Financial Performance - For the nine months ended 30 September 2019, the Group recorded revenue of approximately HK$45.0 million, a decrease from HK$46.1 million in the same period of 2018[6]. - The loss after taxation for the nine months ended 30 September 2019 amounted to approximately HK$3.9 million, compared to a loss of HK$7.3 million for the same period in 2018[6]. - Basic and diluted loss per share for the nine months ended 30 September 2019 was approximately HK0.49 cents, down from HK0.92 cents in the previous year[8]. - Gross profit for the nine months ended 30 September 2019 was HK$9.0 million, a slight decrease from HK$9.4 million in the same period of 2018[8]. - Total comprehensive loss for the nine months ended 30 September 2019 was HK$6.0 million, compared to HK$10.6 million for the same period in 2018[9]. - The Group experienced a loss before tax of HK$4.4 million for the nine months ended 30 September 2019, an improvement from a loss of HK$8.2 million in the same period of 2018[8]. - The company reported a loss for the period of HK$3,921,000 for the three months ended September 30, 2019, compared to a loss of HK$7,342,000 for the same period in 2018[11]. - The total comprehensive loss for the period was HK$6,001,000, which includes an exchange difference on translation of foreign operations of HK$2,080,000[11]. - The company’s accumulated losses increased to HK$18,688,000 as of September 30, 2019, from HK$14,767,000 as of January 1, 2019[11]. - The Group's revenue decreased to approximately HK$45.0 million for the nine months ended 30 September 2019, down from approximately HK$46.1 million for the same period in 2018, representing a decrease of approximately 2.4%[79]. - The gross profit margin slightly decreased to approximately 20.1% for the nine months ended 30 September 2019 from approximately 20.3% for the same period in the preceding year[72]. - The loss attributable to the owners of the parent decreased to approximately HK$3.9 million for the nine months ended 30 September 2019 from approximately HK$7.3 million for the same period in 2018, representing a decrease of approximately 46.6%[73]. Revenue Breakdown - For the three months ended September 30, 2019, total revenue was HK$16,064,000, a decrease of 3.4% compared to HK$16,622,000 for the same period in 2018[33]. - Revenue from the PRC for the three months was HK$9,162,000, a decline of 10.4% from HK$10,222,000 in 2018[33]. - Revenue from overseas customers for the three months was HK$5,981,000, an increase of 2.2% compared to HK$5,851,000 in 2018[33]. - Revenue from Hong Kong for the three months was HK$921,000, up 67.5% from HK$549,000 in 2018[33]. - Sales to the PRC market decreased by 9.1%, while sales to overseas markets increased by 6.8% and sales in Hong Kong increased by 13.9%[78]. Expenses and Costs - The Group's administrative expenses for the nine months ended 30 September 2019 were HK$9.4 million, down from HK$13.9 million in the previous year[8]. - The Group's cost of sales decreased to approximately HK$35.9 million for the nine months ended 30 September 2019, down from approximately HK$36.7 million for the same period in 2018, representing a decrease of approximately 2.1%[82]. - Selling and distribution expenses decreased to approximately HK$4.6 million for the nine months ended 30 September 2019, down from approximately HK$5.1 million for the same period in 2018, representing a decrease of approximately 8.8%[85]. - The Group's finance costs for the nine months ended 30 September 2019 were HK$0.9 million, an increase from HK$0.6 million in the previous year[8]. - The depreciation of fixed assets increased to HK$880,000 for the nine months ended 30 September 2019 from HK$397,000 in 2018[63]. Corporate Governance - The board believes that strong corporate governance practices are essential for business growth and efficient management[131]. - The corporate governance code has been adopted by the board, and they are committed to regular reviews to ensure compliance[132]. - The company has complied with the corporate governance code provisions for the nine months ended September 30, 2019, except for a deviation from code provision A.2.1[133]. - Mr. Wong Kwok Wai, Albert serves as both chairman and CEO, ensuring strong leadership and effective operation[134]. - The board will continue to review the potential separation of the roles of chairman and CEO when beneficial to the group[134]. Strategic Initiatives - The Group is focused on expanding its market presence in the sewing thread and garment accessories sectors[14]. - The Group has established a sales office in Zhejiang province to expand its sales network and explore new business opportunities[111]. - The Group emphasizes high-quality and differentiated products to maintain long-term business relationships with customers[111]. - The Directors foresee considerable business opportunities in the sewing threads industry due to a strengthened financial position from the Listing[111]. - The Group will continue to monitor the economic environment and may modify its expansion plans if they become unfeasible[112]. Share Capital and Ownership - As of September 30, 2019, Mr. Wong Kwok Wai, the chairman, holds a 75% interest in the Company through a controlled corporation, amounting to 600,000,000 shares[117]. - The Company's issued ordinary share capital is HK$8,000,000, divided into 800,000,000 shares of HK$0.01 each[117]. - Three Gates Investment holds 600,000,000 shares, representing 75% of the issued share capital[125]. - Gold-Face Finance Limited, Upbest Credit and Mortgage Limited, Good Foundation Company Limited, Upbest Strategic Company Limited, Upbest Financial Holdings Limited, and Upbest Group Limited each hold 400,000,000 shares, representing 50% of the issued share capital[125]. - As of September 30, 2019, no other parties, apart from directors or chief executives, held interests or short positions in the shares that required disclosure[126]. Compliance and Audit - The Company has appointed Advent Corporate Finance Limited as its compliance adviser, with no interests in the Company's share capital reported[138]. - The Directors confirmed compliance with the required standard of dealings regarding securities transactions for the nine months ended September 30, 2019[139]. - The Audit Committee, consisting of three independent non-executive Directors, reviewed the unaudited third quarterly results for the nine months ended September 30, 2019[148]. - Ernst & Young serves as the Company's auditor[153].
维港育马(08377) - 2019 Q3 - 季度财报