Financial Performance - Revenue for the three months ended June 30, 2019, was HKD 20,434,000, a decrease of 6.5% compared to HKD 21,863,000 for the same period in 2018[10] - Gross profit for the same period was HKD 5,084,000, down 33.0% from HKD 7,607,000 year-on-year[10] - The company reported a loss before tax of HKD 908,000, an improvement from a loss of HKD 3,959,000 in the previous year[10] - Total comprehensive loss for the period was HKD 943,000, compared to a loss of HKD 4,433,000 in the same quarter of 2018[10] - Basic and diluted loss per share was HKD 0.22, compared to HKD 1.16 for the same period last year[10] - The group reported a net loss of HKD 951,000 for the three months ended June 30, 2019, compared to a net loss of HKD 4,525,000 in the same period of 2018[36] - Basic loss per share was HKD 0.0022, based on a weighted average of 440,000 shares for the period[36] - The company recorded a total loss of approximately HKD 900,000 for the three months ended June 30, 2019, compared to a loss of HKD 4,400,000 for the same period in 2018[61] Revenue Breakdown - Revenue from commercial printing services was HKD 12,075,000, down 4.9% from HKD 12,704,000 in the previous year[24] - Revenue from financial printing services decreased by 13.7% to HKD 7,755,000 from HKD 8,986,000 in the prior year[24] - Revenue from commercial printing services decreased by approximately 4.7% from HKD 12,700,000 in the three months ended June 30, 2018, to HKD 12,100,000 in the same period in 2019[41] - Revenue from financial printing services decreased by approximately 13.3% from HKD 9,000,000 in the three months ended June 30, 2018, to HKD 7,800,000 in the same period in 2019[41] - Total revenue decreased by approximately 6.9% from HKD 21,900,000 in the three months ended June 30, 2018, to HKD 20,400,000 in the same period in 2019[48] - Revenue from existing customers decreased by approximately HKD 1,500,000 (or 6.8%) from HKD 21,900,000 to HKD 20,400,000 for the three months ended June 30, 2019[61] Expenses and Costs - The company incurred service costs of HKD 15,350,000, which increased from HKD 14,256,000 in the previous year[10] - Administrative and other operating expenses totaled HKD 5,300,000, compared to HKD 5,106,000 in the same period last year[10] - Financing costs for the three months ended June 30, 2019, amounted to HKD 121,000, an increase from HKD 56,000 in the previous year[31] - Service costs increased by approximately 7.7% from HKD 14,300,000 in the three months ended June 30, 2018, to HKD 15,400,000 in the same period in 2019[49] - Administrative and other operating expenses slightly increased by approximately 3.9% from HKD 5,100,000 in the three months ended June 30, 2018, to HKD 5,300,000 in the same period in 2019[55] - Financing costs increased by approximately 116.1% from HKD 56,000 to HKD 121,000 due to the adoption of HKFRS 16 "Leases"[57] Taxation and Compliance - The income tax expense for the period was HKD 35,000, significantly lower than HKD 474,000 in the same period of 2018[34] - The group’s estimated taxable profits in Hong Kong were provided for at a tax rate of 16.5% for the three months ended June 30, 2019[59] - The group has applied all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2019, including HKFRS 16 on leases[21] - The group has complied with all applicable code provisions of the corporate governance code since the listing date[66] - The Audit Committee was established on April 19, 2018, in compliance with GEM Listing Rules and consists of three independent non-executive directors[89] - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the three months ended June 30, 2019, and found them to be prepared in accordance with applicable accounting standards[89] Strategic Focus and Future Plans - The company is focused on expanding its market presence and enhancing its product offerings[10] - Future strategies include exploring new technologies and potential acquisitions to drive growth[10] - The company plans to strengthen existing customer relationships and develop new ones to achieve sustainable organic growth[45] - The company aims to upgrade hardware and software for financial printing services as part of its business expansion strategy[45] Shareholder Information - Mr. Su Yongqiang holds 330,000,000 shares, representing 75% of the issued share capital[75] - The company’s major shareholder, Guanshuang, holds 330,000,000 shares, also representing 75% of the issued share capital[81] - Guanshuang is legally and beneficially owned 90% by Caibei, which is 100% owned by Mr. Su[77] - No directors or senior management held any other interests in the company’s shares or related securities as of June 30, 2019[79] - The company confirmed compliance with a non-competition agreement among its major shareholders[85] Other Information - The company does not recommend the payment of an interim dividend for the three months ended June 30, 2019[38] - The company did not incur any listing expenses for the three months ended June 30, 2019, compared to HKD 6,300,000 for the same period in 2018[58] - No significant investments, acquisitions, or disposals of subsidiaries or associates were made during the three months ended June 30, 2019[64] - The compliance advisor was changed from Jianquan Financing Limited to Dejian Financing Limited effective July 31, 2019[88] - The company has not granted or exercised any share options under the share option scheme during the three months ended June 30, 2019[72] - As of June 30, 2019, the company or its subsidiaries did not purchase, sell, or redeem any listed securities[75]
基石科技控股(08391) - 2019 Q2 - 季度财报