Financial Performance - Total revenue for the nine months ended September 30, 2019, was approximately HKD 90.4 million, a decrease of about 15.9% compared to HKD 107.5 million in the same period of 2018[12]. - Gross profit for the same period was approximately HKD 15.2 million, down about 31.3% from HKD 22.1 million in 2018, resulting in a gross margin decline from 20.6% to 16.8%[12]. - Adjusted EBITDA for the nine months was approximately (HKD 4.0 million), compared to (HKD 3.7 million) in 2018[12]. - The adjusted EBITDA for the nine months ended September 30, 2019, was a loss of approximately HKD 4.0 million, compared to a loss of HKD 3.7 million for the same period in 2018, primarily due to a decrease in revenue and overall gross margin[15]. - The group recorded a loss attributable to the owners of the company of approximately HKD 8.0 million for the nine months ended September 30, 2019, compared to HKD 5.2 million for the same period in 2018[15]. - Basic loss per share for the nine months ended September 30, 2019, was HKD (1.34), compared to HKD (1.00) for the same period in 2018[43]. - The group reported a net loss attributable to owners of the company of HKD 720,000 for the three months ended September 30, 2019, compared to a loss of HKD 5,508,000 in the same period of 2018[43]. Revenue Breakdown - The number of projects decreased by 3.4% to 57 projects, compared to 59 projects in 2018[9]. - Average revenue per project decreased by approximately 11.1% to HKD 1.6 million from HKD 1.8 million in 2018[9]. - The company secured contracts totaling over HKD 60.5 million, with some projects expected to commence in the last quarter of 2019[9]. - The number of office projects decreased by 23.3% to 33, while commercial projects increased by 111.1% to 19[6]. - Revenue from office projects fell by 53.4% to HKD 42.9 million, while revenue from commercial projects surged by 1,033.3% to HKD 44.2 million[8]. - The group's main service revenue for the three months ended September 30, 2019, was HKD 39,095,000, a decrease of 2.8% from HKD 40,219,000 in the same period of 2018[36]. - For the nine months ended September 30, 2019, the total revenue was HKD 90,449,000, down 16.0% from HKD 107,503,000 in the same period of 2018[36]. Expenses and Liabilities - For the nine months ended September 30, 2019, the group's total operating expenses were approximately HKD 22.1 million, compared to HKD 22.2 million for the same period in 2018[15]. - As of September 30, 2019, the group had cash and cash equivalents of approximately HKD 19.0 million, down from HKD 20.7 million as of December 31, 2018[16]. - The current ratio as of September 30, 2019, was approximately 0.9 times, compared to 1.8 times as of December 31, 2018[16]. - Total liabilities as of September 30, 2019, were approximately HKD 97.2 million, down from HKD 105.3 million as of December 31, 2018[16]. - The capital-to-debt ratio as of September 30, 2019, was approximately 2.5%, significantly improved from 66.9% as of December 31, 2018[16]. Corporate Governance - The company was incorporated in the Cayman Islands and primarily engaged in providing interior design and renovation solutions in Hong Kong[31]. - The company has a stock option plan approved on June 15, 2016, which is effective for 10 years starting from July 12, 2016[45]. - As of September 30, 2019, there were no unexercised, granted, canceled, exercised, or expired stock options[46]. - Major shareholders include Mr. Sun Fu Lin with 144,000,000 shares (24.2%), and Climb Up Limited with 115,000,000 shares (19.3%)[54]. - The company has not received any notifications regarding interests or short positions in its shares from any persons other than directors or senior management as of September 30, 2019[55]. - The company has established an audit committee as of June 15, 2016, consisting of three independent non-executive directors[64]. - The audit committee reviewed the unaudited financial information and third-quarter report for the nine months ending September 30, 2019[64]. - The company has adopted a code of conduct for securities trading by directors, which is stricter than the GEM Listing Rules[61]. - The company has complied with all corporate governance codes as per GEM Listing Rules during the nine months ending September 30, 2019[60]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the nine months ending September 30, 2019[62]. - The company has no arrangements that would benefit directors or senior management in acquiring securities of the company or its affiliates as of September 30, 2019[57]. Market Outlook - The company anticipates continued market uncertainty and competition, focusing on enhancing market position and productivity[10]. - The company aims to leverage its reputation and experience to secure new projects and maintain competitive advantages in the market[13]. Other Information - The group did not declare any interim dividends for the nine months ended September 30, 2019, consistent with the previous year[20]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the nine months ended September 30, 2019[22]. - The group had no major contingent liabilities or capital commitments as of September 30, 2019[19]. - The group recorded a total tax expense of HKD 175,000 for the nine months ended September 30, 2019, consistent with the previous year[42]. - Other income for the three months ended September 30, 2019, was HKD 110,000, an increase of 80.3% from HKD 61,000 in the same period of 2018[37]. - The group experienced a net unrealized loss on listed securities of HKD (1,564,000) for the three months ended September 30, 2019[39]. - The group reported a total comprehensive loss of HKD (111,000) due to fair value changes in financial assets[39]. - The group has no tax liabilities in the Cayman Islands or British Virgin Islands[41].
简朴新生活(08360) - 2019 Q3 - 季度财报