Financial Performance - The unaudited consolidated results for the three months ended December 31, 2020, show a significant performance improvement compared to the same period in 2019[12]. - The Group reported a revenue increase of 25% year-over-year for the nine months ended December 31, 2020, compared to the same period in 2019[12]. - Revenue for the three months ended December 31, 2020, was HK$9,963,000, a decrease of 21.5% compared to HK$12,684,000 for the same period in 2019[13]. - Revenue for the nine months ended December 31, 2020, was HK$32,816,000, down 13.8% from HK$38,113,000 in the previous year[30]. - The Group reported a loss of HK$603,000 for the three months ended December 31, 2020, an improvement from a loss of HK$1,509,000 in the same period of 2019[50]. - For the nine months ended 31 December 2020, the Group incurred a net loss of approximately HK$2.2 million, a decrease from a net loss of approximately HK$4.6 million for the same period in 2019, representing a reduction of approximately 52.17%[68]. Revenue Breakdown - Sales of biometric identification devices and security products for the three months ended December 31, 2020, were HK$6,036,000, a decline of 27.2% from HK$8,290,000 in 2019[25]. - Provision of auxiliary and other services generated revenue of HK$3,927,000 for the three months ended December 31, 2020, compared to HK$4,394,000 in the same period of 2019, reflecting a decrease of 10.6%[25]. - The company recognized HK$6,744,000 in revenue at a point in time for the three months ended December 31, 2020, compared to HK$10,346,000 in the same period of 2019, representing a decrease of 34.0%[30]. - Sales of biometrics identification devices and other accessories decreased by approximately HK$4.2 million (or 16.2%) compared to the corresponding period in 2019[59]. - Revenue from auxiliary and other services decreased by approximately HK$1.1 million (or 9.1%) compared to the same period in 2019[59]. Cost and Expenses - Gross profit for the nine months ended December 31, 2020, was HK$15,384,000, down 9.1% from HK$16,921,000 in the previous year[13]. - Selling and distribution costs decreased to HK$1,297,000 for the three months ended December 31, 2020, from HK$1,767,000 in the same period of 2019, a reduction of 26.6%[13]. - Administrative expenses for the three months ended December 31, 2020, were HK$4,592,000, a slight decrease from HK$4,934,000 in the previous year[13]. - Administrative expenses for the same period were approximately HK$15.3 million, down from approximately HK$17.1 million in 2019, indicating a decrease of approximately 10.53%[68]. - The Group's cost of inventories sold decreased by approximately 20.3% to approximately HK$11.5 million for the nine months ended December 31, 2020, compared to the same period last year[65]. Future Outlook - The Company has outlined a future outlook with a projected revenue growth of 30% for the next fiscal year, driven by new product launches and market expansion[12]. - The Company is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[12]. - The Company has introduced two new products in Q3 2020, which are anticipated to contribute an additional 5% to overall revenue in the upcoming quarter[12]. - The Group plans to enhance its marketing capabilities and expand its product portfolio through software development to increase market share in Hong Kong and Macau[73]. - The Group intends to utilize net proceeds from its listing to launch affordable locally manufactured fingerprint identification devices and improve after-sale services in Southern China[73]. Corporate Governance - The Company emphasizes a commitment to maintaining high standards of corporate governance and transparency in its operations[12]. - The company has established an Audit Committee to review and supervise the financial reporting process and internal control systems, comprising three independent non-executive Directors[107]. - The company has complied with the Corporate Governance Code for the nine months ended December 31, 2020, except for the deviation regarding the roles of chairman and chief executive officer being held by the same individual[100]. - The company is committed to high standards of corporate governance to enhance public accountability and safeguard shareholder interests[103]. - The Board continues to monitor and review corporate governance principles to ensure compliance[101]. Market Conditions - The COVID-19 pandemic has impacted the Group's business activities and disrupted daily operations, although the overall financial effect cannot be reliably estimated[56]. - The company continues to adapt to market conditions and explore new strategies for growth and expansion in the biometric and security sectors[41]. - The Group operates in Hong Kong, Macau, and the PRC, focusing on biometrics identification solutions[59]. Shareholder Information - As of 31 December 2020, Mr. Tony Yuen and Ms. Pauline Yuen each hold a long position of 366,000,000 shares, representing 45.75% of the issued share capital[81]. - As of December 31, 2020, Delighting View holds 366,000,000 shares, representing 45.75% of the company's issued share capital[89]. - Delighting View is beneficially owned by Mr. Tony Yuen (85%) and Ms. Pauline Yuen (15%), both of whom are deemed to have interests in all shares held by Delighting View[92]. - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended December 31, 2020[95].
懒猪科技(08379) - 2021 Q3 - 季度财报