Financial Performance - Revenue for the nine months ended 30 September 2020 amounted to approximately HK$89.45 million, representing a decrease of approximately 35.11% compared to HK$137.84 million for the same period in 2019[10]. - Loss attributable to owners of the Company for the nine months ended 30 September 2020 was approximately HK$13.68 million, compared to a loss of approximately HK$2.09 million for the same period in 2019[10]. - Basic loss per share for the nine months ended 30 September 2020 was approximately HK1.37 cent, compared to HK0.21 cent for the same period in 2019[10]. - Gross profit for the nine months ended 30 September 2020 was approximately HK$23.05 million, down from HK$43.02 million for the same period in 2019[12]. - Total comprehensive loss for the nine months ended 30 September 2020 was approximately HK$10.75 million, compared to a loss of HK$1.09 million for the same period in 2019[12]. - The Company reported a loss before taxation of approximately HK$13.68 million for the nine months ended 30 September 2020, compared to a loss of HK$1.21 million for the same period in 2019[12]. - The Group recorded a gross profit of approximately HK$23.05 million, representing a decline of approximately 46.42% compared to the same period in 2019[64]. Expenses - Selling and distribution expenses for the nine months ended 30 September 2020 were approximately HK$2.55 million, down from HK$4.17 million for the same period in 2019[12]. - Administrative expenses for the nine months ended 30 September 2020 were approximately HK$31.69 million, compared to HK$37.25 million for the same period in 2019[12]. - Finance costs for the nine months ended 30 September 2020 were approximately HK$3.64 million, up from HK$2.90 million for the same period in 2019[12]. - Selling and distribution expenses decreased by approximately 38.79% compared to the same period in 2019, mainly due to reduced packing and exhibition expenses[64]. Equity and Capital - As of September 30, 2020, the total equity of the company was HK$52,226,000, a decrease from HK$62,977,000 as of December 31, 2019, reflecting a loss for the period of HK$13,676,000[13]. - The company’s retained earnings decreased from HK$24,233,000 at the end of 2018 to HK$9,685,000 by the end of 2019, indicating a significant loss impact[13]. - The company’s share capital was increased from HK$380,000 to HK$10,000,000 by creating an additional 9,962,000,000 shares[15]. - As of September 30, 2020, the Group had cash and cash equivalents of approximately HK$4.45 million, down from HK$35.27 million as of September 30, 2019[67]. - The current ratio was approximately 1.16 times as of September 30, 2020, compared to 1.24 times as of September 30, 2019[67]. - The gearing ratio was approximately 268% as of September 30, 2020, compared to 84% as of September 30, 2019[68]. Revenue Sources - The company’s revenue is primarily derived from customers in Indonesia, India, Brazil, Hong Kong, and Saudi Arabia, indicating a diverse geographical revenue base[26]. - Revenue from finished watches for the nine months ended 30 September 2020 was HK$71.06 million, down from HK$96.20 million in 2019, representing a decline of approximately 26.2%[32]. - Revenue from SKD kits decreased to HK$16.71 million for the nine months ended 30 September 2020, down from HK$39.32 million in 2019, a decline of approximately 57.5%[32]. - The Group's revenue from other geographical locations amounted to HK$10.83 million for the nine months ended 30 September 2020, down from HK$13.78 million in 2019[32]. - For the nine months ended September 30, 2020, the Group's revenue was approximately HK$89.45 million, a decrease of about 35.11% compared to the same period in 2019, primarily due to the global outbreak of COVID-19[54]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the period, except for a deviation regarding the roles of chairman and CEO[117]. - The Audit Committee was established on June 20, 2018, to oversee the financial reporting process and internal control procedures[125]. - The financial information in the quarterly report has not been audited, but the Audit Committee reviewed the unaudited consolidated results and found them compliant with applicable accounting standards[127]. - The Company confirms that the Directors have complied with the required standard of dealings regarding securities transactions throughout the period[120]. Future Outlook - The Group intends to focus on strengthening product design and development capabilities to maximize long-term returns for shareholders[60]. - The quarterly report contains forward-looking statements regarding the Group's financial conditions and business operations, based on various assumptions about future strategies and environments[128]. - The report emphasizes that forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties[131]. - The Group's current views on future events are reflected in the forward-looking statements, which are based on multiple assumptions[131]. Employment and Operations - As of September 30, 2020, the company had a total of 113 employees, a decrease from 159 employees as of September 30, 2019[78]. - The Group's goods delivery to customers is gradually recovering as the pandemic situation improves in Asia[50]. - The company operates on an original design manufacturing (ODM) basis, catering to global watch manufacturers and brand owners[17]. Dividends and Share Options - The Group did not declare any dividend for the nine months ended 30 September 2020, consistent with the previous year[39]. - The Board decided not to declare any dividend for the Period[65]. - The Company has a share option scheme approved on June 20, 2018, valid for 10 years, aimed at incentivizing and retaining high-caliber employees[108]. - No share options have been granted since the adoption of the scheme during the nine months ended September 30, 2019, and 2020[110]. Miscellaneous - The company was successfully listed on the GEM of the Stock Exchange on July 12, 2018, raising approximately HK$34,470,000 after deducting listing fees[15]. - The company did not engage in any derivatives or hedging activities related to foreign exchange risk during the reporting period[84]. - There were no material contingent liabilities as of September 30, 2020, consistent with the previous year[80]. - The company did not purchase, sell, or redeem any of its listed securities during the period[101]. - The company had no significant events occurring after the reporting period[81]. - There were no significant investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures during the period[102].
恒伟集团控股(08219) - 2020 Q3 - 季度财报