Financial Performance - Revenue for the three months ended December 31, 2020, was HKD 550,731,000, an increase of 27.1% compared to HKD 433,066,000 for the same period in 2019[4] - Revenue from the distribution of cosmetics and skincare products reached HKD 526,593,000, up 30.1% from HKD 404,581,000 year-on-year[4] - The company reported a net profit of HKD 10,413,000 for the three months ended December 31, 2020, compared to a profit of HKD 956,000 in the same period of 2019[6] - Basic earnings per share for the three months ended December 31, 2020, was HKD 5.66, compared to a loss of HKD 1.70 per share in the same period of 2019[6] - The operating profit for the nine months ended December 31, 2020, was HKD 12,731,000, a significant recovery from an operating loss of HKD 19,763,000 in the same period of 2019[6] - Total comprehensive income for the three months ended December 31, 2020, was HKD 20,364,000, compared to a loss of HKD 5,139,000 in the same period of 2019[8] - The total revenue for the nine months ended December 31, 2020, was HKD 1,317,376,000, representing a 24.0% increase from HKD 1,062,221,000 in the same period of 2019[11] - For the nine months ended December 31, 2020, the company reported a loss attributable to owners of the company of HKD 5,359,000 compared to a loss of HKD 28,535,000 for the same period in 2019, representing a significant improvement[17] - The gross profit for the review period was approximately HKD 110,287,000, a 12% increase from HKD 98,274,000 in the previous year[37] - The company recorded a loss attributable to owners of approximately HKD 5,359,000, an 81% reduction from HKD 28,535,000 in the same period last year[37] Government Support and Subsidies - The company received government subsidies amounting to HKD 5,332,000 to alleviate the impact of COVID-19 on its operations[13] Shareholder Information - As of December 31, 2020, major shareholder Qiu Zhongzong held 10,111,000 shares, representing approximately 13.47% of the total issued share capital[56] - The weighted average number of ordinary shares for calculating basic and diluted loss per share was 75,049,354 for the three months ended December 31, 2020, unchanged from the previous year[18] Subsidiary Sales - The company completed the sale of its subsidiary, Earth Limited, for a total consideration of HKD 23,000,000, resulting in a gain of HKD 216,000 after accounting for the net assets sold[27] - The net assets sold for Earth Limited included investment properties valued at HKD 22,000,000 and liabilities of HKD 18,319,000, resulting in a net asset value of HKD 4,465,000[26] - The company also sold its subsidiary, Victory Sky Investments Limited, for HKD 1,500,000, resulting in a gain of HKD 501,000 after accounting for the net liabilities sold[29] - The net assets sold for Victory Sky included intangible assets valued at HKD 985,000 and liabilities of HKD 2,250,000, leading to a net liability of HKD 1,251,000[32] Equity and Capital Structure - The company's total equity as of December 31, 2020, was HKD 828,034,000, compared to HKD 875,754,000 as of December 31, 2019, reflecting a decrease of approximately 5.4%[22] - The company has implemented a capital restructuring to offset accumulated losses and enhance flexibility for future capital raising[34] Business Development and Strategy - The company plans to continue introducing innovative beauty and anti-aging treatments to strengthen its market leadership[39] - The company aims to enhance its brand appeal by developing advanced health and beauty products that meet customer needs[43] - The franchise business in China has expanded significantly, leveraging the brand's strong recognition and establishing flagship stores[45] Governance and Compliance - The company has established a formal and transparent procedure to protect shareholders' interests, adhering to the GEM listing rules' corporate governance code principles, with some exceptions noted[60] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial performance for the three and nine months ending December 31, 2020[62] - The company confirmed that all directors have complied with the trading standards set out in the GEM listing rules[64] - The company has not established a chairman of the board, thus not complying with the relevant governance code[61] - There are no competitive interests held by directors, major shareholders, or their associates in businesses that may compete with the group[59] Financial Assets and Investments - The group recorded a net gain of approximately HKD 6,924,000 from financial assets measured at fair value through profit or loss, compared to a net loss of approximately HKD 17,258,000 in the same period last year[46] - Interest income from lending services was approximately HKD 9,724,000, a decrease of 20% compared to approximately HKD 12,127,000 in the same period last year[47] Future Allocations and Utilization - The group plans to utilize approximately HKD 16 million for acquiring commercial, industrial, and residential properties in China and Hong Kong by June 30, 2021[49] - Approximately HKD 40 million is allocated for the development of the group's lending business, with HKD 38 million already utilized by June 30, 2021[49] - The group intends to allocate approximately HKD 30 million for the development of its securities investment business[49] - The group aims to renovate offices and stores in China and Hong Kong, with an allocation of approximately HKD 7 million, of which HKD 53 million has been utilized by September 30, 2021[49] Share Options and Director Interests - The weighted average exercise price of the share options is HKD 3.87, with a weighted average remaining contractual life of 3.14 years[53] - The group has not recorded any shareholding interests from directors or key executives in the company's shares as of December 31, 2020[51] - The company did not grant any rights to directors or their immediate family members to acquire shares or bonds during the review period[57] - The company has not engaged in any arrangements that would allow directors to gain rights from other entities during the review period[57]
修身堂(08200) - 2021 Q3 - 季度财报