Financial Performance - For the nine months ended September 30, 2021, the Group recorded revenue of approximately HK$49.3 million, an increase from HK$31.6 million in the same period of 2020[7]. - The loss after taxation for the nine months ended September 30, 2021, amounted to approximately HK$27.0 million, compared to a loss of HK$8.6 million in the same period of 2020[7]. - Basic and diluted loss per share for the nine months ended September 30, 2021, was approximately HK7.65 cents, up from HK4.25 cents in the same period of 2020[9]. - For the three months ended September 30, 2021, revenue was HK$16.8 million, compared to HK$14.1 million for the same period in 2020, reflecting a growth of approximately 19%[9]. - Gross profit for the nine months ended September 30, 2021, was approximately HK$8.6 million, compared to HK$6.5 million in the same period of 2020, representing a year-on-year increase of about 32%[9]. - Total comprehensive loss for the nine months ended September 30, 2021, was approximately HK$26.5 million, compared to HK$7.5 million in the same period of 2020[10]. - The Group's loss before tax for the nine months ended September 30, 2021, was approximately HK$27.0 million, compared to HK$8.6 million for the same period in 2020[9]. - The Group reported a segment loss of HK$7,468,000 for the nine months ended September 30, 2021, with losses of HK$5,571,000 in manufacturing and trading of threads and HK$1,094,000 in equine services[43]. - The Group recorded a loss before income tax of approximately HK$27.0 million for the nine months ended September 30, 2021, an increase of approximately 214.0% from approximately HK$8.6 million for the corresponding period in the previous year[108][112]. Revenue Breakdown - For the nine months ended September 30, 2021, total revenue was HK$49,328,000, comprising HK$39,397,000 from manufacturing and trading of threads and HK$9,931,000 from interior design and decoration[43]. - The revenue from the manufacturing and trading of threads increased to approximately HK$39.4 million, up 24.6% from approximately HK$31.6 million in the prior year[89]. - The revenue from the interior design and decoration segment for the nine months ended September 30, 2021, was HK$9.9 million, with no revenue recorded for the same period in 2020 due to the acquisition of Diamond Motto Limited[90]. - Revenue from external customers for the nine months ended September 30, 2021 included HK$20,570,000 from the PRC, an increase from HK$18,031,000 in 2020[48]. Expenses and Losses - The Group's administrative expenses for the nine months ended September 30, 2021, were approximately HK$17.5 million, compared to HK$10.6 million in the same period of 2020, indicating an increase of about 65%[9]. - Unallocated corporate expenses for the three months ended September 30, 2021, amounted to HK$3,267,000, contributing to a loss before tax of HK$5,354,000[42]. - For the nine months ended September 30, 2021, unallocated corporate expenses totaled HK$19,488,000, leading to a loss before tax of HK$26,956,000[43]. - Selling and distribution expenses increased to approximately HK$5.3 million, representing an increase of approximately 16.8% from approximately HK$4.5 million for the same period in 2020[106]. - The Group's employee benefit expenses (excluding directors' remuneration) for the three months ended September 30, 2021 were HK$5,716,000, compared to HK$3,898,000 in 2020, marking a 46% increase[64]. Acquisitions and Investments - The Group completed the acquisition of 100% equity interest in Diamond Motto Limited on 9 February 2021, aiming to diversify its business portfolio[80]. - The total consideration for the acquisition of Diamond Motto Limited increased from HK$14,500,000 to HK$25,628,000, indicating a significant rise in the valuation[59]. - The Group completed the acquisition of DML Group in February 2021, which provides interior design and decoration services, aiming to diversify its business portfolio and increase income sources[137]. - The Group has entered the horse trading and breeding business in Australia, expecting to generate revenue and profit in the first half of 2022[81]. Share Capital and Equity - As of September 30, 2021, the total equity amounted to HK$91,360,000, reflecting an increase from HK$49,642,000 as of September 30, 2020[12]. - The company issued rights shares amounting to HK$17,200,000 during the period, contributing to the increase in equity[12]. - The company’s share capital increased from HK$12,000,000 as of September 30, 2020, to HK$20,457,000 as of September 30, 2021[12]. - As at 30 September 2021, the Company's issued share capital amounted to approximately HK$20.5 million, divided by 409,141,860 shares of HK$0.05 each[125][127]. Corporate Governance and Management - The Group's chairman and CEO was under investigation by the ICAC, but the directors believe this does not have a material impact on the financial statements[24][26]. - The board believes that strong corporate governance practices are essential for safeguarding shareholder interests and ensuring accountability[166]. - The company has complied with the corporate governance code provisions for the nine months ended September 30, 2021, except for a deviation from code provision A.2.1[171]. - The Audit Committee consists of three independent non-executive Directors, ensuring no conflicts of interest with previous auditors[186]. - The unaudited third quarterly results for the nine months ended September 30, 2021, have been reviewed by the Audit Committee[186]. Market Conditions and Future Outlook - The Group has faced difficulties in its principal business of manufacturing and selling sewing threads due to the COVID-19 pandemic and ongoing trade conflicts between China and the U.S.[136]. - The Group anticipates that the trade conflict and COVID-19 will continue to impact its business in the coming year[136]. - The Group expects to generate revenue from equine services in the first half of 2022, with a cost of sales of HK$0.9 million recorded for this segment[98]. - The increase in revenue is mainly attributable to the successful completion of the acquisition of DML Group and the recovery of the sewing threads business as COVID-19 tensions seem to be abating[85]. Shareholder Information - As of September 30, 2021, Mr. Wong Kwok Wai, Albert holds 120,000,000 shares, representing 29.33% of the issued share capital of the Company[145]. - Three Gates Investment holds 120,000,000 shares, representing 29.33% of the issued share capital, and is wholly owned by Mr. Wong Kwok Wai, the chairman[157]. - Gold-Face Finance Limited, Upbest Credit and Mortgage Limited, Good Foundation Company Limited, Upbest Strategic Company Limited, and Upbest Financial Holdings Limited each hold 80,000,000 shares, accounting for 19.55% of the issued share capital[157]. - The total number of shares held by substantial shareholders is significant, indicating a concentrated ownership structure[157].
维港育马(08377) - 2021 Q3 - 季度财报