June 30, 2021[18] - The total loss attributable to owners of the company for the three months ended June 30, 2021, was HKD 7,845,000, compared to HKD 3,067,000 for the same period in 2020, indicating a 156% increase in losses[9] - The company experienced a loss from continuing operations amounting to 2,606 thousand HKD for the nine months ending June 30, 2021, compared to a loss of 2,398 thousand HKD for the same period in 2020[33] - The group reported a loss of approximately HKD 25.48 million for the nine months ended June 30, 2021, compared to a loss of approximately HKD 65.80 million for the same period in 2020, attributed to the absence of impairment on non-current assets[109] Costs and Expenses - Other income for the three months ended June 30, 2021, was HKD 529,000, down from HKD 939,000 in the same period last year, reflecting a 44% decrease[7] - Employee benefits expenses, including salaries, bonuses, and allowances, increased to HKD 4,135,000 for the three months ended June 30, 2021, up 108.3% from HKD 1,986,000 in the same period of 2020[61] - The cost of goods sold for the three months ended June 30, 2021, was HKD 10,222,000, an increase of 31.3% compared to HKD 7,785,000 for the same period in 2020[10] - Operating expenses slightly rose from approximately HKD 33.30 million for the nine months ended June 30, 2020, to approximately HKD 34.53 million for the nine months ended June 30, 2021, due to significant foreign exchange losses of approximately HKD 7.46 million[108] - Financial costs decreased to approximately HKD 3.79 million for the nine months ended June 30, 2021, from HKD 7.11 million for the same period in 2020, mainly due to reduced estimated interest expenses from non-controlling shareholder loans and convertible bonds[109] Shareholder and Capital Structure - The company plans to raise approximately HKD 55.32 million through a rights issue to redeem unpaid bonds and cover operational costs[21] - The company issued a total of 260,000,000 shares at a price of HKD 0.05 per share, resulting in a capital increase of HKD 6,500,000 and a share premium of HKD 5,680,000 after deducting costs of HKD 820,000[72] - The company proposed a capital restructuring to reduce the par value of shares from HKD 0.50 to HKD 0.01, which was approved by shareholders on April 21, 2021[104] - The capital reduction was confirmed by the Grand Court of the Cayman Islands on August 3, 2021, resulting in a decrease of the issued share capital from HKD 45,586,000 to HKD 911,720[126] Governance and Compliance - The company adhered to all provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO, which has not been appointed since April 19, 2018[139] - The audit committee reviewed the unaudited condensed consolidated financial statements and quarterly reports for the nine months ending June 30, 2021[142] - The quarterly report for the nine months ending June 30, 2021, will be published on the Hong Kong Stock Exchange and the company's website[143] Future Outlook and Challenges - The company has not disclosed specific future outlook or guidance in the report[7] - The group has faced challenges due to the COVID-19 pandemic and escalating tensions between the US and China, leading to uncertainty and adverse impacts on overall business performance[122] - The company plans to be more cautious and conservative in seeking new potential mergers, business combinations, and expansions to maintain growth and profitability[124] Taxation and Liabilities - The company did not have any taxable profits for the nine months ending June 30, 2021, thus no corporate income tax provision was required[31] - The effective tax rate for the company's subsidiaries in China remains at 25% for the year 2021[30] - The company has no income tax liabilities in regions such as the Cayman Islands, Samoa, Seychelles, and the British Virgin Islands[29] - As of June 30, 2021, the company has fully provided for a liability of RMB 8,587,000 (approximately HKD 10,573,000) related to a legal dispute with a supplier[98] - As of June 30, 2021, the total provision for the debt claimed by Yichang Plaintiff amounts to RMB 8,587,000 (approximately HKD 10,573,000) which has been fully provided as the group's liability[119] Shareholder Information - The company’s board member, Mr. Ng Kwok Ming, holds 3,687,500 shares, representing 4.04% of the company's equity[130] - Hong Kong Haoyue International Trading Co., Ltd. held 11,005,500 shares, representing 12.07% of the issued share capital as of June 30, 2021[133] - The transfer of 11,005,500 shares from Hong Kong Haoyue International Trading Co., Ltd. to Zhonggang Financial Services Co., Ltd. occurred, making Zhonggang the major shareholder as of the report date[134] Employment and Workforce - As of June 30, 2021, the group employed 59 staff members, a decrease from 62 staff members as of June 30, 2020[129]
环球战略集团(08007) - 2021 Q3 - 季度财报