Financial Performance - The Group recorded unaudited revenue of approximately HK$45.6 million for the nine months ended 29 February 2020, representing a decrease of approximately 38.5% compared to HK$74.2 million for the corresponding period in 2019[6]. - The Group's unaudited loss for the nine months ended 29 February 2020 was approximately HK$9.4 million, compared to a profit of approximately HK$18.3 million for the same period in 2019, marking a decline of 151.1%[6]. - Gross profit for the nine months ended 29 February 2020 was approximately HK$12.1 million, down 67.6% from HK$37.2 million in the same period of 2019[6]. - The Group's operating loss for the nine months ended 29 February 2020 was approximately HK$9.2 million, compared to an operating profit of HK$22.0 million in the corresponding period of 2019[11]. - Other income for the nine months ended 29 February 2020 was approximately HK$0.26 million, a decrease from HK$9 million in the same period of 2019[11]. - The Group's finance costs for the nine months ended 29 February 2020 were approximately HK$0.4 million, compared to finance income of HK$0.43 million in the same period of 2019[11]. - For the three months ended February 29, 2020, the company reported a loss before income tax of HK$3,678,000 compared to a profit of HK$4,773,000 for the same period in 2019, representing a decline of 177%[12]. - The loss attributable to owners of the company for the period was HK$3,630,000, a significant decrease from the profit of HK$3,928,000 in the previous year, indicating a year-over-year decline of 192%[12]. - The basic and diluted loss per share attributable to owners of the company was HK$0.45 for the three months ended February 29, 2020, compared to earnings of HK$0.49 per share in the same period last year[12]. - Total comprehensive income for the period was a loss of HK$3,677,000, contrasting with a profit of HK$3,953,000 for the same period in 2019, reflecting a year-over-year decline of 193%[12]. - The company's retained earnings decreased to HK$54,734,000 as of February 29, 2020, down from HK$60,164,000 as of February 28, 2019, indicating a reduction of approximately 9%[15]. - The total equity of the company as of February 29, 2020, was HK$120,302,000, a decrease from HK$125,470,000 as of February 28, 2019, representing a decline of about 4%[15]. Revenue Sources - Approximately 65.5% of the Group's total revenue during the nine months ended 29 February 2020 was derived from pop concerts, down from approximately 80.0% in the same period in 2019[102]. - Revenue from visual display solutions accounted for 99.3% of total revenue during the nine months ended 29 February 2020, with HK$45.3 million generated from this segment[109]. - The Group's equipment rental revenue was HK$312,000, representing 0.7% of total revenue for the nine months ended 29 February 2020[109]. - Revenue from pop concerts decreased from HK$59,356,000 for the nine months ended 28 February 2019 to HK$29,859,000 for the nine months ended 29 February 2020, a decline of approximately 49.8%[123]. - Revenue from other live events increased from HK$14,594,000 to HK$15,448,000, an increase of approximately 5.9%[120]. Operational Challenges - The decline in revenue was primarily due to the postponement and rescheduling of concerts and events in the Asia region and Hong Kong, attributed to public health measures and social unrest[6]. - The outbreak of COVID-19 since January 2020 has severely impacted the operating environment for concerts and events, leading to postponements and rescheduling[185]. - The management is actively monitoring market conditions and adjusting operational strategies in response to the ongoing challenges posed by COVID-19[187]. Corporate Governance - The company is committed to high corporate governance standards, with a noted deviation from the CG Code regarding the roles of chairman and CEO being held by the same individual, Mr. Yeung[180]. - The company has confirmed that all directors adhered to the required trading standards during the reporting period[166]. - The company maintains high standards of corporate governance and has adhered to the GEM Listing Rules since its listing date until February 29, 2020[182]. Dividend Policy - The Board does not recommend the payment of any dividend for the nine months ended 29 February 2020[6]. - No dividend was recommended for the nine months ended 29 February 2020, consistent with the previous year where no dividend was paid[57]. Taxation - All PRC subsidiaries of the Company are subject to a PRC Enterprise Income Tax at the rate of 25.0% for the nine months ended 29 February 2020[4]. - The Macau subsidiary was subject to a complementary tax at the rate of 12.0% on estimated assessable income exceeding MOP600,000 for the nine months ended 29 February 2020[4]. - The Group's estimated assessable profits for the nine months ended 29 February 2020 were subject to Hong Kong profits tax rates of 8.25% for the first HK$2 million and 16.5% for the remaining profits[4]. - The effective income tax rate of the Group was approximately -0.17% for the nine months ended 29 February 2020, compared to approximately 16.9% for the same period in 2019[133]. Employee Information - Total staff costs for the nine months ended 29 February 2020 amounted to approximately HK$15.1 million, a decrease from approximately HK$15.9 million for the same period in 2019[155]. - The Group engaged a total of 96 employees as of 29 February 2020, down from 98 employees as of 28 February 2019[155]. Listing and Compliance - The Group is in the process of transferring its listing from GEM to the Main Board of the Stock Exchange, incurring non-recurring professional expenses related to this transition[6]. - The Audit Committee reviewed the unaudited condensed consolidated results of the Group for the nine months ended 29 February 2020[161]. Future Outlook - The company believes it will achieve a breakthrough in business performance by leveraging its advantages, particularly its wide variety of visual display equipment and innovative management[189].
耀星科技集团(08446) - 2020 Q3 - 季度财报