Financial Performance - Revenue for the three months ended December 31, 2019, was HK$24,737,000, a decrease of 41.6% compared to HK$42,286,000 in the same period of 2018[12]. - Gross profit for the nine months ended December 31, 2019, was HK$43,369,000, down 43.3% from HK$76,322,000 in the previous year[12]. - The operating results for the three months ended December 31, 2019, were HK$2,109,000, a significant decline from HK$17,290,000 in the same period of 2018[12]. - The profit/(loss) for the period attributable to equity holders of the Company for the three months ended December 31, 2019, was a loss of HK$4,771,000 compared to a profit of HK$4,351,000 in 2018[14]. - Basic earnings per share for the three months ended December 31, 2019, was a loss of HK$0.3187, compared to earnings of HK$0.2908 in the same period of 2018[14]. - Total cost of sales for the nine months ended December 31, 2019, was HK$52,121,000, down 18.9% from HK$64,313,000 in the previous year[12]. - The Company reported a profit/(loss) before tax of HK$4,930,000 for the three months ended December 31, 2019, compared to a profit of HK$10,356,000 in 2018[12]. - For the nine months ended December 31, 2019, the company reported a loss of HK$6,891,000 compared to a profit of HK$901,000 in the same period of 2018, representing a significant decline[16]. - The total comprehensive loss for the period was HK$22,773,000, compared to a loss of HK$12,922,000 in the previous year, indicating a worsening financial position[16]. - The equity attributable to equity holders of the company decreased to HK$238,335,000 as of December 31, 2019, down from HK$266,215,000 at the end of 2018[19]. - The company's retained losses increased to HK$1,705,122,000 as of December 31, 2019, compared to HK$1,704,944,000 at the end of 2018[19]. - The company reported a net loss of HK$9,525,000 for the period, which contributed to the overall comprehensive loss[19]. - The foreign currency translation reserve showed a negative balance of HK$28,579,000 as of December 31, 2019, reflecting adverse currency fluctuations[19]. - The Group's gross profit was approximately HK$43.4 million, representing a decrease of approximately 43.2% from approximately HK$76.3 million compared to the same period last year, with a gross profit margin of approximately 45.4%[89]. - The unaudited consolidated loss for the Reporting Period amounted to approximately HK$6.9 million, compared to a profit of approximately HK$0.9 million for the corresponding period last year[93]. - The loss attributable to equity holders of the Company was approximately HK$9.5 million, compared to approximately HK$9.3 million for the nine months ended December 31, 2018[93]. - Basic loss per share was approximately HK cents 0.64 for the Reporting Period, compared to basic earnings per share of approximately HK cents 0.04 for the same period last year[93]. Operational Challenges - The decrease in revenue was mainly due to the slowdown of gold mining operations resulting from environmental inspections and government demands for environmental improvements[83]. - The Group's profit before tax for the nine months ended 31 December 2019 was impacted by increased operational costs, including staff costs of HK$11.2 million, up from HK$8.6 million in the same period of 2018[64]. - The Group has been served a writ of summons claiming repayment of the principal sum of HK$30,095,357 under a series of convertible bonds, which poses a material uncertainty on the Group's ability to continue as a going concern[40]. - The company continues to face challenges in its financial performance, as indicated by the significant losses and declining equity[16]. - Looking ahead, the Group anticipates challenges due to economic uncertainties from the China-US trade dispute and tightening mine operation regulations[104]. Financial Management and Support - Management is actively controlling operating costs and increasing revenue to improve operating cash flows[40]. - The Company is engaged in active fundraising efforts to meet its operating and financing obligations[40]. - The Group has obtained continuous financial support from a substantial shareholder to enable it to meet its obligations as they fall due[40]. - The Group's policies on financial risk management remain unchanged for the nine months ended December 31, 2019[34]. Corporate Governance - The company emphasizes maintaining high standards of corporate governance to enhance corporate value and safeguard shareholder interests[113]. - The company has complied with all code provisions set out in the Corporate Governance Code during the reporting period, with minor deviations noted[113]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the nine months ended 31 December 2019, ensuring compliance with applicable accounting standards and GEM Listing Rules[110]. - The role of the chairman is currently performed by Dr. Li Dahong, while the position of chief executive remains vacant[116]. - The company will continue to review its board structure and make appointments as suitable candidates are identified[116]. Share Capital and Options - The issued share capital remained unchanged at HK$89,807,000 as of December 31, 2019[19]. - The share options granted under the Share Option Scheme have an exercise price of at least HK$1.71, with a total balance of 4,519,296 options as of December 31, 2019[122]. - The share options were set to expire on 19 November 2019, with no options exercised during the reporting period[123]. - As of December 31, 2019, Mr. Ma held 200,730,224 shares, representing approximately 13.41% of the issued shares[136]. - Mr. Zhao Yuebing had an interest in 22,508,800 shares, which is about 1.50% of the issued shares[136]. - Lee Shing had an interest in 106,893,333 shares, accounting for approximately 7.14% of the issued shares[136]. - Yong Li Investments Limited, wholly owned by Mr. Lee Shing, held 106,893,333 shares, representing 7.14% of the issued shares[138]. - Wang Dong had an interest in 86,244,800 shares, which is about 5.76% of the issued shares[138]. - Zhou Yong held 116,666,666 shares, representing approximately 7.79% of the issued shares[138]. - J. Thomson Asset Investment Limited had an interest in 13,333,333 shares, accounting for about 0.89% of the issued shares[138]. - The company maintained a sufficient public float as of the report date[146]. Legal and Compliance - During the Reporting Period, the Company faced a legal action related to the repayment of the principal sum of HK$30,095,357 under the Convertible Bonds, which is still ongoing[100]. - The financial statements have not been audited but have been reviewed by the audit committee of the Company[44]. - The Group did not have any significant investments, material acquisitions, or disposals of subsidiaries and affiliated companies throughout the Reporting Period[104]. - The company has adopted a code of conduct for securities transactions by directors, complying with the required standards set out in the GEM Listing Rules[113]. - As of 31 December 2019, none of the directors or chief executives had any interests or short positions in the shares or debentures of the company[125]. Cash and Liquidity - As of December 31, 2019, the Group had cash and cash equivalents of approximately HK$1.1 million, down from approximately HK$2.2 million as of March 31, 2019[93]. - The current ratio as of December 31, 2019, was approximately 0.23, unchanged from March 31, 2019[93]. - The Group's gearing ratio was approximately 0.49 as of December 31, 2019, consistent with the ratio as of March 31, 2018[93].
大唐潼金(08299) - 2020 Q3 - 季度财报