Financial Performance - The company's revenue for the three months ended March 31, 2021, was RMB 14,467,000, a decrease of 9.7% compared to RMB 16,016,000 for the same period in 2020[2] - Gross profit for the same period was RMB 1,271,000, down 62.8% from RMB 3,421,000 year-on-year[2] - The company reported a loss before tax of RMB 5,753,000, compared to a loss of RMB 5,032,000 in the previous year, indicating a 14.4% increase in losses[2] - The total comprehensive loss attributable to owners of the company for the period was RMB 5,422,000, compared to RMB 6,127,000 in the same period last year, showing a 11.5% improvement[2] - Basic and diluted loss per share for the period was RMB 0.59, slightly higher than RMB 0.56 for the same period in 2020[2] - The company incurred financing costs of RMB 669,000, down 29.7% from RMB 952,000 in the previous year[2] - Trade and other receivables impairment losses increased to RMB 1,346,000 from RMB 583,000, reflecting a 130.5% rise[2] - The company reported a loss of approximately RMB 5.345 million for the three months ended March 31, 2021, compared to a loss of RMB 4.990 million for the same period in 2020, reflecting an increase in loss of about 7.1%[28] - Other income for the reporting period was approximately RMB 361,000, a decrease of about 50.3% compared to RMB 727,000 in the same period last year, primarily due to the absence of interest income from other receivables this period[51] Revenue Segmentation - Revenue from the furniture manufacturing and sales segment was RMB 8,012,000, down 25.6% from RMB 10,782,000 year-over-year[21] - Data center segment revenue increased to RMB 6,455,000, up 23.3% from RMB 5,234,000 in the previous year[21] - The group recognized RMB 1,015,000 in revenue from IT management services, which was not present in the previous year[19] - The data center segment contributed approximately RMB 6.5 million in revenue during the reporting period, an increase from RMB 5.2 million in the same period last year, representing a growth of about 25%[38] - The data center segment recorded revenue of approximately RMB 6.5 million, an increase of about RMB 1.2 million or approximately 23.3% compared to the previous year[46] Cost Management - Unallocated expenses decreased to RMB 772,000 from RMB 1,386,000 year-over-year[19] - Sales and distribution expenses for the reporting period were approximately RMB 1.7 million, a decrease of about 13.6% from RMB 2.0 million in the same period last year, with the furniture manufacturing and sales segment seeing an 8.9% decrease[53] - Administrative and other expenses for the reporting period were approximately RMB 5.0 million, a decrease of about 19.9% from RMB 6.2 million in the same period last year, largely due to the absence of certain legal and pandemic-related expenses[54] - Financing costs for the reporting period were approximately RMB 700,000, down from RMB 1.0 million in the same period last year, mainly due to the repayment of a bank loan[56] - The company aims to implement stricter cost control measures to reduce unnecessary energy consumption and achieve profit targets[41] Equity and Shareholder Information - The company’s total equity as of March 31, 2021, was RMB 166,801,000, a decrease from RMB 172,223,000 at the beginning of the year[3] - Major shareholders include Sun Universal Limited and its beneficial owner, holding 245,300,400 shares, representing 27.04% of the total shares[62] - The company’s director, Mr. Yi Cong, holds 116,580,000 shares, representing 12.85% of the total shares, through his spouse[60] - The company reported a weighted average number of ordinary shares of 907,333,333 for the calculation of basic loss per share for the three months ended March 31, 2021[27] Strategic Initiatives - The company aims to diversify its operations by expanding into the data center business, which began in 2020, to stabilize revenue streams amid economic challenges[36] - The company has established sales offices in Chengdu and Chongqing, focusing on furniture manufacturing and sales primarily in Sichuan, Chongqing, and Guizhou provinces[36] - The company plans to strengthen its presence in the southwestern market and expand into other markets when conditions permit, while increasing investment in product R&D to diversify product design[41] - The company is negotiating to establish a joint venture for data center operations in China, with expected demand for neutral data center services projected to grow at a compound annual growth rate of 31.8% over the next four years[43] - The company will collaborate with banks, investment funds, and other investors to minimize investment costs while maintaining an optimistic balance sheet for its capital-intensive data center business[43] Governance and Compliance - The company has adhered to the corporate governance code as per GEM listing rules from the listing date to the report date[69] - The board appointed Mr. Ma Minghui as an executive director effective April 1, 2021, responsible for financial and compliance matters[64] - The audit committee reviewed the unaudited consolidated financial statements for the three months ended March 31, 2021[65] - The company confirmed that all directors complied with the code of conduct regarding securities transactions for the three months ended March 31, 2021[66] - There have been no repurchases of the company's shares since the listing date up to the report date[67] Dividend Policy - The company did not declare any dividends for the three months ended March 31, 2021, consistent with the previous year[26] Asset Management - The company has no non-current assets located outside of China, emphasizing its primary operational focus in the region[17] - As of the report date, the company repaid a bank loan of RMB 30.0 million, which was secured by land use rights and properties, and no other asset pledges exist[58]
智昇集团控股(08370) - 2021 Q3 - 季度财报