环球印馆(08448) - 2021 Q3 - 季度财报

Financial Highlights This section provides a concise overview of the company's financial performance, highlighting key metrics and dividend policy Financial Highlights For the nine months ended December 31, 2020, the company's revenue and gross profit decreased year-on-year due to reduced printing service demand, yet profit attributable to owners turned positive to approximately HKD 2.0 million from a HKD 1.4 million loss, primarily due to one-off items, while core operating loss widened from HKD 4.6 million to HKD 6.7 million, with no interim dividend recommended 2020 Q3 Key Financial Indicators (Nine Months Ended December 31) | Indicator | 2020 Q3 (Nine Months) | 2019 Q3 (Nine Months) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 79.3 million HKD | 110.4 million HKD | -28.2% | | Gross Profit | 16.4 million HKD | 21.8 million HKD | -24.8% | | Profit/(Loss) Attributable to Owners of the Company | 2.0 million HKD | (1.4) million HKD | Turned from Loss to Profit | | Net Operating Loss (Excluding One-off Items) | (6.7) million HKD | (4.6) million HKD | Loss Widened | - Current period results include approximately HKD 7.8 million in government subsidies and HKD 0.9 million in gain on disposal of right-of-use assets, which are the primary reasons for achieving profitability[6] - The Board does not recommend the payment of an interim dividend for the nine months ended December 31, 2020[7] Management Discussion and Analysis This section offers insights into the company's operational strategies, market challenges, and future growth initiatives Business Review and Outlook The Group's core business is offset, inkjet, and digital printing services in Hong Kong, with revenue declining 28.2% due to COVID-19 and economic slowdown, leading to the closure of six underperforming stores, while future strategies include horizontal expansion, service diversification into paperless printing, and a HKD 2.0 million investment in new machinery for cost reduction and growth - The Group primarily provides offset printing, inkjet printing, and primary color digital printing services to Hong Kong customers[9] - Affected by the pandemic and economic slowdown, the company closed six underperforming stores and will continue to control costs to maintain profitability[10] - Future strategies include horizontal expansion, service diversification (e.g., developing paperless printing business), and an investment of HKD 2.0 million in new machinery to reduce subcontracting costs[11] Financial Review During the reporting period, the Group's total revenue decreased 28.2% to HKD 79.3 million due to reduced demand for printing services caused by COVID-19, with sales costs decreasing in line with order volume, gross profit margin slightly improving to 20.7%, other income significantly increasing due to HKD 7.8 million in government pandemic-related subsidies, and selling and administrative expenses decreasing due to reduced depreciation and temporary salary reductions, resulting in a HKD 2.0 million net profit primarily driven by one-off gains, while core operating loss widened when excluding these items Financial Performance Analysis (Nine Months Ended December 31) | Item | 2020 (HKD million) | 2019 (HKD million) | Reason for Change | | :--- | :--- | :--- | :--- | | Revenue | 79.3 | 110.4 | COVID-19 led to reduced demand for printing services | | Gross Profit | 16.4 | 21.8 | Consistent with decrease in revenue and cost of sales | | Gross Profit Margin | 20.7% | 19.7% | Slight improvement | | Other Income | 8.5 | 1.2 | Primarily HKD 7.8 million in government subsidies | | Selling and Administrative Expenses | 23.4 | 27.1 | Reduced depreciation and temporary salary reduction measures | - Profit attributable to owners of the company was approximately HKD 2.0 million, compared to a loss of HKD 1.4 million in the prior period, with this turnaround primarily influenced by one-off items including government subsidies and asset disposal gains[21] - The Board expects the negative impact of the COVID-19 pandemic to persist in the short term and continue to affect the Group's financial performance[21] Other Information This section details the company's shareholding structure, directors' interests, and adherence to corporate governance standards Shareholding and Interests This section discloses the shareholding of the company's directors, chief executives, and major shareholders as