Financial Performance - For the three months ended August 31, 2021, the revenue was RM 2,628,000, a decrease of 44.9% compared to RM 4,766,000 in the same period of 2020[15]. - The cost of sales for the same period was RM 2,701,000, resulting in a gross loss of RM 73,000, compared to a gross profit of RM 923,000 in 2020[16]. - Loss before taxation for the period was RM 1,209,000, significantly higher than the loss of RM 145,000 reported in the previous year[16]. - The total comprehensive loss for the period was RM 1,160,000, compared to RM 534,000 in the corresponding period of 2020[17]. - Loss per share from continuing operations was RM 1.23, compared to RM 0.31 in the previous year[17]. - The company reported a profit of RM 40,000 from discontinued operations, an increase from RM 15,000 in the same period of 2020[16]. - The company reported a loss for the period of RM 1,170,000 for the three months ended August 31, 2021, compared to a loss of RM 255,000 for the same period in the previous year[19]. - The accumulated loss increased to RM 6,286,000 as of August 31, 2021, up from RM 5,116,000 as of May 31, 2021[19]. - The total comprehensive loss for the period ended August 31, 2021, was RM 1,160,000, which includes an exchange difference gain of RM 10,000[19]. - The Group recorded a net loss of approximately RM 1.2 million for the three months ended August 31, 2021, primarily due to decreased revenue caused by COVID-19 and related measures[84]. Revenue Breakdown - Manufacturing and trading segment revenue decreased to RM 2,010,000 from RM 3,677,000, representing a decline of 45.4% year-over-year[37]. - Revenue for the three months ended 31 August 2021 was RM 2,628,000, a decrease of 44.9% compared to RM 4,766,000 for the same period in 2020[37]. - Revenue from the manufacturing and trading of precast concrete junction boxes decreased by approximately 45.34%, from RM 3.7 million to RM 2.0 million during the same period[71]. - Revenue from the trading of accessories and pipes and mobile crane rental services decreased by approximately 42.46%, from RM 1.1 million to RM 0.6 million[72]. Expenses and Costs - Administrative expenses increased slightly to RM 989,000 from RM 966,000 year-on-year[16]. - The cost of inventories recognized as an expense was RM 1,938,000, down from RM 2,812,000, reflecting a decrease of 31.0%[48]. - Selling and distribution expenses decreased by approximately RM 9,000 or 4.17%, from RM 216,000 to RM 207,000, mainly due to a decrease in commission[82]. - Interest expense on leased liabilities decreased to RM 18,000 from RM 37,000, a reduction of 51.4% year-over-year[40]. Equity and Share Capital - As of August 31, 2021, the total equity of SK Target Group Limited is RM 32,428,000, a decrease from RM 33,558,000 as of May 31, 2021, reflecting a comprehensive loss for the period[19]. - The share capital remained unchanged at RM 4,277,000 from May 31, 2021, while the share premium increased to RM 26,444,000[19]. - The weighted average number of ordinary shares for calculating basic loss per share increased to 98,025,000 from 86,025,000 due to share consolidation effective on 18 August 2021[52]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code provisions, except for the separation of the roles of chairman and CEO, which is deemed appropriate under current circumstances[123]. - The Company has established an Audit Committee to oversee financial statements and internal control procedures[152]. - The audit committee has been established in accordance with GEM Listing Rules and is responsible for reviewing the company's financial statements and overseeing internal control procedures[155]. - The audit committee consists of three members, with Mr. Chu Kin Ming serving as the chairman[156]. Future Outlook and Management Commentary - The company continues to focus on improving operational efficiency and exploring new market opportunities despite the current financial challenges[15]. - The management is cautiously optimistic about the overall business prospects as Malaysia's economy is expected to slowly recover with the national COVID-19 immunisation programme[67]. - The management will closely monitor factors such as labor shortages and rising production costs that may impact business operations[66]. Share Options and Capital Raising - The Share Option Scheme was adopted on June 27, 2017, and is valid for ten years to attract and retain personnel[125]. - No share options were granted, exercised, lapsed, or cancelled under the Share Option Scheme as of August 31, 2021[140]. - The Company raised approximately HK$4.96 million through a share subscription completed on March 11, 2021, for general working capital, which was used as intended[119]. - An additional HK$1.85 million was raised through a share subscription completed on September 1, 2021, also for general working capital, and was used as intended up to the report date[119].
万顺瑞强集团(08427) - 2022 Q1 - 季度财报