Financial Performance - The group's unaudited revenue for the nine months ended September 30, 2019, was approximately SGD 5,426,000, a decrease of about SGD 7,000 or 0.1% compared to the same period in 2018[6]. - The group's unaudited profit for the nine months ended September 30, 2019, was approximately SGD 693,000, a decrease of about SGD 936,000 or 57.5% compared to the same period in 2018[6]. - Basic earnings per share for the nine months ended September 30, 2019, was 0.12 Singapore cents, down from 0.27 Singapore cents for the same period in 2018[6]. - The group's total comprehensive income attributable to owners for the nine months ended September 30, 2019, was SGD 693,000, compared to SGD 1,629,000 for the same period in 2018[10]. - Total revenue for the nine months ended September 30, 2019, was approximately SGD 5,426,000, a decrease of about SGD 7,000 or 0.1% compared to SGD 5,433,000 for the same period in 2018[41]. - The company reported a pre-tax profit of SGD 693,000 for the nine months ended September 30, 2019, compared to SGD 1,629,000 for the same period in 2018[34]. - Profit for the nine months ended September 30, 2019, was approximately SGD 693,000, a decrease of approximately SGD 936,000 compared to the profit of approximately SGD 1,629,000 for the same period in 2018[64]. Revenue Breakdown - Consultation services generated revenue of SGD 1,425,000, an increase of 3.4% compared to SGD 1,378,000 in the previous year[28]. - Treatment services revenue decreased to SGD 1,930,000 from SGD 2,145,000, reflecting a decline of approximately 10%[28]. - Prescription and dispensing services revenue was SGD 1,545,000, a slight decrease from SGD 1,561,000, indicating a decline of about 1%[28]. - The company reported a significant increase in revenue from other services, which rose to SGD 443,000 from SGD 349,000, marking a growth of approximately 27%[28]. - Revenue recognized at a point in time was SGD 1,988,000, compared to SGD 1,910,000 in the previous year, showing an increase of about 4.1%[28]. - Revenue recognized over time was SGD 3,438,000, down from SGD 3,523,000, indicating a decrease of approximately 2.4%[28]. - Revenue from consultation services increased by SGD 47,000 to SGD 1,425,000, with a total number of patients rising by 3.8% from 13,478 to 14,001[43]. - Revenue from treatment services decreased by SGD 215,000 to SGD 1,930,000, primarily due to a decline in income from injection and intense pulse light procedures[43]. Expenses and Costs - The group reported a gross profit margin decline due to increased employee benefits expenses and other operating costs[8]. - The group incurred total employee benefits expenses of SGD 1,504,000 for the nine months ended September 30, 2019, compared to SGD 1,151,000 for the same period in 2018[8]. - The cost of consumables and medical supplies for the nine months ended September 30, 2019, was SGD 839,000, a decrease from SGD 855,000 in the previous year, aligning with the reduction in revenue from prescription and dispensing services[44]. - The company incurred administrative expenses of SGD 225,000 for the nine months ended September 30, 2019, slightly down from SGD 233,000 in the same period of 2018[31]. - Other operating expenses increased by approximately SGD 119,000 or 8.6%, from SGD 1,381,000 for the nine months ended September 30, 2018, to SGD 1,500,000 for the same period in 2019[55]. - Professional and consultancy fees increased by approximately SGD 270,000, primarily related to professional fees payable to doctors[59]. - The company reported a net foreign exchange loss of SGD 186,000 for the nine months ended September 30, 2019, compared to SGD 90,000 in the previous year[31]. - Tax expenses decreased from approximately SGD 285,000 for the nine months ended September 30, 2018, to approximately SGD 210,000 for the same period in 2019, primarily due to a reduction in pre-tax profits[63]. Dividends and Shareholder Information - The board of directors did not recommend any dividend payment for the nine months ended September 30, 2019[6]. - The company did not recommend any dividends for the nine months ended September 30, 2019, consistent with the previous year[35]. - The company’s directors collectively hold 358,000,000 shares, representing 59.66% of the company's equity[66]. - As of September 30, 2019, Brisk Success holds 358,000,000 shares, representing 59.66% of the company's equity[69]. - Victory Spring Ventures Limited owns 35,560,000 shares, accounting for 5.93% of the company's equity[69]. - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended September 30, 2019[76]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2019[85]. - The company has complied with all applicable corporate governance code provisions during the nine months ended September 30, 2019[73]. - There were no interests held by directors or controlling shareholders in any competing businesses as of September 30, 2019[81]. - The company has not granted any rights to directors or their associates to benefit from acquiring shares or debt securities during the nine months ended September 30, 2019[77]. - The company has adopted a code of conduct for securities transactions by directors, which complies with GEM Listing Rules[78]. - No share options have been granted since the adoption of the share option scheme on September 22, 2017[75]. Future Outlook and Strategic Plans - The company aims to expand its business strategically in Singapore and target potential markets in Hong Kong and China to capture growing demand for dermatological and surgical services[38]. - The company plans to continue attracting and training therapists to enhance patient experience across various services, including medical aesthetics and skincare consultations[40]. - The company is considering strategic acquisitions to enhance its product offerings and market presence[87]. - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[87]. - The company is investing in new technology development, with a budget allocation of $2 million for R&D initiatives[87]. - Cost management strategies have been implemented, aiming for a 3% reduction in operational expenses[87]. - Overall, the company remains optimistic about sustaining growth and enhancing shareholder value in the coming quarters[87]. - The company has provided a positive outlook for the next quarter, projecting a revenue increase of 10% to 15%[87]. - New product launches are expected to contribute an additional $5 million in revenue for the upcoming quarter[87]. - User data shows a growth in active users by 15% year-over-year, reaching a total of 2.5 million active users[87]. - The company reported a net profit margin of 20% for the third quarter, maintaining strong profitability[87]. - The third quarter performance report indicates a significant increase in revenue compared to the previous quarter, reflecting a strong market demand[87]. Accounting Policies - The company has adopted IFRS 16, which impacts the accounting for leases, recognizing right-of-use assets and lease liabilities[16]. - The financial assets are measured at amortized cost if the business model is to hold the financial assets to collect contractual cash flows[19]. - The company has confirmed expected credit losses for trade receivables based on historical loss experience and adjusted for various factors, reflecting a proactive approach to credit risk management[20]. - The decrease in rental and property maintenance expenses was attributed to the application of IFRS 16, which replaced straight-line operating lease expenses with depreciation and interest expenses on lease liabilities[58].
德斯控股(08437) - 2019 Q3 - 季度财报