Financial Performance - For the third quarter of 2020, Zhejiang Ruiyuan Intelligent Control Technology Co., Ltd. reported revenue of RMB 8,851,000, a decrease of 49.3% compared to RMB 17,460,000 in the same period of 2019[6] - The gross profit for the third quarter was RMB 59,000, down 92.8% from RMB 816,000 year-on-year[6] - The company recorded a loss before tax of RMB 2,781,000, compared to a loss of RMB 1,306,000 in the third quarter of 2019, representing a 113.8% increase in losses[6] - The net loss for the nine months ended September 30, 2020, was RMB 5,896,000, compared to a loss of RMB 3,379,000 for the same period in 2019, indicating a 74.5% increase in losses[6] - Basic loss per share for the third quarter was RMB 0.56, compared to RMB 0.26 in the same quarter of 2019[6] - Total comprehensive loss for the nine months ended September 30, 2020, was RMB 5,896,000, compared to RMB 3,379,000 for the same period in 2019[6] - For the nine months ended September 30, 2020, the company recorded a revenue of approximately RMB 25,345,000, a decrease of about RMB 26,381,000 compared to RMB 51,726,000 for the same period in 2019[25] - The loss attributable to shareholders for the nine months ended September 30, 2020, was approximately RMB 5,896,000, an increase of about RMB 2,517,000 from RMB 3,379,000 for the same period in 2019[25] - The gross profit margin for the nine months ended September 30, 2020, was 1.3%, down from 4.3% for the same period in 2019, primarily due to rising sales costs[27] Expenses and Costs - The total sales cost for the third quarter was RMB 8,792,000, a decrease of 47.3% from RMB 16,644,000 in the same quarter of 2019[6] - Administrative expenses increased to RMB 1,895,000 in the third quarter of 2020, compared to RMB 1,254,000 in the same period of 2019, reflecting a 51.1% increase[6] - The financing cost for the nine months ended September 30, 2020, was approximately RMB 2,655,000, compared to RMB 2,493,000 for the same period in 2019[5] Shareholder Information - The company’s total equity attributable to owners decreased to RMB 42,133,000 as of September 30, 2020, from RMB 45,219,000 at the end of the previous year[8] - As of September 30, 2020, the major shareholder, Zhejiang Ruiyuan Intelligent Robot Co., Ltd., pledged a total of 322,675,000 shares, representing approximately 64.54% of the issued share capital[39] - As of September 30, 2020, the company’s director, He Keng, holds 370,000,000 domestic shares, representing 74.00% of the total issued shares[40] - Major shareholder Mr. He Yanggen holds 370,000,000 domestic shares, representing 74% of the total issued shares as of September 30, 2020[45] - Martin Currie China Hedge Fund Limited and Martin Currie Investment Management Limited each hold 14,245,000 H-shares, accounting for 10.96% of the H-shares and 2.85% of the total issued shares[45] - The major shareholders, including He Keng and others, collectively own 370,000,000 domestic shares, accounting for 74.00% of the total issued shares[44] Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules, with a deviation regarding the absence of a CEO position[50] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the nine months ended September 30, 2020[51] - The company has not granted any rights to purchase shares to directors, senior management, or supervisors during the nine months ended September 30, 2020[38] - No arrangements were made during the nine months ended September 30, 2020, that would allow directors or senior management to benefit from purchasing shares or bonds of the company[42] Strategic Initiatives - The company has expanded its marketing efforts to multiple cities including Hangzhou, Changsha, Shanghai, Fuzhou, Wuhan, Hefei, Ningbo, Shenzhen, and Xiamen[24] - The company is actively seeking strategic partnerships to enhance its product and sales market, focusing on electronic components, communication equipment, and industrial electronic control systems[33] - The company plans to continue implementing cost control measures to mitigate the impact of intense price competition in the electronics industry[27] - The company is awaiting favorable market conditions to expand its existing business scale and leverage its production capacity advantages[24] Impact of COVID-19 - The COVID-19 pandemic has significantly disrupted business operations and led to a sharp global economic slowdown, with ongoing monitoring and strategy formulation in response[35] - The company continues to observe the impact of COVID-19 and is developing appropriate strategies to address the situation[35] Personnel Changes - The company has terminated some employees from a subsidiary due to the decline in performance of its 3G electronic module products, which accounted for about 1% of total revenue during the reporting period[25] - The company has appointed a new supervisor, Guo Fangqiang, effective November 4, 2020, following the resignation of Shi Huanmiao[36] Dividends - The company did not declare any dividends for the nine months ended September 30, 2020, consistent with the previous year[21] - No dividends were declared for the nine months ended September 30, 2020, consistent with the previous year[34] Securities Transactions - The company has not purchased, redeemed, or sold any of its listed securities during the reporting period[47]
瑞远智控(08249) - 2020 Q3 - 季度财报