Financial Performance - The group's revenue for the period was approximately HKD 42.0 million, a decrease of about 11.2% from approximately HKD 47.3 million in the previous period[10]. - The gross profit decreased by approximately 23.1% to about HKD 11.3 million, with a gross margin decline from approximately 31.0% to about 26.9%[12]. - The net loss for the period increased to approximately HKD 5.8 million, compared to HKD 2.5 million in the previous period, primarily due to reduced sales orders from two major customers[17]. - Revenue for the nine months ended December 31, 2019, was HKD 41,975,000, a decrease of 11.7% compared to HKD 47,273,000 for the same period in 2018[37]. - Gross profit for the nine months ended December 31, 2019, was HKD 11,281,000, down 23.5% from HKD 14,656,000 in 2018[37]. - Operating loss for the nine months ended December 31, 2019, was HKD 5,719,000, compared to an operating loss of HKD 2,489,000 in the same period of 2018, representing a 129.5% increase in losses[37]. - Loss attributable to owners of the company for the nine months ended December 31, 2019, was HKD 5,765,000, compared to HKD 2,548,000 in 2018, indicating a 126.5% increase in losses[39]. - Total comprehensive loss for the nine months ended December 31, 2019, was HKD 5,781,000, compared to HKD 2,577,000 in 2018, reflecting a 124.5% increase in total comprehensive losses[39]. - Basic and diluted loss per share for the nine months ended December 31, 2019, was HKD 0.58, compared to HKD 0.25 for the same period in 2018[37]. Expenses and Cost Management - Sales and distribution expenses decreased by approximately 28.1% to about HKD 6.4 million, down from approximately HKD 8.9 million in the previous period[13]. - Administrative expenses increased by approximately 11.8% to about HKD 11.4 million, mainly due to additional depreciation of property, plant, and equipment[15]. - The company plans to implement cost and expenditure control measures to turn around its financial performance[8]. - Employee costs, including salaries and bonuses, decreased to HKD 5,932,000 for the nine months ended December 31, 2019, down 19.1% from HKD 7,345,000 in the same period of 2018[60]. - Depreciation expenses increased significantly to HKD 3,331,000 for the nine months ended December 31, 2019, compared to HKD 1,282,000 in the same period of 2018, representing a rise of 159.5%[60]. - Rental expenses to related parties amounted to HKD 1,149,000 for the nine months ended December 31, 2019, slightly down from HKD 1,254,000 in the same period of 2018[64]. Shareholder Information - As of December 31, 2019, Hearthfire Limited holds 611,250,000 shares, representing 61.125% of the company's total shares[26]. - Top Clay Limited and Ms. Shi hold 52,500,000 shares each, accounting for 5.25% of the total shares[26]. - Present Moment Limited holds 86,250,000 shares, which is 8.625% of the total shares[26]. - The company did not recommend the payment of any dividends for the period[20]. - The company did not recommend any dividend payment for the current period, consistent with the previous period[63]. Corporate Governance - The company has adopted a code of conduct for securities trading by directors, complying with GEM Listing Rules[24]. - The company has complied with all applicable provisions of the corporate governance code during the reporting period[23]. - There are no other individuals or entities with interests in the shares that require disclosure under the Securities and Futures Ordinance as of December 31, 2019[28]. - The roles of Chairman and CEO are currently held by the same individual, Mr. She, which the board believes enhances leadership consistency[23]. - The company has established an audit committee consisting of three independent non-executive directors to review accounting policies and quarterly reports[36]. Business Outlook and Strategy - New product lines, including aroma machines and small furniture, are set to be launched in the upcoming quarter[8]. - The company is optimistic yet cautious about the overall business outlook amid various uncertainties[9]. - The company operates primarily in the home goods trading, design, and e-commerce sectors[43]. Taxation and Financial Reporting - The tax expense for the period was approximately HKD 20,000, a decrease of about 50.0% from approximately HKD 40,000 in the previous period[16]. - The total income tax expense for the nine months ended December 31, 2019, was HKD 20,000, down from HKD 40,000 in the same period of 2018, reflecting a 50% decrease[54]. - The company has no taxable profits in China during the period, resulting in no corporate income tax being paid[58]. - The financial data is prepared in accordance with the GEM Listing Rules and Hong Kong Financial Reporting Standards[44]. - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that would significantly impact the reported amounts in the unaudited condensed consolidated financial information[49]. Other Financial Information - Interest income increased to HKD 364,000 for the nine months ended December 31, 2019, compared to HKD 280,000 in the same period of 2018, representing a growth of 30%[49]. - The company reported a financing lease expense of HKD 26,000 for the nine months ended December 31, 2019, compared to HKD 19,000 in the same period of 2018, indicating a 36.8% increase[53]. - The company recorded a foreign exchange gain of HKD 5,000 for the nine months ended December 31, 2019, compared to a loss of HKD 1,146,000 in the same period of 2018[60]. - The company sold a vehicle to Mr. She for approximately HKD 48,000, based on market value[66]. - Non-current assets in Hong Kong as of December 31, 2019, were valued at HKD 533,000, a decrease from HKD 591,000 as of March 31, 2019[52]. - The company’s non-current assets in China were HKD 3,269,000 as of December 31, 2019, down from HKD 6,250,000 as of March 31, 2019, indicating a decline of 47.7%[52]. - The cost of home goods decreased to HKD 27,709,000 for the nine months ended December 31, 2019, down 7.4% from HKD 29,939,000 in the same period of 2018[60]. - The company recorded a short-term benefit expense of HKD 2,196,000 for the nine months ended December 31, 2019, an increase of 11.2% from HKD 1,975,000 in the same period of 2018[65]. - Revenue from major customers accounted for over 10% of total revenue, with Customer B contributing HKD 13,001,000 for the nine months ended December 31, 2019, up from HKD 9,188,000 in 2018, a growth of 41.5%[53].
舍图控股(08392) - 2020 Q3 - 季度财报