of December 31, 2020, with four directors collectively holding over 54% of the company's shares, and notes that a share option scheme adopted in 2018 has not yet granted any options as of the reporting date Directors' Long Positions in Shares as of December 31, 2020 | Director Name | Capacity | Number of Shares Held | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Chow Man Keung | Beneficial Owner | 280,400,000 | 31.16% | | Mr. Hui Ching Noi | Beneficial Owner | 110,500,000 | 12.28% | | Mr. Leung Yuet Cheong | Beneficial Owner | 66,460,000 | 7.38% | | Mr. Wong Man Hin | Beneficial Owner | 30,380,000 | 3.38% | - Spouses of three executive directors (Ms. Siu Man Yan, Ms. Ng Lai Nga, Ms. Mok Chun Ngo) are deemed to have interests in the corresponding shares due to spousal interests[26][27] - The company adopted a share option scheme on February 26, 2018, but as of the report date, no share options have been granted, exercised, lapsed, or cancelled[28] Corporate Governance The company is committed to maintaining high corporate governance standards, complying with the GEM Listing Rules' Corporate Governance Code, adopting a code for directors' securities transactions, with all directors confirming compliance, and has not repurchased, sold, or redeemed any securities during the reporting period, while the Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited quarterly financial statements - For the nine months ended December 31, 2020, the company has complied with all code provisions of the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules[29] - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[31] - The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated financial statements and expressed satisfaction with their compliance and adequacy of disclosure[34] Third Quarter Results This section presents the unaudited condensed consolidated financial statements, including comprehensive income and equity changes for the period Unaudited Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated statement of comprehensive income and statement of changes in equity for the nine months ended December 31, 2020, showing a profit attributable to owners of the company of HKD 2.0 million, a significant improvement from a HKD 1.4 million loss in the prior year, with basic earnings per share of 0.22 HK cents, and total equity at period-end of HKD 38.8 million Unaudited Condensed Consolidated Statement of Comprehensive Income (Nine Months Ended December 31) | Item | 2020 (HKD) | 2019 (HKD) | | :--- | :--- | :--- | | Revenue | 79,267,140 | 110,421,965 | | Gross Profit | 16,392,740 | 21,753,028 | | Operating Profit/(Loss) | 2,398,742 | (951,960) | | Profit/(Loss) Before Tax | 1,700,284 | (1,507,572) | | Profit/(Loss) Attributable to Owners of the Company for the Period | 2,008,944 | (1,369,299) | | Basic Earnings/(Loss) Per Share | 0.22 HK cents | (0.15) HK cents | Summary of Unaudited Condensed Consolidated Statement of Changes in Equity | Item | Amount (HKD) | | :--- | :--- | | As at April 1, 2020 (Audited) | 36,805,070 | | Profit and Total Comprehensive Income for the Period | 2,008,944 | | As at December 31, 2020 (Unaudited) | 38,814,014 | Notes to the Financial Statements The notes to the financial statements explain the basis of preparation, significant accounting policies, and detailed composition of various items, with the Group's revenue primarily from printing services in Hong Kong, where offset printing is the largest but also most significantly declined source, and from this period, all businesses are managed as a single reporting segment, while also explaining tax calculations and basic earnings per share methodology Revenue by Business Segment (Nine Months Ended December 31) | Service Type | 2020 (HKD) | 2019 (HKD) | | :--- | :--- | :--- | | Offset Printing | 58,382,435 | 84,030,132 | | Primary Color Digital Printing | 5,258,921 | 6,574,599 | | Inkjet Printing | 10,388,068 | 15,797,139 | | Other Services | 5,237,716 | 4,020,095 | | Total | 79,267,140 | 110,421,965 | - Starting from this reporting period, the Group is managed and performance is assessed as a single reporting segment, namely the provision of printing services and trading of printed products[47] - Basic earnings per share is calculated based on the profit attributable to owners of the company of HKD 2,008,944 and the weighted average of 900,000,000 ordinary shares outstanding during the period[51]