Financial Performance - The company reported a consolidated profit or loss statement for the first quarter of 2019, with specific figures to be detailed in the financial statements[9]. - Revenue for the three months ended 31 March 2019 was RMB 29,117,000, representing a 30.7% increase from RMB 22,279,000 in the same period of 2018[16]. - Gross profit for the same period was RMB 10,592,000, up 33.5% from RMB 7,930,000 year-on-year[16]. - Profit for the period was RMB 2,517,000, a slight decrease of 3.7% compared to RMB 2,614,000 in the previous year[16]. - Total comprehensive income for the period was RMB 1,007,000, compared to a loss of RMB 364,000 in the same period of 2018[16]. - Basic earnings per share for the three months ended 31 March 2019 was RMB 0.004, down from RMB 0.005 in the same period of 2018[16]. - The Group's profit before tax for the three months ended March 31, 2019, was impacted by a cost of inventories sold amounting to RMB 18,525,000, which increased from RMB 14,349,000 in 2018[76]. - The Group's total tax charge for the period was RMB 844,000, slightly down from RMB 852,000 in the same period of 2018[79]. - Profit attributable to owners of the Company was RMB 2,109,000 for the three months ended March 31, 2019, a decrease of RMB 595,000 or 22.8% from RMB 2,614,000 for the same period in 2018[108]. Revenue Breakdown - Total revenue from contracts with customers for the three months ended March 31, 2019, was RMB 29,117,000, representing a 30.6% increase from RMB 22,279,000 in the same period of 2018[52]. - Revenue from ITO film was RMB 13,795,000, up 142.5% from RMB 5,687,000 in 2018, while Smart Light-adjusting Film revenue increased by 45.5% to RMB 11,785,000 from RMB 8,100,000[52]. - Domestic revenue from Mainland China accounted for RMB 28,509,000, which is 98% of total revenue, compared to RMB 21,812,000 in 2018, indicating a 30.6% growth[55]. - Revenue from Smart Light-adjusting Glass was RMB 1,099,000 for the three months ended March 31, 2019, representing an increase of RMB 488,000 or 79.9% from RMB 611,000 for the same period in 2018[101]. - Revenue from other products was RMB 2,438,000 for the three months ended March 31, 2019, a significant increase of RMB 2,109,000 from RMB 329,000 for the same period in 2018[103]. Expenses and Costs - Employee benefit expenses totaled RMB 4,277,000, slightly decreasing from RMB 4,349,000 in the previous year, with wages and salaries at RMB 3,774,000[76]. - Selling and distribution expenses were RMB 2,844,000, a slight increase of RMB 141,000 or 5.2% from RMB 2,703,000 in the same period in 2018, representing 9.8% of revenue, down from 12.1%[123]. - Administrative expenses rose by approximately RMB 755,000 or 16.8% to RMB 5,255,000, accounting for 18.0% of revenue, down from 20.2% in the same period in 2018[124]. - The Group recognized government grants of RMB 100,000 during the period, with no unfulfilled conditions or contingencies related to these grants[71]. - Research costs for the quarter were RMB 694,000, a decrease from RMB 1,105,000 in the same period last year, reflecting a focus on cost management[76]. Governance and Compliance - The report confirms that the information contained is accurate and complete, ensuring transparency for investors[5]. - The company is committed to adhering to the GEM Listing Rules, which govern the disclosure of financial information[8]. - The company has a diverse board of directors, including executive, non-executive, and independent non-executive members, which enhances governance[10]. - Ernst & Young serves as the auditor, ensuring the integrity of the financial reporting process[13]. - The Audit Committee has reviewed the financial reporting process and confirmed compliance with applicable accounting principles for the unaudited consolidated financial statements for the three months ended March 31, 2019[156]. - The company has complied with the Corporate Governance Code during the relevant period[146]. Shareholder Information - As of March 31, 2019, Top Access Management Limited holds 324,324,325 shares, representing approximately 62.37% of the total shareholding[184]. - Strong Eagle Holdings Limited is deemed to be interested in 324,324,325 shares, which also accounts for approximately 62.37% of the total shareholding[184]. - Mr. Liu Hongwei has an interest in a controlled corporation holding 327,797,914 shares, equating to approximately 63.04% of the total shareholding[186]. - The Share Option Scheme aims to incentivize selected Eligible Persons for their contributions to the growth and development of the Group[160]. - A total of 21,000,000 share options were granted under the Share Option Scheme at an exercise price of HK$1.16 per share, representing 4.038% of the issued shares of the company[161]. Future Outlook - The Group intends to expand its footprint to overseas markets and develop production lines to meet expected demand for its products[109]. - The company plans to utilize the net proceeds from the IPO as outlined in the prospectus, but actual use is lower than planned due to delays in production line automation and installation[143]. - The actual use of proceeds was lower than planned due to delays in automation and installation of production lines, with expectations to install new production lines in 2019[141].
水发兴业新材料(08073) - 2019 Q1 - 季度财报