Financial Performance - For the nine months ended September 30, 2021, the company reported total revenue of HKD 94,658 thousand, an increase of 8.0% compared to HKD 87,454 thousand for the same period in 2020[20]. - The gross profit for the nine months ended September 30, 2021, was HKD 7,204 thousand, down 36.5% from HKD 11,300 thousand in the previous year[20]. - The company incurred a loss before tax of HKD 780 thousand for the nine months ended September 30, 2021, compared to a profit of HKD 795 thousand for the same period in 2020[20]. - The total comprehensive loss for the period was HKD 886 thousand, compared to a total comprehensive income of HKD 566 thousand in the previous year[20]. - The basic loss per share for the nine months ended September 30, 2021, was HKD (0.90), compared to earnings of HKD 0.57 per share in the same period of 2020[20]. - The company reported a pre-tax loss of HKD 780,000 for the nine months ended September 30, 2021, compared to a profit of HKD 11,300,000 for the same period in 2020[50]. - The group reported a loss of HKD 0.9 million for the nine months ended September 30, 2021, compared to a profit of HKD 0.6 million for the same period in 2020, mainly due to reduced gross profit[89]. Revenue Breakdown - For the nine months ended September 30, 2021, the total revenue from external sales was HKD 94,658,000, compared to HKD 81,237,000 for the same period in 2020, representing a growth of approximately 16.5%[50]. - The revenue from clothing products for the nine months ended September 30, 2021, was HKD 93,677,000, an increase of 33.8% from HKD 70,077,000 in the previous year[50]. - The revenue from construction materials for the nine months ended September 30, 2021, was HKD 981,000, a decrease of 91.6% from HKD 11,160,000 in the previous year[50]. - The company's revenue increased by 16.5% from HKD 81.2 million for the nine months ended September 30, 2020, to HKD 94.7 million for the nine months ended September 30, 2021, primarily driven by increased sales of apparel and related products to customers in Hong Kong and Macau[79]. Expenses and Costs - The company reported sales and distribution expenses of HKD (1,348) thousand for the nine months ended September 30, 2021, a decrease of 67.6% from HKD (4,168) thousand in the previous year[20]. - Administrative expenses for the nine months ended September 30, 2021, were HKD (6,237) thousand, slightly down from HKD (6,630) thousand in the previous year[20]. - Sales cost increased by 25.0% from HKD 69.9 million for the nine months ended September 30, 2020, to HKD 87.5 million for the nine months ended September 30, 2021, consistent with revenue growth[80]. - Gross profit decreased from HKD 11.3 million for the nine months ended September 30, 2020, to HKD 7.2 million for the nine months ended September 30, 2021, with gross margin dropping from 13.9% to 7.6% due to lower average selling prices[81]. - Financial costs increased to HKD (594) thousand for the nine months ended September 30, 2021, from HKD (405) thousand in the previous year[20]. - Total other income for the nine months ended September 30, 2021, was HKD 207 thousand, down 74.7% from HKD 816 thousand for the same period in 2020[59]. Equity and Assets - The total equity of the company as of September 30, 2021, was HKD 117,631 thousand, down from HKD 124,565 thousand at the beginning of the year[23]. - Non-current assets as of September 30, 2021, totaled HKD 32,815 thousand, a decrease of 4.7% from HKD 34,443 thousand as of December 31, 2020[58]. - As of September 30, 2021, the total equity of the group was HKD 58.1 million, an increase from HKD 57.5 million as of December 31, 2020[108]. - Cash and cash equivalents decreased to HKD 1 million from HKD 6 million as of December 31, 2020[108]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as per GEM listing rules during the nine months ending September 30, 2021[135]. - The audit committee has reviewed the unaudited consolidated financial information for the nine months ending September 30, 2021, and found it compliant with applicable accounting standards and GEM listing rules[142]. - The company has confirmed compliance with the trading standards for directors as per GEM listing rules during the nine months ending September 30, 2021[138]. - The company is committed to maintaining high standards of corporate governance, focusing on establishing a high-quality board and effective accountability systems[135]. Strategic Initiatives - The company has successfully expanded its business coverage to new apparel retail markets in Europe and Asia, establishing relationships with several new clients[76]. - The company has extended its business into the supply of construction materials, diversifying its revenue sources[72]. - The group plans to diversify its revenue sources by exploring new business opportunities in supplying construction and related materials to ASEAN countries, which are less affected by COVID-19 and the US-China trade war[99]. - The company aims to reallocate unutilized net proceeds to better respond to current economic conditions and challenges posed by COVID-19[104]. Other Information - The company did not recommend any dividend payment for the nine months ended September 30, 2021, consistent with the previous year[67]. - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures were made during the nine months ended September 30, 2021[111]. - The group has no plans for significant investments or capital assets as of September 30, 2021[112]. - The group has sufficient liquidity and financial resources to meet its operational funding needs[108]. - The group has no significant contingent liabilities or guarantees as of September 30, 2021[95]. - The group is closely monitoring foreign exchange risks, particularly with transactions denominated in euros, but considers the risk from US dollars to be minimal due to the peg between the Hong Kong dollar and the US dollar[96].
细叶榕科技(08107) - 2021 Q3 - 季度财报