Financial Performance - For the three months ended March 31, 2020, the revenue amounted to approximately HK$8.1 million, a decrease from HK$13.1 million in the same period of 2019, representing a decline of about 38.5%[7] - The loss after taxation for the same period was approximately HK$2.9 million, compared to a loss of HK$2.96 million in the previous year, indicating a slight improvement[8] - Basic and diluted loss per share for the period was approximately HK0.36 cents, compared to HK0.37 cents in the prior year, reflecting a marginal decrease in loss per share[9] - Gross profit for the three months ended March 31, 2020, was HK$1.27 million, down from HK$2.25 million in 2019, marking a decline of approximately 43.4%[8] - Total comprehensive loss for the period was HK$4.02 million, compared to HK$1.39 million in the same period last year, indicating a significant increase in overall losses[9] - The company reported a loss before tax of HK$2.86 million, which is an improvement from a loss of HK$3.54 million in the same period of 2019[8] - The total comprehensive loss for the period was HK$4,018,000, which includes an exchange loss of HK$1,161,000 from foreign operations[11] - The loss attributable to the owners of the parent decreased to approximately HK$2.9 million for the three months ended March 31, 2020, a decrease of approximately 3.5% from approximately HK$3.0 million for the same period in 2019[70] Revenue Breakdown - Revenue from the PRC was HK$4,366,000, down 40.0% from HK$7,289,000 in the previous year[42] - Overseas revenue decreased by 40.0% to HK$2,948,000 from HK$4,915,000 in 2019[42] - Revenue from Hong Kong was HK$800,000, a slight decrease of 7.0% from HK$860,000 in the same period last year[42] - Revenue from contracts with customers for the three months ended March 31, 2020, was HK$8,114,000, a decrease of 37.5% from HK$13,064,000 in the same period of 2019[46] - Revenue from industrial products sales was HK$8,114,000, down from HK$13,064,000 in 2019, indicating a significant decline in sales performance[47] - Sales in the PRC market decreased by 40.1%, with revenue of HK$4.4 million for the three months ended March 31, 2020, compared to HK$7.3 million in 2019[74] - Overseas sales also decreased by 40.0%, with revenue of HK$2.9 million for the three months ended March 31, 2020, down from HK$4.9 million in 2019[74] Expenses and Costs - Selling and distribution expenses decreased to HK$1.35 million from HK$1.49 million, a reduction of approximately 9.1%[8] - Administrative expenses were reduced to HK$3.27 million from HK$3.90 million, showing a decrease of about 16.1%[8] - The Group's loss before tax for the three months ended March 31, 2020, was impacted by a cost of inventories sold amounting to HK$6,843,000, down from HK$10,810,000 in 2019[57] - Depreciation of fixed assets increased to HK$356,000 in 2020 from HK$283,000 in 2019, indicating a rise of 25.8%[57] - Employees' benefit expenses (excluding Directors' remuneration) decreased to HK$3,645,000 in 2020 from HK$4,746,000 in 2019, a reduction of 23.3%[57] - Finance costs for the three months ended March 31, 2020, were HK$203,000, down 33.4% from HK$305,000 in 2019[54] Equity and Share Capital - As of March 31, 2020, the company's total equity stood at HK$38,454,000, down from HK$42,472,000 as of January 1, 2020[11] - The company's accumulated losses increased to HK$36,843,000 as of March 31, 2020, compared to HK$33,986,000 at the beginning of the year[11] - As of March 31, 2020, the company's issued ordinary share capital was HK$8,000,000, divided into 800,000,000 shares of HK$0.01 each[117] - Mr. Wong Kwok Wai, Albert, holds a controlled corporation interest in 600,000,000 shares, representing 75% of the issued share capital[112] - Three Gates Investment Limited, wholly owned by Mr. Wong, is deemed to hold 600,000,000 shares, also accounting for 75% of the issued share capital[117] Corporate Governance and Compliance - The company is currently under investigation by the ICAC, but the directors believe it does not have a material impact on the financial statements[20] - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, with all values rounded to the nearest thousand[19] - The company has adopted the corporate governance code as per GEM Listing Rules and is committed to regular reviews to meet shareholder expectations[130] - The company has complied with the corporate governance code provisions for the three months ended March 31, 2020, except for a deviation from code provision A.2.1[131] - The company maintains compliance with GEM Listing Rules regarding the disclosure of interests and positions[115] Future Outlook and Plans - The Directors believe there are considerable business opportunities in the sewing threads industry in the long term and will implement expansion plans in a prudent manner considering market conditions[105] - The company proposes a rights issue conditional upon an underwriting agreement dated April 9, 2020[144] - The board proposes to change the board lot size for trading from 10,000 shares to 50,000 shares[145] Audit and Financial Review - The audit committee reviewed the unaudited first quarterly results for the three months ended March 31, 2020[152] - The company has established an audit committee responsible for reviewing financial information and monitoring internal control procedures[151] - The audit committee consists of three independent non-executive directors[152] Miscellaneous - The company is headquartered in Hong Kong at Unit 1006, 10/F., Harbour Crystal Centre[158] - The stock code for the company is 8377[159] - The company’s website is www.shenyouholdings.com[159]
维港育马(08377) - 2020 Q1 - 季度财报