Financial Performance - The Group recorded an unaudited revenue of approximately HK$1.13 million for the three months ended 31 August 2020, representing a decrease of approximately 93.9% compared to HK$18.47 million for the same period in 2019[11]. - The Group's unaudited loss was approximately HK$8.9 million for the three months ended 31 August 2020, compared to a loss of approximately HK$2.4 million for the corresponding period in 2019, marking an increase of 271.9% in losses[11]. - The gross loss margin was approximately HK$6.61 million for the period, compared to a gross profit of HK$6.69 million in the previous year, indicating a significant decline in profitability[19]. - Operating loss for the period was approximately HK$8.88 million, compared to an operating loss of HK$2.23 million for the same period in 2019[19]. - The loss per share for the period attributable to the owners of the Company was HK$1.12, compared to HK$0.30 for the same period in 2019[19]. - The total comprehensive expense for the period was approximately HK$8.99 million, compared to HK$2.42 million for the same period in 2019[19]. - The decrease in revenue and increase in losses were attributed to the adverse impact of the COVID-19 pandemic on the Group's operations[11]. - The Group reported a loss for the period of HK$56,497,000 for the three months ended 31 August 2020, compared to a loss of HK$64,050,000 for the same period in 2019, representing a decrease of approximately 11.5%[32]. - Total comprehensive expenses for the period were HK$39,793,000, a reduction from HK$61,635,000 in the previous year, indicating a year-over-year decrease of about 35.4%[32]. Revenue Sources - Revenue from visual display solution services was recognized over the show or event period, with total revenue for the three months ended 31 August 2020 being HK$1,126,000[55]. - Equipment rental income for the three months ended 31 August 2020 was HK$18,360,000, compared to HK$18,470,000 in the same period of 2019[55]. - Approximately 2% of the Group's total revenue during the three months ended 31 August 2020 was derived from pop concerts, down from approximately 83.3% in the same period of 2019[71]. - Revenue from visual display solutions accounted for 100% of the Group's total revenue for the three months ended 31 August 2020, compared to approximately 99.9% for the same period in 2019[75]. - The Group's revenue from pop concerts in Hong Kong was HK$6.46 million, accounting for 42.2% of total revenue from pop concerts[100]. - Revenue from other live events in the PRC was HK$1.71 million, accounting for 64.4% of total revenue from other live events[119]. - The average revenue per show for other live events in Hong Kong was HK$1,106 for the three months ended 31 August 2020[119]. Operational Challenges - The loss was primarily due to the cancellation, postponement, or rescheduling of shows and events resulting from venue closures and related epidemic prevention measures[11]. - The Group's financial results reflect significant challenges faced during the reporting period, necessitating a reassessment of future strategies and operational adjustments[11]. - The number of pop concert shows decreased from 112 for the three months ended 31 August 2019 to 1 for the three months ended 31 August 2020[96]. - Average revenue per pop concert show dropped from approximately HK$137,000 for the three months ended 31 August 2019 to approximately HK$10,000 for the three months ended 31 August 2020[96]. - Revenue from other live events decreased in average revenue per show from approximately HK$22,000 for the three months ended 31 August 2019 to HK$3,000 for the three months ended 31 August 2020[98]. - The number of shows for other live events increased from 142 shows for the three months ended 31 August 2019 to 373 shows for the three months ended 31 August 2020, mainly due to long rental periods for location displays[98]. Financial Position - As of 31 August 2020, the Group's total assets amounted to HK$96,617,000, down from HK$129,905,000 as of 31 August 2019, reflecting a decline of approximately 25.6%[32]. - The Group's cash and cash equivalents stood at HK$30,815,000 as of 31 August 2020, compared to HK$64,050,000 a year earlier, marking a decrease of about 52.1%[32]. - The Group recorded net current assets of approximately HK$7.5 million as at 31 August 2020, down from HK$40.6 million as at 31 August 2019[133]. - The current ratio of the Group was approximately 1.3 as at 31 August 2020, compared to approximately 2.4 as at 31 August 2019[133]. - The gearing ratio increased to approximately 7.9% as at 31 August 2020, up from approximately 4.7% as at 31 August 2019, mainly due to new loans obtained[133]. - The maximum limit of banking facilities available to the Group amounted to HK$7.1 million as at 31 August 2020[133]. - The effective income tax rate of the Group was 0% for the three months ended 31 August 2020, compared to 4.7% for the same period in 2019[130]. - The Group's capital structure included equity attributable to owners of the Company of approximately HK$96.3 million as at 31 August 2020[133]. Corporate Governance and Compliance - The Board of Directors does not recommend the payment of a dividend for the three months ended 31 August 2020[11]. - No dividend was recommended for the three months ended 31 August 2020, consistent with the previous year[64]. - The Group has adopted new accounting standards effective from 1 June 2020, including amendments related to COVID-19 rent concessions, which may impact financial reporting[44]. - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) applicable to interim periods[38]. - The Group's significant accounting policies remain consistent with those used in the preparation of the consolidated financial statements for the year ended 31 May 2020[40]. - The Audit Committee reviewed the unaudited condensed consolidated results of the Group for the three months ended 31 August 2020 and the effectiveness of the internal control system[138]. - The Directors confirmed no competing business interests were identified during the three months ended 31 August 2020[140]. - All Directors complied with the required standard of dealings regarding securities transactions during the three months ended 31 August 2020[141]. - The Company has complied with the corporate governance code provisions except for the deviation from code provision A.2.1, where the roles of chairman and CEO are held by the same individual, Mr. Yeung[159]. Future Outlook - The Group aims to expand the application of its visual display solutions beyond the live events industry to diversify income sources and enhance shareholder value[162]. - The Board believes that leveraging its diverse visual display equipment and innovative management will lead to significant improvements in business performance in the future[163].
耀星科技集团(08446) - 2021 Q1 - 季度财报