Financial Performance - For the nine months ended December 31, 2020, the company's revenue was approximately HKD 223.7 million, a decrease of about 16.2% compared to approximately HKD 267.1 million for the same period in 2019[6]. - The loss attributable to owners for the nine months ended December 31, 2020, was approximately HKD 19.4 million, compared to a loss of approximately HKD 6.4 million for the same period in 2019[6]. - The basic and diluted loss per share for the nine months ended December 31, 2020, was approximately HKD 3.24, compared to HKD 1.64 for the same period in 2019[6]. - The gross loss for the nine months ended December 31, 2020, was HKD 9,678,000, compared to a gross profit of HKD 31,567,000 for the same period in 2019, indicating a significant downturn[49]. - The net loss attributable to owners of the company for the nine months ended December 31, 2020, was HKD 19,384,000, compared to a loss of HKD 6,402,000 in the same period of 2019, reflecting an increase in losses of approximately 202.5%[51]. - The company reported a total comprehensive loss of HKD 15,657,000 for the nine months ended December 31, 2020, compared to a loss of HKD 6,603,000 in the same period of 2019[51]. - The company reported a loss before tax of HKD 19,215 thousand for the nine months ended December 31, 2020, compared to a loss of HKD 5,434 thousand for the same period in 2019, indicating a worsening financial position[72]. Revenue Breakdown - Revenue from two-way radios decreased by approximately 17.9% to HKD 172.7 million for the nine months ended December 31, 2020, from HKD 210.4 million for the same period in 2019[9]. - Revenue from baby monitors decreased by approximately 14.6% to HKD 2.9 million for the nine months ended December 31, 2020, from HKD 3.4 million for the same period in 2019[9]. - Revenue from service business increased approximately 18.4 times to HKD 7.7 million for the nine months ended December 31, 2020, from HKD 0.4 million for the same period in 2019[9]. - Revenue from other products decreased by approximately 23.5% to HKD 40.5 million for the nine months ended December 31, 2020, from HKD 52.9 million for the same period in 2019[10]. - Total revenue from external customers for the nine months ended December 31, 2020, was HKD 223,736 thousand, a decrease from HKD 267,073 thousand for the same period in 2019, representing a decline of approximately 16.2%[69]. - The performance of the two-way radio segment generated revenue of HKD 172,685 thousand for the nine months ended December 31, 2020, compared to HKD 210,435 thousand in the same period of 2019, reflecting a decrease of about 17.9%[70]. - Revenue from the United States for the nine months ended December 31, 2020, was HKD 72,843 thousand, down from HKD 135,711 thousand in the same period of 2019, a decline of approximately 46.3%[72]. Cost and Expenses - The company's sales cost decreased by approximately 9.1% from HKD 235.5 million for the nine months ended December 31, 2019, to about HKD 214.1 million for the nine months ended December 31, 2020[17]. - The gross profit margin dropped from approximately 11.8% for the nine months ended December 31, 2019, to about 4.3% for the nine months ended December 31, 2020, primarily due to a decline in the gross margin of two-way wireless intercom products[17]. - Administrative expenses decreased from approximately HKD 32.0 million for the nine months ended December 31, 2019, to about HKD 28.2 million for the nine months ended December 31, 2020, mainly due to reduced R&D and consultancy expenses[20]. - Sales and distribution expenses increased from approximately HKD 2.7 million for the nine months ended December 31, 2019, to about HKD 3.2 million for the nine months ended December 31, 2020, primarily due to increased issuance costs and sample expenditures[18]. - Interest expenses for bank and other borrowings amounted to HKD 1,540,000 for the nine months ended December 31, 2020, down from HKD 3,489,000 in the same period of 2019[7]. - The company incurred a tax expense of HKD 169,000 for the nine months ended December 31, 2020, compared to HKD 968,000 for the same period in 2019[84]. - Rental expenses paid to a related company were HKD 1,529,000 for the nine months ended December 31, 2020, compared to HKD 1,394,000 for the same period in 2019[91]. Strategic Plans and Future Outlook - The company plans to diversify its revenue sources by expanding product varieties and exploring business opportunities with existing and potential customers[12]. - The company will continue to explore and consider potential investment opportunities to seize more business chances[16]. - The company plans to enhance its market presence and product offerings through strategic decisions made by the executive directors[66]. - The company is attempting to mitigate the impact of the US-China trade war by outsourcing production services from China to Vietnam and Malaysia[14]. - The company will continue to closely monitor the impact of COVID-19 on its financial condition, cash flow, and operational performance[16]. - The company has not disclosed any new product developments or market expansion strategies in the current report, suggesting a potential area for future focus[62]. Shareholder Information - As of December 31, 2020, Solution Smart Holdings Limited and Mr. Zhong Weishen each hold 112,589,600 shares, representing an 18.81% equity interest in the company[34]. - SMK Investment and Mr. Kor Sing Mung Michael each hold 90,997,600 shares, representing a 15.20% equity interest in the company[34]. - The company did not issue any debt securities during the nine months ended December 31, 2020[34]. - The company does not recommend the payment of dividends for the nine months ended December 31, 2020, consistent with the previous period[22]. - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended December 31, 2020[43]. - The company has adopted the GEM Listing Rules as the code of conduct for directors' securities transactions, confirming compliance during the nine months ended December 31, 2020[42]. - There were no significant contracts in which directors had a direct or indirect material interest during the nine months ended December 31, 2020[38]. - No share options were granted, exercised, or lapsed under the company's share option scheme during the nine months ended December 31, 2020[46]. - The total number of shares that may be issued upon exercise of all share options granted under the scheme is 26,880,000 shares, approximately 4.5% of the issued share capital as of December 31, 2020[46]. - The weighted average number of ordinary shares for the nine months ended December 31, 2020, was 598,500,000, compared to 390,194,000 for the same period in 2019[87]. Compliance and Governance - The company has fully complied with the corporate governance code as per GEM Listing Rules during the nine months ended December 31, 2020[40]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial performance for the third quarter ended December 31, 2020[47]. - The company had no significant post-reporting date events as of the report date[93]. - The corporate income tax rate in China remained at 25% for both 2020 and 2019[7]. - The company recorded other comprehensive income of HKD 3,727,000 for the nine months ended December 31, 2020, primarily due to foreign exchange differences, compared to a loss of HKD 201,000 in the same period of 2019[49]. - The company reported a net foreign exchange loss of HKD 1,127 thousand for the nine months ended December 31, 2020, compared to a loss of HKD 3,313 thousand for the same period in 2019, indicating some improvement in currency management[80].
善裕集团控股(08245) - 2021 Q3 - 季度财报